Document:

exv10w54

 

Exhibit 10.54

CHANGE OF CONTROL AGREEMENT

     This Change of Control Agreement (the “Agreement”) is made and entered into effective
as of March 2, 2005 by and between John Trewin (the “Executive”) and Covad Communications
Group, Inc. and its subsidiaries (the “Company”).

     Section 1. RECITALS.

     A. It is expected that the Company from time to time will consider the possibility of
acquisition by another entity, or that a change in control may otherwise occur with or without the
approval of the Company’s Board of Directors (the “Board”). The Compensation Committee of
the Board (the “Committee”) recognizes that such consideration can be a distraction to the
Executive, an executive officer of the Company, and can cause the Executive to consider alternative
employment opportunities. The Committee has determined that it is in the best interests of the
Company and its shareholders to assure that the Company will have the continued dedication and
objectivity of the Executive, notwithstanding the possibility, threat or occurrence of a Change of
Control (as defined below) of the Company.

     B. The Committee believes that it is in the best interests of the Company and its shareholders
to provide the Executive with an incentive to continue his or her employment with the Company and
to motivate the Executive to maximize the value of the Company upon a Change of Control.

     C. The Committee believes that it is imperative to provide the Executive with certain benefits
upon a Change of Control and, under certain circumstances, upon termination of the Executive’s
employment in connection with a Change of Control, which benefits are intended to provide the
Executive with financial security and sufficient encouragement to remain with the Company
notwithstanding the possibility of a Change of Control.

     D. To accomplish the foregoing objectives, the Committee of Directors has directed the
Company, upon execution of this Agreement by the Executive, to agree to the terms provided in this
Agreement.

     Section 2. AGREEMENT. In consideration of the mutual covenants contained in this Agreement,
and in consideration of the continuing employment of Executive by the Company, the parties agree as
follows:

     A. Term of Agreement. This Agreement shall terminate upon the earlier of: (a) the
termination of Executive’s employment for any reason prior to, and not in connection with, a Change
of Control, (b) three (3) years from the effective date of this agreement; or (b) the date that all
obligations of the parties hereto with respect to this Agreement have been satisfied.

     B. At-Will Employment. The Company and the Executive acknowledge that the Executive’s
employment is and shall continue to be at-will, as defined under applicable law. If the
Executive’s employment terminates for any reason, including (without limitation) any termination
prior to, and not in connection with, a Change of Control, the Executive shall not be

 

 

entitled to any payments or benefits, other than as provided by this Agreement, or as may
otherwise be available in accordance with the terms of the Company’s established employee plans and
written policies at the time of termination.

     C. Separation Benefits Upon Certain Events Following Change of Control. If: (1) the
Executive’s employment is terminated (an “Involuntary Termination”) by the surviving entity
without Cause (as defined below); or (2) the Executive resigns under circumstances that constitute
a Resignation for Good Reason (as defined below) within two (2) years following a Change of
Control; Executive shall be entitled to the following separation benefits:

          1. Stock Options and Restricted Stock. The terms of the 1997 Stock Plan and the terms
of any agreement with respect to stock options granted for the Company’s securities held by the
Executive shall govern such stock options and are incorporated herein by reference.

          2. Severance Pay. Executive shall be entitled to receive an amount (less any
severance pay received under any other applicable severance plan in effect) equivalent to the total
sum of two times his or her current year salary and target bonus , adjusted as follows: If the
total sum of two times current salary and target bonus is equal to or over 20% of three times
the executive’s “base amount” determined for purposes of IRC Section 280G, the executive will
receive a gross up for taxes imposed on the executive pursuant to IRC Section 4999; if the total
sum of two times current salary and target bonus is less than 20% of three times the executive’s
“base amount” determined for purposes of IRC Section 280G, the amount payable under this Plan is
capped at 2.99 times the executive’s “base amount” determined for purposes of IRC Section 280G.

          3. COBRA Continuation Coverage. Executive’s existing coverage under the Company’s
group health plan (and, if applicable, the existing group health coverage for his or her eligible
dependents) will end on the last day of the month in which his or her employment terminates.
Executive and his or her eligible dependents may then be eligible to elect temporary continuation
coverage under the Company’s group health plan in accordance with the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”). Executive and his or her eligible dependents
will be provided with a COBRA election form and notice which describe his or her rights to
continuation coverage under COBRA. If Executive is eligible for severance benefits under this
Agreement at the time of the termination of employment and Executive timely elects COBRA
continuation coverage, then the Company will pay for COBRA coverage for him or her and, if
applicable, his or her eligible dependents for two (2) years; provided that such payments shall not
include COBRA coverage with respect to the Company’s Section 125 health care reimbursement plan.
If after eighteen (18) months or any other time prior to the expiration of two (2) years, the
Executive (and his or her eligible dependents) are no longer eligible for COBRA (or CalCOBRA)
coverage, Executive will be paid a monthly amount equal to the amount the Company paid for his or
her COBRA coverage for the last month of COBRA (or CalCOBRA) coverage, and no more, for the
remainder of the two (2) year period. Notwithstanding the foregoing, if at anytime prior to the
exhaustion of the two (2) years, Executive commences employment with an employer that offers health
benefits substantially equal to or better than the health benefit coverage offered by Company to
him or her pursuant to

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COBRA, as determined by Covad, whether or not Executive elects to receive such other health
benefits, the payment by the Company of the COBRA coverage cost will terminate as of his or her
commencement of such employment. After such period of Company-paid COBRA coverage, Executive (and,
if applicable, his or her eligible dependents) may continue COBRA coverage at his or her own
expense in accordance with COBRA (or CalCOBRA). No provision of this Agreement will affect the
continuation coverage rules under COBRA. Therefore, the period during which Executive must elect
to continue the Company’s group health plan coverage under COBRA, the length of time during which
COBRA coverage will be made available to him or her, and all his or her other rights and
obligations under COBRA will be applied in the same manner that such rules would apply in the
absence of this Agreement. Any such election is Executive’s responsibility, not the Company’s or a
Subsidiary’s.

          4. Other Terminations. The Executive shall not be entitled to receive any benefits
under this Agreement in the event the Executive’s employment terminates: (1) for any reason other
than those described in Section 2.C.; (2) prior to, and not in connection with, the occurrence of a
Change of Control; or (3) after the two (2) year period following the effective date of a Change of
Control.

