Document:

exv10w5

Exhibit 10.5

Stock Option

Granted by

EVANS BANCORP, INC.

under the

EVANS BANCORP, INC. 2009 LONG TERM EQUITY INCENTIVE PLAN

     This option (“Option”) is and shall be subject in every respect to the provisions of 2009
Long-Term Equity Incentive Plan (as may be amended from time to time) (the “Plan”), of Evans
Bancorp, Inc. (the “Company”), which is incorporated herein by reference and made a part hereof,
subject to the provisions of this Agreement. A copy of the Plan has been provided to each person
granted an Option pursuant to the Plan. The holder of this Option (the “Participant”) hereby
accepts this Option, subject to all the terms and provisions of the Plan and this Agreement, and
agrees that all decisions under and interpretations of the Plan and this Agreement by the
Compensation Committee (“Committee”) or the Board shall be final, binding and conclusive upon the
Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.
Except where the context otherwise requires, the term “Company” shall include the parent and all
present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the
Internal Revenue Code of 1986, as amended or replaced from time to time (the “Code”). Capitalized
terms used herein but not defined shall have the same meaning as in the Plan.

	 	1.	 	Name of Participant:                
                     
                     
                  
                     
                     
                     
                  
    
	 
	 	2.	 	Date of Grant:                
                     
                     
                  
                      
                      
                    
                 
                    
                     
  
	 
	 	3.	 	Total number of shares of Company common stock, $0.50 par value (“Common Stock”) that
may be acquired pursuant to this Option:              
                     
                     
                  
                     
                     
                     
   

(subject to adjustment pursuant to Section 0 below).

	 	•	 	Number of Incentive Stock Options:              
                    
                     
                   
                    
                    
                     
     
	 
	 	•	 	Number of Non-qualified Options:            
                   
                   
                   
     
                   
\                   
                    
        

	 	4.	 	Exercise price per share:           
                   
                     
                     
                     
                     
                     
     

(subject to adjustment pursuant to Section 0 below)
	 
	 	5.	 	Expiration Date of Option:               
                      
                      
               
                  
                   
                    
         
	 
	 	6.	 	Vesting Schedule. Except as otherwise provided in this Agreement, this Option becomes
first exercisable, subject to the Option’s expiration date, in installments as follows:

	 	(i)	 	Twenty-five percent (25%) of the number of shares subject to
the Option are first exercisable on the first anniversary of the date of grant
(i.e.,                     
); and
	 
	 	(ii)	 	Twenty-five percent (25%) of the number of shares subject to
the Option are first exercisable on the second anniversary of the date of grant
(i.e.,                     
); and
	 
	 	(iii)	 	Twenty-five percent (25%) of the number of shares subject to
the Option are first exercisable on the third anniversary of the date of grant
(i.e.,                     
); and
	 
	 	(iv)	 	Twenty-five percent (25%) of the number of shares subject to
the Option are first exercisable on the fourth anniversary of the date of grant
(i.e.,                     
); and

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The right of exercise shall be cumulative. This Option may not be exercised at any time on or
after the Option’s expiration date. Vesting will automatically accelerate in the event of the
Participant’s death, Disability, Retirement or Involuntary Termination following a Change in
Control.

	 	7.	 	Exercise Procedure.

	 	7.1	 	Delivery of Notice of Exercise. This Option shall be exercised in whole or in
part by the Participant’s delivery to the Company of written notice (the “Notice of
Exercise” attached hereto as Exhibit A) setting forth the number of shares with respect
to which this Option is to be exercised, together with payment by cash or other means
acceptable to the Committee, including:

	 	(i)	 	by tendering, either actually or by attestation, shares of
Common Stock valued at Fair Market Value (as defined in Section 7.2 hereof) as
of the day of exercise;
	 
	 	(ii)	 	by irrevocably authorizing a third party, acceptable to the
Committee, to sell shares of Common Stock (or a sufficient portion of the
 shares) acquired upon exercise of the Option and to remit to the Company a
sufficient portion of the sale proceeds to pay the entire exercise price and
any tax withholding resulting from such exercise;
	 
	 	(iii)	 	by personal, certified or cashier’s check, or
	 
	 	(iv)	 	by other property deemed acceptable by the Committee; or
	 
	 	(v)	 	by any combination thereof.

