Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.14  

 
 

SEPARATION, WAIVER AND RELEASE AGREEMENT    
  

        This Separation, Waiver and Release Agreement (this "Agreement") is entered by and between Health Net, Inc., a Delaware corporation (the "Company"), on the one
hand, and Cora Tellez ("Employee"), on the other hand (collectively, the "Parties"). 

        WHEREAS,
Employee is employed as the President, Health Plan Division of the Company, which title will be relinquished by Employee as of April 30, 2002; and 

        WHEREAS,
the Company and Employee are parties to a Severance Payment Agreement dated December 4, 1998 (the "Severance Payment Agreement") and an Employment Letter Agreement dated
November 16, 1998 (the "Employment Letter Agreement"), and are entering into this Agreement in full and final settlement of all obligations of the Company, including but not limited to those
obligations under the Severance Payment Agreement and the Employment Letter Agreement. 

        NOW,
THEREFORE, in consideration of the mutual agreements and covenants contained herein, the validity and sufficiency of which are expressly recognized, the Company and Employee hereby
agree as follows: 

        1.    Termination of Employment

        Employee's
employment with the Company will terminate as of April 30, 2002 (the "Termination Date"). On the Termination Date, Employee shall be entitled to her accrued and unpaid base
annual salary ("Base Salary"), less required payroll taxes and other applicable deductions, through the
Termination Date. Employee agrees that $64,225.28 less required payroll taxes and other applicable deductions is the total amount of earned and unused vacation/paid-time-off owing to Employee as of
the Termination Date, and Employee acknowledges that no further vacation/paid-time-off benefits will accrue after such date. It is agreed that Employee is not entitled to receive any payments under
any bonus plans of the Company for the Plan Years 2001 or 2002. 

        On
and after the Termination Date, Employee will not represent to anyone that she is an employee of the Company or any of its affiliated entities and will not say or do anything
purporting to bind the Company or any of its affiliated entities. As of April 30, 2002, Employee shall be deemed to have resigned from all officer and director positions that may be held by Employee
with the Company and any of its affiliated entities. As of such date, Employee will also resign as a director of California Business Roundtable and the California Chamber of Commerce and permit the
Company to designate her replacement on such Boards, subject to the appropriate by-law and other provisions that are applicable. 

        2.    Severance Benefits

        2.1  Provided
that Employee does not exercise her revocation rights during the seven day revocation period following her signing of this Agreement, this Agreement will become
effective on the eighth day after her execution thereof, and Employee shall be entitled to receive a lump sum payment in the amount of $920,000 (less required payroll taxes and other applicable
deductions) on such eighth day. 

        2.2  All
medical, dental, vision and life insurance maintained for Employee's benefit immediately prior to the Termination Date (collectively, "Benefits") shall be continued
by the Company on the same terms and conditions for a period of twenty-four (24) months after the Termination Date. The Company will continue such Benefits either through the payment of 100 percent of
the applicable COBRA premiums by the Company or through the payment of 100 percent of the premiums on a comparable policy or policies. Accordingly, Employee agrees to 

1

 

execute all documents presented to her by the Company that are required to elect COBRA coverage on or after the Termination Date. 

        2.3  Although
Employee was potentially eligible for future payment upon attainment of age 62 under the Company's Supplemental Executive Retirement Plan (the "SERP"), as
modified to reflect two additional years of vesting credit as provided for under the Employment Letter Agreement, it is acknowledged by Employee that, given the SERP off-set amounts, her length of
service with the Company and her current age, pursuant to the benefit calculation provisions of the SERP she will not receive any future benefit under the SERP. 

        2.4  Employee's
participation in all Company employee benefit plans (except as provided for in Section 2.2 of this Agreement) as an active employee shall cease on the
Termination Date, and Employee shall not be eligible to make contributions to or to receive Company allocations under the Health Net, Inc. 401(k) Associate Savings Plan, or to make any deferrals
pursuant to any deferred compensation plan of the Company on or after the Termination Date. In addition, Employee agrees to vacate the business apartment being furnished to her (the "Business
Apartment") by May 18, 2002, and agrees that all commuting air travel being provided by the Company will likewise cease as of such date. The Company agrees to pay the reasonable moving expenses for
transporting Employee's furniture and belongings from the Business Apartment back to her permanent residence. 

        3.    Cooperation in Litigation

        Upon
request by the Company, Employee shall provide reasonable assistance and cooperation to the Company and its designees in activities related to the prosecution or defense of any
pending or future lawsuits, arbitrations, regulatory inquiries or other legal proceedings or claims involving the Company or its affiliates (excluding any proceeding involving any alleged breach of
this Agreement), and make herself available to Company representatives, including legal counsel, upon reasonable notice and without the need for issuance of any subpoena or similar process to testify
in any such proceeding. The Company will reimburse Employee for all reasonable expenses incurred by Employee in fulfilling her obligations under this paragraph. The Company also will pay Employee for
all hours in excess of 36 for any twelve month period after the Termination Date that Employee incurs in fulfilling her obligations under this paragraph. These hours will be paid at the hourly
compensation rate for Employee in effect on the Termination Date. 

        4.    Expenses

        The
Company shall reimburse Employee for her reasonable expenses that are consistent with the expense reimbursement policy of the Company and are incurred in connection with her
activities undertaken pursuant to Section 3 of this Agreement. All requests for reimbursement of such expenses shall be submitted to the attention of the office of the Company's General Counsel. 

        5.    Waivers and Releases of Claims

        5.1  In
consideration of the Company providing Employee those benefits and payments set forth herein, Employee knowingly and voluntarily enters into this Agreement and by
signing this Agreement, Employee, on her own behalf and on behalf of her heirs, beneficiaries, successors, representatives, trustees, administrators and assigns, hereby waives and releases the
Company, and each of its past, present and future officers, directors, shareholders, employees, attorneys, consultants, accountants, attorneys, agents, managers, insurers, sureties, parent and sister
corporations, divisions, subsidiary corporations and entities, partners, joint venturers, affiliates, beneficiaries, successors, representatives and assigns (collectively, the "Released Parties"),
from any and all claims, demands, damages, debts, liabilities, controversies, obligations, actions or causes of action of any nature whatsoever, whether
based on tort, statute, contract, indemnity, rescission or any other theory of recovery, including but not limited to claims arising under federal, state or 

2

 

local laws prohibiting discrimination in employment, including Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Americans with Disabilities Act, the Age Discrimination in
Employment Act, as amended by the Older Workers Benefit Protection Act of 1990, the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Employee Retirement Income
Security Act, the California Fair Employment and Housing Act, the California Labor Code, the California Civil Code, the California Business and Professions Code, and the California Constitution, all
as amended from time to time, or claims growing out of any alleged legal restrictions on the Company's right to terminate its employees and whether for compensatory, punitive, equitable or other
relief, whether known or unknown, suspected or unsuspected, that Employee or Employee's successors-in-interest had, now has, or may hereafter claim to
have by reason of any matter or thing arising from any cause whatsover, including without limitation any cause related to a purported agreement, whether written or oral, express or implied, on and
before the date of Employee's execution of this Agreement, with the exception of claims arising under this Agreement. The provisions in this Section are not intended to prohibit Employee from filing a
claim for unemployment insurance. Furthermore, it is expressly agreed that the payments set forth herein shall fully and finally release the Released Parties from all obligations it may have under any
and all prior agreements with Employee, and that no other payments or benefits will be asserted or requested by Employee. 

        5.2  Employee
expressly waives any right or claim of right to assert hereafter that any claim, demand, obligation and/or cause of action has, through ignorance, oversight or
error, been omitted from the terms of this Agreement. Employee makes this waiver with full knowledge of her rights and with specific intent to release both her known and unknown claims, and therefore
specifically waives all rights under Section 1542 of the California Civil Code or any similar law against Released Parties. Section 1542 reads as follows: 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR 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. 

        Employee
understands and acknowledges the significance and consequence of this Agreement and of such specific waiver of Section 1542 or any similar law, and expressly agrees that this
Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands, obligations and
causes of action herein above specified. 

        5.3  Employee
agrees forever to refrain from filing or otherwise initiating or causing to be initiated against the Released Parties any compliance review, suit, action,
investigation or proceeding of any kind, or voluntarily participate in same, individually or as a representative, witness or member of a class, under contract, law or regulation, federal, state or
local, pertaining to any claims released under
Section 5, except to the extent required by law, order or regulation and Employee waives the right to any damages pursuant to any such action. 

