Document:

exv10w4

 

Exhibit 10.4

Severance Agreement

          This Agreement  is entered into as of February 13, 2006, by and between
STORMY L. DEAN (the “Employee”) and infoUSA Inc. , a Delaware
corporation (the “Company”).

	 	1.	 	Termination Without Cause or Resignation for Good
Reason (no Change in Control).

          (a) Preconditions. Any other provision of this Agreement notwithstanding, this Section 1
shall apply only if:

          (i) Either (A) the Company terminates the Employee’s employment for any reason
other than Cause or (B) the Employee resigns for Good Reason within one hundred
eighty (180) days after the event that constitutes Good Reason;

          (ii) Section 2 does not apply;

          (iii) The Employee has executed a general release of all claims (in a
reasonable form prescribed by the Company);

          (iv) The Employee has returned all property of the Company in the Employee’s
possession; and

          (v) The Employee, if requested by the Company’s Board of Directors (the
“Board”), has resigned as a member of the Board and as a member of the Boards of
Directors of all subsidiaries of the Company (to the extent applicable).

          (b) Severance Pay. If this Section 1 applies, then the Company shall make payments to the
Employee at a rate equal to his Total Compensation for the following period after the termination
of his employment (the “Continuation Period”):

	 	 	 
	Length of Service Completed	 	Duration of
	by the Employee:	 	Severance Payments:
	 
	Less than 5 years

	 	6 months
	 
	5 to 12 years

	 	12 months
	 
	12 to 20 years

	 	18 months
	 
	More than 20 years

	 	24 months

 

 

The Total Compensation shall be paid during the Continuation Period in accordance with the
Company’s standard payroll procedures, subject to the provisions of Section 7(b) of this Agreement.
The foregoing notwithstanding, the Company (at its sole discretion) may immediately discontinue
all payments under this Subsection (b) if the Employee fails to comply with Section 4.

          (c) Health and Dental Insurance. If this Section 1 applies, and if the Employee elects to
continue health and/or dental insurance coverage under the Consolidated Omnibus Budget
Reconciliation Act (“COBRA”) for himself and, if applicable, his dependents following the
termination of his employment, then the Company shall pay the employer portion of the monthly
premium under COBRA for the Employee and, if applicable, such dependents until the earliest of (i)
the close of the 12th calendar month following the termination of the Employee’s
employment, (ii) the expiration of the Employee’s continuation coverage under COBRA or (iii) the
date when the Employee receives substantially equivalent insurance coverage in connection with new
employment.

          (d) Definition of “Cause.” For all purposes under this Agreement, “Cause” shall mean:

          (i) The Employee’s conviction of, or plea of “guilty” or “no contest” to, a
felony under the laws of the United States or any State thereof;

          (ii) The Employee’s gross negligence or willful misconduct that causes material
harm to the Company;

          (iii) An unauthorized use or disclosure by the Employee of the Company’s
confidential information or trade secrets, which use or disclosure causes material
harm to the Company; or

          (iv) A failure by the Employee to cooperate in good faith with a governmental
or internal investigation of the Company or its directors, officers or employees, if
the Company has requested the Employee’s cooperation.

          (e) Definition of “Good Reason.” For all purposes under this Agreement, “Good Reason” shall
mean (i) a material reduction in the Employee’s authority or responsibility that occurs after Vinod
Gupta has ceased to be the Company’s Chief Executive Officer, or (ii) a reduction in the Employee’s
Base Salary, except for a reduction not exceeding ten percent (10%) that is made as part of a
reduction in salary affecting the Company’s senior management (Level 8 and above) generally, or
(iii) a relocation of the Employee’s principal office by more than 30 miles.

          (f) Definition of “Total Compensation.” For all purposes under this Agreement, “Total
Compensation” shall mean (i) the Employee’s base salary as in effect immediately prior to the date
on which his employment terminates, plus (ii) the average of the Employee’s annual bonus amount for
the lesser of (A) the three full calendar years of employment preceding the year in which his
employment terminates or (B) all full calendar years of his employment with the Company. For this
purpose, a calendar year shall be disregarded if the
Employee was not employed during the entire year or was on an unpaid leave of absence for a
material part of the year.

 

 

	 	2.	 	Termination Without Cause or Resignation for Good
Reason After Change in Control.

          (a) Preconditions. Any other provision of this Agreement notwithstanding, this Section 2
shall apply only if:

          (i) The Company is subject to a Change in Control;

          (ii) Within 12 months after such Change in Control, either (A) the Company
terminates the Employee’s employment for any reason other than Cause or (B) the
Employee resigns for Good Reason;

          (iii) The Employee has executed a general release of all claims (in a
reasonable form prescribed by the Company);

          (iv) The Employee has returned all property of the Company in the Employee’s
possession; and

          (v) The Employee, if requested by the Board, has resigned as a member of the
Board and as a member of the Boards of Directors of all subsidiaries of the Company
(to the extent applicable).

          (b) Severance Pay. If this Section 2 applies, then the Company shall pay the Employee a lump
sum equal to his Total Compensation for the following period:

	 	 	 
	Length of Service Completed	 	Amount of
	by the Employee:	 	Severance Payment:
	 
	Less than 5 years

	 	12 months
	 
	5 to 12 years

	 	18 months
	 
	12 to 20 years

	 	24 months
	 
	More than 20 years

	 	36 months

The lump sum shall be paid within thirty (30) days after the Employee’s employment terminated,
subject to the provisions of Section 7(b) of this Agreement.

