Document:

exv10w1

 

Exhibit 10.1

BROADVIEW NETWORKS HOLDINGS, INC.
 MANAGEMENT INCENTIVE PLAN

     1. Purpose.

     The purpose of the Plan is to assist the Company in attracting, retaining, motivating and
rewarding key employees, and promoting the creation of long-term value for stockholders of the
Company by closely aligning the interests of Participants with those of such stockholders. The Plan
authorizes the award of stock-based incentives to Participants to encourage such persons to expend
their maximum efforts in the creation of stockholder value.

     2. Definitions.

     For purposes of the Plan, the following terms shall be defined as set forth below:

          (a) “Affiliate” means, with respect to any entity, any other entity that, directly or
indirectly through one or more intermediaries, controls, is controlled by or is under common
control with, such entity.

          (b) “Award” means any Option or Restricted Stock granted under the Plan.

          (c) “Board” means the Board of Directors of the Company.

          (d) “Cause” means, in the absence of any employment agreement between a Participant
and the Employer otherwise defining Cause, (i) acts of personal dishonesty, gross negligence or
willful misconduct on the part of a Participant in the course of his or her employment or services;
(ii) a Participant’s engagement in conduct that results, or could be reasonably expected to result,
in material injury to the reputation or business of the Company or its Affiliates; (iii)
misappropriation by a Participant of the assets or business opportunities of the Company or its
Affiliates; (iv) embezzlement or fraud committed by a Participant, at his or her direction, or with
his or her personal knowledge; (v) a Participant’s conviction by a court of competent jurisdiction
of, or pleading “guilty” or “no contest” to, (x) a felony, or (y) any other criminal charge (other
than minor traffic violations) that has, or could be reasonably expected to have, an adverse impact
on the performance of the Participant’s duties to the Company or its Affiliates; or (vi) failure by
a Participant to follow the lawful directions of a superior officer or the Board. In the event
there is an employment agreement between a Participant and the Employer defining Cause, “Cause”
shall have the meaning provided in such agreement.

          (e) “Change in Control” means (i) the sale or disposition, in one or a series of
related transactions, of all or substantially all of the assets of the Company to any “person” or
“group” (as such terms are defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other
than the Investors; or (ii) any person or group, other than the Investors, is or becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of more than 50% of the total voting power of the voting stock of the Company,
including by way of merger, consolidation or otherwise (other than an offering of the Company’s
Class A or Class B Common Stock to the general public through a registration statement filed with
the Securities and Exchange Commission) and pursuant to which Investors cease to control the Board.

 

 

          (f) “Class B Common Stock” means the non-voting Class B Common Stock of the
Company.

          (g) “Code” means the Internal Revenue Code of 1986, as amended from time to time,
including regulations thereunder and successor provisions and regulations thereto.

          (h) “Committee” means the Board or a committee appointed by the Board consisting
of two or more individuals.

          (i) “Company” means Broadview Networks Holdings, Inc., a Delaware
corporation.

          (j) “Corporate Event” means (i) a merger or consolidation involving the Company
in which the Company is not the surviving corporation; (ii) a merger or consolidation involving the
Company in which the Company is the surviving corporation but the holders of the Company’s common
stock receive securities of another corporation and/or other property, including cash; (iii) a
Change in Control; or (iv) the reorganization or liquidation of the Company.

          (k) “Effective Date” means [                    ].

          (l) “Employer” means either the Company or an Affiliate of the Company that the
Participant (determined without regard to any transfer of an Award) is principally employed by or
provides services to, as applicable.

          (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, including rules thereunder and successor provisions and rules thereto.

          (n) “Expiration Date” means the date upon which the term of an Option expires,
as determined by the Committee on the date of grant, but in no event later than the tenth (10th)
anniversary of the date of grant.

          (o) “Fair Market Value” means the fair market value per share of the applicable
class of the Company’s stock, as determined by the Board in good faith; provided, that such
fair market value shall not be diminished due to the non-voting feature of the stock.

          (p) “Fair Value Repurchase Price” means the repurchase price for any shares as
to which the ability to repurchase at the Nominal Value Repurchase Price has lapsed as of the
Termination Date, and shall equal the Fair Market Value of such shares, adjusted for any stock
splits, stock dividends and other changes, on the date that the repurchase notice is delivered to
the Participant pursuant to Section 5(d)(ii) below.

          (q) “Investor Preferred Stock” means the Series A, Series A-l, Series B and
Series B-l Preferred Stock of the Company and or any other Series of Preferred Stock of the Company
issued on a pari passu basis with the Series A, Series A-l, Series B or Series B-l Preferred Stock
of the Company.

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          (r) “Investors” means, collectively, the Preemptive Rights Stockholders (as
defined in the Shareholders’ Agreement) and their respective Affiliates.

          (s) “Lapse Date” means the vesting dates specified by the Committee at the time
of grant, prior to which shares of Restricted Stock granted pursuant to the Plan will be
repurchased at the Nominal Repurchase Price upon a termination of a Participant’s employment;
provided, that all shares of Restricted Stock will vest if a Participant’s employment is
terminated by the Company without Cause following a Change in Control.

          (t) “Lock-Up Period” means the period prior to the one hundred eightieth
(180th) day following a Qualifying IPO.

          (u) “Nominal Value Repurchase Price” means $1.00.

          (v) “Option” means a conditional right, granted to a Participant under Section
6 hereof, to purchase Option Stock at a specified price and at a specified time.

          (w) “Option Agreement” means a written agreement between the Company and a
Participant evidencing the terms and conditions of an individual Option grant.

          (x) “Option Repurchase Period” means, with respect to each Participant, the
period commencing on the Termination Date and ending on the earliest to occur of (i) the effective
date of a Qualifying IPO, (ii) a Change in Control, or (iii) a specific date specified by the
Committee on the date of grant.

          (y) “Option Repurchase Price” means, with respect to any outstanding Option as
of any date, an amount equal to the aggregate Fair Market Value (determined as of such date) of
shares of the Series C Preferred Stock and the Class B Common Stock underlying the Option minus the
aggregate exercise price relating to such shares.

          (z) “Option Repurchase Right” shall have the meaning ascribed to such term in
Section 6(g)(i) herein.

          (aa) “Option Stock” means the Series C Preferred Stock and Class B Common Stock
of the Company underlying an Option.

          (bb) “Outside Offer” shall have the meaning ascribed to such term in Section 7(c)
below.

          (cc) “Participant” means each key employee of the Company who has received and
executed either an Option Agreement or a Restricted Stock Agreement from the Committee.

          (dd) “Person” means any natural person, company, government, or political
subdivision, agency, or instrumentality of a government.

          (ee) “Plan” means this Broadview Networks Holdings, Inc. Management Incentive
Plan.

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          (ff) “Prospective Purchaser” means the prospective record owner or owners of the
shares of Option Stock and/or Restricted Stock which are the subject of the Outside Offer and all
other Persons proposed to have a beneficial interest in such Option Stock and/or Restricted Stock.

          (gg) “Qualifying IPO” means the issuance or sale of shares of Class A or Class B
Common Stock which occurs in an underwritten public offering registered under the Securities Act
and provides net proceeds to the Company of not less than $50,000,000.

          (hh) “Repurchase Period” means the period of twenty-four (24) months
following a Termination Date.

          (ii) “Repurchase Right” means, during the Repurchase Period, the right of the
Company, or, at the discretion of the Company, the Investors, to repurchase all or any portion of
the shares of Restricted Stock or Option Stock granted under the Plan and held by a Participant.

          (jj) “Restricted Stock” means restricted shares of Series C Preferred Stock and
Class B Common Stock of the Company granted to a Participant under Section 5 hereof that are
subject to the Repurchase Right.

          (kk) “Restricted Stock Agreement” means a written agreement between the Company
and a Participant evidencing the terms and conditions of an individual Restricted Stock grant.

          (ll) “Securities Act” means the Securities Act of 1933, as amended from time
to time, including rules thereunder and successor provisions and rules thereto.

          (mm) “Selling Stockholder” shall have the meaning ascribed to such term in
Section 7(c) below.

          (nn) “Series C Preferred Stock” means the Series C Preferred Stock of the
Company.

          (oo) “Shareholders’ Agreement” means the Company’s Amended and Restated Shareholders’
Agreement.

          (pp) “Termination Date” means the date upon which a Participant’s
employment with the Employer is terminated for any reason.

     3. Administration.

          (a) Authority of the Committee. Except as otherwise provided below, the Plan
shall be administered by the Committee. The Committee shall have full and final authority, in each
case subject to and consistent with the provisions of the Plan, to (i) select key employees to
become Participants; (ii) grant Awards; (iii) determine the type, number of shares of Series C
Preferred Stock and Class B Common Stock subject to, and other terms and conditions of, and all
other matters relating to, Awards; (iv) prescribe Award agreements (which need not be identical for
each Participant) and rules and regulations for the administration of the Plan; (v) construe and

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interpret the Plan and Award agreements and correct defects, supply omissions, or reconcile
inconsistencies therein; and (vi) make all other decisions and determinations as the Committee may
deem necessary or advisable for the administration of the Plan. In any case in which the Board is
performing a function of the Committee under the Plan, each reference to the Committee herein shall
be deemed to refer to the Board, except where the context otherwise requires. Any action of the
Committee shall be final, conclusive and binding on all persons, including, without limitation, the
Company, its Affiliates, Participants and beneficiaries of Participants.