        6.    Review and Revocation Period

        Employee
acknowledges that (i) Employee has not relied upon any representations, written or oral, not set forth in this Agreement and (ii) at the time Employee was given this Agreement,
including the Waivers and Releases contained herein, Employee was informed in writing by the Company that (a) Employee had at least twenty-one (21) days in which to consider whether Employee would
sign this Agreement, (b) to the extent that Employee takes less than twenty-one (21) days to consider this Agreement prior to execution, Employee acknowledges that Employee had sufficient time to
consider this Agreement with counsel and that Employee expressly, voluntarily and knowingly waives any additional time, (c) Employee should consult with an attorney before signing this Agreement, and
(d) 

3

 

Employee had an opportunity to consult with an attorney or has voluntarily decided to sign this Agreement without consulting an attorney. Employee further acknowledges that she may revoke acceptance
of this Agreement, including the Waivers and Releases contained herein, by delivering a letter of revocation no later than 5:00 p.m. Pacific Standard Time on the seventh (7th) day after
Employee has signed this Agreement to: Health Net Corporate Legal Department, 21650 Oxnard Street, Woodland Hills, California 91367. Employee acknowledges that she understands that this Agreement,
including the Waivers and Releases contained herein, will not become effective or enforceable until the date on which such seven (7) day-revocation period has expired (the "Effective Date") except as
otherwise set forth herein. Employee further agrees that in the event that she revokes this Agreement, it shall have no force or effect except to the extent otherwise expressly stated herein, and she
shall have no right to receive any payment hereunder. 

        7.    Return of Company Property

        Employee
represents that (i) she has returned to the Company any and all building key(s), security pass or other access or identification cards (including all keys to the Business
Apartment) and any and all Company property that was in her possession, including but not limited to, any documents, credit cards, computer equipment or data files; (ii) she has cleared all expense
accounts; (iii) she has paid all amounts owed on any corporate credit card(s) which the Company previously issued to Employee and (iv) she has moved all cell phone and internet access accounts into
her name in order to pay for such items personally. To the extent Employee has not complied with (i), (ii), (iii) and (iv) above, Employee will immediately do so. 

        8.    Company Information

        Employee
acknowledges and agrees that during the period of her employment by the Company, and by virtue of her obligations of ongoing cooperation as specified herein, Employee had and
may continue to have access to and become acquainted with the Company's trade secrets and confidential and proprietary information, including but not limited to, various procedures, practices,
information regarding the organization and operation of the Company, confidential customer information, marketing methods and compilations of records and information that are owned by the Company and
that are regularly used in the operation of its business. The Parties agree that such items of information are important, material and confidential and/or proprietary information and affect the
successful conduct of the Company's business and its goodwill, and that any breach of this Section shall be a material breach of this Agreement. All documents, memoranda, reports, files,
correspondence, lists, and other written and graphic records affecting or relating to the Company's business that Employee may prepare, use, observe, possess or control shall be and remain the
Company's sole property. Employee shall not without the Company's written consent, disclose (directly or indirectly), use, remove or copy any confidential, trade secret or proprietary information she
acquired during the course of her employment by the Company, including without limitation, any technical, actuarial, economic, financial, procurement, provider, customer, underwriting, contractual,
managerial, marketing or other information of any type that has economic value in the business in which the Company is engaged, but not including any previously published information or other
information generally in the public domain. 

        9.    Unfair Competition

        9.1  Employee
hereby agrees that, during the six (6)-month period following the Termination Date (the "Protected Period"), Employee shall not undertake any employment or
activity (including, but not limited to, consulting services) with a Competitor (as defined below), in any geographic areas in which the Company operates (the "Market Area") where the loyal and
complete fulfillment of the duties of the competitive employment or activity would inevitably call upon Employee to reveal, to make judgments on or otherwise use any confidential business information
or trade secrets of the business of the Company to which Employee had access during her employment with the Company. In the event Employee takes a position as a vice president (or 

4

 

higher position) or as a director of a Competitor it will be presumed for purposes of this Agreement that the loyal and complete fulfillment of her duties would require her to use such information
and Employee would therefore be deemed to be in breach of this provision. In the event that Employee breaches this provision: 

        (a)  all
of the options still outstanding referenced in Section 10 below shall immedi- ately terminate; and 

        (b)  the
Employee shall promptly pay to the Company an amount of cash equal to the Gain Realized (as defined below) on any shares of Common Stock acquired upon exercise of
any options referenced in Section 10 below (the "Option Shares"). 

For
the purposes of this Section, "Gain Realized" shall equal the difference between (x) the exercise price applicable to the Option Shares and (y) the greater of the Fair Market Value (as defined in
the applicable Stock Option Plan) of the Option Shares (i) on the date of acquisition of such Option Shares or (ii) on the date such competitive activity with a Competitor was commenced by the
Optionee; and "Competitor" shall refer to any health maintenance organization or insurance company that provides managed health care or related services similar to those provided by the Company or any
of its affiliates. 

        9.2  In
addition, Employee agrees that, during the Protected Period, Employee shall not, directly or indirectly, solicit, recruit, interfere with or induce any person, who is
or was an employee of the Company or any of its subsidiaries at the time of such solicitation, recruitment, interference or inducement, to discontinue her relationship with the Company or any of its
subsidiaries or to accept employment by, or enter into a business relationship with, Employee or any other entity or person. 

        9.3  It
is hereby further agreed that if any court of competent jurisdiction shall determine that the restrictions imposed in this Section are unreasonable (including, but
not limited to, the definition of Market Area or Competitor or the time period during which this provision is applicable), the Parties hereby agree to any restrictions that such court would find to be
reasonable under the circumstances. 

        9.4  Employee
acknowledges that a material breach or threatened breach by her of any of the provisions contained in this Section will cause the Company irreparable injury
which may not be reasonably or adequately compensated for by damages in an action at law. Employee therefore agrees that the Company may be entitled, in addition to any other remedies, to a temporary,
preliminary and permanent injunction, without the necessity of proving the inadequacy of monetary damages or the posting of any bond or security, enjoining or restraining Employee from any such
violation or threatened violations. 

        10.  Exercise of Vested Company Options

        It
is agreed that Employee shall only have three (3) months after the Termination Date (i.e., only until July 30, 2002) to exercise the
outstanding vested options held by her as of such date, at which time all outstanding options held by Employee which were not previously exercised shall expire. In this connection, the following
options are currently vested: (i) options to purchase 200,000 shares of Common Stock at $14.1875 per share, (ii) options to purchase 100,000 shares of Common Stock at $9.00 per share and (iii) options
to purchase 100,000 shares of Common Stock at $23.02 per share. It is acknowledged by Employee that the one year "holding period" applicable to the shares obtained upon exercise of the options
referenced in clause (ii) above shall continue to apply to such shares, except as set forth in the applicable Stock Option Agreement evidencing such options. All options held by Employee that are not
yet vested as of the Termination Date (i.e., options to purchase 200,000 shares of Common Stock at $23.02 per share) shall expire as of such date. 

5

 

        11.  Status as Officer and Director

        11.1 It
is acknowledged that as of April 30, 2002, the Company no longer considers Employee to be an executive officer of the Company for purposes of securities laws or
regulations; however, Employee shall continue to be subject to the Company's Securities Trading Policy and "black-out" period until three trading days after the Company's quarterly release of earnings
in May of 2002. 

        11.2 It
is acknowledged that in accordance with Article VI, Section 1 of the Company's By-Laws, the Company will provide indemnification to Employee if she is ever made a
party to any legal action, suit, or proceeding by reason of the fact that she was an officer or director of the Company through April 30, 2002. In addition, it is acknowledged that the Company's
director and officer liability insurance will cover eligible acts committed by Employee as an officer or director of the Company through April 30, 2002. 

        12.  No Admission of Liability

        Nothing
contained herein shall be construed as an admission of any wrongful act, including but not limited to violation of any contract, express or implied, or any federal, state or
local employment laws or regulations, and nothing contained herein shall be used for any purpose except in proceedings related to the enforcement of this Agreement. 

        13.  No Disparagement

        Both
Employee and the Company agree not to disparage the other party, or the other party's officers, directors, employees, shareholders and agents, in any manner likely to be harmful to
them or their business, business reputation or personal reputation; provided that both Employee and the Company shall respond accurately and fully to any question, inquiry or request for information
when required by applicable legal process. 

        14.  Successors; Binding Agreement

        14.1 This
Agreement shall not be terminated by any merger or consolidation of the Company, irrespective of whether the Company is the surviving or resulting corporation, or
as a result of any transfer of all or substantially all of the assets of the Company. In the event of any such merger, consolidation, or transfer of assets, the provisions of this Agreement shall be
binding upon the surviving or resulting corporation or the person or entity to which such assets are transferred. 