	 	7.2	 	“Fair Market Value” means, with respect to a share of Common Stock on a
specified date:

	 	(i)	 	the final reported sales price on the date in question (or if
there is no reported sale on such date, on the last preceding date on which any
reported sale occurred) as reported in the principal consolidated reporting
system with respect to securities listed or admitted to trading on the
principal United States securities exchange on which the shares of Common Stock
are listed or admitted to trading, as of the close of the market in New York
City and without regard to after-hours trading activity; or
	 
	 	(ii)	 	if the shares of Common Stock are not listed or admitted to
trading on any such exchange, the closing bid quotation with respect to a share
of Common Stock on such date, as of the close of the market in New York City
and without regard to after-hours trading activity, or, if no such quotation is
provided, on another similar system, selected by the Committee, then in use; or
	 
	 	(iii)	 	if (i) and (ii) are not applicable, the Fair Market Value of a
share of Common Stock as the Committee may determine in good faith and in
accordance with Code Section 422.

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	 	8.	 	Delivery of Shares.

	 	8.1	 	Delivery of Shares. Delivery of shares of Common Stock upon the exercise of
this Option shall be subject to the following:

	 	(i)	 	Delivery of shares of Common Stock shall comply with all
applicable laws (including, the requirements of the Securities Act), and the
applicable requirements of any securities exchange or similar entity.
	 
	 	(ii)	 	The issuance of shares of Common Stock pursuant to the exercise
of this Option may be effected on a non-certificated basis, to the extent not
prohibited by applicable law or the applicable rules of any stock exchange.

	 	9.	 	Change in Control.

	 	9.1	 	In the event of an Involuntary Termination of Employment following a Change in
Control, all Options held by the Participant will become fully exercisable, subject to
the expiration provisions otherwise applicable to the Option.
	 
	 	9.3	 	A “Change in Control” shall be deemed to have occurred as provided in Section
5.2 of the Plan.

	 	10.	 	Adjustment Provisions.

	 	10.1	 	This Option, including the number of shares subject to the Option and the
exercise price, shall be adjusted upon the occurrence of the events specified in, and
in accordance with the provisions of, Section 4.4 of the Plan.

	 	11.	 	Termination of Option and Accelerated Vesting.

	 	11.1	 	This Option shall terminate upon the Option’s expiration date, or earlier as
follows:

	 	(i)	 	Death. This Option shall vest and become exercisable in full
in the event of the Participant’s termination of employment by reason of the
Participant’s death while this Option is unexercised. This Option may
thereafter be exercised by the legal representative or legatee of the
Participant for a period of one year from the date of death, subject to
termination on the expiration date of this Option, if earlier.
	 
	 	(ii)	 	Disability. This Option shall vest and become exercisable in
full in the event of the Participant’s termination of employment by reason of
Disability while this Option is unexercised. This Option may thereafter be
exercised for a period of one year from the date of such termination of Service
by reason of Disability, subject to termination on the Option’s expiration
date, if earlier. The Committee shall have sole authority and discretion to
determine whether the Participant’s employment has been terminated by reason of
Disability.
	 
	 	(iii)	 	Retirement. If the Participant’s employment terminates by
reason of the Participant’s Retirement while this Option is unexercised, this
Option shall vest and become exercisable in full, and may thereafter be
exercised for a period of one year from the date of such termination, subject
to termination on the Option’s expiration date, if earlier.
	 
	 	(iv)	 	Termination for Cause. If the Participant’s employment has
been terminated for Cause, this Option shall immediately terminate and be of no
further force and effect. The Board

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	 	 	 	of Directors shall have sole authority and discretion to determine whether
the Participant’s employment has been terminated for Cause.

