Document:

EXHIBIT 10.12

SECOND AMENDMENT TO

EMPLOYMENT
AGREEMENT

This SECOND AMENDMENT (this “Second Amendment”) to the
Employment Agreement, made and entered into by and between Adelphia
Communications Corporation, a Delaware corporation (together with its successors
and assigns, the “Company”), and Brad Sonnenberg (the “Executive”) is effective
as of the 11th day
of October, 2006 (the “Effective Date”).

WHEREAS, the Executive and the Company entered into
that certain Employment Agreement dated July 21, 2003, as amended on May 31,
2006 (together, the “Employment Agreement”);

WHEREAS, on September 21, 2006, the United States Bankruptcy Court for the
Southern District of New York, such court having jurisdiction over the chapter
11 cases currently pending with respect to the Company and those of its
affiliates that are debtors and debtors in possession under Chapter 11 of the
Bankruptcy Code whose cases are jointly administered under case number 02-41729
(REG) (the “Debtors”), issued an order (the “Order”) authorizing and approving
the implementation of the Debtors’ extended post-closing incentive plan for the
Executive, including certain amendments to the Employment Agreement; and

WHEREAS, the Company and the Executive now desire to
amend the Employment Agreement in accordance with the Order.

NOW, THEREFORE, in consideration of the premises and
the mutual agreements hereinafter contained, the parties do hereby amend the
Employment Agreement as follows, effective as of the Effective Date:

1.               Effective August 1,
2006, Executive’s annual Base Salary shall be $1,278,225 to be paid in
bi-weekly installments (net of any amounts required to be withheld under
applicable federal, state or local income tax laws).

2.               The following shall
be added to the end of Section 1(i) of the Employment Agreement:

“For purposes of this
Agreement, voluntary termination by Executive pursuant to the Effective Date
Termination provision of the Extended EVP Post Close Incentive Program shall be
deemed to be a termination by the Executive for Good Reason.”

3.               The following
definitions shall be added to Section 1 of the Employment Agreement:

“Debtors” shall mean the Company and those of its affiliates that
are debtors and debtors in possession under Chapter 11 of the Bankruptcy Code
whose cases are jointly administered under case number 02-41729 (REG).

 

“Extended
EVP Post Close Incentive Program” shall mean that certain Extended EVP Post
Close Incentive Program, as adopted and approved by the United States
Bankruptcy Court for the Southern District of New York on September 21, 2006.

“Effective
Date Termination” shall have the meaning ascribed to such term in the Extended
EVP Post Close Incentive Program.

4.               Defined terms used
herein and not otherwise defined in this Second Amendment shall have the same
meaning ascribed to them in the Employment Agreement.

5.               Except as amended
and modified hereby, the terms of the Employment Agreement shall remain in full
force and effect, provided that such terms shall not impair Executive’s rights
and benefits under the Extended EVP Post Close Incentive Program.

6.               THIS
SECOND AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF COLORADO APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES TO THE
EXTENT SUCH LAWS ARE NOT PREEMPTED BY FEDERAL BANKRUPTCY LAW.

The
parties hereby (i) submit to the exclusive jurisdiction of the courts of the
State of Colorado and the U.S. federal courts sitting in Colorado, provided
that until the consummation of the Plan, the Bankruptcy Court shall have
exclusive jurisdiction for any action or proceeding relating to this Second
Amendment, (ii) consent that any such action or proceeding may be brought
in any such venue, (iii) waive any objection that any such action or
proceeding, if brought in any such venue, was brought in any inconvenient forum
and agree not to claim the same, (iv) agree that any judgment in any such
action or proceeding may be enforced in other jurisdictions, (v) consent to service
of process at the address set forth in Section 22 of the Employment Agreement
(or to such other addresses as Party may designate by notice to the other
Party), and (vi) to the extent applicable, waive their respective rights to a
jury trial of any claim or cause of action based on or arising out of this
Second Amendment or any dealings between them relating to the subject matter of
this Second Amendment.

7.               This Second
Amendment may be executed in one or more counterparts (including by facsimile),
each of which shall be deemed an original and all of which together shall be
considered one and the same instrument.

[signature page
follows]

 

IN WITNESS
WHEREOF, the parties hereto have entered into the Second Amendment to the
Employment Agreement as of the day and year first written above.