          5. Execution of Release of Claims. The payment of the benefits listed herein is
conditioned on the Executive executing the General Release of All Claims, a copy of which is
attached as Exhibit A, within five (5) days after the termination date if the Executive is under
age forty (40), or executing the General Release of All Claims, a copy of which is attached as
Exhibit B, within forty-five (45) days after the termination date (or any longer period required
under the Older Workers Benefit Protection Act) if the Executive is age forty (40) or over (and
does not revoke the agreement to the terms of the release within any applicable revocation period).

     Section 3. DEFINITION OF TERMS. The following terms referred to in this Agreement shall have
the following meanings:

     A. “1934 Act”: the Securities Exchange Act of 1934, as amended, and the regulations
thereunder.

     B. “Beneficial Owner”: as defined in Rule 13d-3 of the SEC under the 1934 Act.

     C. “Cause”: defined as any of the following: (i) conviction of any felony which
includes as an element of the crime a premeditated intention to commit the act, (ii) serious
misconduct involving dishonesty in the course of employment, or (iii) habitual neglect of
Executive’s duties (other than on account of disability) which habitual neglect materially
adversely affects performance of Executive’s duties and continues for 30 days following receipt of
notice from the Committee of Directors of the Company (if Executive is an employee of the Company),
or the Committee of Directors of a Subsidiary (if Executive is an employee of a Subsidiary), which
specifically identifies the nature of the habitual neglect and the duties that are materially
adversely affected and states that, if not cured, such habitual neglect constitutes grounds for
termination; except that Cause shall not mean: (1) bad judgment or negligence other than habitual
neglect of duty; (2) any act or omission believed by Executive in good faith to have been in or not
opposed to the interest of the Company and its Subsidiaries (without intent to gain,

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directly or indirectly, a profit to which Executive was not legally entitled); (3) any act or
omission with respect to which a determination could properly have been made by the Committee of
Directors that Executive met the applicable standard of conduct for indemnification or
reimbursement under such employer’s by-laws, any applicable indemnification agreement, or
applicable law, in each case in effect at the time of such act or omission; or (4) any act or
omission with respect to which notice of termination is given more than 12 months after the
earliest date on which any member of the Committee of directors, not a party to the act or
omission, knew or should have known of such act or omission. “Cause” for purposes of this Agreement
shall also mean Executive’s death or “Disability” defined as any medically determinable physical or
mental impairment that has lasted for a continuous period of not less than six months and can be
expected to be permanent or of indefinite duration, and that renders Executive unable to perform
the essential functions of his or her job even with reasonable accommodation.

     D. “Change of Control”: shall include the occurrence of any of the following events:

          1. Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more
of the total voting power represented by the Company’s then outstanding voting securities; or

          2. A change in the composition of the Committee of Directors of the Company occurring within a
two-year period as a result of which fewer than a majority of the directors are “Incumbent
Directors.” “Incumbent Directors” shall mean directors who either (A) are directors of the Company
as of the date hereof, or (B) are elected, or nominated for election, to the Committee of Directors
with the affirmative votes (either by a specific vote or by approval of the proxy statement of the
Company in which such person is named as a nominee for election as a director without objection to
such nomination) of at least a majority of the Incumbent Directors at the time of such election or
nomination; or

          3. The consummation of (A) a merger or consolidation of the Company with any other entity,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or the entity that controls the
Company or such surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity or the entity that
controls the Company or such surviving entity outstanding immediately after such merger or
consolidation, or (B) the sale or disposition by the Company of all or substantially all the
Company’s assets; or

          4. The shareholders approve a plan of complete liquidation of the Company.

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     E. “Code”: the Internal Revenue Code of 1986, as amended, and the regulations
thereunder.

     F. “Effective Date”: means the first date on which a Change of Control occurs during
the Agreement Term. Despite anything in this Agreement to the contrary, if the Company terminates
the Executive’s employment before the date of a Change of Control, and if the Executive reasonably
demonstrates that such termination of employment (a) was at the request of a third party who had
taken steps reasonably calculated to effect the Change of Control or (b) otherwise arose in
anticipation of the Change of Control, then “Effective Date” shall mean the date immediately before
the date of such termination of employment.

     G. “Resignation For Good Reason”: shall mean, subject to the right of either party to
arbitrate a dispute with respect thereto in accordance with the terms of this Agreement,
Executive’s resignation as a result of, and within 30 days following:

          1. Executive’s position (including offices, titles, reporting requirements and
responsibilities), authority and duties are not commensurate in all material respects with the
principal position, authority and duties held by, exercised by and assigned to him or her at any
time during the 90-day period immediately before the effective date of the Change of Control;

          2. Executive is requested to principally perform services at a location more than 40 miles
from the location Executive was performing them during the 90-day period immediately before the
effective date of the Change of Control;

          3. A reduction of ten percent (10%) or more in the level of Executive’s base salary, bonus,
stock options or employee benefits (in the aggregate), other than a reduction implemented with his
or her consent or a reduction that is equivalent to a reduction in base salaries, bonus
opportunities, stock options and/or employee benefits (in the aggregate), as applicable, imposed on
peer executives of the Company (if Executive is an employee of Company) or a Subsidiary (if
Executive is an employee of a Subsidiary); or

          4. There is any material reduction in welfare and fringe benefits available to Executive
compared to the welfare and fringe benefits available to him or her in the year prior to the
effective date of the Change of Control.

     H. “SEC”: the Securities and Exchange Commission.

     I. “Subsidiary” or “Subsidiaries”: any corporation as defined in Section
424(f) of the Code with the Company being treated as the employer corporation for purposes of this
definition, and any partnership or limited liability company in which Group or any Subsidiary has a
direct or indirect interest (whether in the form of voting power or participation in profits or
capital contribution) of 50% or more. The determination of Subsidiary status shall be made, in the
case of a Change of Control, at the time of the occurrence of the event constituting a Change of
Control; and in the case of an event relating to employment status or benefits, at the time such
event occurs.

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     J. “Voting Securities”: means securities of a corporation that are entitled to vote
generally in the election of directors of such corporation.

Section 4. NOTICE & ARBITRATION

     A. Notice. Notices and all other communications contemplated by this Agreement shall
be in writing and shall be deemed to have been duly given when personally delivered or when mailed
by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices
to the Executive shall be addressed to the Executive at the home address that the Executive most
recently communicated to the Company in writing. In the case of the Company, mailed notices shall
be addressed to its corporate headquarters, 110 Rio Robles, San Jose, CA 95134, and all notices
shall be directed to the attention of Senior Executive in charge of Human Resources.

