Document:

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                                                                    Exhibit 10.1

                        EXECUTIVE EMPLOYMENT AGREEMENT
                        ------------------------------

     This Executive Employment Agreement is made as of this 16 day of November,
2000, by and between Focal Communications Corporation and its Subsidiaries, a
Delaware corporation (the "Company"), and Tony Leggio whose address is 5 Cameron
Lane, Mt. Holly, New Jersey (the "Executive").

     WHEREAS, the Company and the Executive wish to enter into an agreement for
employment which shall provide certain terms of employment. The parties
acknowledge that all terms of employment may not be contained in this Agreement,
but that as to other conflicting terms of employment, which may be initiated
from time to time by the Company, the terms contained herein, or as amended from
time to time by the parties hereto, shall control.

     NOW THEREFORE, in accordance with the premise above, the parties agree as
follows:

     1.   Terms of Executive's Employment.
          -------------------------------

          (a)  Employment.  The Company hereby employs Executive, and Executive
               ----------
               hereby accepts employment and agrees to perform his duties and
               responsibilities hereunder, in accordance with the terms and
               conditions hereinafter set forth.  The Company shall have the
               right to terminate the Executive's employment for any reason, at
               any time, with or without Cause (defined below).  Executive shall
               have the right to terminate his employment for any reason,
               including Good Reason (as hereinafter defined), at any time, upon
               giving the Company written notice two weeks prior to such
               termination.

          (b)  Duties and Responsibilities.  Executive shall serve as President
               ---------------------------
               of Telecom Services, a division of the Company, and so long as
               Executive is employed by the Company or any of its Subsidiaries,
               Executive shall serve in such position as may be determined by
               the Board of Directors ("Board") and shall perform all duties and
               accept all responsibilities incident to such position or as may
               be assigned to him by the Board, and shall at all times comply
               with the policies and procedures adopted by the Company for its
               employees.

          (c)  Extent of Service.  So long as Executive is employed by the
               -----------------
               Company or any of its Subsidiaries, the Executive agrees to use
               his best efforts to carry out his duties and responsibilities
               under paragraph 1(b) hereof and to devote his full professional
               time and attention thereto.

          (d)  Base Compensation.  For all the services rendered by the
               -----------------
               Executive hereunder, the Company shall, commencing on the date of
               this agreement, and continuing so long as Executive is employed
               by the Company or any of its Subsidiaries, pay the Executive an
               annual salary at the rate of $225,000
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               per year, plus any additional amounts, if any, as may be approved
               by a majority of the Board, less withholding required by law or
               agreed to by the Executive, and payable in installments at such
               times as is customary with the Company but in any event no less
               frequently than monthly. The Company agrees that the Executive's
               salary will be reviewed annually by the Board to determine if any
               adjustment is appropriate. For purposes of paragraph 1(f) and
               Section 3 herein, Executive's annual salary shall not be less
               than $225,000. So long as Executive is employed by the Company or
               any of its Subsidiaries, the Executive shall also be entitled to
               participate in such vacation pay and any other fringe benefit
               plans as may from time to time be adopted by a majority of the
               Board and as are made available generally to other senior
               executives of the Company.

        (e)    Incentive Compensation. In addition to the compensation set forth
               -----------------------
               in paragraph 1(d) above, so long as the Executive is employed by
               the Company or its Subsidiaries the Executive shall be entitled
               to participate in a discretionary annual bonus plan providing for
               the payment to Executive of an annual bonus, in an amount to be
               determined by a majority of the Board or another officer of the
               Company as the Board determines. Executive shall be entitled to
               provide his input on the terms of his annual bonus plan before it
               is submitted to the Company's Board, but Executive acknowledges
               that such plan is discretionary in nature and is determined in
               the exclusive discretion of the Board or other officer so
               designated by the Board. The Company may adopt from time to time
               a bonus program, in which the Executive shall participate, the
               terms of which require the Company to achieve certain performance
               goals which are set in advance each year in the sole discretion
               of the Board.

        (f)    Severance Pay.
               -------------

               (i)  Termination Generally If at any time after the date hereof
                    ---------------------
                   Executive ceases to be employed by the Company and its
                   Subsidiaries ("Termination") for (A) death or disability, (B)
                   by the Company for any reason other than Cause, or (C) by
                   Executive for Good Reason (a "Covered Termination"),
                   Executive (or, in the case of death, Executive's estate)
                   shall, until the end of the Severance Pay Period (as defined
                   below), be entitled to receive a salary at the same rate of
                   pay as, and on the same schedule and terms as was customary
                   for, the salary Executive received under paragraph 1(d) above
                   immediately prior to the Termination, as well as (except in
                   the case of Executive's death) comparable medical benefits to
                   those provided by the Company to Executive immediately prior
                   to the Termination (such salary and benefits collectively,
                   the "Severance Pay"); and all stock options theretofore
                   granted to Executive and scheduled to vest within 12 months
                   of the Covered Termination shall vest immediately. The
                   payment of such Severance Pay shall in no way be construed as
                   a continuation of Executive's employment after the
                   Termination. The "Severance Pay

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                   Period" shall be equal to, if Executive is terminated by the
                   Company for any reason other than Cause, or the Executive
                   terminates for Good Reason, death or disability, the 6-month
                   period commencing on the date of the Covered Termination. If
                   Executive resigns other than for Good Reason or is terminated
                   by the Company for Cause, the Company shall not be obligated
                   to pay any Severance Pay or provide vesting of any stock
                   options as provided in this paragraph.