          (c) Full Vesting. If this Section 2 applies, then all Equity held by the Employee when his
employment terminates shall become fully vested and exercisable (as the case may be).

 

 

          (d) Health and Dental Insurance. If this Section 2 applies, and if the Employee elects to
continue health and/or dental insurance coverage under COBRA for himself
and, if applicable, his dependents following the termination of his employment, then the
Company shall pay the employer portion of the monthly premium under COBRA for the Employee and, if
applicable, such dependents until the earliest of (i) the close of the 12th calendar
month following the termination of the Employee’s employment, (ii) the expiration of the Employee’s
continuation coverage under COBRA or (iii) the date when the Employee receives substantially
equivalent insurance coverage in connection with new employment.

          (e) Definition of “Change in Control.” For all purposes under this Agreement, “Change in
Control” shall mean

          (i) The consummation of a merger or consolidation of the Company with or into
another entity or any other corporate reorganization, if persons who were not
stockholders of the Company immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other
reorganization 50% or more of the voting power of the outstanding securities of each
of (A) the continuing or surviving entity and (B) any direct or indirect parent
corporation of such continuing or surviving entity;

          (ii) The sale, transfer or other disposition of all or substantially all of the
Company’s assets;

          (iii) A change in the composition of the Board, as a result of which fewer than
50% of the incumbent directors are directors who either:

          (A) Had been directors of the Company on the date of this
Agreement (the “Original Directors”); or

          (B) Were appointed to the Board, or nominated for election to
the Board, with the affirmative votes of at least a majority of the
aggregate of (I) the Original Directors who were in office at the
time of their appointment or nomination and (II) the directors whose
appointment or nomination was previously approved in a manner
consistent with this Subparagraph (B);

          (iv) Any Original Director who beneficially owns more than 20% of the total
voting power represented by the Company’s then outstanding voting securities ceases
to be a director, unless such termination of service is due to such Original
Director’s voluntary resignation or voluntary decision not to seek re-election as a
director; or

          (v) Any transaction as a result of which any person first becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of
1934, as amended), directly or indirectly, of securities of the Company representing
at least 15% of the total voting power represented by the Company’s then outstanding
voting securities. For purposes of this Paragraph (iv), the term “person” shall
have the same meaning as when used in

 

 

sections 13(d) and 14(d) of such Act but shall exclude (A) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or of a
parent or subsidiary and (B) a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership
of the Common Stock of the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to change the state
of the Company’s incorporation or to create a holding company that will be owned in substantially
the same proportions by the persons who held the Company’s securities immediately before such
transaction.

          (f) Definition of “Equity.” For all purposes under this Agreement, “Equity” shall mean (i)
shares of the capital stock of the Company (“Stock”), (ii) options and other rights to purchase
shares of Stock, (iii) stock units, performance units or phantom shares whose value is measured by
the value of shares of Stock, (iv) stock appreciation rights whose value is measured by increases
in the value of shares of Stock and (v) any other derivative securities whose value is based on the
value of Stock.

          3. Disability or Death.

          (a) Pro Rata Bonus. If the Employee’s employment terminates due to his Disability or
death, then the Employee or his estate shall be entitled to receive a pro rata portion of his
target bonus for the fiscal year in which his employment terminates. Such pro rata portion shall
be a fraction, the numerator of which is the number of days for which the Employee was employed by
the Company during such fiscal year and the denominator of which is 365.

          (b) Full Vesting. If the Employee’s employment terminates due to his Disability or death,
then all Equity held by the Employee when his employment terminates shall become fully vested and
exercisable (as the case may be).

          (c) Definition of “Disability.” For all purposes under this Agreement, “Disability” shall
have the same meaning that such term has in the Company’s long-term disability insurance policy
applicable to the Employee, and the Employee shall be considered disabled if he has become eligible
for and begun receiving income replacement benefits under such policy.

          4. Restrictive Covenants.

          (a) Non-Competition. If Section 1 or 2 applies, then the Employee agrees that during the
Restriction Period he shall not directly or indirectly, individually or in conjunction with others,
provide services of any kind to an entity named in Schedule A.

          (b) Non-Solicitation. If Section 1 or 2 applies, then the Employee agrees that during the
Restriction Period he shall not directly or indirectly, personally or through others, solicit or
attempt to solicit the employment of any employee of the Company, whether on the Employee’s own
behalf or on behalf of any other person or entity. The term “employment” for
purposes of this Subsection (b) means to enter into an arrangement for services as a full-time
or part-time employee, independent contractor, agent or otherwise.

 

 

          (c) Confidentiality. The Employee agrees (i) to protect and not to disclose at any time
either during or subsequent to his employment with the Company, directly or indirectly, to anyone
not an officer or employee of the Company, and (ii) not to use at any time, either during or
subsequent to his employment with the Company except in the course thereof, any Confidential
Information of the Company, unless the Employee first obtains the written consent of the Company to
such disclosure or use. The Employee further agrees that every document, notation, record, drawing
or other material which contains Confidential Information which the Employee makes or acquires
during his employment by the Company is and shall be the sole and exclusive property of the Company
and that the Employee will deliver every copy, abstract or reproduction thereof which he makes or
acquires to the Company at its request, and, in any event, immediately upon termination of his
employment with the Company. As used in this Agreement, the term “Confidential Information” means
information or data disclosed to the Employee or known by him as a consequence of or through his
employment with the Company, including information conceived, originated, discovered or developed
by the Employee, not generally known in the relevant trade or industry and not freely available to
persons not employed by the Company, about the Company’s products, processes, business operating
procedures and trade secrets and information relating to, but not limited to, services, marketing,
distribution, customer lists, financial data, pricing, and other management and marketing plans.