	
   

  	
  BRAD SONNENBERG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Brad
  Sonnenberg

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADELPHIA
  COMMUNICATIONS

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jerry Rybin

  	
   

  
	
   

  	
  By: Jerry Rybin

  
	
   

  	
  Title: VP –
  Human ResourcesEXHIBIT 10.13

CONFIDENTIAL

Terms of
Extended EVP Post Close Incentive Program

Participants:                                                                              Vanessa
Wittman and Brad Sonnenberg (“EVPs”)

Existing
Program:                                                    The
Extended EVP Post Close Incentive Program outlined herein is intended to be in
lieu of the PKERP.(1)  The Extended EVP
Post Close Incentive Program is in addition to, and not in lieu of, any
applicable compensation and benefits programs of the Company, other than the
PKERP, in which the EVPs participate prior to the Post Close Period.

Employment
Period:                                      The
Post Close Period will be from August 1, 2006 through December 31, 2006 (the “Post
Close Period”).  In the event the
Company is required to file a Form 10-K, at the sole discretion of the
Creditors’ Committee, the EVPs may continue to be employed by the Company from
January 1, 2007 through March 31, 2007 (the “Extended Post Close Period”).  If it seeks to employ the EVPs during the
Extended Post Close Period, the Creditors’ Committee or Plan Administrator (as
applicable) must notify the EVPs, in writing, no later than November 15, 2006.

EVP
Bonus:                                                                                 Subject
to the termination provisions below, EVPs employed during the Post Close Period
will receive a bonus (the “Post-Close Bonus”) equal to five months of
Adjusted Base Salary (as defined in the PKERP Motion).

Subject to the
termination provisions below, EVPs employed during the Extended Post Close
Period will receive a bonus (the “Extended Post-Close Bonus”) equal to
three months of Adjusted Base Salary.

Such bonuses shall
be paid net of any amounts required to be withheld under applicable federal,
state, or local income tax laws.

Payment of such
bonuses will be conditioned on execution and delivery by the EVP of a general
release of claims against the Company and the Plan Administrator relating to
claims, if any, accrued up to the execution of such release, and shall provide
that such release does not extend to (a) compensation or benefits to be
provided by, or any other obligation otherwise due to be performed by, the Company
or the Plan Administrator

 

(1)                                  The
“PKERP” refers to the incentive program that was the subject of the Debtors’
Motion for Order Pursuant to Sections 105(a) and 363(b) of the Bankruptcy Code
Authorizing Implementation of Post-Closing Incentive Program and Granting
Related Relief, which was approved by the Bankruptcy Court on July 26, 2006
(the “PKERP Order”).  The other relief
granted pursuant to the PKERP Order (e.g., the payment of Adjusted Base
Salary) shall remain in effect and is not intended to be superseded by the
terms herein.

 

in the future, and
(b) claims for indemnification or the like, including without limitation, any
claims based on indemnification agreements, the Company’s  by-laws, plan of reorganization, or other
governance documents, as well as any claims under the Company’s directors’ and
officers’ insurance policies.  The
Company and Plan Administrator shall simultaneously execute and deliver to the
EVPs general releases of claims, if any, accrued up to the execution of such
release, and shall provide that such release does not extend to any obligation
otherwise due to be performed by the EVPs in the future.

Timing
of Payment:                                         Subject
to the termination provisions below:

·                                          50%
of an EVP’s Post Close Bonus will be paid on the date that is the earlier of:
(i) the end of the Post Close Period; and (ii) the Effective Date of a Plan of
Reorganization for substantially all of the Debtors (the “Effective Date”);
and

·                                          The
remaining 50% of each EVP’s Post Close Bonus will be paid at the end of the
Post Close Period.

·                                          100%
of an EVP’s Extended Post-Close Bonus (if applicable) will be paid at the end
of the Extended Post Close Period.

Termination:                                                                             The
Company or Plan Administrator (as applicable) may terminate one or both EVPs
prior to the end of the Post Closing Period (or the end of the Extended Post
Close Period, as applicable) only (i) for cause, (ii) upon mutual agreement
between the EVP and the Company (“Mutual Termination”), or (iii) as a
result of the EVP’s death or disability. 
The terms “cause” and “disability” shall have the meanings assigned to
them in the EVPs’ existing employment agreements (the “Existing EVP
Agreements”).  Following any
termination by an EVP, the Company, or Plan Administrator, each EVP will be
entitled to receive his or her accrued but unpaid Adjusted Base Salary and
benefits through the date of termination, such amount to be paid not later than
8 days following the date of such termination. 
Following a Mutual Termination or termination for death or disability,
an EVP will be entitled to receive his or her aggregate Post-Close Bonus (and
Extended Post-Close Bonus, as applicable) not later than 8 days following the
date of termination.

In the event the
Company or Plan Administrator seeks to terminate one or both EVPs without cause
and such EVPs do not agree to a Mutual Termination, the Company or Plan
Administrator may, at any time during the Post Closing Period (or the Extended
Post Close Period, as applicable),
require the EVP not to attend his or her work provided that the EVP shall be
entitled to receive his or her Adjusted Base Salary and benefits during any
such period and for purposes of this Extended EVP Post Close

 2
 

 

Incentive Program will remain an employee of the Company during
such period.