          (ii)     Termination Upon  Change in Control.
                   -----------------------------------

               (A) If, in anticipation of or within twelve months after a Change
                   in Control, the Company terminates Executive's employment,
                   other than for Cause and whether or not Executive obtains
                   subsequent employment, or if Executive terminates his
                   employment under Section 1(f)(ii)(B), the Company will, from
                   and after the Termination Date for a period of one year, pay
                   Executive in accordance with the Company's biweekly payroll
                   practices an amount equal to (1) Executive's highest biweekly
                   salary or base compensation during the two-year period prior
                   to termination of employment plus (2) an amount equal to 1/26
                   multiplied by the greater of (i) Executive's targeted annual
                   bonus for the year in which termination occurs and (ii)
                   Executive's annual bonus for the year immediately preceding
                   the year in which termination occurs. In addition, the
                   Company will, from and after the Termination Date for a
                   period of one year, provide Executive with health, dental,
                   disability, and life insurance benefits substantially similar
                   to the benefits in effect immediately prior to the Change in
                   Control.

               (B) In connection with or anticipation of such Change in Control
                   (regardless of whether any other reason, other than Cuase,
                   for such termination exists or has occurred), Executive may
                   terminate employment with the Company or a Subsidiary for
                   Good Reason within twelve months after the Change in Control
                   with the right to compensation as provided in Section
                   1(f)(ii)(A).

        (g)    Nondisclosure and Nonuse of Confidential Information.
               ----------------------------------------------------

               (i) Nondisclosure Obligation.  Executive shall not disclose or
                   ------------------------
                   use at any time, either during his employment with the
                   Company or thereafter, any Confidential Information (as
                   defined below) of which Executive is or becomes aware,
                   whether or not such information is developed by him except to
                   the extent that such disclosure or use is directly related to
                   and required by Executive's performance of duties assigned to
                   Executive by the Company.  Executive shall take all
                   appropriate steps to safeguard Confidential Information and
                   to protect it against disclosure, misuse, espionage, loss and
                   theft.

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               (ii) Confidential Information.  As used in this Agreement, the
                    ------------------------
                    term "Confidential Information" means information that is
                    not generally known to the public and that is used,
                    developed or obtained by the Company in connection with its
                    business, including but not limited to (i) products or
                    services, (ii) fees, costs and pricing structures, (iii)
                    designs, (iv) analysis, (v) drawings, photographs and
                    reports, (vi) computer software, including operating
                    systems, applications and program listings, (vii) flow
                    charts, manuals and documentation, (viii) data bases, (ix)
                    accounting and business methods, (x) inventions, devices,
                    new developments, methods and processes, whether patentable
                    or unpatentable and whether or not reduced to practice, (xi)
                    customers and clients and customer or client lists, (xii)
                    copyrightable works, (xiv) all technology and trade secrets,
                    (xv) business plans and financial models, and (xvi) all
                    similar and related information in whatever form.
                    Confidential Information shall not include any information
                    that has been published in a form generally available to the
                    public prior to the date Executive proposes to disclose or
                    use such information. Information shall not be deemed to
                    have been published merely because individual portions of
                    the information have been separately published, but only if
                    all material features constituting such information have
                    been published in combination.

          (h)  Cause.  Cause means a finding by 2/3rds of the Board members then
               -----
               serving, after Executive has been given the opportunity for a
               formal hearing, of (A) Executive's theft or embezzlement, or
               attempted theft or embezzlement, of money or property of the
               Company, Executive's perpetration or attempted perpetration of
               fraud, or Executive's participation in a fraud or attempted
               fraud, on the Company, or Executive's unauthorized appropriation
               of, or attempt to misappropriate, any tangible or intangible
               assets or property of the Company, (B) any act or acts of
               disloyalty, misconduct or moral turpitude by Executive injurious
               to the interest, property, operations, business or reputation of
               the Company or Executives' conviction of a crime the commission
               of which results in injury to the Company, or (C) Executive's
               refusal or failure (other than by reason of disability) to carry
               out reasonable instructions by his superiors or the Board and in
               the case of subsection (C), the failure of Executive to cure the
               same within 10 business days, after receipt of written notice
               thereof from the Company.