     B. Arbitration and Dispute Resolution.

          1. In the event disputes arise between them (other than claims that Employee may have for
workers’ compensation or unemployment insurance benefits, or claims based on any state or federal
law that have been determined by the controlling judicial authority of appropriate jurisdiction not
to be arbitrable pursuant to pre-dispute arbitration agreements such as this arbitration
provision), both Parties will be bound by this arbitration clause which provides for final and
binding arbitration for disputes arising out of or relating to the Employee’s employment with the
Company, the termination of Employee’s employment, and/or any agreements previously or hereafter
entered into between Employee and the Company. The parties shall arbitrate such disputes under the
most recently issued National Rules for the Resolution of Employment Disputes of the American
Arbitration Association. All disputes shall be resolved by a single arbitrator, who shall be an
attorney duly admitted to practice in California, selected by the Company and the Employee.
Notwithstanding the foregoing, unless otherwise prohibited by applicable law, each party retains
the right to file, in a court of competent jurisdiction, an application for provisional injunctive
and/or equitable relief in connection with a claim described above as subject to these arbitration
provision, including any claims relevant to the application for provisional relief, and shall not
be obligated to post a bond or other security in seeking such relief unless specifically required
by law.

          2. Once the arbitration has commenced, both the Company and the Employee shall have the right
to conduct normal civil discovery, the extent and quantity of such shall be subject to the
discretion of the selected arbitrator. The arbitrator shall have the exclusive authority to
resolve any issues relating to the arbitrability of the dispute or the validity or interpretation
of this arbitration provision, to rule on motions to dismiss and/or motions for summary judgment
applying the standards governing such motions under the California Code of Civil Procedure, and
shall be empowered to award either Party any remedy at law or in equity that the prevailing party
would otherwise have been entitled to had the matter been litigated in court. The arbitrator shall
issue a decision or award in writing, stating the essential findings of fact and conclusions of
law. Judgment on the award rendered by the arbitrator may be entered in any court having
jurisdiction. Costs shall be allocated such that Employee will not incur any

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costs other than that which would be incurred to file a civil action in the Superior Court for
the State of California or other court with proper jurisdiction over the dispute.

          3. BOTH THE COMPANY AND THE EMPLOYEE EXPRESSLY WAIVE ANY RIGHT THAT EITHER PARTY HAS OR MAY
HAVE TO A CIVIL JURY TRIAL. ONLY AN ARBITRATOR, NOT A JUDGE OR JURY, WILL DECIDE ANY SUCH DISPUTE.
BOTH PARTIES AGREE THAT NO ACTION MAY BE BROUGHT IN COURT EXCEPT ACTIONS TO COMPEL ARBITRATION, TO
OBTAIN THE DISMISSAL OF ACTIONS FILED IN COURT IN CONTRAVENTION OF THIS ARBITRATION AGREEMENT, OR
TO SEEK PROVISIONAL RELIEF AS MAY BE ALLOWED BY STATE OR FEDERAL LAW.

          4. Although all claims arising between the parties are subject to arbitration, unless
otherwise prohibited by applicable law, each party retains the right to file, in a court of
competent jurisdiction, an application for provisional injunctive and/or equitable relief in
connection with a claim relating to this Agreement, including any claims relevant to the
application for provisional relief, and shall not be obligated to post a bond or other security in
seeking such relief unless specifically required by law. Although a court may grant provisional
injunctive and/or equitable relief, the arbitrator shall at all times retain the power to grant
permanent injunctive relief, or any other final remedy.

     Section 5. MISCELLANEOUS PROVISIONS.

     A. Successors. Any successor to the Company (whether direct or indirect and whether
by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of
the Company’s business and/or assets shall assume the obligations under this Agreement and agree
expressly to perform the obligations under this Agreement in the same manner and to the same extent
as the Company would be required to perform such obligations in the absence of a succession. The
terms of this Agreement and all of the Executive’s rights hereunder shall inure to the benefit of,
and be enforceable by, the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     B. No Duty to Mitigate. The Executive shall not be required to mitigate the amount of
any payment contemplated by this Agreement (whether by seeking new employment or in any other
manner), nor, except as otherwise provided in this Agreement, shall any such payment be reduced by
any earnings that the Executive may receive from any other source.

     C. Waiver. No provision of this Agreement shall be modified, waived or discharged
unless the modification, waiver or discharge is agreed to in writing and signed by the Executive
and by an authorized officer of the Company (other than the Executive). No waiver by either party
of any breach of, or of compliance with, any condition or provision of this Agreement by the other
party shall be considered a waiver of any other condition or provision or of the same condition or
provision at another time.

     D. Whole Agreement. No agreements, representations or understandings (whether oral or
written and whether express or implied) which are not expressly set forth in this Agreement

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have been made or entered into by either party with respect to the subject matter hereof.
This Agreement supersedes any agreement of the same title and/or concerning similar subject matter
dated prior to the date of this Agreement, and by execution of this Agreement both parties agree
that any such predecessor agreement shall be deemed null and void.

     E. Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California without reference to conflict of
laws provisions.

     F. Severability. If any term or provision of this Agreement or the application
thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or
unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of
such invalidity or unenforceability without invalidating or rendering unenforceable the remaining
terms and provisions of this Agreement or the application of such terms and provisions to
circumstances other than those as to which it is held invalid or unenforceable, and a suitable and
equitable term or provision shall be substituted therefore to carry out, insofar as may be valid
and enforceable, the intent and purpose of the invalid or unenforceable term or provision.

     G. Legal Fees and Expenses. The parties shall each bear their own expenses, legal
fees and other fees incurred in connection with this Agreement.

     H. No Assignment of Benefits. The rights of any person to payments or benefits under
this Agreement shall not be made subject to option or assignment, either by voluntary or
involuntary assignment or by operation of law, including (without limitation) bankruptcy,
garnishment, attachment or other creditor’s process, and any action in violation of this subsection
(h) shall be void.

     I. Employment Taxes. All payments made pursuant to this Agreement will be subject to
withholding of applicable income and employment taxes unless otherwise expressly noted.

     J. Assignment by the Company. The Company may assign its rights under this Agreement
to an affiliate (including a parent or subsidiary), and an affiliate may assign its rights under
this Agreement to another affiliate of the Company or to the Company; provided, however, that no
assignment shall be made if the net worth of the assignee is less than the net worth of the Company
at the time of assignment. In the case of any such assignment, the term “Company” when used in a
section of this Agreement shall mean the corporation that actually employs the Executive.

     K. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together will constitute one and the same instrument.

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     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above written.