        14.2 This
Agreement shall inure to the benefit of and be enforceable by Employee's personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If Employee shall die while any amounts would be payable to Employee hereunder had Employee continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to such person or persons appointed in writing by Employee to receive such amounts or, if no person is so appointed, to Employee's estate. 

        15.  Severability and Enforceability

        If
any part or term of this Agreement is held invalid or unenforceable, such invalidity or unenforceability shall not affect in any way the validity or enforceability of any other part
or term of this Agreement. 

        16.  Choice of Law

        The
interpretation, construction and performance of this Agreement shall be construed and governed by the laws of the State of Delaware without regard to its conflicts of laws rules. 

        17.  Counterparts

6

 

        This
Agreement may be executed in one or more counterparts, and may include multiple signature pages, all of which shall be deemed to be one instrument. Fully executed copies of this
Agreement may be used in lieu of the original. 

        18.  Entire Agreement

        This
Agreement shall constitute the full and complete agreement of the Parties and shall supercede all prior agreements, communications, or understandings, whether oral or in writing,
between Employee and Company on the subject matter hereof, including but not limited to the Severance Payment Agreement and the Employment Letter Agreement. There may be no modification of the terms
of this Agreement except in writing signed by both Parties. 

        19.  Voluntary Agreement

        Employee
acknowledges that she has had an opportunity to consult and be represented by counsel of her own choosing in the review of this Agreement including the Waivers and Releases
contained herein, that she has been advised by the Company to do so, that Employee has read this Agreement and understands its terms, and that Employee enters into this Agreement freely, voluntarily,
without coercion, and based on Employee's own judgment and that this Agreement fully and accurately reflects the content of any and all understandings and agreements between the Parties concerning the
matters referenced herein, and that Employee is not relying upon any other representations or promises whatsoever as an inducement to execute this Agreement. 

        IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set forth below. 

	Employee	 	Health Net, Inc.
	

 	

 	
 	

 	

 
	By:	/s/  CORA TELLEZ      
 Name: Cora Tellez	 	By:	/s/  KARIN MAYHEW      
 Name: Karin Mayhew

Title: Senior Vice President,

Organizational Effectiveness
	

 	

 	
 	

 	

 
	Date:	4-27-02
	 	Date:	4-26-02

7

QuickLinks

SEPARATION, WAIVER AND RELEASE AGREEMENT<Page>

                                                                    EXHIBIT 10.1

                                                                [EXECUTION COPY]

                                 AMENDMENT NO. 1

                 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

          THIS AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
(this "Amendment") dated as of January 31, 2002, is made among Cogent
Communications, Inc., a Delaware corporation ("Borrower"), Cogent Internet,
Inc., a Delaware corporation ("Additional Borrower"), Cogent Communications
Group, Inc., a Delaware corporation ("Holdings"), and Cisco Systems Capital
Corporation, a Nevada corporation ("Lender" or "Agent").

          WHEREAS, the parties hereto entered into a Second Amended and Restated
Credit Agreement dated as of October 24, 2001 (the "Credit Agreement") among
Borrower, Additional Borrower, the several financial institutions from time to
time party thereto ("Lenders") and Agent;

          WHEREAS, Borrower intends to consummate a merger with Allied Riser
Communications Corporation ("Allied Riser") pursuant to that certain Agreement
and Plan of Merger dated August 28, 2001 (and as amended as of October 13, 2001)
(the "AR Merger Agreement"), among Allied Riser, Borrower and Augustus Caesar
Merger Sub, Inc.; and

          WHEREAS, in connection with the consummation of the transactions
contemplated by the AR Merger Agreement, Borrower, Additional Borrower, Holdings
and Agent desire, in accordance with Section 8.1 of the Credit Agreement, to
amend the Credit Agreement.

          NOW, THEREFORE, in consideration of the premises, the mutual covenants
herein contained, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto agree as follows

          SECTION 1 DEFINITIONS; INTERPRETATION.

          (a) TERMS DEFINED IN CREDIT AGREEMENT. All capitalized terms used in
this Amendment (including in the recitals hereof) and not otherwise defined
herein shall have the meanings assigned to them in the Credit Agreement.

          (b) INTERPRETATION. The rules of interpretation set forth in Section
1.2 of the Credit Agreement shall be applicable to this Amendment and are
incorporated herein by this reference.

          SECTION 2 AMENDMENTS TO THE CREDIT AGREEMENT.

          (a) AMENDMENTS. The Credit Agreement and the Schedule shall be amended
as follows, effective as of the date of satisfaction of the conditions set forth
in Section 3 (the "Effective Date"):

                                       1.
<Page>

          (i)    Section 1.1 of the Credit Agreement is hereby amended as
                 follows:

          (A)    The following new definitions are added to this Section:

          "FCC LICENSE" means any license granted by the FCC to
          Holdings, Borrower or any Subsidiary of Holdings or
          Borrower.

          "LICENSE SUBSIDIARY" has the meaning set forth in Section
          5.1(z).

          (B)    The definition of "Permitted Liens" is hereby amended by adding
the following to the end of the last sentence:

          ; and PROVIDED FURTHER that neither Holdings nor Borrower
          shall, nor shall either permit any of its respective
          Subsidiaries to, create any Lien on any FCC License or on
          any capital stock of or other ownership interest in or
          assets of any License Subsidiary.

          (C)    The definition of "Permitted Transactions" is hereby amended by
adding the following sentence to the end of such definition:

          Notwithstanding anything to the contrary contained herein,
          the transactions (collectively, the "Transactions")
          described in the Plan of Merger, dated August 28, 2001 (the
          "AR Merger Agreement"), among Allied Riser Communications
          Corporation ("Allied Riser"), Borrower and Augustus Caesar
          Merger Sub, Inc. shall be Permitted Transactions hereunder.

          (D)    The definition of "Subordinated Debt" is hereby deleted in its
entirety and replaced by the following:

          "Subordinated Debt" means (i) the Indebtedness of Allied
          Riser under the Indenture dated as of June 28, 2000, as
          amended, by and between Allied Riser Communications
          Corporation and Wilmington Trust Company, as trustee,
          assumed by Holdings in connection with the AR Merger
          Agreement, and (ii) unsecured Indebtedness of Holdings in an
          amount not to exceed $200,000,000 complying with each of the
          following requirements: (A) Holdings shall, in a certificate
          provided on or immediately prior to the date of the receipt
          of proceeds of any such unsecured Indebtedness, demonstrate
          its pro forma compliance with the applicable financial
          covenants set forth herein (after giving effect to the
          incurrence of any such unsecured Indebtedness); (B) the
          final maturity date of such unsecured Indebtedness shall be
          after the first anniversary of the final maturity date of
          the last Loans advanced to Borrower hereunder (the "Maturity
          Date"); (C) the terms of such Indebtedness shall specify
          that no principal

                                       2.
<Page>

          repayments in respect thereof are required until the
          Maturity Date; (D) any such unsecured Indebtedness shall
          contain no covenants or provisions materially more
          restrictive on Holdings and its Subsidiaries than those
          contained herein; and (E) such unsecured Indebtedness shall
          be subordinated to the payment of the Obligations on terms
          that are usual and customary for unsecured Indebtedness
          issued under similar circumstances and for similar amounts
          in the high yield subordinated debt market.

          (ii)   Section 5.1(g) of the Credit Agreement is hereby amended by
adding the following to the end of the last sentence of such Section:

          ; provided, however, that any change in the nature of
          Holding's, Borrower's and their respective Subsidiaries'
          business resulting directly from the merger transaction
          contemplated by the AR Merger Agreement, shall not be a
          violation of this Section 5.1(g).

          (iii)  Section 5.1(h) of the Credit Agreement is hereby amended by
adding the following to the end of the last sentence of such Section:

          Notwithstanding the foregoing, no License Subsidiary may be
          merged into Holdings or Borrower, and no License Subsidiary
          may merge with or into any other Subsidiary except another
          License Subsidiary.

          (iv)   Section 5.1(i) of the Credit Agreement is hereby amended by
adding the following to the end of such Section:

          Notwithstanding the foregoing, neither Holdings nor Borrower
          nor any License Subsidiary shall enter into or consummate
          any Transfer involving any FCC Licenses or License
          Subsidiaries, except a Transfer of FCC Licenses to another
          License Subsidiary. Furthermore, notwithstanding anything to
          the contrary contained herein, sales of assets acquired
          pursuant to the AR Merger Agreement shall not be a violation
          of the covenants set forth in this Section 5.1(i).