          (i)  Good Reason. Good Reason means (A) a significant adverse change
               -----------
               by the Company in the nature or scope of the duties attached to
               Executive's position as President, (B) the willful failure or
               refusal of Company to perform its material obligations under
               Sections 1(d) or (e) of this Agreement, or (C) the reduction by
               the Company of its expenditures for the operation of the
               Company's Telecom Services business in an amount that is
               materially less than the expenditures set forth in the Company's
               fiscal year 2001 budget unless such reduction is part of a
               reduction applicable generally to the

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               Company's other operating units, or (D) the Company requires the
               Executive to have his principal location of work changed to a
               location which is in excess of 50 miles from either New York City
               or Philadelphia without Executive's prior written consent, and,
               in the case of subsections (A), (B) or (C), the failure of the
               Company to cure the same within 10 business days after receipt of
               written notice thereof from Executive.

          (j)  Change in Control. Change in Control shall mean if at any time
               -----------------
               any of the following events shall have occurred:

               (i)   The Company is merged or consolidated or reorganized with
                     or into another corporation or other legal person, and as a
                     result of such merger, consolidation, or reorganization
                     less than a majority of the combined voting power of the
                     then-outstanding securities of such corporation or person
                     immediately after such transaction are held in the
                     aggregate by the holders of securities entitled to vote
                     generally in the election of Directors immediately prior to
                     such transaction;

               (ii)  The Company sells or otherwise transfers all or
                     substantially all of its assets to any other corporation or
                     other legal person, and less than a majority of the
                     combined voting power of the then-outstanding securities of
                     such corporation or person immediately after such sale or
                     transfer is held in the aggregate by the holders of Common
                     Stock immediately prior to such sale or transfer;

               (iii) There is a report filed on Schedule 13D or Schedule 14D-1
                     (or any successor schedule, form or report), as promulgated
                     in each case pursuant to the Securities and Exchange Act of
                     1934 (the "Exchange Act"), disclosing that any person (as
                     the term "person" is used in Section 13(d)(3) or Section
                     14(d)(2) of the Exchange Act) has become the beneficial
                     owner (as the term "beneficial owner" is defined in Rule
                     13d-3 promulgated under the Exchange Act or any successor
                     rule or regulation promulgated thereunder) of securities
                     representing 50% or more of the Voting Power; or

               (vi)  If during any period of two consecutive years, individuals
                     who at the beginning of any such period constitute the
                     Directors and any new Directors whose election or
                     nomination for election by the Company's stockholders was
                     approved by a vote of at least two-thirds of the Directors
                     then still in office who either were Directors at the
                     beginning of the period or whose election was previously so
                     approved cease for any reason to constitute a majority of
                     the Directors. Notwithstanding the provisions of
                     subparagraph (c) above, a "Change in Control" shall not be
                     deemed to have occurred for the purposes of this Agreement
                     (i) solely because MDCP either files or becomes obligated
                     to file a report on Schedule 13D (or any successor schedule
                     or report), as promulgated

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                     pursuant to the Exchange Act, disclosing beneficial
                     ownership by it of securities representing 50% or more of
                     the Voting Power, (ii) solely because the Company or any
                     Company-sponsored employee stock ownership plan or other
                     employee benefit plan of the Company either files or
                     becomes obligated to file a report or proxy statement under
                     or in response to Schedule 13D, Schedule 14D-1, Form 8-K,
                     or Schedule 14A (or any successor schedule, form or report
                     or item therein), as promulgated in each case pursuant to
                     the Exchange Act, disclosing beneficial ownership by it of
                     securities representing 50% or more of the Voting Power or
                     otherwise, or because the Company reports that a change in
                     control of the Company has or may have occurred or will or
                     may occur in the future by reason of such beneficial
                     ownership or (iii) solely because of a change in control of
                     any subsidiary (as the term "subsidiary" is defined in
                     Section 424(f) of the Code) of the Company.

          2.   The Company's Ownership of Intellectual Property.
               ------------------------------------------------

               (a)   Acknowledgment of Company Ownership. In the event that
                     -----------------------------------
                     Executive as part of his activities on behalf of the
                     Company generates, authors or contributes to any invention,
                     design, new development, device, product, method or process
                     (whether or not patentable or reduced to practice or
                     constituting Confidential Information), any copyrightable
                     work (whether or not constituting Confidential Information)
                     or any other form of Confidential Information relating
                     directly or indirectly to the Company's business as now or
                     hereinafter conducted (collectively, "Intellectual
                     Property"), Executive acknowledges that such Intellectual
                     Property is the exclusive property of the Company and
                     hereby assigns all right, title and interest in and to such
                     Intellectual Property to the Company. Any Intellectual
                     Property that is copyrightable work prepared in whole or in
                     part by Executive will be deemed "a work made for hire"
                     under Section 201(b) of the 1976 Copyright Act, and the
                     Company shall own all of the rights comprised by the
                     copyright therein. Executive shall promptly and fully
                     disclose to the Company all Intellectual Property he
                     generates, authors or contributes to the Company and shall
                     cooperate with the Company to protect the Company's
                     interests in and rights to such Intellectual property
                     (including, without limitation, providing reasonable
                     assistance in securing patent protection and copyright
                     registrations and executing all documents as reasonably
                     requested by the Company, whether such requests occur prior
                     to or after Termination of Executive's employment with the
                     Company).

