Document:

exv10w6

	 	 	 	 	 

EXHIBIT 10.6

CONFIRMATION

	 	 	 
	Date:

	 	September 29, 2009
	 
	 	 
	To:

	 	PHH Corporation (“Issuer”)
	 
	 	 
	Facsimile:

	 	(856) 917-4278
	 
	 	 
	Attention:

	 	Treasurer
	 
	 	 
	From:

	 	Citibank, N.A. (“Dealer”)
	 
	 	 
	Facsimile:

	 	(212) 622-8534

Transaction Reference Number:

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced Transaction entered into on the Trade Date specified below
between you and us. This Confirmation supplements, forms a part of, and is subject to the Master
Terms and Conditions for Warrants Issued by PHH Corporation, between Citibank, N.A. and PHH
Corporation, dated as of September 23, 2009 (as amended from time to time, the “Master
Confirmation”).

     1. The definitions and provisions contained in the Definitions (as such term is defined in the
Master Confirmation) and in the Master Confirmation are incorporated into this Confirmation. In
the event of any inconsistency between those definitions and provisions and this Confirmation, this
Confirmation will govern.

     2. The particular Transaction to which this Confirmation relates shall have the following
terms:

	 	 	 
	Trade Date:

	 	September 29, 2009
	 
	 	 
	Effective Date:

	 	September 29, 2009
	 
	 	 
	Strike Price:

	 	USD 34.74
	 
	 	 
	Premium:

	 	USD 1,412,700.00
	 
	 	 
	Premium Payment Date:

	 	The Effective Date.
	 
	 	 
	Maximum Delivery Amount:

	 	At any time, a number of Shares equal to the product of the Transaction
Multiplier and the Number of Shares at such time.
	 
	 	 
	Transaction Multiplier:

	 	1.35

1

 

For each Component of the Transaction, the Number of Warrants and Expiration Date are as set forth
below.

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	1.

	 	 	3,293	 	 	December 1, 2014
	2.

	 	 	3,293	 	 	December 2, 2014
	3.

	 	 	3,293	 	 	December 3, 2014
	4.

	 	 	3,293	 	 	December 4, 2014
	5.

	 	 	3,293	 	 	December 5, 2014
	6.

	 	 	3,293	 	 	December 8, 2014
	7.

	 	 	3,293	 	 	December 9, 2014
	8.

	 	 	3,293	 	 	December 10, 2014
	9.

	 	 	3,293	 	 	December 11, 2014
	10.

	 	 	3,293	 	 	December 12, 2014
	11.

	 	 	3,293	 	 	December 15, 2014
	12.

	 	 	3,293	 	 	December 16, 2014
	13.

	 	 	3,293	 	 	December 17, 2014
	14.

	 	 	3,293	 	 	December 18, 2014
	15.

	 	 	3,293	 	 	December 19, 2014
	16.

	 	 	3,293	 	 	December 22, 2014
	17.

	 	 	3,293	 	 	December 23, 2014
	18.

	 	 	3,293	 	 	December 24, 2014
	19.

	 	 	3,293	 	 	December 26, 2014
	20.

	 	 	3,293	 	 	December 29, 2014
	21.

	 	 	3,293	 	 	December 30, 2014
	22.

	 	 	3,293	 	 	December 31, 2014
	23.

	 	 	3,293	 	 	January 2, 2015
	24.

	 	 	3,293	 	 	January 5, 2015
	25.

	 	 	3,293	 	 	January 6, 2015
	26.

	 	 	3,293	 	 	January 7, 2015
	27.

	 	 	3,293	 	 	January 8, 2015
	28.

	 	 	3,293	 	 	January 9, 2015
	29.

	 	 	3,293	 	 	January 12, 2015
	30.

	 	 	3,293	 	 	January 13, 2015
	31.

	 	 	3,293	 	 	January 14, 2015
	32.

	 	 	3,293	 	 	January 15, 2015
	33.

	 	 	3,293	 	 	January 16, 2015
	34.

	 	 	3,293	 	 	January 20, 2015
	35.

	 	 	3,293	 	 	January 21, 2015
	36.

	 	 	3,293	 	 	January 22, 2015
	37.

	 	 	3,293	 	 	January 23, 2015
	38.

	 	 	3,293	 	 	January 26, 2015
	39.

	 	 	3,293	 	 	January 27, 2015
	40.

	 	 	3,293	 	 	January 28, 2015
	41.

	 	 	3,293	 	 	January 29, 2015
	42.

	 	 	3,293	 	 	January 30, 2015

2

 

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	43.

	 	 	3,293	 	 	February 2, 2015
	44.

	 	 	3,293	 	 	February 3, 2015
	45.

	 	 	3,293	 	 	February 4, 2015
	46.

	 	 	3,293	 	 	February 5, 2015
	47.

	 	 	3,293	 	 	February 6, 2015
	48.

	 	 	3,293	 	 	February 9, 2015
	49.

	 	 	3,293	 	 	February 10, 2015
	50.

	 	 	3,293	 	 	February 11, 2015
	51.

	 	 	3,293	 	 	February 12, 2015
	52.

	 	 	3,293	 	 	February 13, 2015
	53.

	 	 	3,293	 	 	February 17, 2015
	54.

	 	 	3,293	 	 	February 18, 2015
	55.

	 	 	3,293	 	 	February 19, 2015
	56.

	 	 	3,293	 	 	February 20, 2015
	57.

	 	 	3,293	 	 	February 23, 2015
	58.

	 	 	3,293	 	 	February 24, 2015
	59.

	 	 	3,293	 	 	February 25, 2015
	60.

	 	 	3,293	 	 	February 26, 2015
	61.

	 	 	3,293	 	 	February 27, 2015
	62.

	 	 	3,293	 	 	March 2, 2015
	63.

	 	 	3,293	 	 	March 3, 2015
	64.

	 	 	3,293	 	 	March 4, 2015
	65.

	 	 	3,293	 	 	March 5, 2015
	66.

	 	 	3,293	 	 	March 6, 2015
	67.

	 	 	3,293	 	 	March 9, 2015
	68.

	 	 	3,293	 	 	March 10, 2015
	69.

	 	 	3,293	 	 	March 11, 2015
	70.

	 	 	3,293	 	 	March 12, 2015
	71.

	 	 	3,293	 	 	March 13, 2015
	72.

	 	 	3,293	 	 	March 16, 2015
	73.

	 	 	3,293	 	 	March 17, 2015
	74.

	 	 	3,293	 	 	March 18, 2015
	75.

	 	 	3,293	 	 	March 19, 2015
	76.

	 	 	3,293	 	 	March 20, 2015
	77.

	 	 	3,293	 	 	March 23, 2015
	78.

	 	 	3,293	 	 	March 24, 2015
	79.

	 	 	3,293	 	 	March 25, 2015
	80.

	 	 	3,293	 	 	March 26, 2015
	81.

	 	 	3,293	 	 	March 27, 2015
	82.

	 	 	3,293	 	 	March 30, 2015
	83.

	 	 	3,293	 	 	March 31, 2015
	84.

	 	 	3,293	 	 	April 1, 2015
	85.

	 	 	3,293	 	 	April 2, 2015
	86.

	 	 	3,293	 	 	April 6, 2015

3

 

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	87.

	 	 	3,293	 	 	April 7, 2015
	88.

	 	 	3,293	 	 	April 8, 2015
	89.

	 	 	3,293	 	 	April 9, 2015
	90.

	 	 	3,293	 	 	April 10, 2015
	91.

	 	 	3,293	 	 	April 13, 2015
	92.

	 	 	3,293	 	 	April 14, 2015
	93.

	 	 	3,293	 	 	April 15, 2015
	94.

	 	 	3,293	 	 	April 16, 2015
	95.

	 	 	3,293	 	 	April 17, 2015
	96.

	 	 	3,293	 	 	April 20, 2015
	97.

	 	 	3,293	 	 	April 21, 2015
	98.

	 	 	3,293	 	 	April 22, 2015
	99.

	 	 	3,293	 	 	April 23, 2015
	100.

	 	 	3,293	 	 	April 24, 2015
	101.

	 	 	3,293	 	 	April 27, 2015
	102.

	 	 	3,293	 	 	April 28, 2015
	103.

	 	 	3,293	 	 	April 29, 2015
	104.