	 	 	 	 	 	 	 
	Covad Communications Group, Inc.	 	 	 	John Trewin
	 
	 	 	 	 	 	 
	By:

	 	/s/ Deborah Perry
	 	 	 	/s/ John Trewin
	

	 	 
	 	 	 	 
	

	 	Deborah Perry
	 	 	 	John Trewin
	

	 	Senior Vice President, Organizational

Transformation
	 	 	 	Senior Vice President and Chief
Financial Officer

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Exhibit A

GENERAL RELEASE OF ALL CLAIMS

     In consideration of the payments and benefits to be received by me,                                                             [employee name] under
the Covad Communications Group, Inc. Executive Severance Plan on behalf of myself, my heirs,
executors, administrators, successors, and assigns, hereby make the following agreements and
acknowledgements:

I. Release and Waiver of All Claims

     A. I hereby agree that I fully and forever discharge, waive and release any and all claims and
causes of action of any kind that I may have had or now have against Covad Communications Group,
Inc., and any of its affiliates, predecessors, successors, parents, subsidiaries or assigns and any
of their respective officers, directors, agents, employees, and representatives (collectively, the
“Company” or “Covad”) arising out of or relating in any way to (1) my employment with the Company
and the termination thereof, including but not limited to claims of wrongful discharge, breach of
contract, breach of the covenant of good faith and fair dealing, violation of public policy,
defamation, personal injury, infliction of emotional distress, claims for unpaid wages, salaries
and commissions, claims under Title VII of the 1964 Civil Rights Act, as amended, the California
Fair Employment and Housing Act, the Equal Pay Act of 1963, the California Labor Code including
Section 1197.5 thereof, the Americans with Disabilities Act, the Civil Rights Act of 1866, the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), WARN, and any other local,
state and federal laws and regulations relating to employment, except any claims I may have for
unemployment and workers’ compensation insurance benefits.

     B. I hereby agree that I fully and forever waive any and all rights and benefits conferred
upon me by the provisions of Section 1542 of the Civil Code of the State of California, or
analogous law of any other state, which states as follows:

A general release does not extend to claims which the creditor [i.e., employee] does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor [i.e., the Company].

     C. I understand that various lawsuits have been brought against the Company alleging fraud
and/or other legal violations relating to transactions in the Company’s securities, and that some
of those cases have been brought as purported class actions on behalf of various classes of persons
who acquired such securities. I have made my own determination as to whether I wish to consult
with the law firms purporting to represent such classes, and as to whether I am eligible to and
wish to participate in such cases. I understand that by signing this Agreement I will be precluded
from such participation, and will be waiving any rights I might otherwise have had as a result of
such lawsuits.

 

 

          I agree and understand that if, hereafter, I discover facts different from or in addition to
those which I now know or believe to be true, that the waivers of this General Release of All
Claims (“General Release”) shall be and remain effective in all respects notwithstanding such
different or additional facts or the discovery thereof.

II. Confidential Information & Company Employees

          I hereby agree and understand that:

     A. I am required to return to the Company immediately upon my termination of employment all
Company Information, including but not limited to notebooks, notes, manuals, memoranda, records,
diagrams, blueprints, bulletins, formulas, reports, computer programs, or other data or
memorializations of any kind, as well as any Company property or equipment, that I have in my
possession or under my control. I further agree and understand that I am not entitled or
authorized to keep any portions, summaries or copies of Company Information, and that I am under a
continuing obligation to keep all Company Information confidential and not to disclose it to any
third party in the future. I understand that the term “Company Information” includes, but is not
limited to, the following:

     • Trade secret, information, matter or thing of a confidential, private or secret
nature, connected with the actual or anticipated products, research, development or business
of the Company or its customers, including information received from third parties under
confidential conditions; and

     • Other technical, scientific, marketing, business, product development or financial
information, the use or disclosure of which might reasonably be determined to be contrary to
the interests of the Company.

     B. I am prohibited for a period of one (1) year after the termination of my employment, from
soliciting for employment, whether as an employee, independent contractor, or agent, any Company
employee; and for that same time period I am prohibited from encouraging or otherwise enticing any
Company employee to terminate his or her employment with the Company.

     C. The promises and agreements of this Section II. are a material inducement to the Company to
provide me with the payments and benefits under the Plan and that, for the breach thereof,
the Company will be entitled to pursue its legal and equitable remedies against me, including,
without limitation, the right to immediately cease payments made pursuant to the Plan and/or seek
injunctive relief; provided, however, this General Release will remain in full force and effect.

III. Entire Agreement

          I agree and understand that this General Release contains the entire agreement between the
Company and me with respect to any matters referred to in the General Release, and supersedes any
and all previous oral or written agreements.

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IV. No Admission

          I agree and understand that neither the fact nor any aspect of this General Release is
intended, should be deemed, or should be construed at any time to be an admission of liability or
wrongdoing by either myself or the Company.

V. Severability

          I agree and understand that if any provision, or portion of a provision, of this General
Release is, for any reason, held to be unenforceable, that such unenforceability will not affect
any other provision, or portion of a provision, of this General Release and this General Release
shall be construed as if such unenforceable provision or portion had never been contained herein.

VI. Dispute Resolution

          I hereby agree and understand that any and all disputes regarding any alleged breach of this
General Release shall be settled by final and binding arbitration in the County of Santa Clara,
California, or, at my option, in the County where I reside at the time the dispute arises, in
accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association, or its successor, and judgment upon the award rendered may be entered in
any court with jurisdiction. I understand that this arbitration clause applies to all claims,
including claims under federal or state employment or civil rights laws (other than claims for
workers’ compensation or unemployment insurance benefits). Unless another limitations period is
expressly mandated by statute, to be timely, any dispute must be referred to arbitration within
twelve (12) months of the incident or complaint giving rise to the dispute. Disputes not referred
to arbitration within such twelve (12) month period shall be deemed waived, and the arbitrator
shall deny any untimely claims. In reaching a decision, the arbitrator shall adhere to relevant
law and applicable precedent, and shall have no power to vary there from. The arbitrator shall
issue a written decision making specific findings of fact and stating conclusions of law. I
understand that each party retains the right to file, in a court of competent jurisdiction, an
application for provisional injunctive and/or equitable relief in connection with a claim relating
to this General Release, and shall not be required to post a bond or other security in seeking such
relief unless specifically required by law. Although a court may grant provisional remedies, the
arbitrator shall at all times retain the power to grant permanent injunctive relief, or any other
final remedy. I understand that the Company will pay the costs of arbitration in excess of the
costs I would incur to bring such claim in a civil court.