          (b) Delegation. The Committee may delegate to officers or employees of the Company or
any of its Affiliates, or committees thereof, the authority, subject to such terms as the Committee
shall determine, to perform such functions, including but not limited to administrative functions,
as the Committee may determine appropriate. The Committee may appoint agents to assist it in
administering the Plan.

          (c) Section 409A. The Committee shall take into account compliance with Section 409A
of the Code in connection with any grant of an Award under the Plan, to the extent applicable.

     4. Shares Available Under the Plan.

          (a) Number of Shares Available for Delivery. Subject to adjustment as provided in
Section 8 hereof, the total number of shares of stock reserved and available for delivery in
connection with Awards under the Plan shall be 52,332 shares of Series C Preferred Stock and
1,308,297 shares of non-voting Class B Common Stock.

          (b) Share Counting Rules. The Committee may adopt reasonable counting procedures to
ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or
substitute awards) and make adjustments if the number of shares of Series C Preferred Stock and
Class B Common Stock actually delivered differs from the number of shares previously counted in
connection with an Award. To the extent that an Award expires or is canceled, forfeited, settled in
cash or otherwise terminated or concluded without a delivery to the Participant of the full number
of shares to which the Award related, the undelivered shares will again be available for grant.
Shares of Series C Preferred Stock and Class B Common Stock withheld in payment of the exercise
price or taxes relating to an Award and shares equal to the number surrendered in payment of any
exercise price or taxes relating to an Award shall be deemed to constitute shares not delivered to
the Participant and shall be deemed to again be available for Awards under the Plan;
provided, however, that where shares are withheld or surrendered more than ten
years after the date of the most recent stockholder approval of the Plan or any other transaction
occurs that would result in shares becoming available under this Section 4(b), such shares shall
not become available if and to the extent that it would constitute a material revision of the Plan
subject to stockholder approval under then applicable rules of the national securities exchange on
which the stock is listed or the Nasdaq National Market System, if applicable.

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     5. Restricted Stock.

          (a) General. Restricted Stock granted hereunder shall be in such form and shall
contain such terms and conditions as the Committee shall deem appropriate. The terms and conditions
of each Restricted Stock grant shall be evidenced by a Restricted Stock Agreement, which agreements
need not be identical. Subject to the restrictions set forth in this Section 5, except as
otherwise set forth in the applicable Restricted Stock Agreement, the Participant shall generally
have the rights and privileges of a stockholder as to such Restricted Stock. Unless otherwise
determined by the Committee with respect to each Award of Restricted Stock, for each share of
restricted Series C Preferred Stock granted to a Participant under the Plan, such Participant will
also be granted 25 shares of restricted Class B Common Stock. Notwithstanding anything herein to
the contrary, no Restricted Stock may be granted hereunder following a Qualifying IPO.

          (b) Book Entry; Certificates. Restricted Stock granted under the Plan may be evidenced
in such manner as the Committee shall determine. Unless otherwise determined by the Committee, in
its sole discretion, the Restricted Stock shall be held in book entry form rather than delivered to
the Participant through the expiration of the Lock-Up Period. If certificates representing
Restricted Stock are registered in the name of the Participant, the Committee may require that such
certificates bear an appropriate legend referring to the terms, conditions and restrictions
applicable to such Restricted Stock, that the Company retain physical possession of the
certificates, and that the Participant deliver a stock power to the Company, endorsed in blank,
relating to the Restricted Stock.

          (c) Dividends. A Participant shall not have the right to receive any cash dividends or
stock dividends with respect to the Restricted Stock; provided, however, that the
Committee may, at its sole discretion, provide that cash dividends and stock dividends with respect
to the Restricted Stock, if any, may be either currently paid to the Participant or withheld by the
Company for the Participant’s account. A Participant’s Restricted Stock Agreement may provide that
cash dividends or stock dividends so withheld shall be subject to forfeiture to the same degree as
the shares of Restricted Stock to which they relate. Except as otherwise determined by the
Committee, no interest will accrue or be paid on the amount of any cash dividends withheld.

          (d) Repurchase Right.

          (i) In the event that a Participant’s Termination Date occurs prior to any
applicable Lapse Date set forth in the applicable Restricted Stock Agreement, the Company
shall automatically repurchase all shares of Restricted Stock as to which the applicable
Lapse Date has not occurred for an aggregate amount equal to the Nominal Value Repurchase
Price.

          (ii) In the event that a Participant’s Termination Date occurs on or after any
applicable Lapse Date set forth in the applicable Restricted Stock Agreement, the Company
may (but is not required to), during the Repurchase Period, repurchase all or any portion of
the shares of Restricted Stock as to which the applicable Lapse Date has occurred at a per
share price equal to the Fair Value Repurchase Price; provided,

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however, that in the event that a Participant’s employment is terminated by the
Company for Cause, the repurchase price for each such share of Restricted Stock shall be
fifty percent (50%) of the Fair Value Repurchase Price. The Repurchase Right may be
exercised by the Company at any time during the Repurchase Period by written notice
indicating to the Participant or Participant’s representative or executor (1) the
Restricted Stock to be repurchased, and (2) the date on which the repurchase is to be
effected, such date to be not more than thirty (30) days after the date of such notice.
Upon delivery of such notice and by delivery of a check in the amount of the purchase price
for the shares of the Restricted Stock being purchased, paid in a lump sum, the Company
shall become the legal and beneficial owner of the shares of Restricted Stock being
purchased and all rights and interest therein or related thereto, and the Company shall
have the right to transfer to its own name the number of shares of Restricted Stock being
purchased by the Company, without further action by the Participant.

          (iii) Notwithstanding anything herein to the contrary, the Repurchase Right shall
terminate upon the closing of a Qualifying IPO.

          (iv) The Company shall be permitted to assign the Repurchase Right to any Person
at any time.

          (e) The provisions of this Section 5 shall be deemed to be in addition to, and not in
lieu of, the provisions of the Shareholders’ Agreement; provided, however, that
with respect to shares of Series C Preferred Stock and Class B Common Stock acquired by such
Participant pursuant to Restricted Stock grant hereunder, in the event of any inconsistency between
the terms of this Section 5 and the Shareholders’ Agreement, the terms of this Section 5 shall
govern and control.

     6. Options.

          (a) General. Options may be granted to a key employee of the Company in such form and
having such terms and conditions as the Committee shall deem appropriate. The provisions of
separate Options shall be set forth in an Option Agreement, which agreements need not be identical.
Options under the Plan are not intended to qualify as “incentive stock options” meeting the
requirements of Section 422 of the Code. Unless otherwise determined by the Committee, for each
Option to purchase a share of Series C Preferred Stock granted to a Participant under the Plan,
such Participant will also be granted an Option to purchase 25 shares of Class B Common Stock.
Notwithstanding anything herein to the contrary, no Options may be granted hereunder following a
Qualifying IPO.

          (b) Term. The term of each Option shall be set by the Committee at the time of grant;
provided, however, that no Option granted hereunder shall be exercisable after the
expiration of ten (10) years from the date it was granted.

          (c) Exercise Price. The exercise price per share of Option Stock for each Option
shall be set by the Committee at the time of grant but shall not be less than the Fair Market
Value of a share of such stock on the date of grant.

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          (d) Payment for Stock. Payment for shares of Option Stock acquired pursuant
to Options granted hereunder shall be made in full, upon exercise of the Options: (i) in
immediately available funds in United States dollars, or by certified or bank cashier’s check;
(ii) by delivery of a notice of “net exercise” to the Company, pursuant to which the Participant
shall receive the number of shares of Option Stock underlying the Options so exercised reduced by
the number of shares of Option Stock equal to the aggregate exercise price of the Options divided
by the Fair Market Value on the date of exercise; or (iii) by any other means approved by the
Committee. Anything herein to the contrary notwithstanding, if the Committee determines that any
form of payment available hereunder would be in violation of Section 402 of the Sarbanes-Oxley Act
of 2002, such form of payment shall not be available on or following the IPO Date.

          (e) Vesting and Exercise. Options shall vest in such manner, on such date or
dates, or upon the achievement of performance or other conditions, in each case, as may be
determined by the Committee and set forth in the Option Agreement; provided,
however, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate
the vesting of any Option, which acceleration shall not affect the terms and conditions of any
such Option other than with respect to vesting. Unless otherwise specifically determined by the
Committee, the vesting of an Option shall occur only while the Participant is employed or
rendering services to the Employer, and all vesting shall cease upon a Participant’s
termination of employment or services with the Employer for any reason. Notwithstanding anything herein
to the contrary, in the event that a Participant’s employment is terminated by the Company
without Cause following a Change in Control, all Options shall become fully vested.

          (i) Vested Options shall be automatically exercised by a Participant on the
earliest to occur of: (i) a Change in Control, (ii) a specific date identified by the
Committee on the date of grant, and (iii) in the event that a Participant’s employment is
terminated by the Company without Cause following a Change in Control, the Termination Date.
Upon the exercise date, the Company shall deliver to the Participant a number of shares of
Series C Preferred Stock and Class B Common Stock with an aggregate Fair Market Value equal
to the product of (x) the number of vested shares of Option Stock subject to the
Participant’s Option, and (y) the difference between the Fair Market Value of the Option
Stock and the per share exercise price of the Option (but only where the Fair Market Value
exceeds the strike price of the Option). In the event that the strike price is greater than
or equal to the Fair Market Value of the Option Stock on the exercise date, all such Options
shall terminate and the Participant shall have no rights pursuant to such Option.