               (b)   Executive Invention. Executive understands that paragraph 2
                     -------------------
                     of this Agreement regarding the Company's ownership of
                     Intellectual Property does not apply to any invention for
                     which no equipment, supplies, facilities or trade secret
                     information of the Company were used and which was
                     developed entirely on Executive's own time, unless (i) the
                     invention relates to the business of the Company or to the
                     Company's actual or demonstrably

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               anticipated research or development or (ii) the invention results
               from any work performed by Executive for the Company.

          (c)  Delivery of Materials upon Termination of Employment.  As
               ----------------------------------------------------
               requested by the Company from time to time and upon the
               Termination of Executive's employment with the Company for any
               reason, Executive shall promptly deliver to the Company all
               copies and embodiments, in whatever form, of all Confidential
               Information and Intellectual Property in Executive's possession
               or within his control (including, but not limited to, written
               records, notes, photographs, manuals, notebooks, documentation,
               program listings, flow charts, magnetic media, disks, diskettes,
               tapes and all other materials containing any Confidential
               Information or Intellectual Property) irrespective of the
               location or form of such material and, if requested by the
               Company shall provide the Company with written confirmation that
               all such materials have been delivered to the Company.

     3.   Noncompetition and Nonsolicitation.
          ----------------------------------

          (a)  Noncompetition.  Executive acknowledges and agrees with the
               --------------
               Company that Executive's services to the Company are unique in
               nature and that the Company would be irreparably damaged if
               Executive were to provide similar services to any person or
               entity competing with the Company or engaged in a similar
               business.  For and in consideration of the terms contained herein
               Executive covenants and agrees with the Company that during the
               Noncompetition Period (as defined below), Executive shall not,
               directly or indirectly, either for himself or for any other
               individual, corporation, partnership, joint venture or other
               entity, participate in any business division, group or franchise
               (or if there are no divisions, any business) where such division,
               group or franchise (or business, if applicable) engages or
               proposes to engage in any business conducted by the Company or
               proposed to be conducted pursuant to a Board resolution or
               Subsequent Business Plan (including, but not limited to, the sale
               or distribution of local switched dial tone telecommunication
               services) in any metropolitan statistical area ("MSA") in which
               the Company conducts such business or proposes to conduct such
               business pursuant to a Board resolution or Subsequent Business
               Plan.  For purposes of this Agreement, the term "participate in"
               shall include, without limitation, having any direct or indirect
               interest in any corporation, partnership, joint venture or other
               entity, whether as a sole proprietor, owner, stockholder,
               partner, joint venturer, creditor or otherwise, or rendering any
               direct or indirect service or assistance to any individual,
               corporation, partnership, joint venture and other business entity
               (whether as a director, officer, manager, supervisor, employee,
               agent, consultant or otherwise), other than ownership of up to 2%
               of the outstanding stock of any class which is publicly traded.

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          (b)  Nonsolicitation.  During the Noncompetition Period, Executive
               ---------------
               shall not (i) induce or attempt to induce any employee of the
               Company to leave the employ of the Company, or in any way
               interfere with the relationship between the Company and any
               employee thereof, (ii) hire directly or through another entity
               any person who was an employee of the Company at any time during
               the Noncompetition Period, or (iii) induce or attempt to induce
               any customer, supplier, licensee or other business relation of
               the Company to cease doing business with the Company, or in any
               way interfere with the relationship between any such customer,
               supplier, licensee or relation and the Company (including,
               without limitation, making any negative statements or
               communications concerning the Company).

          (c)  Noncompetition Period.  The "Noncompetition Period" shall
               ---------------------
               commence on the date hereof and continue (i) if Executive is
               terminated by the Company with or without Cause, until such date
               as shall be specified by the Company in writing within 14
               calendar days after Termination, provided that such date shall
                                                --------
               not be later than the first anniversary of the Termination, or
               (ii) otherwise, until such date as shall be specified by the
               Company in writing within the 30 calendar days after Termination,
               provided that such date shall not be later than the 18-month
               --------
               anniversary of the Termination.  After the end of the Severance
               Pay Period (or if there is no Severance Pay, the date upon which
               the Company elects the duration of the Noncompetition Period),
               the Company shall until the end of the Noncompetition Period pay
               Executive his Noncompete Compensation (unless Executive breaches
               his obligations under this paragraph 3, it being understood that
               in such case Executive shall continue to be bound by such
               obligations as if the Company were continuing to pay Noncompete
               Compensation). If there is no Severance Pay, the Company shall
               during the period from Termination until such time as the Company
               elects the duration of the Noncompetition Period (the "Interim
               Period"), pay Executive his Interim Compensation (unless
               Executive breaches his obligations under this paragraph 3, it
               being understood that in such case Executive shall continue to be
               bound by such obligations as if the Company were continuing to
               pay Interim Compensation). "Noncompete Compensation" shall
               consist of 50% of the salary that Executive received under
               paragraph 1(d) above as compensation from the Company and its
               Subsidiaries immediately prior to termination (Executive's
               "Previous Salary") together with the continuation of the medical
               benefits that the Company provided to Executive immediately prior
               to Termination (Executive's "Previous Benefits"); provided that
                                                                 --------
               if at any time during the Noncompetition Period Executive obtains
               other employment (i) with comparable medical benefits to
               Executive's Previous Benefits, Executive's Noncompete
               Compensation shall during the period of such employment not
               include the continued provision of medical benefits, and (ii)
               with a salary exceeding 50% of Executive's Previous Salary,
               Executive's Noncompete Compensation shall during the period of
               such employment be reduced (but not below zero) by the