VII. Time to Consider and Sign General Release

          I understand that I may have five (5) days after receipt of this General Release within which
I may review and consider, discuss with an attorney of my own choosing and at my own expense, and
decide whether or not to sign this General Release.

VIII. Effective Date

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          I understand that this General Release becomes effective immediately upon signing it.

IX. Miscellaneous Acknowledgements

     A. I hereby acknowledge that I understand that, but for my signing of this General Release, I
would not be entitled to nor would I be provided with any of the payments and benefits under the
Plan. I understand further that, even if I did not sign this General Release, I would still be
entitled to:

          1. All wages, including any paid vacation, less applicable deductions, earned by me
through my termination date; and

          2. The opportunity, if I am eligible, to elect, at my sole expense, to continue to
participate in (and, if applicable, my dependents are eligible to elect to continue their
participation in) the group health insurance plans provided by the Company pursuant to the
terms and conditions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”).

     B. I hereby acknowledge that any agreement that I signed in connection with my employment with
the Company regarding employee inventions, authorship, proprietary and confidential information
shall remain in full force and effect following the termination of my employment.

EMPLOYEE’S ACCEPTANCE OF GENERAL RELEASE

BEFORE SIGNING MY NAME TO THIS GENERAL RELEASE, I STATE THAT: I HAVE READ IT; I UNDERSTAND IT AND
KNOW THAT I AM GIVING UP IMPORTANT RIGHTS; I AM AWARE OF MY RIGHT TO CONSULT WITH AN ATTORNEY
BEFORE SIGNING IT; AND I HAVE SIGNED IT KNOWINGLY AND VOLUNTARILY.

Date delivered to employee                                                             , 200_.

Signed this                      day of                                         , 200_.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Employee’s Signature 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Employee’s Name (Printed) 	 
	 	 	 	 
	 

Copies of the signed release or revocation letter should be mailed or faxed to:

		
	  	Kristin Ming, Benefits Analyst, 110 Rio Robles, San Jose, California 95134-1813

Fax: (408) 952-7404

4

 

Exhibit B

GENERAL RELEASE OF ALL CLAIMS

     In consideration of the payments and benefits                                         [amount of benefit] to be received by me,
                             [employee name] under the Covad Communications Group, Inc. Executive Severance Plan on behalf of
myself, my heirs, executors, administrators, successors, and assigns, hereby make the following
agreements and acknowledgements:

I. Release and Waiver of All Claims

     A. I hereby agree that I fully and forever discharge, waive and release any and all claims and
causes of action of any kind that I may have had or now have against Covad Communications Group,
Inc., and any of its affiliates, predecessors, successors, parents, subsidiaries or assigns and any
of their respective officers, directors, agents, employees, and representatives (collectively, the
“Company” or “Covad”) arising out of or relating in any way to (1) my employment with the Company
and the termination thereof, including but not limited to claims of wrongful discharge, breach of
contract, breach of the covenant of good faith and fair dealing, violation of public policy,
defamation, personal injury, infliction of emotional distress, claims under Title VII of the 1964
Civil Rights Act, as amended, the California Fair Employment and Housing Act, the Equal Pay Act of
1963, the California Labor Code including Section 1197.5 thereof, the Age Discrimination in
Employment Act of 1967, as amended, the Americans with Disabilities Act, the Civil Rights Act of
1866, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), WARN, and any
other local, state and federal laws and regulations relating to employment, except any claims I may
have for unemployment and workers’ compensation insurance.

     B. I hereby agree that I fully and forever waive any and all rights and benefits conferred
upon me by the provisions of Section 1542 of the Civil Code of the State of California, or
analogous law of any other state, which states as follows:

     A general release does not extend to claims which the creditor [i.e., employee] does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor [i.e., the Company].

     C. I understand that various lawsuits have been brought against the Company alleging fraud
and/or other legal violations relating to transactions in the Company’s securities, and that some
of those cases have been brought as purported class actions on behalf of various classes of persons
who acquired such securities. I have made my own determination as to whether I wish to consult
with the law firms purporting to represent such classes, and as to whether I am eligible to and
wish to participate in such cases. I understand that by signing this Agreement I will be precluded
from such participation, and will be waiving any rights I might otherwise have had as a result of
such lawsuits.

 

 

          I agree and understand that if, hereafter, I discover facts different from or in addition to
those which I now know or believe to be true, that the waivers of this General Release of All
Claims (“General Release”) shall be and remain effective in all respects notwithstanding such
different or additional facts or the discovery thereof.

II. Confidential Information & Company Employees

     I hereby agree and understand that:

     A. I am required to return to the Company immediately upon my termination of employment all
Company Information, including but not limited to notebooks, notes, manuals, memoranda, records,
diagrams, blueprints, bulletins, formulas, reports, computer programs, or other data or
memorializations of any kind, as well as any Company property or equipment, that I have in my
possession or under my control. I further agree and understand that I am not entitled or
authorized to keep any portions, summaries or copies of Company Information, and that I am under a
continuing obligation to keep all Company Information confidential and not to disclose it to any
third party in the future. I understand that the term “Company Information” includes, but is not
limited to, the following:

     • Trade secret, information, matter or thing of a confidential, private or secret
nature, connected with the actual or anticipated products, research, development or business
of the Company or its customers, including information received from third parties under
confidential conditions; and

     • Other technical, scientific, marketing, business, product development or financial
information, the use or disclosure of which might reasonably be determined to be contrary to
the interests of the Company.

     B. I am prohibited for a period of one (1) year after the termination of my employment, from
soliciting for employment, whether as an employee, independent contractor, or agent, any Company
employee; and for that same time period I am prohibited from encouraging or otherwise enticing any
Company employee to terminate his or her employment with the Company.

     C. The promises and agreements of this Section II. are a material inducement to the Company to
provide me with the payments and benefits under the Plan and that, for the breach thereof, the
Company will be entitled to pursue its legal and equitable remedies against me, including, without
limitation, the right to immediately cease payments made pursuant to the Plan and/or seek
injunctive relief; provided, however, this General Release will remain in full force and effect.

III. Entire Agreement

          I agree and understand that this General Release contains the entire agreement between the
Company and me with respect to any matters referred to in the General Release, and supersedes any
and all previous oral or written agreements.

2

 

IV. No Admission

          I agree and understand that neither the fact nor any aspect of this General Release is
intended, should be deemed, or should be construed at any time to be an admission of liability or
wrongdoing by either myself or the Company.

V. Severability

          I agree and understand that if any provision, or portion of a provision, of this General
Release is, for any reason, held to be unenforceable, that such unenforceability will not affect
any other provision, or portion of a provision, of this General Release and this General Release
shall be construed as if such unenforceable provision or portion had never been contained herein.