	 	(v)	 	Other Termination. If the Participant’s employment terminates
for any reason other than death, Disability, Retirement or for Cause, this
Option may thereafter be exercised, to the extent it was exercisable at the
time of such termination, for a period of three months following termination,
subject to termination on the Option’s expiration date, if earlier.
	 
	 	(vi)	 	Incentive Option Treatment. No Option shall be eligible for
treatment as an incentive option in the event such Option is exercised more
than three months following termination of employment, or one year following
termination of employment due to death or Disability and provided further, in
order to obtain incentive option treatment for Options exercised by heirs or
devisees of a Participant, the Participant’s death must have occurred while
employed or within three (3) months of termination of employment.

	 	12.	 	Miscellaneous.

	 	12.1	 	No Option shall confer upon the Participant thereof any rights as a stockholder
of the Company prior to the date on which the individual fulfills all conditions for
receipt of such rights. This Agreement may not be amended or otherwise modified unless
evidenced in writing and signed by the Company and the Participant.
	 
	 	12.2	 	Except as otherwise provided by the Committee, Options under the Plan are not
transferable other than by will or by the laws of descent and distribution or pursuant
to a qualified domestic relations order. The Committee shall have the discretion to
permit the transfer of Options under the Plan; provided, however, that such transfers
shall be limited to Immediate Family Members of Participants, trusts and partnerships
established for the primary benefit of such family members or to charitable
organizations, and; provided, further, that such transfers are not made for
consideration to the Participant.
	 
	 	12.3	 	This Option shall be governed by and construed in accordance with the laws of
the State of New York, without regard to its principles of conflicts of laws.
	 
	 	12.4	 	This Option is subject to all laws, regulations and orders of any
governmental authority which may be applicable thereto and, notwithstanding any of the
provisions hereof, the Participant agrees that he will not exercise the Option granted
hereby nor will the Company be obligated to issue any shares of stock hereunder if the
exercise thereof or the issuance of such shares, as the case may be, would constitute a
violation by the Participant or the Company of any such law, regulation or order or any
provision thereof.
	 
	 	12.5	 	The granting of this Option does not confer upon the Participant any right to
be retained in the employ of the Company or any subsidiary.

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed in its name and on
its behalf as of the date of grant of this Option set forth above.

	 	 	 	 	 
	 	EVANS BANCORP, INC.

 	 
	 	By: 	 	 
	 	 	Chairman, Compensation Committee 	 
	 	 	 	 

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PARTICIPANT’S ACCEPTANCE

     The undersigned hereby accepts the foregoing option and agrees to the terms and conditions
hereof, including the terms and provisions of the 2009 Long-Term Equity Incentive Plan. The
undersigned hereby acknowledges receipt of a copy of the Company’s 2009 Long-Term Equity Incentive
Plan.

Participant

 

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EXHIBIT A

NOTICE OF EXERCISE OF STOCK OPTIONS

(BY EMPLOYEES)

     I hereby exercise the stock option (the “Option”) granted to me by Evans Bancorp, Inc. (the
“Company”) or its affiliate, subject to all the terms and provisions set forth in the Stock Option
Agreement (the “Agreement”) and the Evans Bancorp, Inc. 2009 Long-Term Equity Incentive Plan (the
“Plan”) referred to therein, and notify you of my desire to
purchase                                          shares of
common stock of the Company (“Common Stock”) for a purchase price of $                     per share.

     Enclosed please find (check one):

	 	___	 	Cash, personal, certified or cashier’s check in the sum of $                    , in full
payment of the purchase price.
	 
	 	___	 	Stock of the Company with a fair market value of $                     in full payment of the
purchase price.*
	 
	 	___	 	My check in the sum of $                     and stock of the Company with a fair
market value of $                    , in full payment of the purchase price.*
	 
	 	___	 	Please sell                      Shares from my Option Shares through a broker in
full/partial payment of the purchase price.