If the Effective
Date occurs prior to the end of either the Post Close Period or the Extended
Post Close Period, as applicable, the EVPs may elect to voluntarily terminate
their employment (an “Effective Date Termination”).  In such case and at the sole discretion of
the Creditors’ Committee, the EVPs shall remain available to consult for the
Company from the date of the Effective Date Termination through the three month
anniversary of the Effective Date Termination. 
In the event of an Effective Date Termination, the Creditors’ Committee
will notify the EVPs if they will be required to serve as a consultant on the
date of such termination.  In the event
of an Effective Date Termination, the EVPs shall be entitled to receive the pro rata share of their Post-Close Bonus
and/or Extended Post-Close Bonus, as applicable, that relates to the period
between 8/01/06 and the date of Effective Date Termination.  In the event an EVP terminates his or her
employment for “Good Reason” (other than an Effective Date Termination), such
EVP shall be entitled to be paid on such termination date his or her aggregate
Post-Close Bonus (and Extended Post-Close Bonus, as applicable) and his or her
aggregate Adjusted Base Salary from such termination through the end of the
Post Close Period (and Extended Post Close Period, as applicable).

Except in the
event of an Effective Date Termination or termination for “Good Reason,” EVPs
who voluntarily terminate their employment prior to the end of either the Post
Close Period or Extended Post Close Period, as applicable, will forfeit any unpaid
bonus amounts.

If interim bonus
payments previously have been made pursuant to the section captioned “Timing”
above, the bonus payments provided for in this section on “Termination” shall
be paid only to the extent of the excess of such bonuses payable on termination
over such previously paid interim bonuses.

Consulting
Period:                                             At
the sole discretion of the Creditors’ Committee, and in the event that the EVPs
will not be employed by the Company throughout the Extended Post Close Period,
each EVP agrees to consult for the Company for a period beginning at
termination of employment and ending the earlier of (a) three months following
the termination of employment and (b) March 31, 2007 (the “Consulting Period”).  Except in the event of an Effective Date Termination,
the Creditors’ Committee will notify the EVPs if they will be required to serve
as consultants during the Consulting Period no later than 30 days prior to the
end of the Post Close Period.  The
Consulting Period may be terminated by the Company or the Plan Administrator by
delivering written notice to the EVP no less than 30 days prior to the date on
which the Consulting Period will terminate.

 3
 

 

Consulting
Fees:                                                      In
consideration of the agreement to consult, EVPs will continue to be paid the pro rata portion of their annual Adjusted
Base Salary every two weeks.  The Company
and the EVP will enter into a customary consulting agreement which contains
customary expense reimbursement and indemnity provisions.

Severance:                                                                                      On
the date on which the Court approves the Extended EVP Post Close Incentive
Program, the Company will pay to each EVP the severance (the “Severance
Payments”) provided for in the Existing EVP Agreements in cases of a
termination by the Company without cause.

The Existing EVP
Agreements will be amended to provide that an Effective Date Termination will
be included in the definition of “Good Reason.”

Notwithstanding
anything herein to the contrary, upon receipt of the Severance Payments, the
EVPs shall not be entitled to any additional severance payment pursuant to the
Existing EVP Agreements or otherwise.

Indemnity:                                                                                       The
Company shall (a) provide indemnification agreements to the EVPs containing
customary terms (in no event less favorable to the EVPs than those provided to
the Company’s directors) and (b) maintain by-laws that provide for exculpation
and indemnification to the maximum extent permitted by Delaware law.

Miscellaneous:                                                               The
EVPs will remain on the Company’s health plan until the date that their
employment is terminated.  Thereafter,
the EVPs will be entitled to COBRA coverage under the terms of their Existing
EVP Agreements for the period specified in their existing employment agreements
plus an additional period equal to the length of time during which the EVP
serves as a consultant.

Court
Approval:                                                         The
Creditors’ Committee and the Debtors shall file a joint motion seeking approval
of the relief related to the EVPs.

Please acknowledge your agreement with the foregoing
terms.

 

	
  

  	
   

  
	
  Authorized
  Representative of the

  
	
  Official
  Committee of Unsecured Creditors

  

 

 4
 

 

Agreed to:

	
   

  	
  ADELPHIA COMMUNICATIONS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jerry Rybin,
  VP – HR

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:10-10-06

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VANESSA
  WITTMAN

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Vanessa
  Wittman

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  9/26/06

  	
   

  
							

 

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