VI. Dispute Resolution

          I hereby agree and understand that any and all disputes regarding any alleged breach of this
General Release shall be settled by final and binding arbitration in the County of Santa Clara,
California, or, at my option, in the County where I reside at the time the dispute arises, in
accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association, or its successor, and judgment upon the award rendered may be entered in
any court with jurisdiction. I understand that this arbitration clause applies to all claims,
including claims under federal or state employment or civil rights laws (other than claims for
workers’ compensation or unemployment insurance benefits). Unless another limitations period is
expressly mandated by statute, to be timely, any dispute must be referred to arbitration within
twelve (12) months of the incident or complaint giving rise to the dispute. Disputes not referred
to arbitration within such twelve (12) month period shall be deemed waived, and the arbitrator
shall deny any untimely claims. In reaching a decision, the arbitrator shall adhere to relevant
law and applicable precedent, and shall have no power to vary there from. The arbitrator shall
issue a written decision making specific findings of fact and stating conclusions of law. I
understand that each party retains the right to file, in a court of competent jurisdiction, an
application for provisional injunctive and/or equitable relief in connection with a claim relating
to this General Release, and shall not be required to post a bond or other security in seeking such
relief unless specifically required by law. Although a court may grant provisional remedies, the
arbitrator shall at all times retain the power to grant permanent injunctive relief, or any other
final remedy. I understand that the Company will pay the costs of arbitration in excess of the
costs I would incur to bring such claim in a civil court.

VII. Waiver

     By signing this Agreement, I acknowledge that:

	 	a.  	I have carefully read, and understand, this Agreement;
	 
	 	b.  	I have been given forty-five (45) days to consider my rights and obligations under this
Agreement and to consult with an attorney;

3

 

	 	c.  	I have been provided a notice by the Company, as required by the Older Workers Benefit
Protection Act of 1990, that contains information about individuals covered under the Plan,
eligibility factors for participation in the Plan, the time limits applicable to the Plan,

the job titles and ages of the employees in my organizational unit designated to participate
in the Plan and the job titles and ages of the employees in the same organizational unit who
have not been designated to participate in the Plan.
	 
	 	d.  	The Company advised me to consult with an attorney and/or any other advisors of my choice
before signing this Agreement;
	 
	 	e.  	I understand that this Agreement is legally binding and by signing it I give up
certain rights;
	 
	 	f.  	I have voluntarily chosen to enter into this Agreement and have not been forced or
pressured in any way to sign it;
	 
	 	g.  	I knowingly and voluntarily release Covad, including its affiliates,
predecessors, successors, parents, subsidiaries or assigns and any of their respective
officers, directors, agents, employees, and representatives from any and all claims I may
have, known or unknown, in exchange for the payments I have obtained by signing this
Agreement, and that these payments are in addition to any payments I would have otherwise
received if I did not sign this Agreement;
	 
	 	h.  	The General Release in this Agreement includes a waiver and release of all claims I may
have under the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621 et seq.); and
	 
	 	i.  	This Agreement does not waive any rights or claims that may arise after this Agreement is
signed and becomes effective, which is eight (8) days after I sign it.

VIII. Opportunity to Revoke and Effective Date

          I understand that this General Release will not become effective until expiration of the
seventh (7) day after I sign it; provided that I do not revoke it during those seven (7) days, and
that for a period of seven (7) days after I sign this General Release, I may revoke it. I agree
and understand that if I decide to revoke this General Release after I sign it, I can do so only by
delivering a written notification of my revocation, no later than the seventh day after I sign this
General Release, to:

		
	  	Kristin Ming, Benefits Analyst, 110 Rio Robles, San Jose, California 95134-1813

Fax: (408) 952-7404

4

 

IX. Miscellaneous Acknowledgements

     A. I hereby acknowledge that I understand that, but for my signing of this General Release and
failure to revoke it during seven (7) days thereafter, I would not be entitled to nor would I be
provided with any of the payments and benefits under the Plan. I understand that no payments and
benefits will be provided to me until this General Release becomes effective. I understand further
that, even if I did not sign this General Release or if I sign and then revoke it within seven (7)
days thereafter, I would still be entitled to:

          1. All wages, including any paid vacation, less applicable deductions, earned by me
through my termination date; and

          2. The opportunity, if I am eligible, to elect, at my sole expense, to continue to
participate in (and, if applicable, my dependents are eligible to elect to continue their
participation in) the group health insurance plans provided by the Company pursuant to the
terms and conditions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”).

     B. I hereby acknowledge that any agreement that I signed in connection with my employment with

the Company regarding employee inventions, authorship, proprietary and confidential information
shall remain in full force and effect following the termination of my employment.

EMPLOYEE’S ACCEPTANCE OF GENERAL RELEASE

BEFORE SIGNING MY NAME TO THIS GENERAL RELEASE, I STATE THAT: I HAVE READ IT; I UNDERSTAND IT AND
KNOW THAT I AM GIVING UP IMPORTANT RIGHTS; I AM AWARE OF MY RIGHT TO CONSULT WITH AN ATTORNEY
BEFORE SIGNING IT; AND I HAVE SIGNED IT KNOWINGLY AND VOLUNTARILY.

Date delivered to employee                                                             , 200_.

Signed this                      day of                                         , 200_.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Employee’s Signature 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Employee’s Name (Printed) 	 
	 	 	 	 
	 

Copies of the signed release or revocation letter should be mailed or faxed to:

		
	  	Kristin Ming, Benefits Analyst, 110 Rio Robles, San Jose, California 95134-1813

Fax: (408) 952-7404

5exv10w55

 

Exhibit 10.55

COVAD COMMUNICATIONS GROUP, INC.

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of this 2nd day of March, 2005, by and
between Covad Communications Group, Inc., a Delaware corporation (the “Company”), and John Trewin
(“Indemnitee”).

     WHEREAS, the Company and Indemnitee recognize the increasing difficulty in obtaining
directors’ and officers’ liability insurance, the significant increases in the cost of such
insurance and the general reductions in the coverage of such insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting officers and directors to expensive litigation risks at the same
time as the availability and coverage of liability insurance has been severely limited; and

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve as officers and directors of the Company and to indemnify
its officers and directors so as to provide them with the maximum protection permitted by law.