          (d) Definition of “Restriction Period.” For all purposes under this Agreement, “Restriction
Period” shall mean:

          (i) If Section 1 applies, the lesser of (A) the Continuation Period or (B) the
12-month period commencing when the Employee’s employment terminates; or

          (ii) If Section 2 applies, the 12-month period commencing when the Employee’s
employment terminates.

          5. Parachute Payments.

          (a) Parachute Gross-Up Payment. If it is determined that any payment or distribution of
any type to the Employee or for his benefit by the Company, any of its affiliates, any person who
acquires ownership or effective control of the Company or ownership of a substantial portion of the
Company’s assets (within the meaning of section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), and the regulations thereunder) or any affiliate of such person, whether paid
or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise
(the “Total Payments”), would be subject to the excise tax imposed by section 4999 of the Code or
any interest or penalties with respect to such excise tax (such excise tax and any such interest or
penalties are collectively referred to as the “Excise Tax”), then the Employee shall be entitled to
receive an additional payment (a “Gross-Up Payment”) in an amount calculated to ensure that after
the Employee pays all taxes (and any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up
Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Total Payments.

 

 

          (b) Determination by Accountant. All determinations and calculations required to be made
under this Section 5 shall be made by an independent accounting firm selected by the Employee from
among the largest four accounting firms in the United States (the “Accounting Firm”). The
Accounting Firm shall provide its determination (the “Determination”), together with detailed
supporting calculations regarding the amount of any Gross-Up Payment and any other relevant matter,
to the Employee and the Company within five business days after the Employee or the Company made a
request (if the Employee reasonably believes that any of the Total Payments may be subject to the
Excise Tax). If the Accounting Firm determines that no Excise Tax is payable by the Employee, it
shall furnish the Employee with a written statement that it has concluded that no Excise Tax is
payable (including the reasons therefor) and that the Employee has substantial authority not to
report any Excise Tax on his federal income tax return. If a Gross-Up Payment is determined to be
payable, it shall be paid to the Employee within five business days after the Determination has
been delivered to him or the Company. Any Determination by the Accounting Firm shall be binding
upon the Company and the Employee, absent manifest error.

          (c) Over- and Underpayments. As a result of uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments not made by the Company should have been made (“Underpayment”) or that
Gross-Up Payments will have been made by the Company that should not have been made
(“Overpayment”). In either event, the Accounting Firm shall determine the amount of the
Underpayment or Overpayment that has occurred. In the case of an Underpayment, the Company shall
promptly pay the amount of such Underpayment to the Employee or for his benefit. In the case of an
Overpayment, the Employee shall, at the direction and expense of the Company, take such steps as
are reasonably necessary (including the filing of returns and claims for refund), follow reasonable
instructions from, and procedures established by, the Company, and otherwise reasonably cooperate
with the Company to correct such Overpayment, provided, however, that (i) the Employee shall in no
event be obligated to return to the Company an amount greater than the net after-tax portion of the
Overpayment that the Employee has retained or has recovered as a refund from the applicable taxing
authorities and (ii) this provision shall be interpreted in a manner consistent with the intent of
Subsection (a) above, which is to make the Employee whole, on an after-tax basis, from the
application of the Excise Tax, it being understood that the correction of an Overpayment may result
in the Employee’s repaying to the Company an amount that is less than the Overpayment.

          (d) Limitation on Parachute Payments. Any other provision of this Section 5 notwithstanding,
if the aggregate amount of the Total Payments that would be subject to the Excise Tax exceeds the
Parachute Threshold by less than 10%, then the Total Payments shall be reduced to the extent
necessary to avoid the Excise Tax and no Gross-Up Payment shall be made. If the Accounting Firm
determines that the Total Payments are to be reduced under the preceding sentence, then the Company
shall promptly give the Employee notice to that effect and a copy of the detailed calculation
thereof. The Employee may then elect, in his sole discretion, which and how much of the Total
Payments are to be eliminated or reduced (as long as after

 

 

such election no Excise Tax shall be payable), and the Employee shall advise the Company in writing
of his election within 10 days of receipt of notice. If the Employee makes no such election within
such 10-day period, then the Company may elect which and how much of the Total Payments are to be
eliminated or reduced (as long as after such election no Excise Tax shall be payable), and it shall
notify the Employee promptly of such election. For this purpose, the term “Parachute Threshold”
means 300% of the “base amount,” as defined in section 280G of the Code.

          (e) Payment of Undisputed Amounts. The Company shall use its best efforts to cause the
Determination under this Section 5 to be made within the time periods set forth above. If the
amount to be paid to the Employee under this Agreement cannot be finally determined on or before
the scheduled date for such payment, the Company shall pay to the Employee on such scheduled
payment date an amount estimated in good faith by the Company to be the minimum amount payable and
shall pay the remainder of such payments to the Employee as promptly as practicable following the
determination thereof, but in no event more than 30 days following the scheduled payment date. The
timing of any such payments shall be subject to the provisions of Section 7(b) of this Agreement.