          (v)    Section 5.1(k) of the Credit Agreement is hereby amended by
adding the following to the end of such Section:

          Notwithstanding the foregoing, neither Holdings nor Borrower
          shall permit any License Subsidiary to create, incur, assume
          or otherwise become liable for or suffer to exist any
          Indebtedness, other than Indebtedness in favor of Agent or
          any Lender arising under the Loan Documents.

                                       3.
<Page>

          (vi)   Section 5.1(q) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

          (q)    [Intentionally omitted.]

          (vii)  Section 5.1(r) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

          (r)    FINANCIAL COVENANTS.

          (i)    LEVERAGE RATIO. On a consolidated basis, Holdings and
          its Subsidiaries shall not, as of the last day of any fiscal
          quarter, permit its ratio of Consolidated Funded Debt to
          EBITDA (measured on a rolling four quarter basis for the
          four fiscal quarters ended as of each quarterly period set
          forth below) to be greater than the ratios indicated below:

<Table>
<Caption>
                 QUARTERLY PERIOD ENDING                       REQUIRED RATIO
                 <S>                                               <C>
                 March 31, 2002                                      N/A
                 June 30, 2002                                       N/A
                 September 30, 2002                                  N/A
                 December 31, 2002                                   N/A
                 March 31, 2003                                      N/A
                 June 30, 2003                                       N/A
                 September 30, 2003                                  N/A
                 December 31, 2003                                 11.6:1
                 March 31, 2004                                     6.5:1
                 June 30, 2004                                      4.4:1
                 September 30, 2004                                 3.3:1
                 December 31, 2004                                  2.6:1
                 March 31, 2005                                     2.2:1
                 June 30, 2005                                      2.0:1
                 September 30, 2005                                 2.2:1
                 December 31, 2005                                  2.4:1
                 March 31, 2006                                     2.7:1
                 June 30, 2006                                      2.7:1
                 September 30, 2006                                 2.5:1
                 December 31, 2006                                  2.2:1
                 March 31, 2007                                     2.0:1
                 June 30, 2007                                      1.8:1
                 September 30, 2007                                 0.9:1
</Table>

                                       4.
<Page>

<Table>
<Caption>
                 QUARTERLY PERIOD ENDING                       REQUIRED RATIO
                 <S>                                                <C>
                 December 31, 2007                                  0.8:1
                 March 31, 2008                                     0.6:1
                 Thereafter                                         0.6:1
</Table>

          (ii)   MINIMUM TOTAL REVENUES. On a consolidated basis,
          Holdings and its Subsidiaries shall not fail to maintain
          total monthly or total annualized quarterly revenues of
          Holdings and its Subsidiaries, for each monthly or quarterly
          period, as applicable, set forth below, of not less than the
          correlative amount indicated (it being understood that with
          respect to any quarterly period, annualized revenues shall
          be equal to revenues for such quarterly period, multiplied
          by four):

<Table>
<Caption>
                 MONTHLY PERIOD ENDING                    REQUIRED AMOUNT
                 <S>                                         <C>
                 January 31, 2002                            $   755,000
                 February 28, 2002                           $   985,000
                 March 31, 2002                              $ 1,215,000
                 April 30, 2002                              $ 1,510,000
                 May 31, 2002                                $ 1,855,000

<Caption>
                 QUARTERLY PERIOD ENDING             REQUIRED ANNUALIZED AMOUNT
                 <S>                                         <C>
                 June 30, 2002                               $  26,700,000
                 September 30, 2002                          $  42,500,000
                 December 31, 2002                           $  66,100,000
                 March 31, 2003                              $  82,800,000
                 June 30, 2003                               $ 115,200,000
                 September 30, 2003                          $ 152,300,000
                 December 31, 2003                           $ 196,900,000
                 March 31, 2004                              $ 248,800,000
                 June 30, 2004                               $ 304,800,000
                 September 30, 2004                          $ 361,200,000
                 December 31, 2004                           $ 420,000,000
                 March 31, 2005                              $ 409,500,000
                 June 30, 2005                               $ 461,700,000
                 September 30, 2005                          $ 514,600,000
                 December 31, 2005                           $ 570,000,000
                 March 31, 2006                              $ 528,300,000
                 June 30, 2006                               $ 565,400,000
                 September 30, 2006                          $ 603,200,000
                 December 31, 2006                           $ 641,600,000
                 March 31, 2007                              $ 579,500,000
                 June 30, 2007                               $ 613,100,000
</Table>

                                       5.
<Page>

<Table>
                 <S>                                         <C>
                 September 30, 2007                          $ 647,200,000
                 December 31, 2007                           $ 681,700,000
                 March 31, 2008                              $ 609,900,000
                 Thereafter                                  $ 609,900,000
</Table>

          (iii)  MINIMUM EBITDA. On a consolidated basis, Holdings and
          its Subsidiaries shall not fail to maintain EBITDA for each
          period of four quarters ended as of the last day of each
          quarterly period set forth below of not less than the
          correlative amount indicated (bracketed amounts (<  >) are
          negative):

<Table>
<Caption>
                 QUARTERLY PERIOD ENDING                    REQUIRED AMOUNT
                 <S>                                         <C>
                 March 31, 2002                                   N/A
                 June 30, 2002                               $ (45,200,000)
                 September 30, 2002                          $ (38,800,000)
                 December 31, 2002                           $ (35,800,000)
                 March 31, 2003                              $ (23,000,000)
                 June 30, 2003                               $  (7,000,000)
                 September 30, 2003                          $  11,200,000
                 December 31, 2003                           $  36,700,000
                 March 31, 2004                              $  69,200,000
                 June 30, 2004                               $ 107,700,000
                 September 30, 2004                          $ 149,400,000
                 December 31, 2004                           $ 196,000,000
                 March 31, 2005                              $ 228,700,000
                 June 30, 2005                               $ 238,500,000
                 September 30, 2005                          $ 216,600,000
                 December 31, 2005                           $ 195,300,000
                 March 31, 2006                              $ 161,900,000
                 June 30, 2006                               $ 152,700,000
                 September 30, 2006                          $ 156,200,000
                 December 31, 2006                           $ 161,300,000
                 March 31, 2007                              $ 162,400,000
                 June 30, 2007                               $ 166,400,000
                 September 30, 2007                          $ 166,800,000
                 December 31, 2007                           $ 154,600,000
                 March 31, 2008                              $ 155,000,000
                 Thereafter                                  $ 155,000,000
</Table>

                                       6.
<Page>

          (iv)   INTEREST COVERAGE RATIO. On a consolidated basis,
          Holdings and its Subsidiaries shall not permit the ratio of
          EBITDA to Interest Expense (measured on a rolling four
          quarter basis for the four fiscal quarters ended on the last
          day of each quarterly period set forth below) for each
          quarterly period set forth below to be less than the ratio
          set forth below (determined as of the end of the quarterly
          period set forth below):

<Table>
<Caption>
                 QUARTERLY PERIOD ENDING                    REQUIRED RATIO
                 <S>                                            <C>
                 March 31, 2002                                  N/A
                 June 30, 2002                                   N/A
                 September 30, 2002                              N/A
                 December 31, 2002                               N/A
                 March 31, 2003                                  N/A
                 June 30, 2003                                   N/A
                 September 30, 2003                             0.3:1
                 December 31, 2003                              0.9:1
                 March 31, 2004                                 1.6:1
                 June 30, 2004                                  2.4:1
                 September 30, 2004                             3.3:1
                 December 31, 2004                              4.2:1
                 March 31, 2005                                 3.9:1
                 June 30, 2005                                  3.2:1
                 September 30, 2005                             2.5:1
                 December 31, 2005                              1.9:1
                 March 31, 2006                                 1.4:1
                 June 30, 2006                                  1.2:1
                 September 30, 2006                             1.1:1
                 December 31, 2006                              1.0:1
                 March 31, 2007                                 1.0:1
                 June 30, 2007                                  1.0:1
                 September 30, 2007                             1.0:1
                 December 31, 2007                              1.1:1
                 March 31, 2008                                 1.2:1
                 Thereafter                                     1.2:1
</Table>

          (v)    MAXIMUM FUNDED DEBT TO CAPITALIZATION. On a consolidated
          basis, Holdings and its Subsidiaries shall not permit the
          ratio of Consolidated Funded Debt to Capitalization to
          exceed

                                       7.
<Page>

          the percentage amount set forth below (determined as of the
          end of the quarterly period set forth below):

