Document:

WWW.EXFILE.COM, INC. -- 14588 -- DSL.NET, INC. -- EXHIBIT 10.7 TO FORM 8-K

    EXHIBIT
      10.7

    

    DSL.NET,
      INC.

    50
      BARNES
      PARK NORTH, SUITE 104

    WALLINGFORD,
      CT 06492

    

    August
      28, 2006

    

    David
      F.
      Struwas

    c/o
      DSL.net, Inc.

    50
      Barnes
      Park North, Suite 104

    Wallingford,
      CT 06492

    

    Re:
      Retention Bonus

    

    Dear
      Dave: 

    

    As
      you
      know, DSL.net, Inc. (the “Company”) entered into a Purchase Agreement with
      MegaPath Inc. and a wholly-owned subsidiary of MegaPath Inc. (“MegaPath”) on
      August 22, 2006 (the “Purchase Agreement”). It is a condition to the closing of
      the financing transaction contemplated by the Agreement (the “Financing”) that
      the Company have entered into this agreement with you. 

    

    In
      recognition of your historic valuable contributions to the success of the
      Company and your continuing value to the Company during the period following
      the
      closing of the Financing, to incent you to remain as an employee of the Company,
      and in consideration for the mutual covenants set out herein, the Company is
      prepared to offer to you the following: 

    

    
      	·   
               	
              Provided
                that you remain employed by the Company up until February 28, 2007
                (the
                “Retention Date”), you will be paid a retention bonus (the “Retention
                Bonus”) equal to three months of your current base salary. The Company
                will withhold and remit all applicable deductions from the Retention
                Bonus, which will be paid to you within five (5) business days of the
                Retention Date. If your employment with the Company is terminated
                by you
                or by the Company for any reason prior to the Retention Date, you
                will not
                be paid the Retention Bonus.

            

    

     

    Except
      as
      expressly amended herein, nothing in this agreement alters or amends the terms
      of your employment with the Company as at the Effective Date (as defined below)
      of this letter. This agreement becomes effective (the “Effective Date”) on the
      later of the date that the Company receives from you an executed copy of this
      agreement and the closing of the Financing.

    

    The
      benefits set forth herein are being made available to you in recognition of
      your
      unique knowledge and skills and in consideration for your continuing loyalty
      and
      dedication to the Company during this important period, and are in addition
      to
      your current compensation and any other benefits to which you are or may become
      entitled. This agreement is binding upon and shall inure to the benefit of
      the
      parties hereto and their respective successors and assigns. 

    

    Please
      acknowledge your receipt of this agreement by signing one copy of this letter
      and returning it to the undersigned.

    

    

    Yours
      truly,

    

    DSL.net,
      Inc. 

    

    Per
      order of the Board of Directors

    

    

    

    By: 
      /s/
      Walter
      Keisch                          
        

    Name:
      Walter Keisch

    Title:  
      Chief Financial Officer

    

    

    

    

    

    Agreed
      to this 28th day of August, 2006:

    

    

    

    

    /s/
      David F.
      Struwas                                   
         
            
           

    David
      F.
      StruwasWWW.EXFILE.COM, INC. -- 14588 -- DSL.NET, INC. -- EXHIBIT 10.8 TO FORM 8-K

    EXHIBIT
      10.8

    

    DSL.NET,
      INC.

    50
      BARNES
      PARK NORTH, SUITE 104

    WALLINGFORD,
      CT 06492

    

    

    August
      28, 2006

    

    [Insert
      Name of Executive Officer from Schedule 1 hereto]

    c/o
      DSL.net, Inc.

    50
      Barnes
      Park North, Suite 104

    Wallingford,
      CT 06492

    

    Re:
      Retention Bonus and Severance Agreement

    

    Dear
      [Insert
      Name of Executive Officer from Schedule 1 hereto]:

    

    As
      you
      know, DSL.net, Inc. (the “Company”) entered into a Purchase Agreement with
      MegaPath Inc. and a wholly-owned subsidiary of MegaPath Inc. (“MegaPath”) on
      August 22, 2006 (the “Purchase Agreement”). It is a condition to the closing of
      the financing transaction contemplated by the Agreement (the “Financing”) that
      the Company have entered into this agreement with you. 

    

    In
      recognition of your historic valuable contributions to the success of the
      Company and your continuing value to the Company during the period following
      the
      closing of the Financing, to incent you to remain as an employee of the Company,
      and in consideration for the mutual covenants set out herein, the Company is
      prepared to offer to you the following: 

    

    
      	1.   
               	