	 	 	3,293	 	 	April 30, 2015
	105.

	 	 	3,293	 	 	May 1, 2015
	106.

	 	 	3,293	 	 	May 4, 2015
	107.

	 	 	3,293	 	 	May 5, 2015
	108.

	 	 	3,293	 	 	May 6, 2015
	109.

	 	 	3,293	 	 	May 7, 2015
	110.

	 	 	3,293	 	 	May 8, 2015
	111.

	 	 	3,293	 	 	May 11, 2015
	112.

	 	 	3,293	 	 	May 12, 2015
	113.

	 	 	3,293	 	 	May 13, 2015
	114.

	 	 	3,293	 	 	May 14, 2015
	115.

	 	 	3,293	 	 	May 15, 2015
	116.

	 	 	3,293	 	 	May 18, 2015
	117.

	 	 	3,293	 	 	May 19, 2015
	118.

	 	 	3,293	 	 	May 20, 2015
	119.

	 	 	3,293	 	 	May 21, 2015
	120.

	 	 	3,405	 	 	May 22, 2015

4

 

     3. Issuer hereby agrees (a) to check this Confirmation promptly upon receipt so that errors or
discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing
correctly sets forth the terms of the agreement between us with respect to the particular
Transaction to which this Confirmation relates, by manually signing this Confirmation and providing
any other information requested herein and immediately returning an executed copy to Confirmation
Unit via 212-615-8985. Hard copies should be returned to Citibank, N.A., 333 West 34th Street, 2nd
Floor, New York, New York 10001, Attention: Confirmation Unit.

	 	 	 	 	 
	 	Yours sincerely,	 
	 
	 	
CITIBANK, N.A.
 	 
	 
	 	By:  	/s/ James Heathcote
 	 
	 	 	Authorized Signatory 	 
	 	 	Name: James Heathcote 	 
	 

	 	 	 	 	 
	 	Confirmed as of the
date first above written:

PHH CORPORATION

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson  	 
	 	 	Title:  	SVP & Treasurerexv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) entered into as of this 28th day of September, 2009
(“Effective Date”) by and between RCN Corporation, a Delaware corporation (“RCN” or the “Company”)
and Jose A. Cecin, Jr. (“Employee”).

     1. Employment. RCN will employ Employee and Employee accepts such employment upon the
terms and conditions set forth in this Agreement. Employee shall continue to be a voting member of
the Board of Directors on the Effective Date; and the Board shall propose Employee for re-election
to the Board for the term beginning June 2010 provided that he meets all criteria for service on
the Board of Directors. Employee agrees that he will resign from the Board of Directors if he
ceases to be an Employee.

     2. Term of Employment. Employee’s employment under this Agreement will be for a term
of three (3) years from the Effective Date (the “Employment Period”), unless this Agreement is
otherwise terminated pursuant to the provisions of Section 5 of this Agreement.

The parties may, however, extend the Agreement as provided herein. At least one hundred and eighty
(180) days prior to the expiration of the Employment Period, but no more than three hundred and
sixty five (365) days before the expiration of the Employment Period, either party may provide
written notice of interest in extending the term of the Agreement. If timely notification is
provided by either party, the Company will have sixty (60) days to make a reasonable good faith
offer to Employee regarding an extension. Failure to make a reasonable good faith offer within
such sixty (60) day period shall constitute “Non-Renewal by the Company”. If Employee does not
engage in good faith negotiations with the Company within thirty (30) days after receipt of the
Company’s reasonable good faith offer then “Non-Renewal by the Employee” shall be deemed to have
occurred. If neither party provides written notice of interest in extending the term of the
Agreement within the applicable timeframe described herein, then a Non-Renewal by the Employee
shall be deemed to have occurred.

     3. Position and Duties. Employee will be employed as Executive Vice President &
Chief Operating Officer, reporting directly to the Chief Executive Officer, with such duties and
responsibilities that are consistent with that position as may from time to time be assigned to
Employee, and will have such authority as may be reasonably necessary for Employee to carry out his
or her duties and responsibilities. During the Employment Term, Employee’s principal location of
employment shall be within 30 miles of the Company’s current executive offices in Northern
Virginia, except for customary business travel on behalf of the Company and its affiliates.

          Employee will work full-time and devote all of Employee’s business time, attention, and
energies to, on behalf of, and for the benefit of the Company. Employee will not, without the
written consent of the Company: (i) render service to others for compensation, or (ii) serve on
more than one (1) board or governing body of another for profit entity; provided, however, that
Employee is party to certain consulting agreements with third parties who are not direct
competitors of the Company and will wind down his performance under such consulting agreements as
soon as possible after the Effective Date in accordance with the terms of such

 

 

consulting agreements. Notwithstanding the foregoing, at no time may Employee serve on the
board or governing body of another for profit entity which, in the sole discretion of the Company,
is or becomes a competitor of the Company. Furthermore, the Company acknowledges and consents to
Employee’s service on more than one (1) board as of the Effective Date; provided that Employee
agrees to reduce board participation to the standards outlined herein by June 15, 2010. Employee
will not engage in any activity which conflicts or materially interferes with the performance of
Employee’s duties and responsibilities hereunder. Employee may engage in personal, charitable, and
professional activities, (i) subject to compliance with the Company’s normal conflicts procedures,
and (ii) provided such activities do not conflict or materially interfere with the ability of
Employee to perform the duties and responsibilities hereunder. If, in the reasonable discretion of
the Company, an outside activity subsequently creates a conflict with the Company’s business or
prospective business, Employee agrees promptly to cease engaging in such activity at such time as
requested. Employee will observe and adhere to all applicable written Company policies and
procedures adopted from time to time.

     4. Salary and Compensation.

          (a) Salary. Employee’s rate of salary shall be $325,000 per annum (“Initial Base
Salary”) commencing on the Effective Date. The Company, through its Compensation Committee (the
“Committee”) agrees to annually evaluate Employee’s performance and salary (annually set, “Base
Salary”). The Committee may, in its sole discretion, increase or decrease Employee’s salary at
any time; provided, however, that Employee’s salary may not be decreased to less than the higher of
(i) the Initial Base Salary or (ii) the amount that is ten percent (10%) below Employees highest
Base Salary in the preceding 12 month period. Employee’s salary shall be paid in accordance with
the Company’s customary payroll practices.

          (b) Bonus Plan. Employee shall be eligible to participate in an annual cash bonus
program maintained by the Company for its senior executives (the “Bonus Plan”) at a target level of
no less than 75% of the Employee’s Base Salary (“Target Bonus”). The actual bonus payable pursuant
to the Bonus Plan for any given year shall be based upon the terms of the Bonus Plan then in effect
and upon individual and corporate performance criteria established and approved by the Committee.

          (c) Stock Plan. Upon the Effective Date, the Company shall grant to Employee 125,000
restricted stock units (the “Initial RSU Award”) pursuant to the Company’s 2005 Stock Compensation
Plan (the “2005 Stock Plan”). One-third (1/3) of the shares subject to the Initial RSU Award shall
vest and become payable on each of the first three (3) anniversaries of the Effective Date provided
that Employee is employed by the Company on each such vesting date. For the avoidance of any
doubt, Employee will not forfeit any of the restricted stock unit grant made to him on August 20,
2009 based on his employment as contemplated hereby.

          Effective for calendar years commencing on or after January 1, 2010, Employee shall be
eligible to participate in any long-term incentive program maintained by the Company for its senior
executives (including, the 2005 Stock Plan) (collectively, the “Stock Plan”) at a target level of
no less than 175% of Employee’s combined Base Salary and actual bonus paid under the Bonus Plan
with respect to the preceding calendar year (the “Target Stock Award”) for

2

 

each year. The actual award pursuant to the Stock Plan for any given year shall be based upon the
terms of the Stock Plan then in effect and upon performance criteria, if any, established and
approved by the Committee. If the Company does not have sufficient shares of Stock authorized or
reserved for issuance under the Stock Plan on the date of grant of any equity awards required or
determined to be made under 4(c), then the Compensation Committee shall notify the Employee of such
fact, and the Compensation Committee shall provide alternative compensation arrangements to deliver
similar value to the Employee.