          6. Successors.

          (a) Company’s Successors. This Agreement shall be binding upon any successor (whether
direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise)
to all or substantially all of the Company’s business and/or assets (a “Successor”). In addition,
the Company shall require each Successor to expressly assume this Agreement. For all purposes
under this Agreement, the term “Company” shall include any successor to the Company’s business
and/or assets which becomes bound by this Agreement.

          (b) Employee’s Successors. This Agreement and all rights of the Employee hereunder shall
inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees.

          7. Certain Tax Matters.

          (a) Withholding Taxes. All payments made under this Agreement shall be subject to reduction
to reflect taxes or other charges required to be withheld by law.

          (b) Time of Payment. Notwithstanding any contrary provision of this Agreement, if the
Employee is deemed by the Company to be a “Key Employee” under section 409A(2)(B) of the Code,
then, in lieu of the payment date otherwise specified in this Agreement, any payment due to the
Employee under this Agreement shall occur on the earlier of (i) six months following the date of
termination the Employee’s employment with the Company, or (ii) the date on which the Company
determines that such six-month delay in payment is not required to avoid the imposition of
additional taxes and interest under section 409A of the Code.

          (c) Effect of Section 409A of the Code. The parties intend that the provisions of this
Agreement will operate in a manner that will avoid adverse federal income tax consequences under
section 409A of the Code. The Employee hereby acknowledges and agrees
that the Company may take any actions deemed necessary in its sole discretion to avoid adverse
federal income tax consequences under section 409A of the Code and that such action may be taken
without the consent of the Employee.

 

 

          8. Miscellaneous Provisions.

          (a) Notice. Notices and all other communications contemplated by this Agreement shall be
in writing and shall be deemed to have been duly given when personally delivered, when delivered by
FedEx with delivery charges prepaid, or when mailed by U.S. registered or certified mail, return
receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be
addressed to him at the home address that he most recently communicated to the Company in writing.
In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and
all notices shall be directed to the attention of its Secretary.

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

          (c) Whole Agreement. No other agreements, representations or understandings (whether oral or
written and whether express or implied) that are not expressly set forth in this Agreement have
been made or entered into by either party with respect to the subject matter hereof. This
Agreement contains the entire understanding of the parties with respect to the subject matter
hereof.

          (d) Choice of Law and Severability. This Agreement shall be interpreted in accordance with
the laws of the State of Nebraska (except their provisions governing the choice of law). If any
provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any
applicable jurisdiction by reason of the scope, extent or duration of its coverage, then such
provision shall be deemed amended to the minimum extent necessary to conform to applicable law so
as to be valid and enforceable or, if such provision cannot be so amended without materially
altering the intention of the parties, then such provision shall be stricken and the remainder of
this Agreement shall continue in full force and effect. If any provision of this Agreement is
rendered illegal by any present or future statute, law, ordinance or regulation (collectively the
“Law”), then such provision shall be curtailed or limited only to the minimum extent necessary to
bring such provision into compliance with the Law. All the other terms and provisions of this
Agreement shall continue in full force and effect without impairment or limitation.

          (e) Legal Fees. In the event that any action is brought to enforce any of the provisions of
this Agreement, or to obtain damages for the breach thereof, and such action results in the award
of a judgment for damages or in the granting of any equitable relief in favor of the Employee, all
of the Employee’s expenses, including (without limitation) reasonable attorneys’ fees, shall be
paid by the Company.

 

 

          (f) No Assignment. This Agreement and all rights and obligations of the Employee hereunder
are personal to the Employee and may not be transferred or assigned by the Employee at any time.
The Company may assign its rights under this Agreement to any entity that assumes the Company’s
obligations hereunder in connection with any sale or transfer of all or a substantial portion of
the Company’s assets to such entity.

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

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

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Stormy L. Dean
 	 
	 	 	 
	 	infoUSA Inc. 

 	 
	 	By  	/s/ Vinod Gupta
 	 
	 
	 	Title:  Chief Executive Officer 

 

 

	 	 	 	 	 

Schedule A

Competitive Companies

Acxiom Corporation

ChoicePoint Inc.

The Dun & Bradstreet Corporation

Equifax Inc.

Experian

Fair Isaac Corporation

Harte-Hanks Inc.

TransUnion LLCexv10w16

 

Exhibit 10.16

EMPLOYMENT AGREEMENT

          EMPLOYMENT AGREEMENT (this “Agreement”), dated January 1, 2006, is entered into by and between
Berliner Communications, Inc. (the “Company”), a Delaware corporation, with its principal place of
business at 20 Bushes Lane, Elmwood Park, New Jersey 07407, and Richard Berliner (the “Employee”),
an individual residing at 2 Forest View Drive, Martinsville, NJ 08836.
        .

WITNESSETH:

          WHEREAS, The Company desires to secure the services and employment of the Employee on behalf
of the Company, and Employee desires to be employed with the Company upon the terms and conditions
hereinafter set forth.

          WHEREAS, Employee is willing to serve as Chief Executive Officer of the Company, and the
Company desires to retain Employee in that capacity upon the terms and conditions herein set forth.

          NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the
parties hereto agree as follows:

          Section 1. Term of Employment. The Employee’s employment under this Agreement shall commence
on the date of hereof and, subject to earlier termination pursuant to Section 5 of this Agreement
below, shall continue until the first anniversary of the date hereof (the “Employment Term”).