              Provided
                that you remain employed by the Company up until February 28, 2007
                (the
                “Retention Date”), you will be paid a retention bonus (the “Retention
                Bonus”) equal to three months of your current base salary. The Company
                will withhold and remit all applicable deductions from the Retention
                Bonus, which will be paid to you within five (5) business days of
                the
                Retention Date. If your employment with the Company is terminated
                by you
                or by the Company for any reason prior to the Retention Date, you
                will not
                be paid the Retention Bonus. 

            

    

    

    
      	2.  
                	
              If
                your employment is terminated by the Company for any reason (including
                death or disability) other than Cause (as defined below), or you
                terminate
                your employment with the Company at any time following the occurrence
                of
                an event of Good Reason (as defined below), the Company will pay
                to you
                within five (5) business days of such termination date if terminated
                by
                the Company without Cause or within five (5) business days of the
                Good
                Reason Notice Expiration Date (as defined below) if your employment
                has
                been terminated by you for Good Reason, as severance, a lump sum
                payment
                equal to six months of your current base salary (“Severance Payment”),
                plus an amount equal to six months of COBRA costs (covering you as
                an
                individual). The Company will withhold and remit all applicable deductions
                from the Severance Payment. If your employment with the Company is
                terminated by the Company for Cause, or by you without Good Reason,
                you
                will not be paid the Severance
                Payment.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    As
      used
      herein, “Cause”
      means:
      (i) theft, fraud, dishonesty, gross negligence or willful misconduct by you
      in
      connection with the performance of your job duties; (ii) conviction of a felony
      or a crime or civil violation which involves moral turpitude or plea of guilty
      or nolo
      contendere
      in
      respect of the foregoing; (iii) a repeated or ongoing failure to comply with
      the
      reasonable directions and instructions of your supervisor in connection with
      the
      performance of the your job duties, following notice from the Company to that
      effect and reasonable opportunity to cure same; (iv) use or possession of
      illegal drugs or excessive use of alcohol, while performing Company duties
      or
      while on Company premises; or (v) commission of any act, or failure to act,
      in
      bad faith, which, in the reasonable determination the Company has a material
      adverse effect on the business of the Company. As used herein, “Good Reason”
shall mean that (i) your primary place of employment is moved, to your further
      inconvenience, by the Company (not at your request) to a location greater than
      25 miles from New
      Haven, CT
      or in
      excess of 70 miles from your current residence address (without a corresponding
      permission from the Company allowing you to telecommute);
      (ii)
      the Company has breached any material
      term of
      this Agreement or any other agreement or policy affording rights or benefits
      to
      you; (iii) the Company has implemented a material reduction in your job duties;
      (iv) the Company has implemented a material demotion in your position or title;
      or (v) the Company has reduced your current base compensation; provided,
      however,
      that
      with respect to each of the conditions described above in items (i), (ii),
      (iii), (iv) and (v), you may not establish “Good Reason” unless you have
      provided written notice to the Board of Directors or Chief Executive Officer
      of
      the Company of the existence of such condition and the Company fails to cure
      such condition prior to the sooner to occur of the 10th
      business
      day following receipt of such notice or the date when you shall have committed
      to accepting employment from another employer following your resignation for
      Good Reason, which you shall provide the Company with notice of (either of
      such
      time periods being referred to herein as the “Good Reason Notice Expiration
      Date”).

    

    You
      will
      be required to execute a Severance Agreement in the form attached hereto as
      Exhibit A as a condition to receiving the Severance Payment.

    

    Except
      as
      expressly amended herein, nothing in this agreement alters or amends the terms
      of your employment with the Company as at the Effective Date (as defined below)
      of this letter. This agreement becomes effective (the “Effective Date”) on the
      later of the date that the Company receives from you an executed copy of this
      agreement and the closing of the Financing.

    

    The
      benefits set forth herein are being made available to you in recognition of
      your
      unique knowledge and skills and in consideration for your continuing loyalty
      and
      dedication to the Company during this important period, and are in addition
      to
      your current compensation and any other benefits to which you are or may become
      entitled. This agreement is binding upon and shall inure to the benefit of
      the
      parties hereto and their respective successors and assigns. 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Please
      acknowledge your receipt of this agreement by signing one copy of this letter
      and returning it to the undersigned.

    

    

    Yours
      truly,

    

    DSL.net,
      Inc. 