     NOW, THEREFORE, in consideration for Indemnitee’s services as an officer or director of the
Company, the Company and Indemnitee hereby agree as follows:

     1. Indemnification.

          (a) Third
Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is or was a
party or is threatened to be made a party to any threatened, pending or completed action, suit,
proceeding or any alternative dispute resolution mechanism, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the Company) by reason of the fact
that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary
of the Company, or by reason of the fact that Indemnitee is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines
and amounts paid in settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in
connection with such action, suit or proceeding if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and,
with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s
conduct was unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company, and, with respect
to any criminal action or proceeding, had reasonable cause to believe that Indemnitee’s conduct was
unlawful.

 

 

          (b) Proceedings By or in the Right of the Company. The Company shall indemnify Indemnitee if
Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the Company or any subsidiary of the Company to
procure a judgment in its favor by reason of the fact that Indemnitee is or was a director,
officer, employee or agent of the Company, or any subsidiary of the Company, or by reason of the
fact that Indemnitee is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys’ fees) and, to the fullest extent permitted by law, amounts
paid in settlement actually and reasonably incurred by Indemnitee in connection with the defense or
settlement of such action or suit if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company, except that no
indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall
have been adjudged to be liable to the Company unless and only to the extent that the Court of
Chancery of the State of Delaware or the court in which such action or suit was brought shall
determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses which the Court of Chancery of the State of Delaware or such other court shall deem
proper.

          (c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful on the
merits or otherwise in defense of any action, suit or proceeding referred to in Subsections (a) and
(b) of this Section 1, or in defense of any claim, issue or matter therein, Indemnitee shall be
indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by
Indemnitee in connection therewith.

     2. Agreement to Serve. In consideration of the protection afforded by this Agreement, if
Indemnitee is a director of the Company he agrees to serve at least for the 90 days after the
effective date of this Agreement as a director and not to resign voluntarily during such period
without the written consent of a majority of the Board of Directors. If Indemnitee is an officer of
the Company not serving under an employment contract, he agrees to serve in such capacity at least
for 90 days and not to resign voluntarily during such period without the written consent of a
majority of the Board of Directors. Following the applicable period set forth above, Indemnitee
agrees to continue to serve in such capacity at the will of the Company (or under separate
agreement, if such agreement exists) so long as he is duly appointed or elected and qualified in
accordance with the applicable provisions of the Bylaws of the Company or any subsidiary of the
Company or until such time as he tenders his resignation in writing. Nothing contained in this
Agreement is intended to create in Indemnitee any right to continued employment.

     3. Expenses; Indemnification Procedure.

          (a) Advancement of Expenses. The Company shall advance all expenses incurred by Indemnitee in
connection with the investigation, defense, settlement or appeal of any civil or criminal action,
suit or proceeding referenced in Section 1(a) or (b) hereof (but not amounts actually paid in
settlement of any such action, suit or proceeding). Indemnitee hereby undertakes to repay such
amounts advanced only if, and to the extent that, it shall ultimately be determined that

-2-

 

Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The
advances to be made hereunder shall be paid by the Company to Indemnitee within thirty (30) days
following delivery of a written request therefor by Indemnitee to the Company.

          (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his right
to be indemnified under this Agreement, give the Company notice in writing as soon as practicable
of any claim made against Indemnitee for which indemnification will or could be sought under this
Agreement. Notice to the Company shall be directed to the President of the Company at the address
shown on the signature page of this Agreement (or such other address as the Company shall designate
in writing to Indemnitee and given as provided in Section 14). In addition, Indemnitee shall give
the Company such information and cooperation as it may reasonably require and as shall be within
Indemnitee’s power.

          (c) Procedure. Any indemnification and advances provided for in Section 1 and this Section 3
shall be made no later than thirty (30) days after receipt of the written request of Indemnitee.
If a claim under this Agreement, under any statute, or under any provision of the Company’s
Certificate of Incorporation or Bylaws providing for indemnification, is not paid in full by the
Company within thirty (30) days after a written request for payment thereof has first been received
by the Company, Indemnitee may, but need not, at any time thereafter bring an action against the
Company to recover the unpaid amount of the claim and, subject to Section 14 of this Agreement,
Indemnitee shall also be entitled to be paid for the expenses (including attorneys’ fees) of
bringing such action. It shall be a defense to any such action (other than an action brought to
enforce a claim for expenses incurred in connection with any action, suit or proceeding in advance
of its final disposition) that Indemnitee has not met the standards of conduct which make it
permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed.
However, Indemnitee shall be entitled to receive interim payments of expenses pursuant to
Subsection 3(a) unless and until such defense may be finally adjudicated by court order or judgment
from which no further right of appeal exists. It is the parties’ intention that if the Company
contests Indemnitee’s right to indemnification, the question of Indemnitee’s right to
indemnification shall be for the court to decide, and neither the failure of the Company (including
its Board of Directors, any committee or subgroup of the Board of Directors, independent legal
counsel, or its stockholders) to have made a determination that indemnification of Indemnitee is
proper in the circumstances because Indemnitee has met the applicable standard of conduct required
by applicable law, nor an actual determination by the Company (including it Board of Directors, any
committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders)
that Indemnitee has not met such applicable standard of conduct, shall create a presumption that
Indemnitee has or has not met the applicable standard of conduct.

          (d) Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to
Section 3(b) hereof, the Company has director and officer liability insurance in effect, the
Company shall give prompt notice of the commencement of such proceeding to the insurers in
accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such proceeding in accordance with the terms of such policies.

-3-

 

          (e) Selection of Counsel. In the event the Company shall be obligated under Section 3(a)
hereof to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate, shall
be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee, upon the
delivery to Indemnitee of written notice of its election to do so. After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently
incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have
the right to employ his counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of any such defense, or (C) the Company shall not, in fact, have employed
counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee’s
counsel shall be at the expense of the Company.

     4. Additional Indemnification Rights; Nonexclusivity.

          (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees
to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by the other provisions of this Agreement, the
Company’s Certificate of Incorporation, the Company’s Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute, or rule which expands the
right of a Delaware corporation to indemnify a member of its board of directors or an officer, such
changes shall be, ipso facto, within the purview of Indemnitee’s rights and Company’s obligations,
under this Agreement. In the event of any change in any applicable law, statute or rule which
narrows the right of a Delaware corporation to indemnify a member of its board of directors or an
officer, such changes, to the extent not otherwise required by such law, statute or rule to be
applied to this Agreement shall have no effect on this Agreement or the parties’ rights and
obligations hereunder.