<Table>
<Caption>
                 QUARTERLY PERIOD ENDING                         PERCENTAGE
                 <S>                                                <C>
                 March 30, 2002                                     N/A
                 June 30, 2002                                      71%
                 September 30, 2002                                 71%
                 December 31, 2002                                  71%
                 March 31, 2003                                     71%
                 June 30, 2003                                      71%
                 September 30, 2003                                 71%
                 December 31, 2003                                  71%
                 March 31, 2004                                     71%
                 June 30, 2004                                      72%
                 September 30, 2004                                 73%
                 December 31, 2004                                  73%
                 March 31, 2005                                     73%
                 June 30, 2005                                      73%
                 September 30, 2005                                 73%
                 December 31, 2005                                  72%
                 March 31, 2006                                     71%
                 June 30, 2006                                      70%
                 September 30, 2006                                 68%
                 December 31, 2006                                  68%
                 March 31, 2007                                     65%
                 June 30, 2007                                      62%
                 September 30, 2007                                 50%
                 December 31, 2007                                  50%
                 March 31, 2008                                     50%
                 Thereafter                                         50%
</Table>

          (vi)   MINIMUM CUSTOMERS. The number of revenue generating
          customers of Holdings and its Subsidiaries (treating each
          office location of a Person purchasing services from
          Holdings or any Subsidiary to be a separate customer to the
          extent such office locations are in separate buildings) as
          of the end of the monthly or quarterly period set forth
          below shall not be less than the number listed opposite such
          period:

                                       8.
<Page>

<Table>
<Caption>
                 MONTHLY PERIOD                                       NUMBER
                 <S>                                                   <C>
                 January 31, 2002                                      231
                 February 28, 2002                                     300
                 March 31, 2002                                        392
                 April 30, 2002                                        498
                 May 31, 2002                                          614

<Caption>
                 QUARTERLY PERIOD                                     NUMBER
                 <S>                                                  <C>
                 June 30, 2002                                           745
                 September 30, 2002                                    1,311
                 December 31, 2002                                     1,970
                 March 31, 2003                                        2,809
                 June 30, 2003                                         3,674
                 September 30, 2003                                    4,615
                 December 31, 2003                                     5,682
                 March 31, 2004                                        7,054
                 June 30, 2004                                         8,322
                 September 30, 2004                                    9,578
                 December 31, 2004                                    10,806
                 March 31, 2005                                       11,977
                 June 30, 2005                                        13,058
                 September 30, 2005                                   14,113
                 December 31, 2005                                    15,174
                 March 31, 2006                                       16,245
                 June 30, 2006                                        17,326
                 September 30, 2006                                   18,418
                 December 31, 2006                                    19,515
                 March 31, 2007                                       20,635
                 June 30, 2007                                        21,757
                 September 30, 2007                                   22,889
                 December 31, 2007                                    24,022
                 March 31, 2008                                       25,168
                 Thereafter                                           25,168
</Table>

          (vii)  MINIMUM CASH RESERVES. On a consolidated basis,
          Holdings and its Subsidiaries shall maintain as of the last
          day of each quarterly period Minimum Cash Reserves not less
          than the amount listed opposite such date below:

<Table>
<Caption>
                 DATE                                         NUMBER
                 <S>                                           <C>
                 March 31, 2002                                N/A
</Table>

                                       9.
<Page>

<Table>
<Caption>
                 DATE                                           NUMBER
                 <S>                                        <C>
                 June 30, 2002                              $  53,900,000
                 September 30, 2002                         $  61,100,000
                 December 31, 2002                          $  45,300,000
                 March 31, 2003                             $  35,400,000
                 June 30, 2003                              $  25,300,000
                 September 30, 2003                         $  24,600,000
                 December 31, 2003                          $  27,100,000
                 March 31, 2004                             $  39,800,000
                 June 30, 2004                              $  64,100,000
                 September 30, 2004                         $ 112,100,000
                 December 31, 2004                          $ 146,200,000
                 March 31, 2005                             $ 164,700,000
                 June 30, 2005                              $ 174,400,000
                 September 30, 2005                         $ 193,200,000
                 December 31, 2005                          $ 218,400,000
                 March 31, 2006                             $ 229,500,000
                 June 30, 2006                              $ 237,300,000
                 September 30, 2006                         $ 248,300,000
                 December 31, 2006                          $ 265,700,000
                 March 31, 2007                             $ 284,500,000
                 June 30, 2007                              $ 187,200,000
                 September 30, 2007                         $ 201,900,000
                 December 31, 2007                          $ 220,200,000
                 Thereafter                                 $ 252,700,000
</Table>

          (viii) MINIMUM NODES ON NET. The number of nodes connected
          to the network maintained by Holdings and its Subsidiaries
          as of any date listed below shall not be less than the
          number listed opposite such monthly or quarterly period set
          forth below:

<Table>
<Caption>
                 MONTHLY PERIOD                                NUMBER
                 <S>                                             <C>
                 January 31, 2002                                162
                 February 28, 2002                               185
                 March 31, 2002                                  207
                 April 30, 2002                                  230
                 May 31, 2002                                    252
<Caption>
                 QUARTERLY PERIOD                              NUMBER
                 <S>                                             <C>
                 June 30, 2002                                   275
</Table>

                                       10.
<Page>

<Table>
                 <S>                                           <C>
                 September 30, 2002                              316
                 December 31, 2002                               388
                 March 31, 2003                                  472
                 June 30, 2003                                   556
                 September 30, 2003                              640
                 December 31, 2003                               724
                 March 31, 2004                                  820
                 June 30, 2004                                   916
                 September 30, 2004                            1,012
                 December 31, 2004                             1,108
                 March 31, 2005                                1,204
                 June 30, 2005                                 1,300
                 September 30, 2005                            1,396
                 December 31, 2005                             1,492
                 March 31, 2006                                1,588
                 June 30, 2006                                 1,684
                 September 30, 2006                            1,780
                 December 31, 2006                             1,876
                 March 31, 2007                                1,972
                 June 30, 2007                                 2,068
                 September 30, 2007                            2,164
                 December 31, 2007                             2,260
                 March 31, 2008                                2,356
                 Thereafter                                    2,356
</Table>

          (ix)   MAXIMUM CAPITAL EXPENDITURES. On a consolidated basis,
          Holdings and its Subsidiaries shall not make any
          expenditures for fixed or capital assets on an annual basis
          in excess of the amount listed below (determined as of the
          end of the annual period set forth below):

<Table>
<Caption>
                 DATE                                         ANNUAL AMOUNT
                 <S>                                          <C>
                 December 31, 2002                            $  66,600,000
                 December 31, 2003                            $  94,700,000
                 December 31, 2004                            $ 108,300,000
                 December 31, 2005                            $ 115,200,000
                 December 31, 2006                            $  83,400,000
                 December 31, 2007                            $  77,600,000
</Table>

                                       11.
<Page>

<Table>
<Caption>
                 DATE                                         ANNUAL AMOUNT
                 <S>                                          <C>
                 Thereafter                                   $  77,600,000
</Table>

          As used in this subsection (r), the following terms shall
          have the following meanings: "Capitalization" means, on any
          date, the sum of (i) Consolidated Funded Debt, and (ii) the
          sum of common and preferred equity, including without
          duplication capital stock plus paid in capital of Holdings
          and its Subsidiaries on such date, on a consolidated basis
          and as determined in accordance with, GAAP; "Consolidated
          Funded Debt" means, as of any date of determination, all
          Indebtedness of Holdings and its Subsidiaries on such date,
          on a consolidated basis and as determined in accordance with
          GAAP; "EBITDA" means, for any period with respect to
          Holdings and its Subsidiaries, net income (excluding
          extraordinary items), plus (except to the extent
          attributable to extraordinary items) the amount of any
          interest, taxes, depreciation, amortization and other
          non-cash charges deducted in determining such net income,
          all of the foregoing as determined on a consolidated basis
          for Holdings and its Subsidiaries, determined in conformity
          with GAAP; "Interest Expense" means, for any period with
          respect to Holdings and its Subsidiaries, the amount of
          interest expense, both expensed and capitalized (including
          the portion of any payments in respect of any capital leases
          allocable to interest expense), on a consolidated basis, as
          determined in accordance with GAAP, paid or payable during
          such period in respect of any Indebtedness of Holdings and
          its Subsidiaries; and "Minimum Cash Reserves" means
          unrestricted cash and cash equivalents of Borrower and its
          wholly-owned Subsidiaries. Notwithstanding anything in this
          Section 5.1(r) to the contrary, any Indebtedness or any
          Interest Expense thereon accruing or becoming due during the
          Permitted Period resulting from Permitted Purchases shall
          not be included by Holdings in determining compliance with
          the financial covenants set forth in this Section 5.1(r).
          Notwithstanding any provision to the contrary contained
          herein, if Holdings and its Subsidiaries fail to comply with
          any of the financial covenants set forth in this Section
          5.1(r) prior to the period ending June 30, 2002, such
          non-compliance shall not constitute an Event of Default
          hereunder, but neither Agent nor any other Lender shall have
          any obligation to make any Loans to Borrower (other than
          Tranche X Loans (as defined in the Schedule), which shall
          continue to be available to Borrower), until Holdings and
          its Subsidiaries shall have complied with all of the monthly
          financial covenants set forth in this Section 5.1(r) for a
          subsequent month during the period prior to and including
          the period ending June 30, 2002. On and after June 30, 2002,
          any

                                       12.
<Page>

          non-compliance with any of the financial covenants shall
          constitute an Event of Default hereunder.