          (d) Benefit Plans. Employee shall be eligible to participate in such employee benefit
and fringe benefit plans generally maintained or provided by the Company from time to time to or
for the benefit of its senior executives (the “Benefit Plans”), at a level commensurate with
Employee’s position and Company policy regarding other similarly situated Company employees,
provided that Employee meets the prerequisites and eligibility factors established by the Company
for participation in the Benefit Plans. Employee’s participation in any Benefit Plans will be
subject to the terms of the applicable plan documents and the Company’s generally applied policies.
The Company in its discretion may from time to time adopt, modify, interpret, or discontinue such
plans or policies.

          (e) Interpretation of Terms. In the event there is a conflict between the terms of
any Benefit Plan, Bonus Plan or Stock Plan on the one hand, and the terms outlined in this
Agreement on the other hand, the terms of the Benefit Plan, Bonus Plan or Stock Plan, as
applicable, shall govern. Notwithstanding the foregoing, Section 6 of this Agreement shall govern,
if applicable, in the event of a conflict.

     5. Termination of Employment.

          (a) Resignation. Employee may resign his or her employment at any time, for any or
for no reason, upon at least thirty (30) days prior written notice to the Company. The Company, at
its sole discretion, may relieve Employee of his or her active duties and may require Employee to
use any accrued and unused paid time off, including vacation, during the notice period. The
Company may also waive such notice, and/or set an earlier termination date upon receipt of such
notice, in which event Employee’s employment will terminate on the earlier termination date, and no
pay in lieu of notice will be due.

          (b) Termination For Cause. The Company may terminate Employee’s employment for
“Cause” if the Board of Directors has made a good faith determination, after providing the Employee
with reasonably detailed written notice and a reasonable opportunity to be heard on the issues at a
board meeting, that any of the following has occurred:

               (i) the willful and continued failure by the Employee to substantially perform his material
duties for the Company (other than due to mental or physical disability) after ten (10) days’
written notice from the Company describing such failure in reasonable detail;

               (ii) the Employee has engaged in misconduct or gross negligence that has resulted in
demonstrable damage to the business or reputation of the Company or its subsidiaries;

3

 

               (iii) the Employee has been convicted of, or pleaded nolo contendere to, a misdemeanor
involving moral turpitude or a felony;

               (iv) the Employee has engaged in fraud against the Company or misappropriated Company property
(other than incidental property); or

               (v) the Employee has materially violated any material written policy of the Company or its
subsidiaries that has been distributed to Employee, including any written code of conduct
applicable to senior executives of the Company or members of the Board.

          (c) Termination Without Cause. The Company may terminate Employee’s employment
without Cause, for any reason or for no reason, at any time upon five (5) days prior written notice
to Employee. The Company, at its sole discretion, may relieve Employee of his or her active duties
and require Employee to use any accrued and unused paid time off, including vacation, during the
notice period. The Company may also provide five (5) days pay in lieu of notice. Employee’s
termination without Cause will be effective on the date of termination specified by the Company.

          (d) Resignation for Good Reason. Employee may terminate employment for “Good Reason”
if, without Employee’s prior consent, the Company: (i) reduces Employee’s Base Salary (other than
reductions permitted by Section 4(a) of this Agreement), Target Bonus, or Target Stock Award; (ii)
materially changes the Employee’s principal location of employment as of the Effective Date of this
Agreement; (iii) materially reduces Employee’s responsibilities as in effect on the Effective Date
or materially changes the reporting relationship as in effect on the Effective Date; or (iv)
commits a material breach of the Company’s material obligations under this Agreement, including
without limitation the compensation provisions thereof. Before terminating employment for Good
Reason, Employee must within forty-five (45) days of the initial existence of the putative Good
Reason condition specify in writing to the Company the nature of the act or omission that Employee
deems to constitute Good Reason and provide Company thirty (30) days after receipt of such notice
to correct the situation (and thus provide the Company with opportunity to prevent Employee’s
termination for Good Reason). Employee’s termination for Good Reason must occur no later than six
(6) months following the date on which such Good Reason condition initially arose.

          The parties specifically agree that the occurrence of a Change in Control shall not, by
itself, constitute Good Reason, and that Good Reason shall exist after a Change in Control only
upon the occurrence of one or more of the events described above. Furthermore, for the avoidance
of doubt, in the event that a Change of Control occurs, neither (i) a change in RCN’s status as a
publicly traded company, (ii) the Company’s operation as a subsidiary, (iii) a change in title or
position (so long as such change is not a reduced title or position) of the person or entity to
whom Employee directly reports (Employee’s “Supervisor”), nor (iv) a change in the title or
position (so long as such change is not a reduced title or position) of the person or entity to
whom Employee’s Supervisor directly reports shall, in and of itself, constitute Good Reason.

          (e) Disability. If Employee becomes “Disabled,” the Company may terminate Employee’s
employment. For the purposes hereof, Employee and the Company agree that

4

 

Employee will be considered “Disabled” if the Employee is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment that can be
expected to result in death or last for a period of not less than twelve (12) months. Employee
agrees that if Employee becomes “Disabled” under the definition of this Section 5(e), Employee will
be unable to perform the essential functions of Employee’s position and that there would be no
reasonable accommodation which would not constitute an undue hardship to the Company. Therefore,
as Employee would not be qualified for Employee’s position, the Company would have the right to
terminate Employee’s employment under this Section 5(e). Employee’s termination due to Disability
will be effective immediately upon the Company mailing or transmitting written notice of such
termination to Employee.

          (f) Death. Employee’s employment will terminate on the date of Employee’s death.

          (g) Non-Renewal by the Employee or the Company. Either the Employee or the Company
may terminate this Agreement through non-renewal pursuant to the written notice procedures
described in Section 2 of this Agreement. Employee’s termination due to non-renewal by either
party will be effective at the end of the applicable initial or extended term, unless termination
occurs earlier pursuant to terms of the Agreement.

     6. Payments in the Event of Termination of Employment.

          (a) Termination Due to Resignation, Non-Renewal by Employee or for Cause. In the
event of termination of Employee’s employment pursuant to Section 5(a) or 5(b) or a Non-Renewal by
the Employee pursuant to 5(g), the Company will pay to Employee: (i) the unpaid amount, if any, of
Employee’s salary through the date of termination, (ii) the amount of any substantiated but
previously unreimbursed business expenses incurred prior to the date of termination, and (iii) any
additional payments, awards, or benefits, if any, which Employee is eligible to receive under the
terms of any Benefit Plan (collectively, “Accrued Compensation”).

          Employee and, where applicable, Employee’s spouse and eligible dependents, at Employee’s
expense, will be eligible to exercise his or her rights under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) upon his or her termination of employment.

          (b) Prior to a Change in Control. If a Change in Control has not occurred within the
twenty-four (24) months prior to Employee’s termination, and if Employee continues to comply with
the post-employment obligations under this Agreement for the Restricted Period, and if Employee
executes a Release on or about the date of termination and does not revoke that release pursuant to
its terms, Company will provide to Employee the following:

               (i) Termination Without Cause or Resignation for Good Reason. In the event of
termination of Employee’s employment pursuant to Section 5(c) or 5(d), the Company will pay
Employee:

                    (1) Any Accrued Compensation;

5

 

                    (2) Lump Sum Payment. The Company will pay Employee a single lump sum payment in the
total amount of 100% of his or her aggregate Base Salary and Target Bonus in effect at termination,
less federal, state and local tax withholdings and any other deductions required by law or
previously authorized by Employee, payable within fifteen (15) days of the effective date of the
Release;

                    (3) Benefits Continuation. The Company will continue Employee’s participation in all
medical, dental and vision plans in which Employee was enrolled (including the Employee’s spouse
and eligible dependents, if applicable) as of Employee’s termination of employment. 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 (A) the last day of the month of the one year
anniversary of Employee’s termination or (B) the Benefits Expiration Date (defined below) (“Benefit
Continuation Coverage”). Employee’s portion of the costs for any such continued benefits shall be
paid as directed by the Company. Employee is obligated to inform the Company within ten (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 COBRA coverage;

                    (4) Pro Rata Bonus. The Company shall pay Employee his annual bonus, if any, pursuant
to the Bonus Plan attributable to Employee’s employment with the Company for the period from
January 1 of the year of termination through the termination date (the “Pro Rata Bonus”). Any Pro
Rata Bonus shall be paid based on Employee’s Target Bonus applied to Employee’s eligible salary
from January 1 of the year of termination through the termination date. Any Pro Rata Bonus will be
based on calculations as defined in the Bonus Plan as in effect as of Employee’s termination of
employment. The Company will pay the Pro Rata Bonus, 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 (provided, however, that in no event will a Pro Rata Bonus be paid to
Employee more than two and one-half (2 1/2) months after the end of the calendar year during which
Employee’s entitlement to such payment is earned); and