          (ii) To the extent that the Committee determines that Section 409A of the Code
would permit the Options to be exercised at a different time without a penalty pursuant to
Section 409A of the Code payable by the Participant, the Committee, in its sole discretion,
may amend the period during which the Option will be exercised.

          (f) Termination of Employment or Service. Except as may otherwise be
provided by the Committee in the Option Agreement, if prior to the Expiration Date, a
Participant’s employment or service, as applicable, with the Employer terminates for any
reason, (i) all vesting with respect to the Options shall cease, (ii) any unvested Options shall
expire as of

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the date of such termination, and (iii) any vested Options shall remain exercisable in accordance
with their terms.

          (g) Option Repurchase Right.

          (i) During the Option Repurchase Period, the Company shall have the right (but
shall not be obligated) to repurchase any unexercised Option granted hereunder at a price
equal to the Option Repurchase Price (the “Option Repurchase Right”);
provided, however, that in the event that a Participant’s employment is
terminated by the Company for Cause, the repurchase price for each such Option shall be
fifty percent (50%) of the Option Repurchase Price. The Option Repurchase Right shall be
exercisable upon written notice to a Participant indicating the Option to be repurchased
and the date on which the repurchase is to be effected, such date to be not more than
thirty (30) days after the date of such notice. The Option Repurchase Price will be paid in
a lump-sum at the time of repurchase. Notwithstanding the forgoing, (i) the Option
Repurchase Right shall only apply to the extent that a repurchase of an unexercised Option
will not result in a penalty pursuant to Section 409A of the Code payable by the
Participant, and (ii) the Option Repurchase Right shall terminate upon the earlier to occur
of (a) the closing of a Qualifying IPO, or (b) a Change in Control.

          (ii) During the Repurchase Period and for the twenty-four (24) month period
immediately following any exercise of an Option that occurs after the Termination Date, the
Company may (but shall not be obligated to) repurchase all or any portion of the shares of
the shares of Option Stock acquired by a Participant upon the exercise of an Option pursuant
to this Plan at a per share price equal to the Fair Value Repurchase Price. The Repurchase
Right may be exercised by the Company by written notice to the Participant or Participant’s
representative or executor at any time during the Repurchase Period and, at the Company’s
option, by delivery to the Participant or Participant’s representative or executor of a
check in the amount of the purchase price for the shares of Option Stock being purchased,
paid in a lump sum. Upon delivery of such notice and payment of the purchase price, the
Company shall become the legal and beneficial owner of the shares of the Option Stock being
purchased and all rights and interest therein or related thereto, and the Company shall have
the right to transfer to its own name the number of shares of Option Stock being purchased
by the Company, without further action by the Participant. Notwithstanding anything herein
to the contrary, the Repurchase Right shall terminate upon the closing of a Qualifying IPO.

          (iii) The Company shall be permitted to assign the Option Repurchase
Right to any Person.

          (h) The provisions of this Section 6 shall be deemed to be in addition to, and not in
lieu of, the provisions of the Shareholders’ Agreement; provided, however, that
with respect to shares of the Option Stock acquired by such Participant pursuant to an Option grant
hereunder, in the event of any inconsistency between the terms of this Section 6 and the
Shareholders’ Agreement, the terms of this Section 6 shall govern and control.

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     7. Restrictions on Stock.

          (a) Prohibition on Transfers. Except as otherwise approved by the Committee, or
pursuant to this subsection (a) or subsection (b) below, shares of Series C Preferred Stock and
Class B Common Stock acquired by a Participant pursuant to the vesting and/or exercise of any Award
granted hereunder may not be sold, transferred or otherwise disposed of prior to the expiration of
the Lock-Up Period. If requested by the underwriters managing any Qualifying IPO, each Participant
shall execute a separate agreement to the foregoing effect. The Company may impose stop-transfer
instructions with respect to the Series C Preferred Stock and/or Class B Common Stock subject to
the foregoing restriction until the end of such period. Notwithstanding anything herein to the
contrary, shares of Series C Preferred Stock and Class B Common Stock acquired pursuant to an Award
under this Plan and any Options granted pursuant to the Plan may be transferred (i) to or for the
benefit of any spouse, child or grandchild of the Participant, or (ii) to a trust or partnership
for the benefit of any of the foregoing, including transfers by will or the laws of descent and
distribution; provided, however, that it shall be a condition of each such
transfer, that (x) the transferee agrees to be bound by the terms of the Plan, the applicable award
agreement, and the Shareholders’ Agreement as though no such transfer had taken place, and that (y)
the Participant has complied with all applicable law in connection with such transfer.

          (b) Drag-Along Rights.

          (i) If the Investors are proposing to sell to one or more third parties fifty
percent (50%) or more of the equity ownership in the Company beneficially owned by them on
any date of determination, the Investors shall have the right to require each Participant to
sell, in accordance with the immediately following sentence hereof, all or a portion of such
Participant’s equity interest received in connection with an Award granted hereunder;
including the Option Stock and the Restricted Stock (but excluding any Option Stock
underlying an unvested Option), in such sale. In the event that the Investors require the
Participants to sell all or a portion of their equity interest received in connection with
an Award granted hereunder pursuant to this Section 7(b) such Participants shall be required
to include in such sale an amount of Restricted Stock and/or Option Stock equal to the
aggregate number of shares of Restricted Stock and/or Option Stock owned by such Participant
as of the date of the proposed sale multiplied by a fraction, the numerator of which shall
be the number of Company securities that the Investors are proposing to sell in such sale,
and the denominator of which is the aggregate Company securities owned by the Investors, in
each case, as of the date of the proposed sale. A Participant required to sell any shares of
Restricted Stock and/or Option Stock pursuant to this Section 7(b), shall be entitled to
receive the same per share consideration as received by the Investors for a comparable
equity security of the Company in such transaction, or, if no comparable securities are sold
in such transaction by the Investors, the Fair Market Value of such securities (less, in the
case of options, warrants or other convertible securities, the exercise or purchase price
thereof); provided, however, that if the equity securities of the Company
required to be sold by the Participant include Series C Preferred Stock, such per share
price shall be calculated assuming conversion of all Series C Preferred Stock and after
giving effect to any applicable liquidation preference and other applicable conversion
rights to all holders of such Series C Preferred Stock.

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The purchase price paid for any shares of stock sold pursuant to this Section 7(b) shall be
payable in the same form of consideration as received by the Investors, or in the discretion
of the Committee, such other consideration as the Committee deems equitably appropriate.

          (ii) To exercise the rights granted under this Section 7(b), the Investors shall
give each Participant a written notice, not less than fifteen (15) days prior to the
proposed sale, containing (i) the name and address of the proposed transferee(s) and (ii)
the proposed purchase price with respect to the shares of Restricted Stock and/or Option
Stock, terms of payment and other material terms and conditions of the offer of the proposed
transferee(s), including the expected closing date of the sale. Each Participant shall
thereafter be obligated to sell his or her shares of Restricted Stock and/or Option Stock to
the proposed transferee(s), in accordance with Section 7(b)(i) above.

          (iii) Notwithstanding anything contained in this Section 7(b), in the event that
all or a portion of the purchase price for the shares of Restricted Stock and/or Option
Stock being purchased consists of securities and the sale of such securities to any
Participant would, by virtue of the fact that such Participant is not an “accredited
investor” (within the meaning of Rule 501(a) under the Securities Act), require either a
registration under the Securities Act or the preparation of a disclosure document pursuant
to Regulation D under the Securities Act (or any successor regulation) or a similar
provision of any state securities law, then, at the option of the Investors, any one or more
of such Participants may receive, in lieu of such securities, the Fair Market Value of such
securities in cash.

          (c) Right of First Refusal.

          (i) Except for transfers (a) to or for the benefit of any spouse, child or
grandchild of the Participant, or (b) to a trust or partnership for the benefit of any of
the foregoing, including transfers by will or the laws of descent and distribution, if any
Participant (the “Selling Stockholder”) shall at any time desire to transfer all or
any part of his or her Option Stock and/or Restricted Stock, as permitted under the terms of
this Plan and the Shareholders’ Agreement, such Selling Stockholder shall first obtain a
bona fide written offer which such Selling Stockholder desires to accept (the “Outside
Offer”) to purchase all or any portion of such Selling Stockholder’s Option Stock and/or
Restricted Stock for a fixed cash price payable in full at the closing of such transaction.
The Outside Offer shall set forth its date, the proposed purchase price, the number of
shares of Option Stock and/or Restricted Stock that are proposed to be purchased and the
other terms and conditions upon which the purchase is proposed to be made, as well as the
name and address of the Prospective Purchaser. The Selling Stockholder shall transmit a copy
of the Outside Offer to the Company within thirty (30) days after the Selling Stockholder’s
receipt of the Outside Offer.

          (ii) As a result of the foregoing transmittal of the Outside Offer, the Selling
Stockholder shall be deemed to have offered in writing to sell all, but not less than all,
of such Selling Stockholder’s Option Stock and/or Restricted Stock to the Company that are
proposed to be purchased in the Outside Offer at the price and upon the

11

 

terms set forth in the Outside Offer. For a period of thirty (30) days after such deemed
offer by the Selling Stockholder to the Company, the Company shall have the option,
exercisable by written notice to the Selling Stockholder, to irrevocably accept the Selling
Stockholder’s offer, in whole and not in part, as to the Selling Stockholder’s Option Stock
and/or Restricted Stock.