          (viii) The following is added as a new Section 5.1(z) to the Credit
Agreement:

          (z)    FCC LICENSES AND LICENSE SUBSIDIARIES. Neither Holdings
          nor Borrower shall permit any FCC License to be owned or
          acquired by any Person other than a Subsidiary that (i) is
          wholly owned directly or indirectly by Borrower, (ii) does
          not engage in any business or activity other than the
          ownership of FCC Licenses and activities directly incidental
          thereto, (iii) does not own or acquire any assets other than
          FCC Licenses, and (iv) does not have or incur any
          Indebtedness or other liabilities other than liabilities
          imposed by law, including tax liabilities, other liabilities
          directly incidental to its existence and permitted business
          and activities, and any liabilities to Agent and Lenders
          arising pursuant to the Loan Documents (any Subsidiary
          satisfying the foregoing requirements, a "License
          Subsidiary").

          (ix)   The following is added as a new Section 6.3 to the Credit
Agreement:

          6.3    CERTAIN AGREEMENTS REGARDING THE COLLATERAL. Any
          provision contained herein or in any Collateral Document to
          the contrary notwithstanding, no action shall be taken
          hereunder or under any of the Collateral Documents by Agent
          or Lenders with respect to any Collateral in the form of FCC
          Licenses or the pledged stock of any License Subsidiary
          unless and until all applicable requirements of the FCC, if
          any, under the Communications Act of 1934, applicable state
          laws and the respective rules and regulations thereunder and
          thereof, as well as any other laws, rules and regulations of
          any other Governmental Authority applicable to or having
          jurisdiction over Holdings, Borrower or the relevant
          Subsidiary, have in the reasonable judgment of Agent been
          fully satisfied to the extent necessary to take such action
          and there have been obtained such consents, approvals and
          authorizations, as may be required to be obtained from the
          FCC, applicable state and local regulatory authorities and
          municipalities and any other Governmental Authority under
          the terms of any franchise, license or similar operating
          right held by Holdings, Borrower or the relevant Subsidiary
          in order to take such action. It is the intention of the
          parties hereto that the pledge in favor of Agent (on behalf
          of Lenders) of the stock of any License Subsidiary, and the
          creation of a Lien (to the extent permitted by law) in favor
          of Agent (on behalf of Lenders) in FCC Licenses, and all
          rights and remedies by Agent and Lenders with respect to
          such pledged stock and FCC Licenses, shall in all relevant
          aspects be subject to and governed by said statutes, rules

                                       13.
<Page>

          and regulations and that nothing in this Agreement shall be
          construed to diminish the control exercised by Holdings,
          Borrower or the relevant Subsidiary, except in accordance
          with the provisions of such statutory requirements and rules
          and regulations. By its acceptance of this Agreement, Agent
          and each Lender agrees that it will not take any action
          pursuant to this Agreement or any other Collateral Document
          which constitutes or results in any assignment of a license
          or franchise or any change of control over the
          communications properties owned and operated by Holdings,
          Borrower or any Subsidiary, if such assignment of license or
          franchise or change of control would, under then existing
          law or under any franchise, require the prior approval of a
          Governmental Authority, without first obtaining such
          approval. Upon the exercise by Agent or any Lender of any
          power, right, privilege or remedy pursuant to this Agreement
          or any Collateral Document which requires any consent,
          approval, recording, qualification or authorization of any
          Governmental Authority, Holdings or Borrower shall, or shall
          cause the relevant Subsidiary to, execute and deliver all
          applications, certificates, instruments and other documents
          and papers that Agent may reasonably require in order for
          such governmental consent, approval, recording,
          qualification or authorization to be obtained. Holdings and
          Borrower each agrees to use its best efforts to cause such
          governmental consents, approvals, recordings, qualifications
          and authorizations to be forthcoming.

          (x)    Section 2(c)(ii) of the Schedule to the Credit Agreement is
hereby deleted in its entirety and replaced by the following:

          (ii)   The Tranche B Loans and the Tranche X Loans shall be
          subject to mandatory prepayment on or before the later of
          (A) the third Banking Day after any date Holdings receives
          the net proceeds from the sale of any of its equity
          securities or debt instruments or securities (the "Holdings
          Prepayment Date") (other than issuances of equity securities
          to officers, directors, employees or consultants in the
          ordinary course of business); PROVIDED, that Holdings shall
          not be required to make any such mandatory prepayment if it
          contributes such proceeds to Borrower as common equity prior
          to the Holdings Prepayment Date and, in such case, any
          mandatory prepayment required by this subsection 2(c)(ii)
          shall be made according to the provisions of the immediately
          succeeding clause (B) and (B) the next Banking Day after
          Borrower receives from Holdings the net proceeds from the
          sale of any of Holdings' equity securities or debt
          instruments or securities (other than issuances of equity
          securities to officers, directors, employees or consultants
          in the ordinary course of business), in each case, whether
          in one transaction or a series of

                                       14.
<Page>

          transactions and in the amount of such proceeds; PROVIDED,
          however, that Holdings or Borrower may retain (A) the first
          $300,000,000 of proceeds of equity offerings of Holdings or
          Borrower measured from the date of the Borrower's
          incorporation and (B) up to $200,000,000 of proceeds of
          Subordinated Debt offerings of Holdings (excluding proceeds
          of Subordinated Debt issued or assumed by Holdings or the
          Borrower in connection with the transactions contemplated by
          the AR Merger Agreement, which Borrower shall be permitted
          to retain in its entirety) without being required to make
          such prepayment; PROVIDED that any retained proceeds
          retained by Holdings shall be contributed by Holdings to
          Borrower as common equity pursuant to the terms of this
          Agreement and the Guaranty executed by Holdings in
          connection herewith.

          (b) REFERENCES WITHIN CREDIT AGREEMENT. Each reference in the
Credit Agreement to "this Agreement" and the words "hereof," "herein,"
"hereunder," or words of like import, shall mean and be a reference to the
Credit Agreement as amended by this Amendment.

          SECTION 3 CONDITIONS OF EFFECTIVENESS. The effectiveness of Section 2
of this Amendment shall be subject to the satisfaction of each of the following
conditions precedent:

          (a) FEES AND EXPENSES. Borrower shall have paid all invoiced costs and
expenses then due in accordance with Section 5(c) below.

          (b) LOAN DOCUMENTS. Agent shall have received the following documents,
in form and substance satisfactory to it:

          (i)    the Guaranty by Allied Riser in favor of Agent (on behalf of
each Lender) in substantially the form of EXHIBIT A attached hereto;

          (ii)   the Security Agreement between Allied Riser and Agent (on
behalf of each Lender) in substantially the form of EXHIBIT B attached hereto
(the "AR Security Agreement");

          (iii)  the Copyright Security Agreement between Allied Riser and Agent
(on behalf of each Lender) in substantially the form of EXHIBIT C attached
hereto;

          (iv)   the Patent and Trademark Security Agreement between Allied
Riser and Agent (on behalf of each Lender) in substantially the form of EXHIBIT
D attached hereto;

          (v)    the Stock Pledge Agreement between Allied Riser and Agent (on
behalf of each Lender) in substantially the form of EXHIBIT E attached hereto;

                                       15.
<Page>

          (vi)   the Guaranty by each of the Subsidiaries of Allied Riser
identified on ANNEX A attached hereto (each an "AR Subsidiary" and,
collectively, the "AR Subsidiaries") in favor of Agent (on behalf of each
Lender) in substantially the form of EXHIBIT F attached hereto;

          (vii)  the Security Agreement among each AR Subsidiary and Agent (on
behalf of each Lender) in substantially the form of EXHIBIT G attached hereto
(the "AR Subsidiary Security Agreement");

          (viii) within thirty (30) days after the Effective Date, the Guaranty
by Allied Riser Communications Corporation of Canada, Inc. ("AR Canada") in
favor of Agent (on behalf of each Lender), in form and substance satisfactory to
Agent, in accordance with Canadian law;

          (ix)   Within thirty (30) days after the Effective Date, the Personal
Property Security Agreement between AR Canada and Agent (on behalf of each
Lender), in form and substance satisfactory to Agent, in accordance with
Canadian law (the "AR Canada PPSA");

          (x)    the Amendment to Amended and Restated Stock Pledge Agreement
between Borrower and Agent (on behalf of each Lender) in substantially the form
of EXHIBIT H attached hereto (the "Amended Borrower Stock Pledge"); and

          (xi)   the consent of each Guarantor, in substantially the form of
EXHIBIT I (the "Guarantor Consent"), to the amendments contemplated by this
Amendment.