                    (5) 12 Months of Equity Vesting. For purposes of vesting in equity awards made
pursuant to any Stock Plan, the Company will treat Employee as if he remained employed through the
twelve (12) month period following termination of employment. Any option (or portion thereof) that
vests pursuant to this provision shall terminate at 5:00 p.m. (local Virginia time) on the 90th
calendar day following the date such option (or portion thereof) vests pursuant to this Agreement
or, if earlier, at their original term (the “Equity Cancellation Date”). Any terminated option
shall be cancelled and shall have no further force or effect. Any performance-based Stock Plan
awards scheduled to vest during this twelve (12) month period will remain subject to applicable
performance-based criteria as described under the Stock Plan and award agreements. Except as
expressly provided herein, the terms of the Stock Plan and applicable award agreements shall govern
all of Employee’s outstanding Stock Plan awards. If

6

 

Employee materially breaches this Agreement or the Release, all outstanding and unvested Stock Plan
awards shall be forfeited except as otherwise provided by the Committee.

               (ii) Non-Renewal by the Company. In the event of termination of Employee’s employment
pursuant to Section 5(g), the Company will pay Employee:

                    (1) Any Accrued Compensation;

                    (2) Lump Sum Payment. The Company will pay Employee a single lump sum amount equal to
50% of his aggregate Base Salary and Target Bonus, less federal, state and local tax withholdings
and any other deductions required by law or previously authorized by Employee, payable within
fifteen (15) days of the effective date of the Release;

                    (3) Benefits Continuation. The Company will continue Employee’s participation in all
medical, dental and vision plans in which Employee was enrolled (including Employee’s spouse and
eligible dependents, if applicable) as of Employee’s termination of employment. 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 (A) the last day of the month of the six month anniversary of
Employee’s termination or (B) the Benefits Expiration Date. Employee’s portion of the costs for
any such continued benefits shall be as directed by the Company. Employee is obligated to inform
the Company within ten (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 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 COBRA coverage;

                    (4) Pro Rata Bonus. The Company shall pay Employee any Pro Rata Bonus. Any Pro Rata
Bonus shall be paid based on Employee’s Target Bonus applied to Employee’s eligible salary from
January 1 of the year of termination through the termination date. Any Pro Rata Bonus will be
based on calculations as defined in the Bonus Plan as in effect as of Employee’s termination of
employment. The Company will pay any Pro Rata Bonus 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 (provided, however, that in no event will a Pro Rata Bonus be paid to Employee more
than two and one-half (2 1/2) months after the end of the calendar year during which Employee’s
entitlement to such payment is earned); and

                    (5) 6 Months of Equity Vesting. For purposes of vesting in equity awards made
pursuant to any Stock Plan, the Company will treat Employee as if he remained employed through the
six (6) month period following termination of employment. Any option (or portion thereof) that
vests pursuant to this provision shall terminate at 5:00 p.m. (local Virginia time) on the 90th
calendar day following the date such option (or portion thereof) vests pursuant to this Agreement
or, if earlier, at their original term (the “Equity Cancellation Date”). Any terminated option
shall be cancelled and shall have no further force or effect. Any

7

 

performance-based Stock Plan awards scheduled to vest during this six (6) month period will remain
subject to applicable performance-based criteria as described under the Stock Plan and award
agreements. Except as expressly provided herein, the terms of the Stock Plan and applicable award
agreements shall govern all of Employee’s outstanding Stock Plan awards. If Employee materially
breaches this Agreement or the Release, all outstanding and unvested Stock Plan awards shall be
forfeited except as otherwise provided by the Committee.

          (c) Following a Change in Control. If a Change in Control has occurred within the
twenty four (24) months prior to Employee’s termination without Cause, for Good Reason or for
Non-Renewal by the Company, and if Employee continues to comply with the post-employment
obligations under this Agreement for the Restricted Period, and if Employee executes a Release on
or about the date of termination and does not revoke that release pursuant to its terms, Company
will provide to Employee the following:

               (i) Any Accrued Compensation;

               (ii) Lump Sum Payment. The Company will pay Employee a single lump sum amount equal
to 150% of his aggregate Base Salary and Target Bonus, less federal, state and local tax
withholdings and any other deductions required by law or previously authorized by Employee, payable
within fifteen (15) days of the effective date of the Release;

               (iii) Benefits Continuation. The Company will continue Employee’s participation in
all medical, dental and vision plans in which Employee was enrolled (including Employee’s spouse
and eligible dependents, if applicable) as of Employee’s termination of employment. The Company
will continue the coverage and pay that portion of the premium paid by the Company during
Employee’s employment through the eighteen (18) month period following Employee’s termination.
Employee’s portion of the costs for any such continued benefits shall be paid by check or other
arrangement mutually agreeable to the parties. Beginning on the date that the Company no longer
provides subsidized benefit coverage pursuant to this Agreement, Employee shall be eligible for
COBRA coverage;

               (iv) Pro Rata Bonus. The Company shall pay Employee any Pro Rata Bonus. Any Pro Rata
Bonus shall be paid based on Employee’s Target Bonus applied to Employee’s eligible salary from
January 1 of the year of termination through the termination date. Any Pro Rata Bonus will be
based on calculations as defined in the Bonus Plan as in effect as of Employee’s termination of
employment. The Company will pay the Pro Rata Bonus, 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 (provided, however, that in no event will a Pro Rata Bonus be paid to
Employee more than two and one-half (2 1/2) months after the end of the calendar year during which
Employee’s entitlement to such payment is earned); and

               (v) Full Equity Vesting. The Company will accelerate the vesting and exercisability
of all unvested and unexercisable equity awards made pursuant to any Stock Plan . Any option (or
portion thereof) that vests pursuant to this provision shall terminate at 5:00 p.m.

8

 

(local Virginia time) on the 90th calendar day following the date such option (or portion
thereof) vests pursuant to this Agreement or, if earlier, at their original term (the “Equity
Cancellation Date”). Any terminated option shall be cancelled and shall have no further force or
effect. Any Stock Plan awards of performance-based restricted stock or restricted stock units
shall be settled as if all performance criteria had been satisfied at target levels. Except as
expressly provided herein, the terms of the Stock Plan and applicable award agreements shall govern
all of Employee’s outstanding Stock Plan awards. If Employee materially breaches this Agreement or
the Release, all outstanding and unvested Stock Plan awards shall be forfeited except as otherwise
provided by the Committee.

          (d) Termination of Employment Due to Disability. In the event of the termination of
Employee’s employment with the Company pursuant to Section 5(e), if Employee continues to comply
with the post-employment obligations under this Agreement for the Restricted Period, and if
Employee (or Employee’s guardian or personal representative) executes a Release as soon as
administratively feasible following the date of termination, the Company will provide to Employee
(or Employee’s guardian or personal representative):

                    (1) Accrued Compensation: Any Accrued Compensation;

                    (2) Benefits Continuation. The Company will continue Employee’s participation in all
medical, dental and vision plans in which Employee was enrolled (including Employee’s spouse and
eligible dependents, if applicable) as of Employee’s termination of employment. The Company will
continue the coverage and pay that portion of the premium paid by the Company during Employee’s
employment until the last day of the month of the one year anniversary of Employee’s termination.
Beginning on the date that the Company no longer provides subsidized benefit coverage pursuant to
this Agreement, Employee (including Employee’s spouse and eligible dependents, if applicable) shall
be eligible for COBRA coverage;

                    (3) Pro Rata Bonus. The Company shall pay Employee any Pro Rata Bonus. Any Pro Rata
Bonus shall be paid based on Employee’s Target Bonus applied to Employee’s eligible salary from
January 1 of the year of termination through the termination date. Any Pro Rata Bonus will be
based on calculations as defined in the Bonus Plan as in effect as of Employee’s termination of
employment. The Company will pay the Pro Rata Bonus, if any, 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 (provided, however, that in no event will a Pro Rata Bonus be paid to Employee more
than two and one-half (2 1/2) months after the end of the calendar year during which Employee’s
entitlement to such payment is earned); and

                    (4) Full Equity Vesting. The Company will accelerate the vesting and exercisability
of all unvested and unexercisable equity awards made pursuant to any Stock Plan. Any option (or
portion thereof) that vests pursuant to this provision shall terminate at 5:00 p.m. (local Virginia
time) on the 90th calendar day following the date such option (or portion thereof) vests pursuant
to this Agreement or, if earlier, at their original term (the “Equity Cancellation Date”). Any
terminated option shall be cancelled and shall have no further force or

9

 

effect. Any Stock Plan awards of performance-based restricted stock or restricted stock units
shall be settled as if all performance criteria had been satisfied at target levels. Except as
expressly provided herein, the terms of the Stock Plan and applicable award agreements shall govern
all of Employee’s outstanding Stock Plan awards. If Employee materially breaches this Agreement or
the Release, all outstanding and unvested Stock Plan awards shall be forfeited except as otherwise
provided by the Committee.