          Section 2. Position and Duties. During the Employment Term, the Employee shall serve as
Chief Executive Officer (“CEO”) and shall have such powers and duties as are commensurate with such
position and as may be conferred upon him from time to time by the Board of Directors of the
Company (the “Board”). During the Employment Term, the Employee shall use his best efforts to
faithfully perform the duties of CEO and shall devote all of his business time, attention, skill
and efforts exclusively to the business and affairs of the Company, its subsidiaries and affiliates
and the Employee agrees that he shall abide by all applicable policies of the Company.

          Section 3. Compensation.

               (a) Salary. For the performance of Employee’s duties hereunder during the Employment Term,
Employee shall receive an annualized base salary of $275,000.00 (the “Base Salary”) less normal
deductions and withholdings. The salary payments shall be made in accordance with the Company’s
standard payroll practices.

1

 

               (b) Incentive Compensation. The Employee shall be entitled to participate in all compensation
and employee benefit plans or programs (“plans and programs”), subject to the terms and conditions
of the plans and programs, that are offered to all salaried employees of the Company, including,
without limitation, incentive compensation, bonus, group hospitalization, health, dental care, or
other insurance, stock purchase, restricted stock and stock option plans. Notwithstanding the
foregoing, nothing in this Agreement shall preclude the amendment or termination of any such plans
or programs.

               (c) Premiums/Contributions. During the Employment Term, the Employee shall be entitled to
participate in all medical and dental health plans and programs at no cost to the Employee.

               (d) Vacation and Sick Leave. During the Employment Term, the Employee shall be entitled to
vacation and sick leave in accordance with Company policies and procedures.

               (e) Car Allowance. During the Employment Term, the Employee shall be entitled to an annual
car allowance in the amount of $12,000.00, which will be payable on a pro-rata basis in association
with the regular payroll schedule and subject to normal payroll deductions and withholdings.

          Section 4. Business Expenses. The Company shall pay or reimburse the Employee for all
reasonable travel or other out-of-pocket expenses actually incurred by the Employee in connection
with the performance of his duties and obligations under this Agreement. The Employee shall submit
proof of such expenses in accordance with such policies and procedures as the Company may from time
to time establish for employees.

          Section 5. Effect of Termination of Employment. The terms and conditions of this Agreement
shall automatically terminate at the end of the Employment Term, or earlier, based on the following
circumstances:

               (a) Without “Cause”. Notwithstanding any provisions of this Agreement to the contrary, the
Company may terminate the Employee’s employment hereunder for any reason or for no reason, at any
time during the Employment Term, effective upon delivery of two (2) days notice by the Company. In
the event the Employee’s employment terminates during the Employment Term, due to a Without Cause
Termination (as hereinafter defined), the Employee, in exchange for a complete release and waiver,
releasing the Company of any and all legal claims or potential legal claims, shall receive an
amount equal to his Base Salary then in effect for the remainder of the Employment Term or for six
months, whichever is longer (the “Severance Period”) plus (i) any Base Salary already earned and
accrued under this Agreement prior to the effective date of termination; (ii) reimbursement under
this Agreement for expenses pursuant to Section 4 incurred prior to the effective date of
termination; and (iii) all vested benefits under the Company’s plans and programs, subject to the
terms of such plans and

-2-

 

programs. This payment will be made, at the Company’s option, in a lump sum or ratably over
the Severance Period, within seven (7) days after receipt of the executed release and waiver. The
Employee agrees and acknowledges that he shall be entitled to any and all payments (or future
payments) under this Section 5(a) so long as he is not in violation of Section 7 of this Agreement,
set forth below. To the extent that the Employee is in violation of his agreements and covenants
set forth in Sections 6 and 7 he shall not be entitled to any payment or future payment under this
Section 5(a). In the event of a termination pursuant to this Section 5(a), the Employee will be
entitled to participate in continued group hospitalization, health and dental care insurance in
accordance with the terms and conditions of the Comprehensive Omnibus Budget Reconciliation Act
(“COBRA”).

               (b) Termination upon Death, Disability, or Cause. This Agreement shall terminate upon the
Employee’s death, disability or Cause (as hereinafter defined). If one of these events shall
occur, the Employee shall have no right to receive any compensation or benefit other than (i) any
Base Salary already earned and accrued under this Agreement prior to the effective date of
termination; (ii) reimbursement under this Agreement for expenses pursuant to Section 4 incurred
prior to the effective date of termination; and (iii) all vested benefits under the Company’s plans
and programs, subject to the terms of such plans and programs.

               (c) Voluntary Resignation. The Employee may terminate his employment hereunder at any time
during the Employment Term subject only to the requirement that the Employee shall provide the
Company with a minimum of thirty (30) days prior written notice. In the event of a voluntary
termination (resignation) by Employee, the Company will have no obligation to Employee other than
to pay Employee any earned and accrued Based Salary and the value of any earned, accrued, unused
vacation. Employee hereby acknowledges and agrees that in the event of a voluntary resignation (i)
he will not be entitled to any other type of compensation or benefits under this Agreement and (ii)
that the compensation and benefits that he received under this Agreement prior to his voluntary
termination were good and sufficient consideration for him to have to completely and fully abide
with his covenants and agreements set forth in Section 7 below concerning non-competition and
non-soliciation.