          (iii) If, at the end of the option period described in subsection 7(c)(ii) hereof,
the Company has not exercised its option to purchase all of the Selling Stockholder’s Option
Stock and/or Restricted Stock that are proposed to be purchased in the Outside Offer, the
Selling Stockholder shall be free for a period of thirty (30) days thereafter to transfer up
to the number of shares of Option Stock and/or Restricted Stock that are proposed to be
purchased in the Outside Offer to the Prospective Purchaser at the price and upon the terms
and conditions set forth in the Outside Offer. If such Shares are not so transferred within
the aforementioned thirty (30) day period, the Selling Stockholder shall not be permitted to
sell such Option Stock and/or Restricted Stock without again complying with this Section
7(c).

          (iv) The right set forth in this Section 7(c) shall terminate immediately prior to
the closing of a Qualifying IPO.

          (v) The Company shall be permitted to assign the Right of First Refusal to
any Person.

          (d) Shareholders’ Agreement. Each Participant who receives Option Stock or
Restricted Stock pursuant to the Plan agrees to be bound by the terms and conditions contained in
the Shareholders’ Agreement prior to the receipt of such stock.

     8. Adjustment for Recapitalization, Merger, etc.

          (a) Capitalization Adjustments. The aggregate number of shares of Restricted Stock
and/or Option Stock covered by an Award shall be equitably and proportionally adjusted or
substituted, as determined by the Committee, as to the number, price or kind of a share of stock or
other consideration subject to the award (i) in the event of changes in the outstanding stock or in
the capital structure of the Company by reason of stock dividends, stock splits, reverse stock
splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or
other relevant changes in capitalization occurring after the date of grant of any shares of
Restricted Stock or Option Stock (including any Corporate Event); or (ii) in the event of any
change in applicable laws or any change in circumstances that results in or would result in any
substantial dilution or enlargement of the rights granted to, or available for, Participants in the
Plan.

          (b) Corporate Events.

          (i) Notwithstanding the foregoing, except as may otherwise be provided in a
Restricted Stock Agreement, in the event of a Corporate Event, in lieu of providing the
adjustment set forth above, the Committee may, in its discretion, cancel any or all unvested
shares of Restricted Stock as of the consummation of such Corporate Event, and provide that
holders of Restricted Stock so cancelled will receive a payment in

12

 

respect of cancellation of their Restricted Stock based on the amount of the per share
consideration being paid for the stock in connection with such Corporate Event. Payments to
holders pursuant to the preceding sentence shall be made in cash, or, in the sole
discretion of the Committee, in such other consideration necessary for a holder of
Restricted Stock to receive property, cash or securities as received by holders of Investor
Preferred Stock or such holder would have been entitled to receive upon the occurrence of
the transaction if the holder had been, immediately prior to such transaction, the holder
of the number of shares of Series C Preferred Stock and Class B Common Stock covered by the
Restricted Stock award at such time.

          (ii) Notwithstanding the foregoing, except as may otherwise be provided in an
Option Agreement, in the event of a Corporate Event, in lieu of providing the adjustment set
forth above, the Committee may, in its discretion, cancel any or all vested and/or unvested Options as of the consummation of such Corporate Event, and provide that holders of Options
so cancelled will receive a payment in respect of cancellation of their Options based on the
amount of the per share consideration being paid for the Option Stock in connection with
such Corporate Event, less the applicable exercise price; provided, however,
that holders of Options shall only be entitled to consideration in respect of cancellation
of such Options if the per share consideration less the applicable exercise price is greater
than zero. Payments to holders pursuant to the preceding sentence shall be made in cash, or,
in the sole discretion of the Committee, in such other consideration necessary for a holder
of an Option to receive property, cash or securities as such holder would have been entitled
to receive upon the occurrence of the transaction if the holder had been, immediately prior
to such transaction, the holder of the number of shares of Option Stock covered by the
Option at such time. Notwithstanding the foregoing, no such cancellation and cash-out
payment shall be permitted if such payment would cause the Options to fail to satisfy
section 409A of the Code.

          (c) Fractional Shares. Any such adjustment may provide for the elimination of
any fractional share which might otherwise become subject to an Award.

     9. Use of Proceeds.

     The proceeds received from the sale of Series C Preferred Stock and/or Class B Common Stock
pursuant to the Plan shall be used for general corporate purposes.

     10. Rights and Privileges as a Stockholder.

     Except as otherwise specifically provided in the Plan, no person shall be entitled to the
rights and privileges of stock ownership in respect of shares of Series C Preferred Stock and/or
Class B Common Stock which are subject to Awards hereunder until such shares have been issued to
that person.

     11. Employment or Service Rights.

     No individual shall have any claim or right to be granted an Award under the Plan or, having
been selected for the grant of an Award, to be selected for a grant of any other Award.

13

 

Neither the Plan nor any action taken hereunder shall be construed as giving any individual any
right to be retained in the employ or service of the Company or an Affiliate of the Company.

     12. Compliance With Laws.

     The obligation of the Company to deliver Series C Preferred Stock and/or Class B Common Stock
upon vesting and/or exercise of any Award shall be subject to all applicable laws, rules, and
regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any
terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer
to sell or to sell and shall be prohibited from offering to sell or selling any shares of Series C
Preferred Stock and/or Class B Common Stock pursuant to an Award unless such shares have been
properly registered for sale pursuant to the Securities Act with the Securities and Exchange
Commission or unless the Company has received an opinion of counsel, satisfactory to the Company,
that such shares may be offered or sold without such registration pursuant to an available
exemption therefrom and the terms and conditions of such exemption have been fully complied with.
The Company shall be under no obligation to register for sale or resale under the Securities Act
any of the shares of Series C Preferred Stock and/or Class B Common Stock to be offered or sold
under the Plan or any shares of Series C Preferred Stock and/or Class B Common Stock issued upon
exercise or settlement of Awards. If the shares of Series C Preferred Stock and/or Class B Common
Stock offered for sale or sold under the Plan are offered or sold pursuant to an exemption from
registration under the Securities Act, the Company may restrict the transfer of such shares and may
legend the Series C Preferred Stock and/or Class B Common Stock certificates representing such
shares in such manner as it deems advisable to ensure the availability of any such exemption.

     13. 83(b) Elections /Withholding Obligations.

          (a) Options. As a condition to the exercise of any Option, the Committee may require
that a Participant satisfy, through a cash payment by the Participant, or, in the discretion of the
Committee, through deduction or withholding from any payment of any kind otherwise due to the
Participant, or through such other arrangements as are satisfactory to the Committee, the minimum
amount of all Federal, state and local income and other taxes of any kind required or permitted to
be withheld in connection with such exercise. The Committee, in its discretion, may permit shares
of Series C Preferred Stock and/or Class B Common Stock to be used to satisfy tax withholding
requirements and such shares shall be valued at their Fair Market Value as of the exercise date of
the Option; provided, however, that the aggregate Fair Market Value of the number
of shares of Series C Preferred Stock and/or Class B Common Stock that may be used to satisfy tax
withholding requirements may not exceed the minimum statutory required withholding amount with
respect to such Option. Notwithstanding anything herein to the contrary, in the event that Options
are exercised upon a Change in Control in which the Participants do not obtain liquidity to pay
withholding taxes, the Company shall withhold a number of shares of Series C Preferred Stock and/or
Class B Common Stock with an aggregate Fair Market Value equal to the withholding obligation, and
will pay the cash withholding on behalf of the Participant.

          (b) Restricted Stock. Each Participant who receives a Restricted Stock grant shall
make an election under Section 83(b) of the Code with respect the such grant within thirty

14

 

(30) days following the date of grant. On the date of grant, Participant shall satisfy,
through a cash payment by the Participant, or, in the discretion of the Committee, through
deduction or withholding from any payment of any kind otherwise due to the Participant, or through
such other arrangements as are satisfactory to the Committee, the minimum amount of all Federal,
state and local income and other taxes of any kind required or permitted to be withheld in
connection with such the Participant’s election under Section 83(b). The Committee, in its
discretion, may permit shares of Series C Preferred Stock and/or Class B Common Stock to be used to
satisfy tax withholding requirements and such shares shall be valued at their Fair Market Value as
of the date of grant; provided, however, that the aggregate Fair Market Value of
the number of shares of Series C Preferred Stock and/or Class B Common Stock that may be used to
satisfy tax withholding requirements may not exceed the minimum statutory required withholding
amount with respect to such Restricted Stock.

     14. Amendment of the Plan or Awards.

          (a) Amendment of Plan. The Board at any time, and from time to time, may amend the
Plan; provided, however, that, at any time that any class of the Company’s
securities is listed on any national securities exchange or the NASDAQ National Market System,
without stockholder approval, the Board shall not make any amendment to the Plan which would
violate the stockholder approval requirements of such exchange on or market system, as applicable.

          (b) No Impairment of Rights. Rights under any Award granted before amendment of
the Plan shall not be impaired by any amendment of the Plan unless the Participant consents in
writing.

          (c) Amendment of Awards. The Committee, at any time, and from time to time, may amend
the terms of any one or more Awards; provided, however, that the rights under any
Award shall not be impaired by any such amendment unless the Participant consents in writing.