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               amount of such excess. "Interim Compensation" shall consist of
               100% of Executive's Previous Salary and Previous Benefits,
               provided that if at any time during the Interim Period Executive
               --------
               obtains other employment, Executive's Interim Compensation shall
               during the period of such employment be reduced (but not less
               than zero) by the amount of salary and benefits received as
               compensation for such other employment.

     4.   Notices. Any notice provided for in this Agreement must be in writing
          -------
          and must be either personally delivered, mailed by first class mail
          (postage prepaid and return receipt requested) or sent by reputable
          overnight courier service (charges prepaid) to the recipient at the
          address below indicated:

          To the Company:
          200 N. La Salle, Ste 1100
          Chicago, IL 60601
          Attn: General Counsel

          with a copy to:
          200 N. La Salle, Ste 1100
          Chicago, IL 60601
          Attn: Vice President Human Resources

          To Executive:

     or to such other address or to the attention of such other person as the
     recipient party shall have specified by prior written notice to the sending
     party. Any notice under this Agreement shall be deemed to have been given
     when personally delivered, one business day after being sent by reputable
     overnight courier service, or three business days after being deposited in
     the U.S. mail.

     5.   General Provisions.
          ------------------

          (a)  Severability.  Whenever possible, each provision of this
               ------------
               Agreement shall be interpreted in such manner as to be effective
               and valid under applicable law, but if any provision of this
               Agreement is held to be invalid, illegal or unenforceable in any
               respect under any applicable law or rule in any jurisdiction,
               such invalidity, illegality or unenforceability shall not affect
               any other provision or any other jurisdiction as if such invalid,
               illegal or unenforceable provision had never been contained
               herein.

          (b)  Complete Agreement.  This Agreement, those documents expressly
               ------------------
               referred to herein and other documents of even date herewith
               embody the complete agreement and understanding among the parties
               and supersede and preempt any prior understandings, agreements or
               representations by or among the

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               parties, written or oral, which may have related to the subject
               matter hereof, in any way.

          (c)  Counterparts.  This Agreement may be executed in separate
               ------------
               counterparts, none of which need contain the signature of more
               than one party hereto but each of which shall be deemed to be an
               original and all of which taken together shall constitute one and
               the same agreement.

          (d)  Successors and Assigns.  Except as otherwise provided herein,
               ----------------------
               this Agreement shall bind the parties hereto and their respective
               successors and assigns and shall inure to the benefit of and be
               enforceable by the parties hereto and their respective successors
               and assigns.

          (e)  Choice of Law.  All questions concerning the construction,
               -------------
               validity, enforcement and interpretation of this Agreement and
               the exhibits hereto shall be governed by the laws of the State of
               Illinois.

          (f)  Remedies.  Each of the parties to this Agreement  shall be
               --------
               entitled to enforce its rights under this Agreement specifically,
               to recover damages and cost (including reasonable attorney's
               fees) caused by any breach of any provision of this Agreement and
               to exercise all other rights existing in its favor. The parties
               hereto agree and acknowledge that, money damages would not be an
               adequate remedy for any breach of the provisions of this
               Agreement and that any party may in its sole discretion apply to
               any court of law or equity of competent jurisdiction (without
               posting any bond or deposit) for specific performance and/or
               other injunctive relief in order to enforce or prevent any
               violations of the provisions of this Agreement.

          (g)  Amendment and Waiver.  The provisions of this Agreement may be
               --------------------
               amended and waived only with the prior written consent of the
               Company and Executive.

          (h)  Business Days.  If any time period for giving notice or taking
               -------------
               action hereunder expires on a day which is a Saturday, Sunday or
               legal holiday in the State of Illinois, the time period will be
               automatically extended to the business day immediately following
               such Saturday, Sunday or holiday.

                                       10
<PAGE>

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

FOCAL COMMUNICATIONS CORPORATION

By: /s/ Robert C. Taylor, Jr.

Its: President and Chief Executive Officer

EXECUTIVE:

/s/ Anthony J. Leggio, Jr.