          (e) Termination of Employment Due to Death. In the event of the termination of
Employee’s employment with the Company pursuant to Section 5(f), and if Employee’s estate or other
beneficiary executes a Release as soon as administratively feasible following Employee’s death,
the Company will provide to Employee’s estate or other beneficiary:

               (1) Accrued Compensation: The Company will pay any Accrued Compensation;

               (2) Benefits Continuation. The Company will continue Employee’s participation in all
medical, dental and vision plans in which Employee was enrolled (including Employee’s spouse and
eligible dependents, if applicable) as of Employee’s termination of employment. The Company will
continue the coverage and pay that portion of the premium paid by the Company during Employee’s
employment until the last day of the month of the one year anniversary of Employee’s termination.
Beginning on the date that the Company no longer provides subsidized benefit coverage pursuant to
this Agreement, Employee’s spouse and eligible dependents, if applicable, shall be eligible for
COBRA coverage;

               (3) Pro Rata Bonus. The Company shall pay Employee any Pro Rata Bonus. Any Pro Rata
Bonus shall be paid based on Employee’s Target Bonus applied to Employee’s eligible salary from
January 1 of the year of termination through the termination date. Any Pro Rata Bonus will be
based on calculations as defined in the Bonus Plan as in effect as of Employee’s termination of
employment. The Company will pay the Pro Rata Bonus, if any, 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 (provided, however, that in no event will a Pro Rata Bonus be paid to Employee more
than two and one-half (2 1/2) months after the end of the calendar year during which Employee’s
entitlement to such payment is earned); and

               (4) Full Equity Vesting. The Company will accelerate the vesting and exercisability
of all unvested and unexercisable equity awards made pursuant to any Stock Plan. Any option (or
portion thereof) that vests pursuant to this provision shall terminate at 5:00 p.m. (local Virginia
time) on the 90th calendar day following the date such option (or portion thereof) vests pursuant
to this Agreement or, if earlier, at their original term (the “Equity Cancellation Date”). Any
terminated option shall be cancelled and shall have no further force or effect. Any Stock Plan
awards of performance-based restricted stock or restricted stock units shall be settled as if all
performance criteria had been satisfied at target levels. Except as expressly provided herein, the
terms of the Stock Plan and applicable award agreements shall govern all of Employee’s outstanding
Stock Plan awards. If Employee materially breaches this Agreement or

10

 

the Release, all outstanding and unvested Stock Plan awards shall be forfeited except as
otherwise provided by the Committee.

          (f) Timely Execution of Release. The failure to timely execute a Release on
or about the applicable date of termination, or as soon as administratively feasible following the
date of termination in the case of termination due to Disability or death, as required under
Sections 6(b)-(e) above by Employee (or if applicable, Employee’s estate or beneficiary, or legally
authorized guardian or personal representative) shall result in the lapse of any obligation by the
Company to provide lump sum severance payments or Benefit Continuation Coverage, as applicable.
The determination of whether a Release is timely executed on or about the applicable date of
termination, or as soon as administratively feasible following the date of termination in the case
of termination due to Disability or death, as provided under Sections 6(b)-(e) above, shall be made
by the Company in its reasonable discretion; provided however, that the Company must notify
Employee (or if applicable, Employee’s estate or beneficiary, or legally authorized guardian or
personal representative) in writing that the Release must be timely executed, and provide Employee
thirty (30) days after receipt of such notice to provide an executed Release to the Company. If
Employee fails to provide an executed Release to the Company within the 30-day period, the failure
to timely execute a Release shall be deemed to occur upon the expiration of such 30-day period.

          7. Restrictive Covenants.

          (a) Sufficiency of Consideration. Employee acknowledges that the consideration that
Employee will receive pursuant to this Agreement serves as sufficient consideration for Employee’s
promises to abide by the restrictive covenants set forth in Sections 8 through 17 of this
Agreement.

          (b) Survival Post-Termination. The rights and obligations set forth in
Sections 8 through 17 of this Agreement will survive termination of this Agreement and Employee’s
employment with the Company.

          8. Non-Competition Covenants.

          Employee acknowledges that during the Restricted Period (defined below), Employee will not,
directly or indirectly, be employed by, lend money to, invest in, or engage in a Competing Business
in any Market Area. That prohibition includes, but is not limited to, acting, either singly or
jointly or as agent for, or as an employee of or consultant or independent contractor to, any one
or more persons, firms, entities, or corporations directly or indirectly (as a director,
independent contractor, representative, consultant, member, or otherwise) in such Competing
Business. Notwithstanding the foregoing, nothing in this Agreement shall be construed as
preventing Employee from investing his assets in (i) the securities of public companies, or (ii)
the securities of private companies or limited partnerships; provided that, in each case, such
holdings are passive investments of two percent (2%) or less of outstanding

11

 

securities and Employee does not hold positions of officer, employee or general partner in
such companies or partnerships.

     9. Non-Solicitation Covenants. During the Restricted Period, (defined below),
Employee will not, directly or indirectly, whether for Employee or for any other individual
or entity (other than the Company):

          (a) solicit business regarding any case or matter upon which Employee worked on behalf of the
Company during the term of this Agreement without the express written permission of the Company,
which permission shall not be unreasonably withheld provided that said solicition (i) is not a
potential violation of Employee’s other obligations pursuant to Section 8 or 9 of this Agreement
and (ii) could reasonably be expected to not be detrimental to the Company;

     (b) solicit any person or entity who is a client of the Company’s business in which
Employee was engaged at the time of or at any time within a twelve (12) month period of time
immediately prior to the termination of Employee’s employment with the Company on behalf of
any Competing Business; or

     (c) solicit, induce or otherwise attempt to influence any employee of the Company to
leave the employ of or discontinue providing services to the Company, provided, however,
that this restriction will not apply in the case of any clerical employee of the Company or
in the case of any other employee whose employment with the Company has been terminated for
at least one year.

     10. Confidential Information of the Company. Employee’s association with the Company
under this Agreement has given and will give Employee access to Confidential Information not
generally known outside of the Company that may be of value to the Company or that has been given
to the Company in confidence by third parties. Employee acknowledges and agrees that using,
disclosing, or publishing any Confidential Information in an unauthorized or improper manner would
cause the Company substantial loss and damages that could not be readily calculated and for which
no remedy at law would be adequate. Accordingly, Employee will not at any time, except in
performing the duties of Employee’s employment under this Agreement (or with the prior written
consent of the Company), directly or indirectly, use, disclose, or publish any Confidential
Information that Employee may learn or become aware of, or may have learned or become aware of
because of Employee’s association with the Company, or use any such information in a manner that is
or may reasonably be likely to be detrimental to the business of the Company. The term
“Confidential Information” includes, without limitation, information not previously disclosed to
the public or to the trade by the Company with respect to its present or future business,
operations, services, products, research, inventions, discoveries, drawings, designs, plans,
processes, models, technical information, facilities, methods, trade secrets, copyrights, software,
source code, systems, patents, procedures, manuals, specifications, any other intellectual
property, confidential reports, price lists, pricing formulas, customer lists, financial
information, business plans, lease structure, projections, prospects, or opportunities or
strategies, acquisitions or mergers, advertising or promotions, personnel matters, legal matters,
any other confidential and proprietary information, and any other information not generally

12

 

known outside the Company that may be of value to the Company, but excludes any information
already properly in the public domain. Confidential Information also includes confidential and
proprietary information and trade secrets that third parties entrust to the Company in confidence.
The rights and obligations set forth in this Section will continue indefinitely.