     I
understand that after this exercise,                      shares of Common Stock remain subject to
the Option, subject to all terms and provisions set forth in the Agreement and the Plan.

     I hereby represent that it is my intention to acquire these shares for the following purpose:

	 	___	 	investment
	 
	 	___	 	resale or distribution

     Please note: if your intention is to resell (or distribute within the meaning of Section 2(11)
of the Securities Act of 1933) the shares you acquire through this Option exercise, the Company or
transfer agent may require an opinion of counsel that such resale or distribution would not violate
the Securities Act of 1933 prior to your exercise of such Option.

	 	 	 	 	 

	Date:                     , ___.

	 	 	 	 
	 	 	 
Participant’s signature
	 	 

 
 

*      If I elect to exercise by exchanging shares I already own, I will constructively
return shares that I already own to purchase the new option shares. If my shares are in
certificate form, I must attach a separate statement indicating the certificate number of the
shares I am treating as having exchanged. If the shares are held in “street name” by a registered
broker, I must provide the Company with a notarized statement attesting to the number of shares
owned that will be treated as having been exchanged. I will keep the shares that I already own and
treat them as if they are shares acquired by the option exercise. In addition, I will receive
additional shares equal to the difference between the shares I constructively exchange and the
total new option shares that I acquire.

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EXHIBIT B

ACKNOWLEDGMENT OF RECEIPT OF STOCK OPTION SHARES

     I hereby acknowledge the delivery to me by Evans Bancorp, Inc. (the “Company”) or its
affiliate on                    
                                                             , of stock certificates for
                     
                   shares of common stock of the Company purchased by me pursuant to the terms and
conditions of the Stock Option Agreement and the Evans Bancorp, Inc. 2009 Long-Term Equity
Incentive Plan, as applicable, which shares were transferred to me on the Company’s stock record
books on                    
                     .

	 	 	 	 	 	 	 	 	 

	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

Participant’s signature
	 	 

56exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (“Agreement”) is made as of the Effective Date
between Cincinnati Bell Inc. (“Employer”) and Tara Khoury (“Employee”). For purposes of this
Agreement, the “Effective Date” means the date this agreement is signed by Employee.

Employer and Employee agree as follows:

1. Employment. By this Agreement, Employer and Employee set forth the terms of Employer’s
employment of Employee on and after the Effective Date. Any prior agreements or understandings
with respect to Employee’s employment by Employer are canceled as of the Effective Date.
Notwithstanding the preceding sentence, except as provided in Section 13 of this Agreement, all
stock options, restricted shares and other long term incentive awards granted to Employee prior to
the Effective Date, benefit plans in which Employee is eligible for participation and any Employer
policies to which Employee is subject shall continue in effect in accordance with their respective
terms and shall not be modified, amended or cancelled by this Agreement.

2. Term of Agreement. The term of this Agreement initially shall be the one year period
commencing on the Effective Date. On the first anniversary of the Effective Date and on each
subsequent anniversary of the Effective Date, the term of this Agreement automatically shall be
extended for a period of one additional year. Notwithstanding the foregoing, the term of this
Agreement is subject to termination as provided in Section 13.

3. Duties.

     A. Employee will serve as Chief Marketing Officer for Cincinnati Bell Inc. or in such other
equivalent capacity as may be designated by the Chief Executive Officer of Employer. Employee will
report to the Chief Executive Officer of Employer or to such other officer as the Chief Executive
Officer of Employer may direct.

     B. Employee shall furnish such managerial, executive, financial, technical and other skills,
advice, and assistance in operating Employer and its Affiliates as Employer may reasonably request.
For purposes of this Agreement, “Affiliate” means each corporation or organization that is deemed
to be a single employer with Employer under Section 414(b) or (c) of the Internal Revenue Code of
1986, as amended (the “Code”) (i.e., as part of a controlled group of corporations that
includes Employer or under common control with Employer).

     C. Employee shall also perform such other duties, consistent with the provisions of Section
3.A., as are reasonably assigned to Employee by the Chief Executive Officer of Employer.