                                       11<PAGE>

                                                                    Exhibit 10.2

                                PLEDGE AGREEMENT

          THIS PLEDGE AGREEMENT is made this 2nd day of January 2001 by Michael
L. Mael (the "Employee") in favor of Focal Communication Corporation, a Delaware
corporation (the "Company").

                              W I T N E S S E T H:

          WHEREAS, the Employee has delivered to the Company a Promissory Note,
dated the date hereof (the "Note"), evidencing his obligation to repay a loan
made by the Company to the Employee (the "Loan"); and

          WHEREAS, it is a condition to the Loan that the Employee pledge the
Pledged Stock as security for his obligations under the Note;

          NOW, THEREFORE, in consideration of the premises contained herein the
parties hereto agree as follows:

     1.   Defined Terms. Unless otherwise defined herein, the following terms
shall have the following meanings:

          "Code" means the Uniform Commercial Code from time to time in effect
           ----
     in the State of Illinois.

          "Collateral" means the Pledged Stock, together with all stock
           ----------
     certificates, securities or other property, options and rights of any
     nature whatsoever that may be issued or granted in respect of the Pledged
     Stock by the Company to the Employee while this Pledge Agreement is in
     effect and all Proceeds.

          "Obligations" means the unpaid principal of and interest on the Note
           -----------
     and all other obligations and liabilities of the Employee to the Company
     that may arise under, out of, or in connection with, the Note or this
     Pledge Agreement.

          "Pledge Agreement" means this Pledge Agreement, as amended,
           ----------------
     supplemented or otherwise modified from time to time.

          "Pledged Stock"  means (i) the shares of the Company's Common Stock,
           -------------
     par value $.01 per share ("Common Stock"), listed on Schedule 1 hereto and
     (ii) any shares of Common Stock hereafter acquired by the Employee, whether
     by a purchase, the lapse of restrictions on shares of restricted stock, the
     exercise of a stock option or otherwise.

          "Proceeds" means all "proceeds" as such term is defined in Section 9-
           --------
     306(1) of the Uniform Commercial Code in effect in the State of Illinois on
     the date hereof and shall in any event include, but shall not be limited
     to, all dividends or other income from
<PAGE>

     the Pledged Stock or other Collateral, collections thereon or distributions
     with respect thereto.

     2.   Pledge; Grant of Security Interest. Concurrently with his execution
and delivery of this Pledge Agreement, the Employee shall deliver the Pledged
Stock listed on Schedule 1 hereto to the Company. From time to time hereafter,
as the Employee acquires additional Pledged Stock, the Employee shall deliver
such Pledged Stock to the Company and, pending such delivery, shall hold such
Pledged Stock as agent for the Company, separate and apart from his other assets
and properties and in trust for the benefit of the Company. The Employee hereby
grants to the Company a security interest in the Collateral, as collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration, upon required prepayment or otherwise)
of the Obligations.

     3.   Stock Powers.  Concurrently with the delivery to the Company of each
certificate representing one or more shares of Pledged Stock, the Employee shall
deliver an undated stock power covering such certificate, duly executed in blank
by the Employee.

     4.   Representations and Warranties. The Employee represents and warrants
that:

          (a)  the Employee is the record and beneficial owner of, and has good
     and marketable title to, the Pledged Stock listed on Schedule 1 hereto,
     free of any and all liens or options in favor of, or claims of, any other
     Person, except the liens created hereunder; and

          (b)  the Employee will be the record and beneficial owner of, and
     will have good and marketable title to, any additional Pledged Stock
     acquired after the date hereof, free of any and all liens or options in
     favor of, or claims of, any other Person except the liens created
     hereunder; and

          (c)  the lien granted pursuant to this Pledge Agreement constitutes a
     valid, perfected senior lien on the Collateral.

     5.   Covenants. The Employee covenants and agrees with the Company that,
from and after the Closing Date until the Obligations are paid in full:

          (a)  If the Employee shall, as a result of his ownership of the
     Pledged Stock or any other Collateral, become entitled to receive or shall
     receive any non-cash dividend or distribution (whether in additional shares
     of Common Stock, other securities or other property and whether in
     connection with any reclassification, increase or reduction of capital or
     any reorganization or otherwise), or any option or right, whether in
     addition to, in substitution of, as a conversion of, or in exchange for any
     shares of the Pledged Stock or any of the other Collateral, or otherwise in
     respect thereof, the Employee shall accept the same as the agent of the
     Company, hold the same separate and apart from his other assets and
     properties and in trust for the benefit of the Company, and deliver the
     same forthwith to the Company in the exact form received, duly endorsed by
     the Employee to the Company, if required, together with an undated stock
     power duly executed in blank by the Employee covering any certificate
     received by the Employee, to be held by the

                                       2
<PAGE>

     Company, subject to the terms hereof, as additional collateral security for
     the Obligations.

          (b)  Without the prior written consent of the Company, the Employee
     will not (i) sell, assign, transfer, exchange, or otherwise dispose of, or
     grant any option with respect to, the Collateral or (ii) create, incur or
     permit to exist any lien or option in favor of, or any claim of any Person
     with respect to, any of the Collateral, or any interest therein, except for
     the lien created by this Pledge Agreement.