               (d) With “Good Reason”. Notwithstanding any provision of this Agreement to the contrary, the
Employee may terminate his employment hereunder for Good Reason (as defined hereinafter), subject
to the requirement that the Employee shall provide the Company with a minimum of two (2) weeks
prior written notice. In the event that the Company does not cure said Good Reason, the Employee
shall be entitled to receive, in exchange for a complete release and waiver, releasing the Company
of any and all legal claims or potential legal claims, an amount equal to his Base Salary then in
effect for the remainder of the Employment Term or for six months, whichever is longer (the
“Severance Period”). This payment will be made, at the Company’s option, in a lump sum or ratably
over the Severance Period, within seven (7) days after receipt of the executed release and waiver.
The Employee agrees and acknowledges that he shall be entitled to any and all payments (or future
payments) under this Section 5(d) so long as he is not in violation of Section 7 of this Agreement,
set forth below. To the extent that the Employee is in violation of his agreements

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and covenants set forth in Sections 6 and 7 he shall not be entitled to any payment or future
payment under this Section 5(d). In the event of a termination pursuant to this Section 5(d), the
Employee will be entitled to participate in continued group hospitalization, health and dental care
insurance in accordance with the terms and conditions of the COBRA.

               (e) For purposes of this Agreement, the following terms have the following meanings:

                    (i) The term “Termination for Cause” means, to the maximum extent permitted by applicable law,
a termination of the Employee’s employment by the Company because the Employee has (a) materially
breached or materially failed to perform his duties and such breach or failure to perform
constitutes self-dealing, willful misconduct or recklessness, (b) committed an act of dishonesty in
the performance of his duties hereunder or engaged in conduct detrimental to the business of the
Company, (c) been convicted of a felony or any crime involving moral turpitude, (d) materially
breached or materially failed to perform his obligations and duties hereunder, which breach or
failure the Employee shall fail to remedy within 30 days after written demand from the Company, or
(e) violated in any material respect the representations made in Section above or the provisions of
Sections 6 and 7 below.

                    (ii) The term “Without Cause Termination” means a termination of the Employee’s employment by
the Company other than due to expiration of the Employment Term and other than a Termination for
Cause.

                    (iii) The term “Good Reason” means, the occurrence, without the Employee’s written consent, of
any of the following: (i) a significant change in the nature or scope of the Employee’s duties from
those described in Section 2 above, including a material demotion or any assignment of duties
materially and adversely inconsistent with Employees position as Chief Executive Officer (except in
connection with the termination of Employee’s employment for Death, Disability or Cause); (ii) a
failure by the Company to pay to the Employee any amounts due under this Agreement or provide any
benefits in accordance with the terms hereof, which failure is not cured within fifteen (15) days
following receipt by the Company of notice from the Employee of such failure; or (iii) any other
material breach by the Company of this Agreement that remains uncured for fifteen (15) days after
written notice thereof by the Employee to the Company.

          Section 6. Other Duties of Employee During and After Employment Term. The Employee
recognizes and acknowledges that the principle business of the Company is providing wireless
carriers with comprehensive real estate site acquisition and zoning services, radio frequency and
network design engineering, infrastructure equipment construction and installation, radio
transmission base station modification and project management services. The Employee further
recognizes and acknowledges that all information pertaining to the affairs, business, clients, or
customers of the Company or any of its subsidiaries or affiliates (any or all of such affairs,
business, clients, and customers hereinafter collectively referred to as the “Business”), as such
information may exist from time to time, other than information that the Company has previously
made publicly available, is confidential information and is a unique and valuable asset

-4-

 

of the Business, access to and knowledge of which are essential to the performance of the
Employee’s duties under this Agreement. In consideration of the payments and obligations made to
him hereunder, the Employee shall not at any time, except to the extent reasonably necessary in the
performance of his duties under this Agreement, divulge to any person, firm, association,
corporation, or governmental agency, any information concerning the affairs, businesses, clients,
or customers of the Business (except such information as is required by law to be divulged to a
government agency or pursuant to lawful process), or make use of any such information for his own
purposes or for the benefit of any person, firm, association or corporation (except the Business)
and shall use his reasonable best efforts to prevent the disclosure of any such information by
others. All records, memoranda, letters, books, papers, reports, accountings, experience or other
data, and other records and documents relating to the Business, whether made by the Employee or
otherwise coming into his possession, are confidential information and are, shall be, and shall
remain the property of the Business. No copies thereof shall be made which are not retained by the
Business, and the Employee agrees, on termination of his employment or on demand of the Company, to
deliver the same to the Company.

          Section 7. Non-Competition and Non-Solicitation.

          (a) (i) The Employee acknowledges that as a result of his employment by the Company, the
Employee (1) will acquire knowledge of the trade and proprietary and confidential information as to
the business of the Company and its Affiliates and (2) will create relationships with customers,
suppliers and other persons dealing with the Company and its Affiliates. The Employee further
acknowledges and agrees that the Company and its Affiliates will suffer substantial damage, which
would be difficult to ascertain and is not compensable by monetary damages, if the Employee should
use such trade secrets or other proprietary and confidential information or take advantage of such
relationship and that because of the nature of the information that will be known to the Employee
and the relationships created, it is necessary for the Company and its Affiliates to be protected
by the prohibition against Competition as set forth herein.