     15. Termination or Suspension of the Plan.

     The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan
shall terminate on the day before the tenth (10th) anniversary of the date the Plan is
adopted by the Board. No Awards may be granted under the Plan while the Plan is suspended or after
it is terminated.

     16. Effective Date of the Plan.

     The Plan is effective as of the Effective Date.

     17. Miscellaneous.

          (a) Participants Outside of the United States. The Committee may modify the
terms of any Award under the Plan made to or held by a Participant who is then a resident or
primarily employed outside of the United States in any manner deemed by the Committee to be
necessary or appropriate in order that such Award shall conform to laws, regulations and customs of
the country in which the Participant is then a resident or primarily employed, or so

15

 

that the value and other benefits of the Award to the Participant, as affected by foreign tax laws
and other restrictions applicable as a result of the Participant’s residence or employment abroad,
shall be comparable to the value of such Award to a Participant who is a resident or primarily
employed in the United States. An Award may be modified under this Section 17(a) in a manner that
is inconsistent with the express terms of the Plan, so long as such modifications will not
contravene any applicable law or regulation or result in actual liability under Section 16(b) of
the Exchange Act for the Participant whose Award is modified.

          (b) No Liability of Committee Members. No member of the Committee shall be personally
liable by reason of any contract or other instrument executed by such member or on his or her
behalf in his or her capacity as a member of the Committee nor for any mistake of judgment made in
good faith, and the Company shall indemnify and hold harmless each member of the Committee and each
other employee, officer or director of the Company to whom any duty or power relating to the
administration or interpretation of the Plan may be allocated or delegated, against any cost or
expense (including counsel fees) or liability (including any sum paid in settlement of a claim)
arising out of any act or omission to act in connection with the Plan unless arising out of such
person’s own fraud or willful bad faith; provided, however, that approval of the
Board shall be required for the payment of any amount in settlement of a claim against any such
person. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s certificate or articles
of incorporation or by-laws, each as may be amended from time to time, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them harmless.

          (c) Payments Following Accidents or Illness. If the Committee shall find that any
person to whom any amount is payable under the Plan is unable to care for his or her affairs
because of illness or accident, or is a minor, or has died, then any payment due to such person or
his or her estate (unless a prior claim therefor has been made by a duly appointed legal
representative) may, if the Committee so directs the Company, be paid to his or her spouse, child,
relative, an institution maintaining or having custody of such person, or any other person deemed
by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment.
Any such payment shall be a complete discharge of the liability of the Committee and the Company
therefor.

          (d) Governing Law. The Plan shall be governed by and construed in accordance with the
internal laws of the State of Delaware without reference to the principles of conflicts of laws
thereof.

          (e) Funding. No provision of the Plan shall require the Company, for the purpose of
satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or
other entity to which contributions are made or otherwise to segregate any assets, nor shall the
Company maintain separate bank accounts, books, records or other evidence of the existence of a
segregated or separately maintained or administered fund for such purposes. Participants shall have
no rights under the Plan other than as unsecured general creditors of the Company, except that
insofar as they may have become entitled to payment of additional compensation by performance of
services, they shall have the same rights as other employees under general law.

16

 

          (f) Reliance on Reports. Each member of the Committee and each member of the Board
shall be fully justified in relying, acting or failing to act, and shall not be liable for having
so relied, acted or failed to act in good faith, upon any report made by the independent public
accountant of the Company and its Affiliates and upon any other information furnished in connection
with the Plan by any person or persons other than such member.

          (g) Titles and Headings. The titles and headings of the sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than
such titles or headings, shall control.

* * *

17exv10w2

 

 Exhibit 10.2

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT is entered into as of the 10th day of February, 2005 (the
“Execution Date”), and (except as otherwise provided herein) is effective as of the March 10, 2005
(the “Effective Date”), by and between Broadview Networks Holdings, Inc. (the “Company”) and
Michael K. Robinson, an individual (the “Executive”) (hereinafter collectively referred to as the
“parties”).

     WHEREAS, the Company is engaged in the business of providing telecommunications, Internet and
related products and services in the States of New York, New Jersey and certain other states;
and

     WHEREAS, the Company desires to retain the services of the Executive on the terms set forth
herein; and

     WHEREAS, in order to induce the Executive to become an employee of the Company, the Company
desires by this writing to set forth the terms of the employment relationship of the Executive
with the Company.

     NOW, THEREFORE, in consideration of the respective agreements of the parties contained
herein, it is agreed as follows:

     1. Term. The initial term of employment under this Agreement shall be for the period
commencing on the Effective Date, and ending on the third anniversary thereof; provided,
however, that the term of this Agreement shall be extended for one (1) year at the end of the
initial term and on each anniversary thereafter unless the Company shall have given written notice
to the Executive at least sixty (60) calendar days prior thereto that the term of this Agreement
shall not be so extended; and provided, further, that if the Company provides such notice
and does not extend the term of this Agreement following the expiration of the initial term or any
renewal term, the Executive’s employment shall be terminated following the expiration of such
initial term or renewal term.

     2. Employment; Location of Employment. (a) The Executive shall be employed as the
most senior executive of the Company, holding the title Chief Executive Officer (“CEO”) of the
Company, and shall provide such services to the Company and its subsidiaries and affiliates as the
Company may reasonably request. The Executive shall report to the Board of Directors of the
Company (the “Board”). The Executive agrees to perform faithfully, industriously, and to the best
of the Executive’s ability, experience, and talents, all of the duties, responsibilities and
exercise the authority customarily performed, undertaken and exercised by an employee situated in
a similar position and to the reasonable satisfaction of the Board. Subject to the following
paragraph, such duties shall be provided at such places as the needs, business, or opportunities
of the Company and its subsidiaries and affiliates may require from time to time.

          (b) By July 31, 2005, the Executive shall arrange his affairs and lifestyle so that he can
perform his duties from the Company’s offices currently located at 115 Stevens Avenue, Valhalla,
New York or, upon the request of the Board, at such other principal corporate office location of
the Company as determined by the Board within ninety (90) calendar days after

-1-

 

the Effective Date (the “90-Day Office Location”) or at such other principal corporate office
location of the Company thereafter that is within a forty-five (45) mile radius of the 90-Day
Office Location (the “45-Mile Office Radius”).

          (c) Excluding periods of personal leave days to which the Executive is entitled, the
Executive agrees to devote reasonable attention and substantially all time during usual business
hours to the business and affairs of the Company to the extent necessary to discharge the
responsibilities assigned to the Executive hereunder.

     3. Base Salary. The Company agrees to pay or cause to be paid to the Executive during
the initial term of this Agreement and any subsequent renewal terms, a base salary at the rate of
$375,000 per annum in the 2005 calendar year (which amount shall be pro-rated based on the
Effective Date), $400,000 per annum in the 2006 calendar year and, thereafter, such other equal or
greater amount as the Board may from time to time determine (such amounts hereinafter referred to
as the “Base Salary”). Such Base Salary shall be payable in accordance with the Company’s
customary practices applicable to its executives.

     4. Signing Bonus and Annual Bonus. Within ten (10) business days after the Effective
Date, the Company shall pay or cause to be paid to the Executive a signing bonus in the amount of
$150,000, provided that if the Executive’s employment is terminated by the Company for
Cause or by the Executive without Good Reason prior to the first anniversary of the Effective
Date, then within thirty (30) calendar days after such termination, the Executive shall return to
the Company a portion of the signing bonus equal to $150,000 multiplied by a fraction, the
numerator of which is the number of calendar days remaining prior to the first anniversary of the
Effective Date and the denominator of which is three hundred and sixty-five (365), provided,
further, that with respect to such portion of the signing bonus, the Executive shall return to
the Company only an amount net of any taxes on such portion that were paid by the Executive and
with respect to which he is not entitled to a refund or credit. In addition, the Board or the
Compensation Committee thereof, in the sole discretion of the Board, shall set the target(s) and
cash bonus amount(s) for each fiscal year. It is the understanding and intention of the Company
and the Executive that, subject to the Company’s and the Executive’s performance during each
fiscal year and the approval of the Board or the Compensation Committee thereof, the Executive
will generally receive an annual bonus in a target range of approximately 30% to 100% of the
Executive’s Base Salary.

     5. Equity Incentive Benefits. As soon as practicable following the Effective Date,
the Company will issue to the Executive equity of the Company or other rights or interests that
will entitle the Executive to receive Class A Preferred Stock and Class B Preferred Stock
(together with Common Stock) of the Company having a liquidation preference value equal to
$750,000 at the time of issuance, but subject to vesting in three (3) equal installments of
$250,000 of such value on each of the first three anniversaries of such issuance and subject to
the terms and conditions of a restricted stock agreement to be determined by the Board or a
committee thereof. Unless restricted by applicable law or contract, the Company agrees to make a
loan to the Executive (a) on such terms as shall be mutually agreed upon by the Company and the
Executive, (b) at a market rate of interest, (c) collateralized by a first lien on the stock of
the Company owned by the Executive, and (d) in such amount as determined by the Board to
be necessary to pay

-2-

 

withholding taxes owed by the Executive in connection with the issuance to him of such preferred
 stock. In addition, as soon as practicable following the Effective Date, the Company
will propose to the Board a grant to the Executive of an equity option (the “Equity Option”) to
purchase up to 1.50% of the then-outstanding common equity of the Company under and subject to
the terms and conditions (including vesting and exercise price) of an equity incentive plan to
be established by the Company after the Effective Date, in any case as shall be determined by the
Board or a committee thereof and provided that the Executive’s participation in such plan is in
compliance with all state and federal laws.