          (c)  At any time and from time to time upon the written request of the
     Company, the Employee will promptly and duly execute and deliver such
     further instruments and documents and take such further actions as the
     Company may reasonably request for the purposes of obtaining or preserving
     the full benefits of this Pledge Agreement and the rights and powers herein
     granted.

          (d)  The Employee agrees to pay and hold the Company harmless from any
     and all liabilities with respect to, or resulting from any delay in paying,
     any and all stamp, excise, sales or other taxes that may be payable or
     determined to be payable with respect to any of the Collateral or in
     connection with any of the transactions contemplated by this Pledge
     Agreement.

     6.   Voting Rights.  Unless the Employee fails to pay or perform any of the
Obligations of the Employee under the Note or this Pledge Agreement, the
Employee shall be permitted to exercise all voting and corporate rights with
respect to the Pledged Stock; provided, however, that no vote shall be cast or
corporate rights exercised or other action taken that, in the Company's
reasonable judgment, would impair the Collateral or would be inconsistent with
or result in any violation of any provision of the Note or this Pledge
Agreement.

     7.   Rights of the Company. (a) If the Employee fails to pay or perform any
of the Obligations, all shares of the Pledged Stock shall be registered in the
name of the Company or its nominee and the Company or its nominee may thereafter
exercise (i) all voting, corporate and other rights pertaining to such shares of
the Pledged Stock at any meeting of stockholders of the Company or otherwise and
(ii) any and all rights of conversion, exchange, subscription and any other
rights, privileges or options pertaining to such shares of the Pledged Stock as
if it were the absolute owner thereof (including but not limited to the right to
exchange at its discretion any and all of the Pledged Stock upon the merger,
consolidation, reorganization, recapitalization or other fundamental change in
the corporate structure of the Company or upon the exercise by the Employee or
the Company of any right, privilege or option pertaining to such shares of the
Pledged Stock and, in connection therewith, the right to deposit and deliver any
and all of the Pledged Stock with any committee, depositary, transfer agent,
registrar or other designated agency upon such terms and conditions as it may
determine), all without liability except to account for property actually
received by it, but the Company shall have no duty to the Employee to exercise
any such right, privilege or option and shall not be responsible for any failure
to do so or delay in so doing.

          (b)  The rights of the Company hereunder shall not be conditioned or
contingent upon the pursuit by the Company of any right or remedy against the
Employee or against any other Person that may be or become liable in respect of
all or any part of the

                                       3
<PAGE>

Obligations or against any collateral security therefor, guarantee therefor or
right of offset with respect thereto. The Company shall not be liable for any
failure to demand, collect or realize upon all or any part of the Collateral or
for any delay in so doing, and the Company shall not be under any obligation to
sell or otherwise dispose of any Collateral upon the request of the Employee or
any other person or to take any other action whatsoever with regard to the
Collateral or any part thereof.

     8.   Remedies. If the Employee fails to perform any of his Obligations and
such failure is continuing, the Company may exercise, in addition to all other
rights and remedies granted in this Pledge Agreement and in any other instrument
or agreement securing, evidencing or relating to the Obligations, all rights and
remedies of a secured party under the Code. Without limiting the generality of
the foregoing, the Company, without demand of performance or other demand,
presentment, protest, notice or advertisement of any kind (except any notice
required by the Note or any notice required by law and hereinafter referred to)
to or upon the Employee or any other Person (any and all such demands, defenses,
notices and advertisements being hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and may forthwith sell, assign, give an option or options to
purchase or otherwise dispose of and deliver the Collateral or any part thereof
(or contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, in the over-the-counter market, at any exchange, broker's
board or office of the Company or elsewhere upon such terms and conditions as it
may deem advisable and at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk. The Company shall
have the right, upon any such public sale or sales and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any part
of the Collateral so sold, free of any right or equity of redemption in the
Employee, and any such right or equity is hereby waived or released. The Company
shall apply any Proceeds from time to time held by it and the net proceeds of
any such collection, recovery, receipt, appropriation, realization or sale,
after deducting all reasonable costs and expenses of every kind incurred in
respect thereof or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the Company
hereunder, including but not limited to reasonable attorneys' fees and
disbursements of counsel to the Company, to the payment of the Obligations in
whole or in part and in such order as the Company may elect, and only after such
application and after the payment by the Company of any other amount required by
any provision of law, including but not limited to Section 9-504(1)(c) of the
Code, need the Company account for the surplus, if any, to the Employee. To the
extent permitted by applicable law, the Employee waives all claims, damages and
demands, other than any rights of notice and cure under the Note, he may acquire
against the Company arising out of the exercise by him of any rights hereunder.
If any notice of a proposed sale or other disposition of Collateral shall be
required by law, such notice shall be deemed reasonable and proper if given at
least 10 days before such sale or other disposition. The Employee shall remain
liable for any deficiency if the proceeds of any sale or other disposition of
Collateral are insufficient to pay the Obligations and the fees and disbursement
of any attorneys employed by the Company to collect such deficiency.