                    (ii) The Employee acknowledges that the retention of non-clerical employees employed by the
Company and its Affiliates in which the Company and its Affiliates have invested training and
depend on for the operation of their businesses is important to the businesses of the Company and
its Affiliates, that the Employee will obtain unique information as to such employees and will
develop unique relationships with such persons as a result of being an employee of the Company and,
therefore, it is necessary for the Company and its Affiliates to be protected from the Employee’s
Solicitation (as defined below) of such employees as set forth below.

                    (iii) The Employee acknowledges that the provisions of this Agreement are reasonable and
necessary for the protection of the businesses of the Company and its Affiliates and that part of
the compensation paid under this Agreement and the agreement to pay compensation upon termination
in certain instances is in consideration for the agreements and covenants in this Section 7.

-5-

 

          (b) Definitions

                    (i) For the purposes of this Agreement, “Competition” shall mean: participating, directly or
indirectly, as an individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, consultant or in any capacity whatsoever (within the United States of
America, or in any country where the Company or its Affiliates do business) in a Competing Business
(as defined below); provided, however, that such participation shall not include (i) the mere
ownership if not more than three percent (3%) of the total outstanding stock of a publicly help
company; or (ii) any activity engaged in with the prior written approval of the Board of Directors
of the Company.

                    (ii) For the purposes of this Agreement, “Competing Business” shall mean any line of business
engaged in by the Company and/or its subsidiaries and/for any entity in which the Company and/or
its subsidiaries holds securities (other than entities in which the Company or its subsidiaries
make a nominal investment) (i) from time to time (while Employee is employed by the Company) or
(ii) at the time of termination (upon termination of Employee’s employment).

                    (iii) For the purposes of this Agreement, “Affiliate” of the Company shall mean any business,
entity, partnership, corporation, or subsidiary directly or indirectly controlling, controlled by,
or under common control with, the Company; provided that, for the purposes of this definition,
“control” (including with correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to the Company, shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of the Company, whether
through the ownership of voting securities or partnership interests, by contract of otherwise.

                    (iv) For purposes of this Agreement, “Solicitation” shall mean: recruiting, soliciting or
inducing, of any non-clerical employee of the Company or its Affiliate to terminate their
employment with, or otherwise cease their relationship with, the Company or its Affiliates or
hiring or assisting another person or entity to hire any non-clerical employee of the Company or
its Affiliates or any person who within twelve (12) months before had been a non-clerical employee
of the Company or its Affiliates and were recruited or solicited for such employment or other
retention while an employee of the Company, provided, however, that Solicitation shall not include
any of the foregoing activities engaged in with the prior written approval of the Board of
Directors of the Company.

          (c) If any restriction set forth with regard to Non-Competition or Non-Solicitation is found
by any court of competent jurisdiction, or in arbitration, to be unenforceable because it extends
for too long a period of time or over too great a range of activities or in too broad a geographic
area, it shall be interpreted to amend over the maximum period of time, range of activities or
geographic area as to which it may be enforceable. If any provision of this Section shall be
declared to be invalid or unenforceable, in whole or in part, as a result of the foregoing, as a
result of public policy or for any other reason, such invalidity shall not affect the remaining
provisions of this Section 7, which shall remain in full force and effect.

-6-

 

          (d) During the Employment Term and for two (2) years following the termination of Employee’s
employment for any reason whatsoever, whether by the Company or by the Employee and whether or not
with Cause, Good Reason or non-extension of the Employment Term, the Employee will not engage in
Solicitation.

          (e) During the Employment Term and for the Restricted Period (as hereafter defined) following
a termination of Employee’s employment, Employee will not enter into Competition with the Company.
The “Restricted Period” shall mean (i) for a termination with Cause, two (2) years following the
date of termination, (ii) for termination without Cause by the Company, or for Good Reason by the
Employee, the period in which the Company is making payments to Employee as specified in Section 5
above, (iii) for termination as a result of the voluntary resignation by the Employee without Good
Reason, one (1) year from the date of termination, and (iv) for termination of employment under any
circumstances after the expiration of the Employment Term, one (1) year from the date of
termination. The Employee expressly agrees and acknowledges that his promises, obligations, and
covenants under Section 6 above, and this Section 7, survive the Employment Term identified in
Section 1.

          (f) In the event of a breach or potential breach of Section 7, Employee acknowledges that the
Company and its Affiliates will be caused irreparable injury and that money damages may not be an
adequate remedy and agree that the Company and its Affiliates shall be entitled to injunctive
relief (in addition to its other remedies at law) to have the provisions of Sections 7 enforced. It
is hereby acknowledged that the provisions of Section 7 are for the benefit of the Company and all
of the Affiliates of the Company and each such entity may enforce the provisions of Sections 7 and
only the applicable entity can waive the rights hereunder with respect to its confidential
information and employees.

          (g) Furthermore, in addition to and not in limitation of any other remedies provided herein or
at law or in equity, in the event of a breach of Section 7 by the Employee, while he is receiving
compensation or benefits under Section 5 above, the Employee shall not be entitled to receive any
future amounts pursuant to Section 5 (a) or (d) hereof and shall reimburse the Company for any
amounts previously paid to the Employee pursuant to Section 5(a) or (d) hereof.

          (h) The Company’s obligation to make payments, or provide for any benefits under this
Agreement (except to the extent vested or exercisable) shall cease upon a violation of the
preceding provisions of this section.