     6. Employee Benefits. The Executive shall be entitled to participate in all
employee benefit plans, practices and programs maintained by the Company and made available to
employees generally. The Executive’s participation in such plans, practices and programs shall
be on the same basis and terms as are applicable to employees of the Company generally.

     7. Executive and Other Benefits.

          (a) Executive Benefits Generally. The Executive shall be entitled to participate in
all executive benefit or incentive compensation plans now maintained or hereafter established by
the Company for the purpose of providing compensation and/or benefits to executives of the
Company. Unless otherwise provided herein, the Executive’s participation in such plans shall be
on the same basis and terms as other similarly situated executives of the Company. No additional
compensation provided under any of such plans shall be deemed to modify or otherwise affect the
terms of this Agreement or any of the Executive’s entitlements hereunder.

          (b) Relocation-Moving Expenses. In connection with the Executive’s relocation from
North Carolina to the New York-New Jersey-Connecticut area, the Company shall also pay or
reimburse to or on behalf of the Executive (as applicable) such other reasonable relocation and
moving expenses as are appropriate under the circumstances, including reasonable house hunting
trip expenses, moving of personal possessions, closing costs on the sale of the Executive’s
current residence and closing costs on the purchase of a new residence comparable to the
Executive’s current residence.

          (c)
Travel, Transportation, Housing and Living Assistance. From the date hereof
through July 31, 2005, the Company shall pay to the Executive the actual cost of Executive’s
reasonable travel between the Company’s offices and his office in Charlotte, North Carolina (or
other appropriate locations) in one round trip per week, and the reasonable cost of Executive’s
temporary housing, transportation and living expenses in the vicinity of the Company’s offices.

          (d) Legal Fees. The Company shall pay the legal fees incurred by the Executive in
connection with the negotiation and execution of this Agreement, upon submission of the billing
statement or paid receipt for such services rendered by the Executive’s counsel, provided that
such amount shall not exceed fifteen thousand dollars ($15,000) in the aggregate.

     8. Expenses. The Executive shall be entitled to receive reimbursement of all
reasonably-incurred normal and customary expenses in connection with the performance of
his duties hereunder or for promoting, pursuing or otherwise furthering the business or
interests of the

-3-

 

Company, provided, that, such expenses are in accordance with the Company’s policies and
procedures.

     9. Personal Leave Days. The Executive shall be entitled to not less than four (4)
weeks of personal leave days per year, at such reasonable times as the Board shall in its
discretion permit.

     10. Termination. The Executive’s employment hereunder may be terminated under the
following circumstances:

          (a) Disability. The Company may terminate the Executive’s employment after having
established the Executive’s Disability. For purposes of this Agreement, “Disability” means a
physical or mental infirmity which impairs the Executive’s ability to substantially perform his
duties under this Agreement and which continues for a total of at least ninety (90) calendar days
(exclusive of personal leave days) in a one-hundred eighty (180) day period. The Executive shall
be entitled to the compensation and benefits provided for under this Agreement for any period
during the term of this Agreement during which the Executive is unable to work due to a physical
or mental infirmity until the establishment of the Executive’s Disability pursuant to this
subsection.

          (b) Cause. The Company, acting by its Board of Directors, may terminate the
Executive’s employment for “Cause.” A termination for Cause shall mean discharge by the Company by
reason of the following: (i) the Executive’s conviction of, or a plea of nolo contendere to, any
act which constitutes a felony offense under applicable law in connection with the performance of
the Executive’s obligations on behalf of the Company or which affects the Executive’s ability to
perform the Executive’s obligations as an employee of the Company or under this Agreement or any
non-competition agreement, confidentiality agreement or like agreement or covenant between the
Executive and the Company or which materially and adversely affects the reputation and business
activities of the Company; (ii) the Executive’s willful misconduct in connection with the
performance of the Executive’s duties and responsibilities as an employee of the Company; (iii)
the Executive’s commission of an act of embezzlement, fraud or dishonesty which results in a loss,
damage or injury to the Company; (iv) the Executive’s substantial and continuing gross negligence
in the performance of the Executive’s duties as an employee of the Company; (v) the Executive’s
knowing unauthorized use or unauthorized disclosure of any trade secret or confidential
information of the Company which adversely affects the business of the Company; provided, that any
disclosure of any trade secret or confidential information of the Company to a third party in the
ordinary course of business who signs a confidentiality agreement shall not be deemed a breach of
this subsection; (vi) substance or alcohol abuse for which the Executive fails to undertake and
maintain treatment within five (5) calendar days after requested in writing by the Company; (vii)
the Executive’s continuing material failure or refusal to perform the Executive’s duties in
accordance with the terms of this Agreement; or (viii) the Executive’s failure to perform his
duties at the 90—Day Office Location or a location within the 45—Mile Office Radius on and after
July 31, 2005.

          Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for
Cause for any reason enumerated in this Section 10(b), without (i) written notice

-4-

 

provided to the Executive not less than fourteen (14) calendar days prior to any final
determination of Cause by the Board setting forth the Company’s intention to consider
terminating the Executive for Cause and including a statement generally setting forth the basis
for such termination for Cause; (ii) an opportunity for the Executive to be heard before the Board
prior to any final determination of Cause by the Board (it being understood that counsel for
the Executive may accompany the Executive to such hearing as an observer); and (iii) a duly adopted
resolution of the Board that the actions of the Executive constituted Cause. Any purported
termination of employment of the Executive by the Company which does not meet each and every
substantive and procedural requirement of this paragraph shall be treated for all purposes under
this Agreement as a termination of employment without Cause unless and until such substantive
and procedural requirements are
satisfied.

          (c) Good Reason. The Executive may terminate his employment by written notice by the
Executive to the Company of a termination for Good Reason. “Good Reason” shall mean the occurrence
of any of the following events, without the express written consent of the Executive, unless such
events are fully corrected in all material respects by the Company within thirty (30) calendar
days following written notification by the Executive to the Company that the Executive intends to
terminate his employment hereunder for one of the reasons set forth below, provided that the
Executive provides such notice to the Company within sixty (60) calendar days after the first
occurrence of the events described below:

               (i) any reduction or diminution (except temporarily during any period of physical or
mental incapacity) in the Executive’s titles or a material reduction or diminution in the
Executive’s authorities, duties or responsibilities or reporting requirements with the
Company including but not limited to (A) a failure to elect the Executive to the Board
following the expansion of the Board by two or more directors over the number of directors
on the Effective Date; (B) from and after such time that the Executive is elected to the
Board, removal of the Executive from the Board, except if such removal is (1) necessary as
a result of legal or regulatory requirements, (2) based on a breach of fiduciary duty or
(3) based upon any event that would constitute Cause; or (C) the assignment to the Chair of
the Board of the material authorities, duties or responsibilities normally assigned to the
CEO; provided that if the Executive is Chair of the Board, removal or non-reelection of him
to such position shall not be Good Reason;

               (ii) a material breach by the Company of any provisions of this Agreement, including,
but not limited to, any reduction in any part of the Executive’s Base Salary or a reduction
of the annual bonus paid to the Executive to at least 25% below the minimum target
described in Section 4 in each of two consecutive years unless such reduction was on the
basis of a material under-performance by the Company or the Executive that is described to
the Executive in writing;

               (iii) the failure of any successor to the Company to assume and agree to perform this
Agreement; or

-5-

 

               (iv) if, after July 31, 2005, the Executive is required to relocate to a
principal place of employment other than as described in Section 2(b) without the
Executive’s consent.

          (d) Notice of Termination. Any purported termination by the Company or by
the Executive shall be communicated by a written Notice of Termination to the other party.
For purposes of this Agreement, a “Notice of Termination” shall mean a notice which indicates
the specific termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated. For purposes of this Agreement, no such
purported termination of employment shall be effective without such Notice of Termination.

          (e) Termination Date, Etc. “Termination Date” shall mean in the case of the
Executive’s death, his date of death, or in all other cases, the date specified in the Notice
of Termination subject to the following:

               (i) If the Executive’s employment is terminated by the Company for Cause or due to
Disability, the date specified in the Notice of Termination given to the Executive; and

               (ii) If the Executive’s employment is terminated by the Executive, the date
specified in the Notice of Termination shall not be less than sixty (60) calendar days
nor more than seventy-five (75) calendar days from the date the Notice of Termination is
given to the Company.

     11. Compensation Upon Termination. Upon termination of the Executive’s employment
during the term of this Agreement, the Executive shall be entitled to the following benefits:

          (a) If the Executive’s employment is terminated by the Company for Cause or
Disability or by the Executive other than for Good Reason, or by reason of the Executive’s
death,  the Company shall pay the Executive all amounts earned or accrued hereunder through
the Termination Date but not paid as of the Termination Date, including (i) Base Salary, (ii)
reimbursement for any and all monies advanced or expenses incurred in connection with the
Executive’s employment for reasonable and necessary expenses incurred by the Executive on
behalf of the Company for the period ending on the Termination Date, (iii) vacation pay, (iv)
any unpaid bonuses or incentive compensation related to the prior fiscal year and (v) any
previous compensation which the Executive has previously deferred (including any interest
earned or credited thereon) (collectively, “Accrued Compensation”). The Executive’s
entitlement to any other compensation or benefits shall be determined in accordance with the
Company’s employee benefit plans and other applicable programs and practices then in effect.