    

    Per
      order of the Board of Directors

    

    

    

    By: 
      /s/
      David F.
      Struwas                                    
        

    Name:
      David F. Struwas

    Title:
      President and Chief Executive Officer

    

    

    

    

    

    Agreed
      to this 28th day of August, 2006:

    

    

    

                                                                                            
      

    [Insert
      Name of Executive Officer from Schedule 1 hereto]

    

    

    Attachment:

    

    Exhibit
      A
      - Severance Agreement

    

    
 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    Form
      of Severance Agreement

    

    (attached
      hereto)

    

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    

 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Exhibit
        A

       

    

    SEVERANCE
      AGREEMENT

    

    This
      Severance Agreement (this "Agreement") is executed by and between [Insert
      Name of Executive Officer from Schedule 1 hereto]
      ("Employee") and DSL.net, Inc., ("DSL.net") (collectively the "parties"). In
      consideration for the execution of this Agreement and the performance of the
      terms and conditions herein, the parties agree as follows:

    

    1.  Severance.
      In
      consideration for Employee agreeing to the terms and conditions set out in
      this
      Agreement, DSL.net shall pay severance to Employee in the amount of [Insert
      Severance Amount from Schedule 1 hereto],
      less
      applicable state and federal withholding taxes, plus an amount equal to six
      (6)
      months of COBRA costs (covering Employee as an individual), after Employee
      executes this Agreement and returns the executed Agreement to DSL.net and after
      Employee complies with paragraph 4 hereof. 

     

    2.  Stock
      Options.
Employee
      will have whatever rights, if any, that the Employee has under DSL.net’s stock
      option and employee stock purchase plans and related agreements as of the date
      of termination of Employee’s employment with DSL.net.

     

    3.  Insurance.
      Employee will receive all company provided insurance coverage through his last
      date of employment, after which time Employee may elect COBRA. 

     

    4.  Return
      Of Property.
      Employee shall immediately return to DSL.net all DSL.net property and all
      tangible Confidential Information (as defined below) in Employee's possession,
      custody, or control, including but not limited to keys, key cards, computer
      equipment, computer disks or files, business information and records, and any
      other such DSL.net property. 

     

    5.  No
      Further Payments.
      DSL.net
      will provide Employee with payment for any and all wages, compensation, vacation
      and commissions through his last date of employment.

     

    6.  Release.
      Employee releases and forever discharges DSL.net and its present and former
      owners, boards, directors, officers, trustees, shareholders, employees, agents,
      attorneys, representatives, successors and assigns, and present and former
      parent, subsidiary, affiliated and related entities (collectively referred
      to as
      the "Released Parties"), and each of them, of and from any and all claims,
      demands, actions, causes of action, charges, and complaints, and associated
      costs, expenses, attorneys' fees, damages, injuries and losses, arising in
      law,
      equity or otherwise, of any and every kind, nature and character whatsoever,
      whether known or unknown, unforeseen, unanticipated, unsuspected or latent,
      which Employee and/or each of Employee's successors or agents now own or hold,
      or have at any time heretofore owned or held, or may at any time own or hold,
      by
      reason of any matter or thing arising from any cause whatsoever prior to the
      date of execution of this Agreement, including without limitation from all
      claims in any way related to Employee's separation of employment from DSL.net.
      Notwithstanding the foregoing, Employee does not release any claim or action
      existing on or prior to the date hereof relating to workforce injury arising
      from facts or circumstances sustained or occurring during the course of his
      employment with DSL.net. 

     

    
      
        
          ____________

          Employee's
            Initials

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Exhibit
        A

       

    

     

    7.  No
      Further Claims.
      Employee shall not file any charges against the Released Parties based on events
      occurring prior to the date of execution of this Agreement with any state or
      federal administrative agency, and shall immediately dismiss any such existing
      claims, if any. Employee shall not institute a lawsuit in any state or federal
      court based upon, arising out of, or relating to any claim, demand, or cause
      of
      action released herein. Employee shall not participate, assist, or cooperate
      in
      any third party’s claim, charge, suit, complaint, action or proceeding against
      the Released Parties, unless and to the extent required or compelled by law.
      Employee shall not encourage and/or solicit any third party to file any claim,
      charge, suit, complaint, action or proceeding against the Released Parties.
      

     

    8.  No
      Disclosure of Confidential Information.
      Employee shall not any time use, divulge, disclose or communicate, either
      directly or indirectly, in any manner whatsoever, any of DSL.net's Confidential
      Information to any person or business entity, without the prior written
      authorization of the President of DSL.net. As used herein, "Confidential
      Information" shall refer to DSL.net's confidential and proprietary business
      information concerning, without limitation, DSL.net's products, services,
      customers, employees, pricing, marketing, costs, business affairs, selling
      techniques, business agreements, customer agreements, operations, accounting
      procedures, financial statements, inventions, research and development, product
      designs, software programs, and any other similar information of any kind,
      nature or description, in whatever form (the "Confidential Information"). The
      Confidential Information is a valuable trade secret of DSL.net that shall remain
      the sole and exclusive property of DSL.net. 