          Section 9. Acknowledgment. The Employee acknowledges that he has carefully read and considered
all of the restraints imposed pursuant to Sections 6 and 7 and that each and every one of said
restraints is reasonable in respect to subject matter, length of time and area. The Employee
further acknowledges that damages at law would not be a measurable or adequate remedy for a breach
of Sections 6 and 7 (non-solicitation and non-competition), and accordingly consents to the entry
by any court of competent jurisdiction of order enjoining him from violating any of such covenants.
If any of the covenants contained in Sections 6 and/or 7

-7-

 

are held to be invalid or unenforceable because of the duration of such provision or the area
covered thereby, the parties agree that the court making such determination shall have the power to
reduce the duration and/or area of such provision and in its reduced form said provision shall then
be enforceable.

          Section 9. Withholdings. The Company may directly or indirectly withhold from any payments
made under this Agreement all Federal, state, city or other taxes and all other deductions
authorized by the Employee or by law.

          Section 10. Consolidation, Merger or Sale of Assets. Nothing in this Agreement shall
preclude the Company from consolidating or merging into or with, or transferring all or
substantially all of its assets to, or engaging in any other business combination with, any other
person or entity which assumes this Agreement and all obligations and undertakings of the Company
hereunder. Upon such a consolidation, merger, transfer of assets or other business combination and
assumption, the term “Company” used herein shall mean such other person or entity and this
Agreement shall continue in full force and effect.

          Section 11. Notices. All notices, requests, demands and other communications required or
permitted hereunder shall be given in writing and shall be deemed to have been duly given if
delivered or mailed, postage prepaid, by same day or overnight mail (i) if to the Employee, at the
address set forth above, or (ii) if to the Company, as follows:

Berliner Communications Inc.

20 Bushes Lane

Elmwood Park, New Jersey 07407

or to such other address as either party shall have previously specified in writing to the other.

          Section 12. Binding Agreement; No Assignment. This Agreement shall be binding upon, and
shall inure to the benefit of, the Employee and the Company and their respective permitted
successors, assigns, heirs, beneficiaries and representatives. This Agreement shall be for the
sole benefit of the parties to this Agreement and their respective heirs, successors, permitted
assigns (if any) and legal representatives and is not intended, nor shall be construed, to give any
person, other than the parties hereto and their respective heirs, successors, permitted assignees
(if any) and legal representatives, any legal or equitable right, remedy or claim hereunder. This
Agreement is personal to the Employee and may not be assigned by him without the prior written
consent of the Company. Any attempted assignment in violation of this Section 12 shall be null and
void.

          Section 13. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New Jersey, without reference to the choice of law
principles thereof.

-8-

 

          Section 14. Dispute Resolution. Any dispute or controversy between the Company and the
Employee relating to this Agreement, unless otherwise specifically required by a plan document,
shall be settled by litigation between the parties. Said litigation to be venued in the Supreme
Court of the State of New Jersey, law division, Bergen County vicinage. The Employee hereby
consents to, and waives any objection to, the personal jurisdiction and venue of the aforesaid
courts, and waives any claim that aforesaid courts constitute on inconvenient forum.

          Section 15. Entire Agreement. This Agreement shall constitute the entire agreement among the
parties with respect to the matters covered hereby and shall supersede any and all previous
written, oral or implied understandings among them with respect to such matters.

          Section 16. Amendments. This Agreement may only be amended or otherwise modified, and
compliance with any provision hereof may only be waived, by a writing executed by all of the
parties hereto. The provisions of this Section 15 may only be amended or otherwise modified by
such a writing.

          Section 17. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, and all of which shall together be deemed to constitute
one and the same instrument.

          Section 18. Waiver. Any of the terms or conditions of this Agreement may be waived at any
time by the party or parties entitled to the benefit thereof, but only by a writing signed by the
party or parties waiving such terms or conditions. No waiver of any provisions of this Agreement
or of any rights or benefits arising hereunder shall be deemed to or shall constitute a waiver of
any other provisions of this Agreement (whether or not similar) nor shall such waiver constitute a
continuing waiver unless otherwise expressly provided in writing.

          Section 19. Severability. The invalidity of any portion hereof shall not affect the
validity, force or effect of the remaining portions hereof. If it is ever held that any
restriction hereunder is too broad to permit enforcement of such restriction to its fullest extent,
such restriction shall be enforced to the maximum extent permitted by law.

          Section 20. Survival. The covenants set forth in Sections 6 and 7 of this Agreement shall
survive and shall continue to be binding upon Employee notwithstanding the termination of this
Agreement for any reason whatsoever. The covenants set forth in Sections 6 and 7 of this Agreement
shall be deemed and construed as separate agreements independent of any other provision of this
Agreement. The existence of any claim or cause of action by Employee against Company, whether
predicated on this Agreement or otherwise shall not constitute a defense to the enforcement by
Company of any or all covenants. It is expressly agreed that the remedy at law for the breach or
any such covenant is inadequate and that injunctive relief shall be available to prevent the breach
or any threatened breach thereof.

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by the undersigned,
thereunto duly authorized, and the Employee has signed this Agreement, all as of January 6, 2006.

BERLINER COMMUNICATIONS, INC.

	 	 	 	 	 
	By:

	 	/s/ Patrick G. Mackey
 

	 	 
	Patrick G. Mackey	 	 

	 	 	 	 	 
	Employee:	 	 
	Richard Berliner	 	 
	By:

	 	/s/ Richard Berliner
 

	 	 

-10-

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