          (b) If the Executive’s employment by the Company shall be terminated by the
Company other than for Cause, death or Disability, or by the Executive for Good Reason, or
if the Company fails to extend the Agreement following the expiration of the initial term or any
subsequent renewal term, then the Executive shall be entitled to the benefits provided
below:

-6-

 

               (i) the Company shall pay the Executive all Accrued Compensation;

               (ii) provided that the Executive shall have executed a general release of, and waiver of
claims against, the Company and its subsidiaries, affiliates, directors, officers, employees and
agents, excluding claims for contribution, indemnity, continuation to coverage under directors and
officers liability insurance and the like, and that such release is effective, then the Company
shall pay the Executive as severance pay and in lieu of any further salary for periods, subsequent
to the Termination Date, an amount in cash equal to either 150% (if the Termination Date occurs on
or prior to the second anniversary of the Effective Date) or 100% (if the Termination Date occurs
after the second anniversary of the Effective Date) of the sum of (a) then-current Base Salary
and (b) the average of the annual cash performance bonuses paid to the Executive (i.e.,
excluding any signing or other non-performance bonuses) with respect to the immediately three (3)
preceding fiscal years (or, if less than three (3), then the number of years that the Executive
shall have been employed by the Company); provided that with respect to the Executive’s first year
of employment, such amount described in clause (b) of this Section 11(b)(ii) shall include the
greater of the signing bonus or the actual bonus for such year; and

               (iii) any unvested equity incentive benefits issued or granted to the Executive pursuant
to Section 5 shall immediately vest in full as of the Termination Date.

          (c) The amounts provided for in Sections 11(a) and 11(b)(i) shall be paid within fifteen
(15) business days after the Termination Date and the amounts provided for in Section
11(b)(ii) shall be paid ratably in accordance with the Company’s customary practices with
respect to Base Salary over either the eighteen (18) month period (if the Termination Date
occurs on or prior to the second anniversary of the Effective Date) or twelve (12) month period
(if the Termination Date occurs after the second anniversary of the Effective Date) immediately
following the Termination Date.

          (d) The Executive shall not be required to mitigate the amount of any payment provided for
in this Agreement by seeking other employment or otherwise and no such payment
shall be offset or reduced by the amount of any compensation or benefits provided to the Executive
in any subsequent employment.

     (e) (i) In the event it shall be determined that any payment (other than the
payment provided for in this Section 11(e)) or distribution of any type to or for
the benefit of the Executive, by the Company, any affiliate of the Company, 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”), is or will be subject to the excise
tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Executive shall be
entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such
that after payment by the Executive of all taxes, including any income tax, employment
tax or Excise Tax, imposed upon the Gross-Up Payment, the Executive retains an amount of
the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments. For

-7-

 

purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay
federal, state and local income taxes and employment taxes at the highest marginal rate of
federal, state and local income taxation and employment taxation in the calendar year in which the
Gross-Up Payment is to be made and/or the calendar year in which the Termination Date occurs, as
applicable, net of the maximum reduction in federal income taxes that may be obtained from the
deduction of such state and local taxes.

          (ii) All mathematical determinations, and all determinations as to whether any of the Total
Payments are “parachute payments” (within the meaning of Section 280G of the Code), that are
required to be made under this Section 11(e), including determinations as to whether a Gross-Up
Payment is required, the amount of such Gross-Up Payment and amounts relevant to the last sentence
of this Section 11(e)(ii), shall be made by a nationally-recognized accounting firm selected by
the Company (the “Accounting Firm”), which shall provide its determination (the “Determination”),
together with detailed supporting calculations regarding the amount of any Gross-Up Payment and any
other relevant matter, both to the Company and the Executive by no later than ten (10) business
days following the Termination Date, if applicable, or such earlier time as is requested by the
Company or the Executive. If a Gross-Up Payment is determined to be payable, it shall be paid to
the Executive within ten (10) business days after the Determination (and all accompanying
calculations and other material supporting the Determination) is delivered to the Company by the
Accounting Firm. Any determination by the Accounting Firm shall be binding upon the Company and the
Executive, absent manifest error. 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 which should not have been made
(“Overpayments”). In either such event, the Accounting Firm shall determine the amount of the
Underpayment or Overpayment that has occurred. In the case of an Underpayment, the amount of such
Underpayment (together with any interest and penalties payable by the Executive as a result of such
Underpayment) shall be promptly paid by the Company to or for the benefit of the Executive. In the
case of an Overpayment, the Overpayment shall constitute a loan by the Company to the Executive,
payable on the fifth day after demand by the Company (together with interest at the rate provided
in Section 1274(b)(2)(B) of the Code). The fees and expenses of the Accounting Firm shall be paid
by the Company.

     12. Employee Covenants.

     (a) Confidential Information. (i) The Executive hereby recognizes and acknowledges
that, in and as a result of the provision of services to the Company, he will receive, and
previously has received, confidential and proprietary information of and regarding the Company,
its business activities and the business activities of the Company’s subsidiaries and affiliates.
Accordingly, as a material inducement for the Company to enter into this Agreement and in
consideration of Executive’s retention and the payment to the Executive of the compensation
herein, the Executive hereby agrees to hold in strictest confidence and not to use for his own
benefit or that of any third party or

-8-

 

to intentionally or negligently publish or disclose, directly or indirectly, in a manner
which could be harmful to the Company or its subsidiaries and affiliates, any “Confidential
Information.” For purposes of this Agreement, intending that the term shall be broadly
construed to include anything that may be protected as a trade secret under applicable law,
“Confidential Information” shall mean all information, whether communicated in writing,
electronically, orally or otherwise, and all documents and other tangible materials which
record information, relating to the operation, financial status, business, product
development, marketing/promotional activities, contractual relationships with customers and
suppliers, relationships with directors, officers and employees, or internal policies and
procedures of the Company, which has been or is from time to time created or learned by,
disclosed to or known by the Executive as a consequence of his service to the Company,
whether or not pursuant to this Agreement.

          (ii) The restrictions on disclosure by the Executive of Confidential Information shall
not apply to (A) information which at the time of disclosure was generally available to the
public; (B) information which is published or otherwise becomes available to the public
through means other than an act or omission of the Executive; or (C) information which was
previously known to the Executive free of any obligation to keep it confidential.
Notwithstanding anything to the contrary herein, Executive may disclose Confidential
Information (A) if required to do so by law, or (B) if ordered to do so by a court or other
governmental authority of competent jurisdiction; provided, however, that the Executive
shall, unless prohibited from so doing, provide the Company prior written notice of any
such mandated disclosure and afford the Company an opportunity to contest the disclosure
and to itself limit the extent of the disclosure to the maximum extent practicable.

          (iii) Confidential Information disclosed to the Executive is and shall remain the
property of the Company. By disclosing Confidential Information to the Executive, the
Company does not relinquish any of its proprietary rights and interests therein and hereby
specifically reserve all such proprietary rights and interests to said Confidential
Information. The Executive shall return, or, subject to applicable law, at the sole
discretion of the Company, destroy, all Confidential Information and all copies thereof,
including, without limitation, written and electronic copies, as well as all summaries,
notes, memoranda, plans, records, reports, computer tapes, printouts and software or other
documents, materials or things containing Confidential Information, to the Company upon the
termination of this Agreement or promptly upon the written request of the Company for any
reason and at any other time.

          (b) Inventions and Patents. The Executive acknowledges that all inventions,
innovations, improvements, developments, methods, designs, analyses, drawings, reports and all
similar or related information (whether patentable or not) which relate to the actual or
anticipated business, research and development or existing or future products or services of the
Company and its subsidiaries and affiliates and which are conceived, developed or made by him
solely or jointly with others during the term of the Agreement (“Work Product”) belong to the
Company. The Executive shall promptly disclose such Work Product to the Board and perform all
actions reasonably requested by the Board (whether during or after the term of the Agreement) to

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establish and confirm such ownership (including, without limitation, assignments, powers of
attorney and other instruments) without additional compensation to the Executive.

          (c) Non-Competition. In consideration of the compensation to be paid to the
Executive hereunder, the Executive agrees that:

     (i) during the period beginning on the Effective Date and ending either (A)
eighteen (18) months following the Termination Date (if the Executive’s termination
is described in Section 11(b) and such Termination Date occurs on or prior to the
second anniversary of the Effective Date) or (B) twelve (12) months following the
Terminate Date (for all other terminations of the Executive) (the “Non-Competition
Period”), he shall not, whether individually or in his capacity as a director,
officer, manager, member, partner, shareholder, employee, consultant, agent or
representative of or to a person or entity engage directly or indirectly in any
business engaged in the provision of the telecommunications services or other
services provided by the Company or any of their subsidiaries and downstream
affiliates as of the Effective Date or at any time during the term of the Agreement
in any state in which the Company or any of its subsidiaries and downstream
affiliates provided such services to the extent such services in each such state
accounted for greater than five percent (5%) of the Company’s revenues; provided,
however, that ownership of less than one percent (1%) of the outstanding stock of
any publicly-traded corporation shall not be deemed to violate this subsection; and

     (ii) during the period starting on the Effective Date and ending on the second
anniversary of the Termination Date, the Executive shall not (A) whether
individually or in his capacity as a director, officer, manager, member, partner,
shareholder, employee, consultant, agent or representative of or to a person or
entity, solicit or otherwise endeavor to entice away, any person or entity who,
during the term of the Agreement and at any time during the six (6) months prior to
the termination of the Executive’s services hereunder, is or was an officer,
employee, sales agent, consultant, customer or supplier of the Company or its
subsidiaries and affiliates, or (B) either directly or indirectly, alone or in
conjunction with another party, interfere with or harm, or attempt to interfere
with or harm, the relationship of the Company or its subsidiaries and affiliates
(including the termination of such relationship or causing the purchase of services
from a competitor) with any person or entity who, during the term of the Agreement,
and at any time during the six (6) months prior to the termination of the
Executive’s services hereunder, is or was a current employee, sales agent,
consultant, customer or supplier of the Company or its subsidiaries and affiliates
or otherwise had a business relationship with the Company or its subsidiaries and
affiliates other than the Executive’s secretary/administrative assistant.