          (c) DOCUMENTS AND ACTION RELATING TO COLLATERAL. On or before the
Effective Date (except as expressly provided below), Agent shall have received
the following, in form and substance satisfactory to it:

          (i)    UCC Financing Statements for Allied Riser and each AR
Subsidiary as required under the AR Security Agreement, the AR Subsidiary
Security Agreement and the other Collateral Documents;

          (ii)   Original stock certificates of Allied Riser pledged to Agent
(on behalf of Lenders) pursuant to the Amended Borrower Stock Pledge (together
with applicable Stock Power);

          (iii)  Within thirty (30) days after the Effective Date, Collateral
Access Agreements as required under the AR Security Agreement, the AR Subsidiary
Security Agreement and the other Collateral Documents;

          (iv)   Within thirty (30) days after the Effective Date, Account
Control Agreements as required under the AR Security Agreement, the AR
Subsidiary Security Agreement and the other Collateral Documents;

          (v)    Representations and Warranties Certificate with all requested
information completed by Borrower;

          (vi)   Within thirty (30) days after the Effective Date, such other
searches, certificates, filings, and other documents and instruments, in form
reasonably satisfactory to

                                       16.
<Page>

Agent, as Agent may reasonably require to effectuate the purposes of the AR
Canada PPSA and the other Loan Documents; and

          (vii)  Such other financing statements, searches, certificates,
filings, and other documents and instruments, in form reasonably satisfactory to
Agent, as Agent may reasonably require to effectuate the purposes of the Loan
Documents.

          (d) ADDITIONAL CLOSING DOCUMENTS AND ACTIONS. On or before the
Effective Date (except as expressly provided below), Agent shall have received
the following, in form and substance satisfactory to it:

          (i)    within ten (10) days after the Effective Date, the certificate
of merger with respect to the Allied Riser merger transaction filed with the
Secretary of State of Delaware;

          (ii)   a certificate from Borrower and Holdings confirming the
capitalization of Holdings and Borrower and the total per share consideration
paid by Holdings to Allied Riser in connection with the consummation of the
Allied Riser merger transaction;

          (iii)  evidence that all (A) authorizations or approvals of any
Governmental Authority, and (B) approvals or consents of any other Person,
required in connection with the Allied Riser merger transaction and the
execution, delivery and performance of this Amendment shall have been obtained;

          (iv)   a certificate of a senior officer of Borrower, stating that (A)
the representations and warranties contained in Section 4 and in the amendments
to the other Loan Documents are true and correct in all material respects on and
as of the date of such certificate as though made on and as of the Effective
Date and (B) on and as of the Effective Date, after and giving effect to the
amendment of the Credit Agreement contemplated hereby, no Default shall have
occurred and be continuing;

          (v)    a certificate of a senior officer of Holdings, stating that the
representations and warranties contained in the Stock Pledge Agreement, the
Holdings Guaranty, and the other Guarantor Documents are true and correct in all
material respects on and as of the Effective Date as though made on and as of
such date;

          (vi)   a certificate of a senior officer of Allied Riser, stating that
the representations and warranties contained in the Allied Riser Guaranty and in
the other Guarantor Documents are true and correct in all material respects on
and as of the Effective Date as though made on and as of such date; and

          (vii)  such additional financial information with respect to Allied
Riser, Borrower or any Guarantor (e.g. financial statements, forecasts,
pro-formas, budgets, etc.), as Agent may reasonably request.

          (e) CORPORATE DOCUMENTS. Agent shall have received the following, in
form and substance satisfactory to it:

                                       17.
<Page>

          (i)    a certificate of the Secretary or Assistant Secretary of
Borrower, dated the Effective Date, certifying (A) copies of the resolutions of
the Board of Directors of Borrower authorizing the execution, delivery and
performance of this Amendment and the amendments to the other Loan Documents and
(B) the incumbency, authority and signatures of each officer of Borrower
authorized to execute and deliver this Amendment and the amendments to the other
Loan Documents;

          (ii)   a certificate of the Secretary or Assistant Secretary of
Holdings, dated the Effective Date, certifying (A) copies of the resolutions of
the Board of Directors of the Holdings authorizing the execution, delivery and
performance of the Stock Pledge Agreement, the Guarantor Consent and related
documents, and (B) copies of the amended and restated certificate of
incorporation and amended and restated bylaws of Holdings; and

          (iii)  a certificate of the Secretary or Assistant Secretary of Allied
Riser and each of the AR Subsidiaries, dated the Effective Date, certifying (A)
copies of the resolutions of the Board of Directors of Allied Riser and each AR
Subsidiary authorizing the execution, delivery and performance of this Amendment
and each of the other documents described herein or related thereto to which it
is a party, (B) the incumbency, authority and signatures of each officer of
Allied Riser and each AR Subsidiary authorized to execute and deliver such
documents, and (C) copies of the certificate of incorporation and bylaws of
Allied Riser and each AR Subsidiary.

          (f) LEGAL OPINIONS. Agent shall have received (i) the opinion of
Friedman, Kaplan, Seiler & Adelman, LLP, counsel to Borrower, Additional
Borrower, Allied Riser and each Guarantor, dated the Effective Date, in
substantially the form of EXHIBIT J; and (ii) if requested by Agent, an opinion
of special FCC counsel to Borrower, Holdings and Allied Riser, within thirty
(30) days after the Effective Date.

          (g) MATERIAL ADVERSE CHANGE. On and as of the Effective Date, there
shall have occurred no Material Adverse Change since the date of this Amendment.

          (h) REPRESENTATIONS AND WARRANTIES; NO DEFAULT. On the Effective Date,
after giving effect to the amendment of the Credit Agreement contemplated
hereby:

          (i)    except as otherwise disclosed in writing to Agent and Lenders
under that certain disclosure schedule delivered to Lender prior to the
Effective Date, the representations and warranties contained in Section 4 and in
the other Loan Documents shall be true and correct on and as of the Effective
Date as though made on and as of such date; and

          (ii)   no Default shall have occurred and be continuing.

          (i) ADDITIONAL DOCUMENTS. Agent shall have received, in form and
substance satisfactory to it, such additional approvals, opinions, documents and
other information as Lender may reasonably request.

          SECTION 4 REPRESENTATIONS AND WARRANTIES. To induce Agent to enter
into this Amendment, Borrower hereby confirms and restates, as of the date
hereof, the representations and warranties made by it in Section 4.1 of the
Credit Agreement and in the

                                       18.
<Page>

other Loan Documents (except as otherwise disclosed in writing to Agent and
Lenders under that certain disclosure schedule delivered to Lender prior to the
Effective Date). For the purposes of this Section 4, (i) each reference in
Section 4.1 of the Credit Agreement to "this Agreement," and the words "hereof,"
"herein," "hereunder," or words of like import in such Section, shall mean and
be a reference to the Credit Agreement as amended by this Amendment, and each
reference in such Section to "the Loan Documents" shall mean and be a reference
to the Loan Documents as amended as contemplated hereby, and (ii) , clause (i)
shall take into account any amendments to any disclosures made in writing by
Borrower and any Guarantor to Agent and each Lender after the Closing Date and
approved by Agent (on behalf of each Lender).

          SECTION 5 MISCELLANEOUS.

          (a) CREDIT AGREEMENT OTHERWISE NOT AFFECTED. Except as expressly
amended pursuant hereto, the Credit Agreement shall remain unchanged and in full
force and effect and is hereby ratified and confirmed in all respects. Agent's
execution and delivery of, or acceptance of, this Amendment and any other
documents and instruments in connection herewith (collectively, the "Amendment
Documents") shall not be deemed to create a course of dealing or otherwise
create any express or implied duty by it to provide any other or further
amendments, consents or waivers in the future.

          (b) NO RELIANCE. Borrower hereby acknowledges and confirms to Agent
that Borrower is executing this Amendment and the other Amendment Documents on
the basis of its own investigation and for its own reasons without reliance upon
any agreement, representation, understanding or communication by or on behalf of
any other Person.