     9.   Private Sales.  (a) The Employee recognizes that, in the absence of
registration under the provisions of the Securities Act of 1933, as amended (the
"Securities Act"), and applicable state securities laws, the Company may be
unable to effect a public sale of any or all the Pledged Stock, by reason of
certain prohibitions contained in the Securities Act and

                                       4
<PAGE>

applicable state securities laws or otherwise and may be compelled to resort to
one or more private sales thereof to a restricted group of purchasers that will
be obliged to agree, among other things, to acquire such securities for their
own account for investment and not with a view to the distribution or resale
thereof. The Employee acknowledges and agrees that any such private sale may
result in prices and other terms less favorable than if such sale were a public
sale and, notwithstanding such circumstances, agrees that any such private sale
shall be deemed to have been made in a commercially reasonable manner. The
Company shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to register such securities for public sale
under the Securities Act or under applicable state securities laws.

          (b)  The Employee further agrees to use his best efforts to do or
cause to be done all such other acts as may be necessary to make such sale or
sales of all or any portion of the Pledged Stock pursuant to this paragraph 9
valid and binding and in compliance with any and all other applicable
requirements of law. The Employee further agrees that a breach of any of the
covenants contained in this paragraph 9 will cause irreparable injury to the
Company, that the Company has no adequate remedy at law in respect of such
breach and, as a consequence, that each and every covenant contained in this
paragraph 9 shall be specifically enforceable against the Employee, and the
Employee hereby waives and agrees not to assert any defenses against an action
for specific performance of such covenants.

     10.  Limitation on Duties Regarding Collateral.  From and after the Closing
Date, the Company's sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession, under Section 9-207
of the Code or otherwise, shall be to deal with it in the same manner as the
Company deals with similar securities and property for its own account.  Neither
the Company nor any of its directors, officers, employees or agents shall be
liable for failure to demand, collect or realize upon any of the Collateral or
for any delay in so doing or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of the Employee or otherwise.

     11.  Powers Coupled with an Interest. All authorizations and agencies
herein contained with respect to the Collateral are irrevocable and powers
coupled with an interest.

     12.  Severability. Any provision of this Pledge Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     13.  Paragraph Headings. The paragraph headings used in this Pledge
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof.

     14.  No Waiver; Cumulative Remedies. The Company shall not by any act
(except by a written instrument pursuant to paragraph 15 hereof) be deemed to
have waived any right or remedy hereunder or to have acquiesced in any breach of
any of the terms and conditions hereof. No failure on the part of the Company to
exercise, or delay on the part of the Company in exercising, any right, power or
privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or
further

                                       5
<PAGE>

exercise thereof or the exercise of any other right, power or privilege. A
waiver by the Company of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy that the Company would
otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

     15.  Waivers and Amendments; Successors and Assigns; Governing Law. None of
the terms or provisions of this Pledge Agreement may be amended, supplemented or
otherwise modified except by a written instrument executed by the Employee and
the Company, provided that any provision of this Pledge Agreement enforceable by
the Company may be waived by the Company in a letter or agreement executed by
the Company. This Pledge Agreement shall be binding upon the successors and
assigns of the Employee and shall inure to the benefit of the Company and its
successors and assigns. This Pledge Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of
[Illinois].

     16.  Notices.  Notices may be given by the parties hereto and shall be
considered effective when personally delivered or one day after delivery by
reputable overnight courier, given or addressed to the parties or their
permitted assigns at the following addresses or such other address as shall be
given in writing by either party to the other.

          To the Company:

               Focal Communications Corporation
               200 North LaSalle Street
               Chicago, Illinois  60601
               Attention: General Counsel

          To the Employee:

               Michael L. Mael
               9 Winterset Court
               Potomac, Maryland 20854

     17.  Counterparts.  This Pledge Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and in making proof of
this Pledge Agreement, it shall not be necessary to produce or account for more
than one such counterpart.

                                       6
<PAGE>

          IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement
to be duly executed and delivered as of the date first above written.

                              /s/ Michael L. Mael
                              -----------------------------------------
                              Michael L. Mael

                              FOCAL COMMUNICATIONS CORPORATION

                              By: /s/ Robert C. Taylor, Jr.
                                 ---------------------------------------
                                  Name:  Robert C. Taylor, Jr.
                                       ---------------------------------
                                  Title: Chief Executive Officer
                                       ---------------------------------
<PAGE>

                                                                      SCHEDULE 1
                                                             to Pledge Agreement
                                                             -------------------

                          DESCRIPTION OF PLEDGED STOCK

                                            Stock Certificate    No. of
       Issuer            Class of Stock         Number(s)        Shares
       ------            --------------     -----------------    ------

Focal Communications      Common Stock          FC0376           150,000
       Corporation

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