          (d) Nondisparagement; Cooperation. The Executive shall not, at any time
during his employment with the Company or thereafter, make any public or private statement to
the news media, to any Company competitor or client, or to any other individual or entity, if
such statement would disparage any of the Company, any of their respective businesses or any
director

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or officer of any of them or such businesses or would have a deleterious effect upon the
interests of any of such businesses or the stockholders or other owners of any of them;
provided, however that the Executive shall not be in breach of this restriction if such statements consist solely
of private statements made to any officers, directors or employees of the Company by the Executive
in the course of carrying out his duties pursuant to this Agreement or, to the extent
applicable, his duties as a director or officer; and provided further that nothing contained in this Section
12(d) or in any other provision of this Agreement shall preclude the Executive from making any statement
a in good faith that is required by law, regulation or order of any court or regulatory
commission, department or agency.

          (e) The parties hereto agree that the Company would suffer irreparable harm
from a breach by the Executive of any of the covenants or agreements contained herein and that
money damages would not be an adequate remedy for any such breach. In the event of a breach or
threatened breach by the Executive of any of the provisions of this Section 12, the Company or
its successors or assigns, in addition to all other rights and remedies existing in its favor,
shall be entitled to specific performance and/or injunctive or other equitable relief from any
court of competent jurisdiction in order to enforce or prevent any violations of the provisions
hereof without posting any bond or other security. Notwithstanding the foregoing, a grant of
equitable relief in favor of the Company pursuant to this Section 12(e) shall not be
determinative of any claims made by the Executive for money damages with respect to services
rendered by the Executive under this Agreement.

          (f) The Executive recognizes, acknowledges and agrees that the terms and conditions of this
Section 12 are reasonable and properly required for the adequate protection of the Company’s
business, and do not preclude the Executive from pursuing the Executive’s livelihood.

          (g) If, at the time of enforcement of any of the provisions of this Section 12, a court
holds that the restrictions stated therein are unreasonable under the circumstances then
existing, the parties hereto agree that the maximum period, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period, scope or area.

          (h) The Executive agrees that the covenants made in Section 12 shall each be construed as
an agreement independent of any other provision of this Agreement and each shall survive any
order of a court of competent jurisdiction terminating any other provision of this Agreement.

     13. Indemnification. Effective as of
the Execution Date, the Company shall indemnify
the Executive to the fullest extent authorized or permitted by applicable law, as now or hereafter
in effect, with respect to any and all acts taken or omitted to be taken by the Executive on
behalf or for the benefit of the Company or otherwise in connection with the Executive’s entering
into and performance of this Agreement, the Executive’s employment by the Company and/or
performance of his duties as the Chief Executive Officer of the Company. The right to
indemnification under this Section 13 shall continue as to the Executive even after he has ceased
to be an officer of the Company with respect to acts and omissions during the term of this
Agreement and shall inure to the benefit of his heirs, executors and legal representatives;
provided, however, that, except for

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proceedings to enforce rights to indemnification, the Company shall not be obligated to indemnify
the Executive (or his heirs, executors or legal representatives) in connection with a proceeding
(or part thereof) initiated by such person unless such proceeding (or part thereof) was authorized or
consented to by the Board of Directors. The right to indemnification conferred upon the Executive
by this Section 13 shall include the right to be paid by the Company the expenses incurred in
defending or otherwise participating in any proceeding in advance of its final disposition upon
receipt by the Company of an undertaking by or on behalf of the Executive to repay the amount
advanced if it shall ultimately be determined that the Executive is not entitled to be indemnified
by the Company under this Section 13. The right to indemnification and to the advancement of
expenses conferred in this Section 13 shall not be exclusive of any other right that the Executive
may have or hereafter acquire under the Certificate of Incorporation of the Company (as amended
from time to time), the Bylaws of the Company (as amended from time to time), any statute,
agreement, vote of shareholders or disinterested directors or
otherwise.

     14. Entire Agreement. No agreement or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either party which
are not expressly set forth in this Agreement. This Agreement contains the complete agreement
between the parties hereto and supersedes any prior understandings, agreements or representations
by or between the parties, written or oral, which may have related to the subject matter hereof
in any way.

     15. Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the Company and their affiliates, successors and assigns and shall be binding
upon and inure to the benefit of the Executive and his legal representatives and assigns;
provided that in no event shall the Executive’s obligations to perform future services for the
Company be delegated or transferred by the Executive without the prior written consent of the
Company (which consent may be withheld in their sole discretion). It is not the intent of the
parties that there be any third party beneficiaries of this Agreement, except as expressly
provided in this Agreement. In connection with a merger, consolidation or transfer or sale of
all or substantially all of the assets of the Company, the Company may assign or transfer its
rights hereunder to any of its affiliates or to a successor entity.

     16. Amendment and Waiver. Any provision of this Agreement may be amended, waived
or terminated only in writing and signed by the Company and the Executive. No waiver of any
provision hereunder or any breach or default thereof shall extend to or affect in any way any
other provision or prior or subsequent breach or default. No course of dealing between the
parties shall be deemed to affect or to modify, amend or discharge any provision or term of
this Agreement. No delay on the part of the Company or the Executive in the exercise of any of
their respective rights or remedies shall operate as a waiver thereof, and no single or partial
exercise by the Company or the Executive of any such right or remedy shall preclude other or
further exercises thereof. A waiver of right or remedy on any one occasion, or with regard to
one provision, shall not be construed as a bar to, or waiver of, any such right or remedy on
any other occasion or with regard to any other provision.

     17. Governing Law. All matters relating to the interpretation, construction,
validity and enforcement of this Agreement shall be governed by and construed in accordance
with the

-12-

 

domestic laws of the State of New York without giving effect to any choice or conflict of law
provision or rule (whether of the State of New York or any other jurisdiction) that would cause
the application of laws of any jurisdiction other than the State of New York.

     18. 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 prohibited by or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement; provided, that if
a court having competent jurisdiction shall find that the covenant contained in Sections 12
is not reasonable, such court shall have the power to reduce the duration and/or geographic
area and/or scope of such covenant, and the covenant shall be enforceable in this reduced
form.

     19. Jury Trial. Each of the parties hereto herby irrevocably waives all rights to
trial by jury in any action, proceeding or counterclaim arising out of or relating to this
Agreement.

     20. No Strict Construction. The language used in this Agreement shall be deemed to
be the language chosen by the parties hereto to express their mutual intent, and no rule of
strict construction shall be applied against any party.

     21. Notice. All notices, demands and other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be in writing and shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt), (b) three (3)
business days after sent by e-mail (with such communication to be in PDF format), with electronic
confirmation of sending, provided that a copy is sent on the same day by registered mail, return
receipt requested, in each case to the appropriate mailing and e-mail addresses set forth below
(or to such other mailing and e-mail addresses as either party may designate by notice to the
other party in accordance with this provision), or (c) when actually delivered if sent by any
other method that results in delivery (with written confirmation of receipt):

Notices to Holdings:

Broadview Networks Holdings, Inc.

59 Maiden Lane, 27th Floor

New York, NY 10038

212-400-1000

Attention: Chair, Board of Directors

Phone:       (212) 400-1000

Facsimile:  (212) —

Email:         [ ]

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with copies to:

MCG Capital Corporation

1100 Wilson Boulevard, Suite 3000

Arlington, Virginia 22209

Attention: President, Investment Administration and General Counsel

Phone:       (703) 247-7500

Facsimile   (703) 247-7545

Email:         srubenstein@mcgcapital.com

Notices to Executive:

Michael K. Robinson

17324 Wavecrest Court

Cornelius, NC 28031

Phone:       (704) 896-3083

Facsimile:  (704) 377-1897

Email:         robinsonajy@aol.com

Either party to this Agreement may change its or his address of record by providing written notice
to the other party as provided in this Section.

     22. Captions. The headings and captions used in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The
use of the word “including” herein means “including without limitation.”

     23. Counterparts. This Agreement may be executed in multiple counterparts and by
facsimile, any one of which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same effective and enforceable instrument.

[Balance of Page Intentionally Blank]

-14-

 

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

COMPANY:

	 	 	 	 	 	 	 
	BROADVIEW NETWORKS HOLDINGS, INC.	 	 
	 
	By:

	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	THE EXECUTIVE
	 	 	 	 
	 
	 

	 	 

	 	 
	Michael K. Robinson	 	 	 	 

-15-

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