          (c) COSTS AND EXPENSES. Borrower agrees to pay to Agent on demand the
reasonable out-of-pocket costs and expenses of Agent, and the reasonable fees
and disbursements of counsel to Lender, in connection with the negotiation,
preparation, execution and delivery of this Amendment and any other documents to
be delivered in connection herewith.

          (d) BINDING EFFECT. This Amendment shall be binding upon, inure to the
benefit of and be enforceable by Borrower, Agent, Additional Borrower, Holdings
and their respective successors and assigns.

          (e) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          (f) COMPLETE AGREEMENT; AMENDMENTS. This Amendment, together with the
other Amendment Documents and the other Loan Documents, contains the entire and
exclusive agreement of the parties hereto and thereto with reference to the
matters discussed herein and therein. This Amendment supersedes all prior
commitments, drafts, communications, discussions and understandings, oral or
written, with respect thereto. This Amendment may not be modified, amended or
otherwise altered except in accordance with the terms of Section 8.1 of the
Credit Agreement.

                                       19.
<Page>

          (g) SEVERABILITY. Whenever possible, each provision of this Amendment
shall be interpreted in such manner as to be effective and valid under all
applicable laws and regulations. If, however, any provision of this Amendment
shall be prohibited by or invalid under any such law or regulation in any
jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform
to the minimum requirements of such law or regulation, or, if for any reason it
is not deemed so modified, it shall be ineffective and invalid only to the
extent of such prohibition or invalidity without affecting the remaining
provisions of this Amendment, or the validity or effectiveness of such provision
in any other jurisdiction.

          (h) COUNTERPARTS. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement.

          (i) INTERPRETATION. This Amendment and the other Amendment Documents
are the result of negotiations between and have been reviewed by counsel to
Agent, Borrower and other parties, and are the product of all parties hereto.
Accordingly, this Amendment and the other Amendment Documents shall not be
construed against Agent or any Lender merely because of Agent's involvement in
the preparation thereof.

          (j) LOAN DOCUMENTS. This Amendment and the other Amendment Documents
shall constitute Loan Documents.

          (k) DESIGNATED SENIOR DEBT. Each of the parties hereto acknowledges
and agrees that the Indebtedness owing to Agent and Lenders under the Credit
Agreement and any other Loan Document constitutes "Designated Senior Debt" for
purposes of the Indenture between Allied Riser Communications Corporation and
Wilmington Trust Company dated June 28, 2000, as the same may be amended from
time to time by any amendment or supplemental indenture.

          [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                       20.
<Page>

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

                                              Cogent Communications, Inc.

                                              By
                                                 -------------------------------
                                                 Title:

                                              Cogent Communications Group, Inc.

                                              By
                                                 -------------------------------
                                                 Title:

                                              Cogent Internet, Inc.

                                              By
                                                 -------------------------------
                                                 Title:

                                              Cisco Systems Capital Corporation

                                              By
                                                 -------------------------------
                                                 Title:

                                       21.
<Page>

                                    EXHIBIT A
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                              ALLIED RISER GUARANTY

                                [TO BE PROVIDED]

                                       A-1
<Page>

                                    EXHIBIT B
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                         ALLIED RISER SECURITY AGREEMENT

                                [TO BE PROVIDED]

                                       B-1
<Page>

                                    EXHIBIT C
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                    ALLIED RISER COPYRIGHT SECURITY AGREEMENT

                                [TO BE PROVIDED]

                                       C-1
<Page>

                                    EXHIBIT D
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

              ALLIED RISER PATENT AND TRADEMARK SECURITY AGREEMENT

                                [TO BE PROVIDED]

                                       D-1
<Page>

                                    EXHIBIT E
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                       ALLIED RISER STOCK PLEDGE AGREEMENT

                                [TO BE PROVIDED]

                                       E-1
<Page>

                                    EXHIBIT F
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                             AR SUBSIDIARY GUARANTY

                                [TO BE PROVIDED]

                                       F-1
<Page>

                                    EXHIBIT G
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                        AR SUBSIDIARY SECURITY AGREEMENT

                                [TO BE PROVIDED]

                                       G-1
<Page>

                                    EXHIBIT H
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

        AMENDMENT TO AMENDED AND RESTATED BORROWER STOCK PLEDGE AGREEMENT

                                [TO BE PROVIDED]

                                       H-1
<Page>

                                    EXHIBIT I
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                       CONSENT AND AGREEMENT OF GUARANTORS

          Each of the undersigned, in its capacity as guarantor, acknowledges
that its consent to the foregoing Amendment is not required, but the undersigned
nevertheless does hereby consent to the foregoing Amendment and to any documents
and agreements referred to therein and to all future modifications and
amendments thereto (subject to the terms of the Guaranty ("Guaranty"), executed
by each of the undersigned in favor of Cisco Systems Capital Corporation
("CSCC") (as such Continuing Guaranty may be amended from time to time)), and
any termination thereof, and to any and all other present and future documents
and agreements by or between Cogent Communications, Inc. and CSCC. Nothing
herein shall in any way limit any of the terms or provisions of such Guaranty of
the undersigned or any other document or agreement executed by the undersigned
in CSCC's favor (as the same may be amended from time to time), all of which are
hereby ratified and affirmed in all respects.

                                              GUARANTORS:

                                              Cogent Communications, Inc.

                                              By
                                                 -------------------------------
                                                 Title:

                                              Cogent Communications Group, Inc.

                                              By
                                                 -------------------------------
                                                 Title:

                                              Cogent Internet, Inc.

                                              By
                                                 -------------------------------
                                                 Title:

                                       I-1
<Page>

                                    EXHIBIT J
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                             FORM OF OPINION LETTER

                                [TO BE PROVIDED]

                                       J-1
<Page>

                                     ANNEX A
       to Amendment No. 1 to Second Amended and Restated Credit Agreement

                          SUBSIDIARIES OF ALLIED RISER

<Table>
<Caption>
 SUBSIDIARY                                        JURISDICTION OF       CORPORATE ID NO.
                                                    INCORPORATION
<S>                                                       <C>                 <C>
 Allied Riser Operations Corporation                      DE                  2957686
 ARC Construction, Inc.                                   DE                  3298728
 ARC Long Distance, Inc.                                  DE                  3026797
 ARC Worldwide, Inc.                                      DE                  3202763
 Allied Riser of Alabama                                  DE                  3095135
 Allied Riser of Arizona                                  DE                  3095138
 Allied Riser of California                               DE                  3004262
 Allied Riser of Colorado                                 DE                  3004261
 Allied Riser of Connecticut                              DE                  3004281
 Allied Riser of D.C.                                     DE                  3010019
 Allied Riser of Florida                                  DE                  3093421
 Allied Riser of Georgia                                  DE                  3004263
 Allied Riser of Illinois                                 DE                  3004265
 Allied Riser of Indiana                                  DE                  3095141
 Allied Riser of Kentucky                                 DE                  3095149
 Allied Riser of Louisiana                                DE                  3093427
 Allied Riser of Maryland                                 DE                  3095156
 Allied Riser of Massachusetts                            DE                  3004268
 Allied Riser of Michigan                                 DE                  3095360
 Allied Riser of Minnesota                                DE                  3095361
 Allied Riser of Missouri                                 DE                  3095365
 Allied Riser of Nevada                                   DE                  3095366
 Allied Riser of New Jersey                               DE                  3093429
 Allied Riser of New Mexico                               DE                  3095368
 Allied Riser of New York                                 DE                  3004270
 Allied Riser of North Carolina                           DE                  3095452
 Allied Riser of Ohio                                     DE                  3004273
 Allied Riser of Oklahoma                                 DE                  3093433
 Allied Riser of Pennsylvania                             DE                  3004272
 Allied Riser of Rhode Island                             DE                  3095456
 Allied Riser of South Carolina                           DE                  3095463
 Allied Riser of Tennessee                                DE                  3095465
 Allied Riser of Texas                                    DE                  2988683
 Allied Riser of Utah                                     DE                  3095467
 Allied Riser of Virginia                                 VA                   524192
 Allied Riser of Washington                               DE                  3004277
 Allied Riser of Wisconsin                                DE                  3095469
</Table>

                                       A-1
<Page>

<Table>
<S>                                                        <C>            <C>
Allied Riser of Tennessee, Inc.                            DE             75-2841263
Allied Riser of Texas, Inc.                                DE             75-2820271
Allied Riser of Utah, Inc.                                 DE             75-2841260
Allied Riser of Virginia, Inc.                             VA             75-2862729
Allied Riser of Washington, Inc.                           DE             75-2818768
Allied Riser of Wisconsin, Inc.                            DE             75-2841269
</Table>

                                       A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]