     

    9.  No
      Unfair Competition.
      Employee shall not at any time (a) disclose any Confidential Information to
      any
      person or business entity which directly or indirectly competes with DSL.net,
      and/or (b) use or disclose any Confidential Information to, directly or
      indirectly or by action in concert with others, solicit, induce or influence,
      or
      seek to induce or influence, any customer of DSL.net for the purpose of
      promoting or selling any products or services competitive with those of DSL.net
      to such customer or inducing such customer to cease subscribing to services
      from
      DSL.net. 

     

    10.  No
      Solicitation.
      For a
      period of six (6) months following the date of this Agreement, Employee agrees
      not to directly or indirectly provide services to, be employed by or serve
      as a
      director of any company that is a direct competitor of DSL.net or its
      affiliates. In addition, for a period of two (2) years following the date of
      this Agreement, Employee shall not directly or indirectly solicit, induce or
      influence, or seek to induce or influence, any person who is engaged as a
      regular, temporary, introductory, full-time or part-time employee, agent, or
      independent contractor by DSL.net to terminate his or her employment or
      engagement with DSL.net for any reason. 

     

    11.  No
      Disparagement.
      Employee shall act in good faith towards the Released Parties so as not to
      harm
      their businesses in any way, and Employee shall not disparage the Released
      Parties in any way. 

     

    12.  References.
      In
      response to any inquiries from prospective employers, DSL.net will only provide
      information concerning Employee's dates of employment and positions. Employee
      will refer any such inquiries to DSL.net's Human Resources Department.

     

    
      
        
          ____________

          Employee's
            Initials

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Exhibit
        A

    

     

     

    13.  No
      Workplace Injuries. 
      To
      Employee’s knowledge, other than as described in writing in a schedule attached
      hereto, Employee has not sustained any workplace injury of any kind during
      employment with DSL.net.

     

    14.  Prior
      Agreements.
      This
      Agreement does not alter, modify or impact the confidentiality provisions and
      the restrictive covenants set forth in the Proprietary Information &
Inventions Agreement between the parties signed by Employee, nor does it affect
      Employee’s obligation to strictly comply with those provisions and
      covenants.

     

    15.  CONFIDENTIALITY.
      EMPLOYEE SHALL NOT DISCLOSE, PUBLICIZE OR ALLOW OR CAUSE TO BE PUBLICIZED OR
      DISCLOSED ANY OF THE TERMS AND CONDITIONS OF THIS AGREEMENT, OR THE EXISTENCE
      OF
      THE AGREEMENT ITSELF, UNLESS AND TO THE EXTENT REQUIRED OR COMPELLED BY LAW.
      THIS PROVISION CONSTITUTES A MATERIAL TERM OF THIS AGREEMENT. THE FOREGOING
      SHALL BE VOID IF DSL.NET PUBLICLY DISCLOSES THE EXISTENCE OR TERMS OF THIS
      AGREEMENT. 

     

    16.  Arbitration.
      Any
      disputes concerning this Agreement shall be settled exclusively by binding
      arbitration in Connecticut, before an experienced labor and employment law
      arbitrator mutually agreed upon by the parties. If the parties cannot agree
      upon
      an arbitrator, one will be selected in accordance with the rules of Judicial
      Arbitration and Mediation Services, Inc. (“JAMS”). The arbitrator in this matter
      shall not have the power to modify any of the provisions of this Agreement.
      The
      arbitrator's decision shall be final and binding upon the parties, and judgment
      upon the award rendered by the arbitrator may be entered in any court having
      jurisdiction. The parties will evenly split the cost of the arbitrator's fee.
      The arbitrator must award attorney's fees and costs to the prevailing party
      in
      the arbitration.

     

    17.  Notices.
      All
      notices and other communications provided for hereunder shall be in writing
      and
      shall be delivered to each party hereto by personal delivery, by priority
      overnight delivery sent via a nationally recognized courier (charges for the
      account of sender), by facsimile transmission or by registered or certified
      U.S.
      mail, return receipt requested, addressed as follows:

     

     

     

     

    
      
        
          ____________

          Employee's
            Initials

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Exhibit
        A

    

     

     

    if
      to DSL.net, to:

    

    DSL.net,
      Inc.