     11. Property Rights. Employee confirms that all Confidential Information is and must
remain the exclusive property of the Company. All business records, business papers, and business
documents kept or created by Employee in the course of Employee’s employment by the Company
relating to the business of the Company remain the property of the Company. Upon the termination
of this Agreement or upon the Company’s reasonable request at any time, Employee must promptly
deliver to the Company any Confidential Information or other property belonging to the Company
(written or otherwise) not otherwise in the public domain. Employee will not, without the
Company’s consent, retain copies, excerpts, summaries, or compilations of the foregoing information
and materials.

     12. Intellectual Property.

          (a) All records, in whatever media, documents, papers, inventions and notebooks, drawings,
designs, technical information, source code, object code, processes, methods or other copyrightable
or otherwise protected works Employee conceives, creates, makes, invents, or discovers or that
otherwise relate to or result from any work Employee performs or performed for the Company or that
arise from the use or assistance of the Company’s facilities, materials, personnel or Confidential
Information in the course of Employee’s employment (whether or not during usual working hours),
whether conceived, created, discovered, made, or invented individually or jointly with others,
will, together with all the worldwide patent, copyright, trade secret, or other intellectual
property rights in all such works, be and remain the absolute property of the Company. Employee
irrevocably and unconditionally waives all rights that may otherwise vest in Employee (whether
before, on, or after the date of this Agreement) in connection with Employee’s authorship of any
such copyrightable or patentable works in the course of Employee’s employment with the Company,
wherever in the world enforceable. Without limitation, Employee waives the right to be identified
as the author of any such works and the right not to have any such works subjected to derogatory
treatment. Employee recognizes any such works are “works for hire” of which the Company is the
author.

          (b) Employee will promptly disclose, grant and assign ownership to the Company for its sole
use and benefit any and all ideas, processes, inventions, discoveries, improvements, technical
information, copyrightable works and/or patentable works that Employee develops, acquires,
conceives or reduces to practice (whether or not during usual working hours) while employed by the
Company. Employee will promptly disclose and hereby grant and assign ownership to the Company of
all patent applications, letter patent, utility and design patents, copyrights and reissues
thereof, or any foreign equivalents thereof, that may at any time be filed or granted for or upon
any such invention, improvement, or information. In connection therewith:

13

 

               (i) Employee will, without charge but at the Company’s expense, promptly execute and deliver
such applications, assignments, descriptions and other instruments as the Company may consider
reasonably necessary or proper to vest title to any such inventions, discoveries, improvements,
technical information, patent applications, patents, copyrightable work or reissues thereof in the
Company and to enable it to obtain and maintain the entire worldwide right and title thereto; and

               (ii) Employee will provide to the Company at its expense all such assistance as the Company
may reasonably require in the prosecution of applications for such patents, copyrights or reissues
thereof, in the prosecution or defense of interferences that may be declared involving any such
applications, patents or copyrights and in any litigation in which the Company may be involved
relating to any such patents, inventions, discoveries, improvements, technical information or
copyrightable works or reissues thereof. The Company will reimburse Employee for reasonable
out-of-pocket expenses incurred and pay Employee reasonable compensation for Employee’s requested
time if the Company no longer employs Employee.

          (c) To the extent, if any, that Employee owns rights to works, inventions, discoveries,
proprietary information, and copyrighted or copyrightable works, or other forms of intellectual
property that are incorporated in the work product Employee creates for the Company, Employee
agrees that the Company will have an unrestricted, nonexclusive, royalty-free, perpetual,
transferable license to make, use, sell, offer for sale, and sublicense such works and property in
whatever form, and Employee hereby grants such license to the Company.

          (d) This Section (relating to Copyright, Discoveries, Inventions and Patents) does not apply
to an invention for which no equipment, supplies, facility or trade secret information of the
Company (including any of its predecessors) was used and that was developed entirely on Employee’s
own time, unless (a) the invention relates (i) directly to the business of the Company, or (ii) the
Company’s actual or anticipated research or development, or (b) the invention results from any work
Employee performed as an employee of the Company. The rights and obligations set forth in this
Section will continue indefinitely.

     13. Definitions. The following terms will have the meaning set forth below:

          (a) Change in Control. “Change in Control” of RCN shall mean: (a) any
“person” (as such term is used in Sections 3(a)(9) and 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) or “group” (as such term is used in Section 14(d)(2)
of the Exchange Act) is or becomes a “beneficial owner” (as such term is used in Rule 13d-3
promulgated under the Exchange Act) of 50% or more of the Voting Stock of RCN; (b) all or
substantially all of the assets or business of RCN are disposed of pursuant to a merger,
consolidation or other transaction unless, immediately after such transaction, the stockholders of
RCN immediately prior to the transaction own, directly or indirectly, in substantially the same
proportion as they owned the Voting Stock of RCN prior to such transaction more than 50% of the
Voting Stock of RCN surviving such transaction or succeeding to all or substantially all of the
assets or business of RCN or the ultimate parent company of such surviving or successor company if
such surviving or successor company is a subsidiary of another entity (there being excluded from
the number of shares held by such stockholders, but not from the Voting Stock of

14

 

the combined company, any shares received by affiliates of such other company in exchange for
stock of such other company); (c) a majority of the Board consists of individuals other than
Incumbent Directors, which term means the members of the Board on the Effective Date or, if any
such individual is no longer a member of the Board, any successor to any such individual (or to any
successor to any such individual) if the election or nomination for election of such individual or
successor was approved by a majority of the directors who then comprised the Incumbent Directors;
(d) the stockholders of RCN approve any plan of liquidation providing for the distribution of all
or substantially all of its assets if such plan of liquidation will result in the winding-up of the
business of RCN; or (e) the consummation of any merger, consolidation or other similar corporate
transaction unless, immediately after such transaction, the stockholders of RCN immediately prior
to the transaction own, directly or indirectly, in substantially the same proportion as they owned
the Voting Stock of RCN prior to such transaction more than 50% of the Voting Stock of RCN
surviving such transaction or its ultimate parent company if such surviving company is a subsidiary
of another entity (there being excluded from the number of shares held by such stockholders, but
not from the Voting Stock of the combined company, any shares received by affiliates of such other
company in exchange for stock of such other company). For purposes of this definition, “RCN” shall
include any entity that succeeds to all or substantially all of the business of RCN; “Voting Stock”
shall mean securities of any class or classes having general voting power under ordinary
circumstances, in the absence of contingencies, to elect the directors of a corporation; and
references to ownership of “more than 50% of the Voting Stock” shall mean the ownership of shares
of Voting Stock that represent the right to exercise more than 50% of the votes entitled to be cast
in the election of directors of a corporation.

          (b) Release. The term “Release” shall mean a valid waiver and general release of any
and all claims, with certain customary exceptions, against the Company to the fullest extent
permitted by law, in a form and manner determined by the Company and reasonably acceptable to the
Employee.

          (c) Restricted Period. The term “Restricted Period” means the period beginning on the
date of the execution of this Agreement and ending on the expiration of the period ending six (6)
months from the termination date of Employee’s employment in the case of Non-Renewal by the
Employee or the Company, and twelve (12) months from the termination date of Employee’s employment
for any other reason. Notwithstanding the foregoing, (i) the duration of the Restricted Period
will be extended by the amount of any and all periods that Employee violates the covenants of any
of Sections 8 and 9, and (ii) the Restricted Period will earlier expire upon the failure of the
Company to make any payments due to Employee prior to the expiration of the Restricted Period,
provided, however, that Employee must specify in writing to the Company the act or omission that
Employee deems to constitute such payment failure of the Company and provide the Company thirty
(30) days after receipt of such notice to correct the situation (and thus prevent the earlier
expiration of the Restricted Period), and provided further that Company will not thereby be
relieved of any payment or forgiveness obligations to Employee under this Agreement or related
agreements contemplated by this Agreement.

15

 

          (d) Competing Business. The term “Competing Business” means any material line of
business, in which Employee was substantially engaged or about which Employee gained substantial
Confidential Information during Employee’s employment with the Company, that the Company either (a)
is engaged in during the period of Employee’s employment, with the Company, and at the time
Employee’s employment ends, or (b) has a definite plan to engage in, which plan is substantially
completed as of the Employee’s date of termination or within ninety (90) days thereafter.