          (b) Nonexclusivity. The indemnification provided by this Agreement shall not be deemed
exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate of
Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested Directors, the
General Corporation Law of the State of Delaware, or otherwise, both as to action in Indemnitee’s
official capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to Indemnitee for any action taken
or not taken while serving in an indemnified capacity even though he may have ceased to serve in
such capacity at the time of any action, suit or other covered proceeding.

     5. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement
to indemnification by the Company for some or a portion of the expenses, judgments, fines or
penalties actually or reasonably incurred by him in the investigation, defense, appeal or
settlement of any civil or criminal action, suit or proceeding, but not, however, for the total
amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such
expenses, judgments, fines or penalties to which Indemnitee is entitled.

-4-

 

     6. Mutual Acknowledgement. Both the Company and Indemnitee acknowledge that in certain
instances, Federal law or applicable public policy may prohibit the Company from indemnifying its
directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges
that the Company has undertaken or may be required in the future to undertake with the Securities
and Exchange Commission to submit the question of indemnification to a court in certain
circumstances for a determination of the Company’s right under public policy to indemnify
Indemnitee.

     7. Officer and Director Liability Insurance. The Company shall, from time to time, make the
good faith determination whether or not it is practicable for the Company to obtain and maintain a
policy or policies of insurance with reputable insurance companies providing the officers and
directors of the Company with coverage for losses from wrongful acts, or to ensure the Company’s
performance of its indemnification obligations under this Agreement. Among other considerations,
the Company will weigh the costs of obtaining such insurance coverage against the protection
afforded by such coverage. In all policies of director and officer liability insurance, Indemnitee
shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits
as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a
director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an
officer. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain
such insurance if the Company determines in good faith that such insurance is not reasonably
available, if the premium costs for such insurance are disproportionate to the amount of coverage
provided, if the coverage provided by such insurance is limited by exclusions so as to provide an
insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a subsidiary
or parent of the Company.

     8. Severability. Nothing in this Agreement is intended to require or shall be construed as
requiring the Company to do or fail to do any act in violation of applicable law. The Company’s
inability, pursuant to court order, to perform its obligations under this Agreement shall not
constitute a breach of this Agreement. The provisions of this Agreement shall be severable as
provided in this Section 8. If this Agreement or any portion hereof shall be invalidated on any
ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify
Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not
have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in
accordance with its terms.

     9. Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall
not be obligated pursuant to the terms of this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with
respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of
defense, except with respect to proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law, but such indemnification or advancement of
expenses may be provided by the Company in specific cases if the Board of Directors has approved
the initiation or bringing of such suit; or

-5-

 

          (b) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by the Indemnitee
with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if
a court of competent jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous; or

          (c) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier
under a policy of officers’ and directors’ liability insurance maintained by the Company.

          (d) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment of
profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

     10. Construction of Certain Phrases.

          (a) For purposes of this Agreement, references to the “Company” shall include, in addition to
the resulting corporation, any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger which, if its separate existence had continued, would have
had power and authority to indemnify its directors, officers, and employees or agents, so that if
Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is
or was serving at the request of such constituent corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee
shall stand in the same position under the provisions of this Agreement with respect to the
resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

          (b) For purposes of this Agreement, references to “other enterprises” shall include employee
benefit plans; references to “fines” shall include any excise taxes assessed on Indemnitee with
respect to an employee benefit plan; and references to “serving at the request of the Company”
shall include any service as a director, officer, employee or agent of the Company which imposes
duties on, or involves services by, such director, officer, employee or agent with respect to an
employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the interest of the participants and
beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner
“not opposed to the best interests of the Company” as referred to in this Agreement.

     11. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall constitute an original.

     12. Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee’s estate,
heirs, legal representatives and assigns.

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     13. Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this
Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid
all court costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee with
respect to such action, unless as a part of such action, the court of competent jurisdiction
determines that each of the material assertions made by Indemnitee as a basis for such action were
not made in good faith or were frivolous. In the event of an action instituted by or in the name
of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys’ fees,
incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such action the court
determines that each of Indemnitee’s material defenses to such action were made in bad faith or
were frivolous.

     14. Notice. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for by
the party addressee, on the date of such receipt, or (ii) if mailed by domestic certified or
registered mail with postage prepaid, on the third business day after the date postmarked.
Addresses for notice to either party are as shown on the signature page of this Agreement, or as
subsequently modified by written notice.

     15. Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to
the jurisdiction of the courts of the State of Delaware for all purposes in connection with any
action or proceeding which arises out of or relates to this Agreement and agree that any action
instituted under this Agreement shall be brought only in the state courts of the State of Delaware.

     16. Choice of Law. This Agreement shall be governed by and its provisions construed in
accordance with the laws of the State of Delaware, as applied to contracts between Delaware
residents entered into and to be performed entirely within Delaware without regard to the conflict
of law principles thereof.

     17. Period of Limitations. No legal action shall be brought and no cause of action shall be
asserted by or in the right of the Company against Indemnitee, Indemnitee’s estate, spouse, heirs,
executors or personal or legal representatives after the expiration of two years from the date of
accrual of such cause of action, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a legal action within such
two-year period; provided, however, that if any shorter period of limitations is
otherwise applicable to any such cause of action, such shorter period shall govern.

     18. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company effectively to bring suit to enforce such rights.

     19. Amendment and Termination. No amendment, modification, termination or cancellation of
this Agreement shall be effective unless it is in writing signed by both the parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed or shall constitute a

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waiver of any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

     20. Integration and Entire Agreement. This Agreement sets forth the entire understanding
between the parties hereto and supersedes and merges all previous written and oral negotiations,
commitments, understandings and agreements relating to the subject matter hereof between the
parties hereto.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	 	COVAD COMMUNICATIONS GROUP, INC.
	 
	 	 	 	 
	 	 	/s/ Douglas Carlen
	 	 	 
	 	 	Signature of Authorized Signatory
	 
	 	 	 	 
	 	 	 
	 	 	Douglas Carlen, Assistant Secretary
	 
	 	 	 	 
	

	 	Address:
	 	110 Rio Robles
	

	 	 	 	San Jose, CA 95134
	 
	 	 	 	 
	AGREED TO AND ACCEPTED:
	 	 	 	 
	 
	 	 	 	 
	INDEMNITEE:
	 	 	 	 
	 
	 	 	 	 
	/s/ John Trewin

	 	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	John Trewin
	 	 	 	 
	Senior Vice President and
Chief Financial Officer
	 	 	 	 

	 	 	 	 	 
	Address:
	 	 	 	 
	

	 	

	 	 
	

	 	

	 	 
	

	 	

	 	 

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