    50
      Barnes Park North, Suite 104

    Wallingford,
      CT 06492

    Attn:
      Chief Executive Officer 

    Facsimile:     
      203-684-6102

    Telephone:    
      203-684-6100

    

    and,

    

    if
      to Employee, to Employee’s latest residence address most recently on file with
      DSL.net

     

    or
      to
      such other address as either party may specify by notice to the other party
      given as aforesaid. Such notices shall be deemed to be effective three (3)
      business days after the same shall have been deposited, postage prepaid, in
      the
      U.S. mail, upon personal delivery, if the same shall have been delivered by
      hand, one (1) business day after deposit with such overnight courier, if sent
      via priority overnight delivery, or upon receipt of electronic facsimile
      confirmation, as the case may be. As used herein, a “business day” shall mean
      any weekday other than a Federal U.S. holiday or day on which banks in the
      State
      of Connecticut are authorized to close. The parties shall use commercially
      reasonable best efforts to apprise each other of any address changes during
      the
      operative term of this Agreement. 

     

    18.  Miscellaneous.
      DSL.net
      agrees that, if Employee’s employment is terminated for any reason, Employee is
      not required to seek other employment or to attempt in any way to reduce any
      amounts payable to Employee by DSL.net hereunder. Further, the amount of any
      payment provided hereunder shall not be reduced by any compensation earned
      by
      Employee. Each of Employee and DSL.net has full authority to enter into this
      Agreement and to be bound by it. Employee is voluntarily entering into this
      Agreement free of any duress or coercion. Employee has had the opportunity
      to
      consult legal counsel of Employee's own choosing with respect to the execution
      and legal effect of this Agreement. This Agreement shall be binding upon and
      inure to the benefit of the parties hereto and their respective successors
      and
      assigns. This Agreement contains all terms and conditions pertaining to the
      compromise and settlement of the claims released herein, and no promise or
      representation not contained in this Agreement has been made to Employee by
      the
      Released Parties. This Agreement supersedes all previous written or oral
      agreements between Employee and the Released Parties. This Agreement cannot
      be
      modified in any respect except in a written instrument signed by both Employee
      and DSL.net. In the event that any provision of this Agreement is held to be
      void, null or unenforceable, the remaining portions shall remain in full force
      and effect. Any uncertainty or ambiguity in the Agreement shall not be construed
      for or against any party based on the attribution of drafting to any party.
      This
      Agreement may be executed by the parties in any number of counterparts, which
      are defined as duplicate originals, all of which taken together shall be
      construed as one document. This Agreement shall be construed and governed by
      the
      laws of the State of Connecticut, without regard to its conflicts of laws
      principles. 

     

    19.  Consideration
      Period and Advice of Counsel.
      Employee
      is being informed that Employee has or may have specific rights and/or claims
      under the Age 

     

     

    
      
        
          ____________

          Employee's
            Initials

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Exhibit
        A

       

       

    

     

    Discrimination
      in Employment Act, as amended, including by the Older Workers Benefit Protection
      Act (the "ADEA"). In connection with the ADEA, Employee acknowledges that he
      has
      been afforded twenty-one (21) days to consider this Agreement, its benefits
      and
      its consequences. He understands that he has the option of signing this
      Agreement at any time before the end of the twenty-one (21) day period, but
      that
      any election to do so is completely within his discretion. Employee further
      acknowledges that he has been advised that he may seek the advice of an attorney
      before signing this Agreement, and that he has had a full and adequate
      opportunity to do so.

     

    20.  Revocation
      Period.
      It is
      understood and agreed by Employee that he will have seven (7) days after signing
      this Agreement to revoke it. The Agreement will not become effective and
      enforceable until this revocation period has expired. No payment to Employee
      under Section 2 above will be due until four (4) business days after the
      Agreement becomes effective and enforceable.

     

    PLEASE
      READ CAREFULLY. THIS AGREEMENT INCLUDES A RELEASE OF CERTAIN KNOWN AND UNKNOWN
      CLAIMS. 

    

    

    DATED:_____________________             ______________________________________

       
      [Insert Name of Executive Officer from Schedule 1 hereto]

    

    

    DATED:_____________________             ______________________________________

        
      For DSL.net, Inc.

    

    

     

     

     

     

    
 

    

     

    
      
        
          ____________

          Employee's
            Initials

        

      

      
        
        

        
          

        

      

      
        
        

    

    Schedule
      1 to Exhibit 10.8 to 8-K

    

    Executive
      Officers Subject to Retention Agreements & Severance Amounts

    

    

    
      	
              Name:

            	
              Title:
                

            	
              Severance
                Amount:

            
	
              Marc
                Esterman

            	
              S.V.P.
                - Corporate Affairs, General Counsel & Secretary

            	
              $87,500

            
	
              Walter
                Keisch

            	
              Chief
                Financial Officer & Treasurer

            	
              $100,000

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