          (e) Market Area. The term “Market Area” means the metropolitan areas of Boston, MA;
New York, NY; Philadelphia Pa; Washington, D.C. and Chicago, IL. Employee acknowledges that due to
the nature of the business conducted by the Company, this geographic scope is reasonable and
necessary to protect the Company’s legitimate protectable interests.

     14. Enforceability. If any of the provisions of Sections 7 through 13 are deemed by a
court or arbitrator having jurisdiction to exceed the time, geographic area, or activity
limitations the law permits, the limitations will be reduced to the maximum permissible limitation,
and Employee and the Company authorize a court or arbitrator having jurisdiction to reform the
provisions to the maximum time, geographic area, and activity limitations the law permits;
provided, however, that such reductions apply only with respect to the operation of such provision
in the particular jurisdiction in which such adjudication is made.

     15. Remedies. Without limiting the remedies available to the parties, each party
acknowledges that a breach of any of the covenants in Sections 8 through 13 would result in
material irreparable injury to the Company for which there is no adequate remedy at law, and that
it will not be possible to measure damages for such injuries precisely. The parties agree that, if
there is a breach or threatened breach of such covenants, the Company will be entitled to obtain a
temporary restraining order and/or a preliminary or permanent injunction restraining Employee from
engaging in prohibited activities or such other relief as may be required to specifically enforce
any of said covenants. In addition, the Company will be relieved of any obligation to provide to
Employee any post-employment payments, benefits or awards, which would otherwise occur, be
continued, or become due and payable following a material breach of said covenants. Further, in
the event Employee materially breaches the non-solicitation or non-competition provisions of this
Agreement after a Change in Control, Employee must immediately repay to the Company the value of
any awards under the Stock Plan that vested as a result of the Change in Control. Each party
agrees that all remedies expressly provided for in this Agreement are cumulative of any and all
other remedies now existing at law or in equity. In addition to the remedies provided in this
Agreement, the parties will be entitled to avail themselves of all such other remedies as may now
or hereafter exist at law or in equity for compensation, and for the specific enforcement of the
covenants contained in Sections 8 through 13. Resort to any remedy provided for in this Section or
provided for by law will not prevent the concurrent or subsequent employment of any other
appropriate remedy or remedies, or preclude a recovery of monetary damages and compensation. Each
party agrees that no party hereto must post a bond or other security to seek an injunction. In the
event that an arbitrator or court of competent jurisdiction declares that any of the remedies
outlined in this Section 15 are unavailable as a matter of law, the remainder of the remedies
outlined in this Section shall remain available to the Company.

16

 

     16. Recoupment. The board of directors of RCN, or an applicable committee thereof,
including the Compensation Committee, may:

          (i) recover all income received by the Employee in respect of any equity award or bonus
compensation (“Incentive Awards”), and/or

          (ii) cancel any Incentive Awards of such Employee not paid or otherwise settled prior to the
date of any applicable determination by the Committee,

          if such Incentive Awards are determined to be based on statements of earnings, revenues, gains
or other criteria that are later found to be materially inaccurate; provided, however, that
recovery under clause (i) above is only permitted to the extent that the applicable inaccuracy
resulted from Employee’s wrongful acts or omissions.

     17. Assignment. All of the provisions of this Agreement shall be binding upon and
inure to the benefit of and be enforceable by the respective heirs, executors, administrators,
personal representatives, successors and assigns of the parties hereto, except that the duties and
responsibilities of the Employee hereunder are of a personal nature and shall not be assignable or
delegable by the Employee. The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had
taken place.

     18. Severability. If the final determination of an arbitrator or a court of competent
jurisdiction declares, after the expiration of the time within which judicial review (if permitted)
of such determination may be perfected, that any term or provision of this Agreement is invalid or
unenforceable, the remaining terms and provisions will be unimpaired, and the invalid or
unenforceable term or provision will be deemed replaced by a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term
or provision. Any prohibition or finding of unenforceability as to any provision of this Agreement
in any one jurisdiction will not invalidate or render unenforceable such provision in any other
jurisdiction.

     19. Amendment; Waiver. Neither Employee nor the Company may modify, amend, or waive
the terms of this Agreement other than by a written instrument signed by Employee and the Company.
Either party’s waiver of the other party’s compliance with any specific provision of this Agreement
is not a waiver of any other provision of this Agreement or of any subsequent breach by such party
of a provision of this Agreement. No delay on the part of any party in exercising any right, power
or privilege hereunder will operate as a waiver thereof.

     20. Withholding. The Company will reduce its compensatory payments to Employee
hereunder for withholding and FICA and Medicare taxes and any other federal, state or local tax or
other withholdings and contributions required by law or previously authorized by Employee.

17

 

     21. Governing Law. The Agreement will be governed by the laws of the Commonwealth of
Virginia, without regard to any conflict of laws provisions.

     22. Notices. Notices may be given in writing by personal delivery, by certified mail,
return receipt requested, by telecopy, or by overnight delivery. Employee should send or deliver
notices to the Company, to the attention of the General Counsel. The Company will send or deliver
any notice given to Employee at Employee’s address as reflected on the Company’s personnel records.
Employee and the Company may change the address for notice by like notice to the other party.
Employee and the Company agree that notice is deemed received on the date it is personally
delivered, the date it is received by certified mail, the date of guaranteed delivery by overnight
service, or the date the fax machine confirms receipt.

     23. Attorneys Fees. The Company shall, upon receipt of proper documentation,
reimburse Employee up to Seven Thousand Five Hundred Dollars ($7,500) for legal fees incurred in
the negotiation and execution of this Agreement. Such documentation must be provided, and the
Company shall pay such reimbursement no later than two (2) months following the receipt of such
documentation, unless the Company disputes such documentation, in which case the parties will work
in good faith to resolve such dispute in an expeditious manner and the Company shall pay the
reimbursement upon resolution of the dispute.

     24. Superseding Effect. This Agreement supersedes all prior or contemporaneous
negotiations, commitments, agreements, and writings between Employee and the Company with respect
to the subject matter. All such other negotiations, commitments, agreements, and writings will
have no further force or effect, and the parties to any such other negotiation, commitment,
agreement, or writing will have no further rights or obligations thereunder. Notwithstanding this
provision, the terms of the Company’s benefit plans, fringe benefit plans, any equity awards or any
other benefit or award plans which are in effect will continue to be governed in accordance with
their respective terms, and this Agreement does not supersede any bonus, stock option or restricted
stock award made in connection with Employee’s employment with the Company prior to the Execution
Date.

     25. Arbitration.

          (a) Arbitrable Claims. The Company and Employee agree to attempt to resolve any
employment related dispute between them quickly and fairly. Any such dispute which remains
unresolved (including, but not limited to, disputes concerning employment with and/or termination
of employment from the Company, the validity, interpretation, enforceability or effect of this
Agreement or alleged violations of this Agreement, claims concerning a legally protected right,
including without limitation, any common law claims such as breach of contract or commission of a
tort, and any claims arising under the federal, state or local civil rights laws, Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With Disabilities Act, the
Age Discrimination in Employment Act, the Family and Medical Leave Act, 42 U.S.C. § 1981, the
Worker Adjustment or Retraining Notification Act, and all other federal, state or local employment
related statutes, ordinances and /or common law) shall be resolved exclusively by final and binding
arbitration. Employee acknowledges that Employee waives the right to litigate the foregoing employment related legal claims in a judicial forum before a
judge or jury.

18

 

          This arbitration provision does not apply to (i) any Employee claim for workers compensation
benefits, unemployment compensation benefits or denial of benefits under any plan subject to the
Employee Retirement Income Security Act of 1974, or to the filing of charges with government
agencies, or (ii) any Company claim regarding theft, embezzlement, fraud, breach of confidentiality
or noncompetition or nonsolicitation obligations, or trade secret, trademark, copyright or patent
issues.

          (b) Claim Initiation/Time Limits. A party must notify the other party in writing at
the addresses indicated in Section 22 of a request to arbitrate a dispute within the same statute
of limitations applicable to the legal claim asserted. The written request for arbitration must
specify: (i) the factual basis on which the claim is made; (ii) the statutory provision or legal
theory under which the claim is made; and (iii) the nature and extent of any relief or remedy
sought.

          (c) Procedures. The arbitration will be administered in accordance with the
Employment Dispute Resolution Rules (“Rules”) of the American Arbitration Association (“AAA”), a
copy of which is available upon request to the Company, in the metropolitan area in which Employee
is then (or was last) employed before a single arbitrator, experienced in employment law and
licensed to practice law in that jurisdiction, who has been selected in accordance with such Rules.
The Company will pay the fees of the AAA and the arbitrator. However, in the event Employee
requests an arbitration, Employee will be required to contribute an amount equal to the fee
required to file a complaint of the same type in the state court which is geographically closest to
the site of the arbitration. Employee and the Company may be represented by counsel of their
choosing at their own expense. However, attorneys’ fees and costs may be awarded to a prevailing
party in the discretion of the arbitrator.

          (d) Responsibilities of Arbitrator. The arbitrator will act as the impartial decision
maker of any claims that come within the scope of this arbitration provision. The arbitrator will
have the powers and authorities provided by the Rules and the statute or common law under which the
claim is made. For example, the arbitrator will have the power and authority to include all
remedies in the award available under the statute or common law under which the claim is made
including, without limitation, the issuance of an injunction. The arbitrator will apply the
elements and burdens of proof, mitigation duty, interim earnings offsets and other legal rules or
requirements under the statutory provision or common law under which such claim is made. The
arbitrator will permit reasonable pre-hearing discovery. The arbitrator will have the power to
issue subpoenas. The arbitrator will have the authority to issue a summary disposition if there
are no material factual issues in dispute requiring a hearing and the Company or Employee is
clearly entitled to an award in its, his or her favor. The arbitrator will not have the power or
authority to challenge the Company’s lawful personnel policies or to substitute his/her business
judgment for the lawful business judgment of the Company which is not a breach of the provisions of
this Agreement, or any related agreements or plans, including but not limited to the equity awards
and the Bonus Plan. The arbitrator will not have the power or authority to add to, detract from or
modify any provision of this Agreement, or any related

19

 

agreements or plans. The arbitrator will not have the power or authority to direct the
Company to issue, reissue, value, revalue or take any other similar action with respect to any
equity awards, and, therefore, any award by the arbitrator in favor of Employee with respect to any
equity award will be a cash equivalent award. The arbitrator will issue a signed written opinion
and award that will include findings of fact and conclusions of law. If any monetary award is
made, the arbitrator will specify the elements and factual basis for calculating the amount. The
arbitrator’s award will be enforceable, and a judgment may be entered thereon, in a federal or
state court of competent jurisdiction in the state where the arbitration was held. The decision of
the arbitrator will be final and binding, provided, however, limited judicial review may be
obtained in a court of competent jurisdiction as permitted under applicable law.

          (e) Section 15 Remedies. Notwithstanding the foregoing, each party shall be entitled
to seek injunctive or other equitable relief, as contemplated by Section 15 above, from any court
of competent jurisdiction, without the need to resort to arbitration.

     26. Indemnification and Liability Insurance. During the term of this Agreement and
after the termination of this Agreement, the Company will indemnify Employee to the fullest extent
permitted by applicable law with regard to Employee’s actions (or inactions) on behalf of the
Company, and will advance legal fees and related costs on a current basis to the fullest extent
permitted by law. The Company will cover Employee under professional and other appropriate
liability insurance policies both during and, while any potential liability exists, after the term
in the same amount and to the same extent, if any, as the Company covers similarly situated
employees.

     27. Cooperation in Legal Matters. Employee will cooperate with the Company, during
the term of Employee’s employment and thereafter with respect to any pending or threatened claim,
action, suit, or proceeding, whether civil, criminal, administrative, or investigative (the
“Claims”), by being reasonably available to testify on behalf of the Company, and to assist the
Company by providing information, meeting and consulting with the Company or its representatives or
counsel, as reasonably requested. The Company will reimburse Employee for all out-of-pocket
expenses reasonably incurred by Employee in connection with the Employee’s provision of such
testimony or assistance. If necessary, the Company will provide counsel to Employee at the
Company’s expense. Employee agrees not to disclose to or discuss with anyone who is not assisting
the Company with the Claims, other than Employee’s personal attorney, the fact of or the subject
matter of the Claims, except as required by law. Employee further agrees to maintain the
confidences and privileges of the Company, and acknowledges that any such confidences and
privileges belong solely to the Company and can only be waived by the Company, not Employee. In
the event that Employee is subpoenaed to testify, or otherwise requested to provide information in
any matter relating to the Company, Employee agrees to promptly notify the Company after receipt of
such subpoena, summons or request for information, to reasonably cooperate with the Company with
respect to such subpoena, summons or request for information, and to not voluntarily provide any
testimony or information unless required by law or permitted by the Company.

     28. Section 409A Compliance. It is also the intention of the parties under this
Agreement that all income tax liability on payments made pursuant to the Agreement or other

20

 

agreements, plans or arrangements contemplated by this Agreement be deferred until Employee
actually receives such payment in accordance with the requirements of Section 409A of the Code, to
the extent Code Section 409A applies to such payments. This Agreement is intended to comply with
the provisions of Section 409A of the Code; and this Agreement will, to the extent practicable, be
construed in accordance therewith. If Employee is determined to be a “specified employee” for
purposes of Section 409A(a)(2)(B)(i) of the Code, then any amount that becomes payable under
Section 7 hereof (the “Severance Payment”) on account of Employee’s “separation from service” shall
not be paid to Employee until the first business day following the expiration of the six (6) month
period immediately following Employee’s “separation from service” (or if earlier, the date of his
death) if and to the extent that the Severance Payment constitutes deferred compensation (or may be
nonqualified deferred compensation, as mutually agreed by Company and Employee) under Section 409A
of the Code and such deferral is required to comply with the requirements of Section 409A of the
Code. The determination of whether Employee is a “specified employee” for purposes of Section
409A(a)(2)(B)(i) of the Code as of the time of his “separation from service” shall made by the
Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder
(including without limitation Treasury Regulation Section 1.409A-1(i) and any successor provision
thereto). To the extent that any reimbursement of any expense under Section 7 or in-kind benefits
provided under this Agreement are deemed to constitute taxable compensation to Employee, such
amounts will be reimbursed or provided no later than December 31st of the year following the year
in which such expense was incurred. The amount of any such expenses reimbursed or in-kind benefits
provided in one year shall not affect the expenses or in-kind benefits eligible for reimbursement
or payment in any subsequent year, and Employee’s right to such reimbursement or payment of any
such expenses will not be subject to liquidation or exchange for any other benefit. The Company
and Employee may agree to take such actions as they may mutually deem necessary or appropriate to
amend or modify this Agreement to avoid Employee’s accelerated recognition of taxable compensation
or the imposition of the additional tax and related interest under Section 409A(a)(1)(B) or
409A(b)(5) of the Code on any amounts due hereunder that may constitute nonqualified deferred
compensation for purposes of Section 409A of the Code as mutually agreed by the Company and
Employee. The preceding provisions shall not be construed as a guarantee by the Company of any
particular tax effect for payments made pursuant to the Agreement or other plans agreements, plans
or arrangements contemplated by this Agreement.

     29. Beneficiaries. Whenever this Agreement provides for any payment to the Employee’s
estate, such payment may be made instead to such beneficiary or beneficiaries as the Employee may
designate by written notice to the Company. The Employee shall have the right to revoke any such
designation and to redesignate a beneficiary or beneficiaries by written notice to the Company (and
to any applicable insurance company) to such effect.

     30. Miscellaneous Provisions.

          (a) This Agreement will be interpreted without reference to any rule or precept of law that
states that any ambiguity in a document be construed against the drafter.

21

 

     (b) Employee acknowledges that Employee has read and understands this Agreement and is
entering into this Agreement knowingly and voluntarily.

     (c) Notwithstanding the termination of Employee’s employment hereunder for any reason
or anything in this Agreement to the contrary, all post-employment obligations of the
parties and any provisions necessary to interpret or enforce those obligations under any
provision of this Agreement will survive the termination or expiration of this Agreement and
remain in full force and effect for the periods therein provided.

     (d) This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

– Remainder of this page intentionally left blank –

22

 

     IN WITNESS WHEREOF, the undersigned have signed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	RCN Corporation
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name: 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Employee
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name: 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]