     D. Employee shall devote Employee’s entire time, attention and energies to the business of
Employer and its Affiliates. The words “entire time, attention and energies” are intended to mean
that Employee shall devote Employee’s full effort during reasonable working hours to the business
of Employer and its Affiliates and shall devote at least 40 hours per week to

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the business of Employer and its Affiliates. Employee shall travel to such places as are necessary
in the performance of Employee’s duties.

4. Compensation.

     A. Employee shall receive a base salary (the “Base Salary”) of at least $321,300 per year,
payable not less frequently than monthly, for each year during the term of this Agreement, subject
to proration for any partial year. Such Base Salary, and all other amounts payable under this
Agreement, shall be subject to withholding as required by law.

     B. In addition to the Base Salary, Employee shall be eligible to receive an annual bonus (the
“Bonus”) for each calendar year for which services are performed under this Agreement. Any Bonus
for a calendar year shall be payable after the conclusion of the calendar year in accordance with
Employer’s regular bonus payment policies. Each year, Employee shall be given a Bonus target of
not less than $192,780, subject to proration for a partial year. The Bonus target shall be
established from time to time by Employer’s Compensation Committee if Employee is a named executive
officer for purposes of Employer’s annual proxy statement or is otherwise an executive officer
whose compensation is determined by the Compensation Committee, or, if Employee is not so subject,
then in accordance with the provisions of Employer’s then existing annual incentive plan or any
similar plan made available to employees of Employer (“annual incentive plan”) in which Employee
participates. Any Bonus award to Employee shall further be subject to the terms and conditions of
any such applicable annual incentive plan.

     C. On at least an annual basis, Employee shall receive a formal performance review and be
considered for Base Salary and/or Bonus target increases.

5. Expenses. All reasonable and necessary expenses incurred by Employee in the course of
the performance of Employee’s duties to Employer shall be reimbursable in accordance with
Employer’s then current travel and expense policies.

6. Benefits.

     A. While Employee remains in the employ of Employer, Employee shall be eligible to participate
in all of the various employee benefit plans and programs, which are made available to similarly
situated officers of Employer, in accordance with the eligibility provisions and other terms and
conditions of such plans and programs.

     B. Notwithstanding anything contained herein to the contrary, the Base Salary and any Bonuses
otherwise payable to Employee shall be reduced by any benefits paid to Employee by Employer under
any disability plans made available to Employee by Employer (“Disability Plans”).

     C. In each year of this Agreement, Employee will be eligible to be considered for a grant of
awards under Employer’s 2007 Long Term Incentive Plan and/or any similar plan made available to
employees of Employer.

7. Confidentiality. Employer and its Affiliates are engaged in the telecommunications
industry within the U.S. Employee acknowledges that in the course of employment with the

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Employer, Employee will be entrusted with or obtain access to information proprietary to Employer
and its Affiliates with respect to the following (all of which information is referred to
hereinafter collectively as the “Information”); the organization and management of Employer and its
Affiliates; the names, addresses, buying habits and other special information regarding past,
present and potential customers, employees and suppliers of Employer and its Affiliates; customer
and supplier contracts and transactions or price lists of Employer, its Affiliates and their
suppliers; products, services, programs and processes sold, licensed or developed by Employer or
its Affiliates; technical data, plans and specifications, and present and/or future development
projects of Employer and its Affiliates; financial and/or marketing data respecting the conduct of
the present or future phases of business of Employer and its Affiliates; computer programs, systems
and/or software; ideas, inventions, trademarks, trade secrets, business information, know-how,
processes, improvements, designs, redesigns, discoveries and developments of Employer and its
Affiliates; and other information considered confidential by any of the Employer, its Affiliates or
customers or suppliers of Employer and its Affiliates. At all times during the term of this
Agreement and thereafter, Employee agrees to retain the Information in absolute confidence and not
to disclose the Information to any person or organization except as required in the performance of
Employee’s duties for Employer, without the express written consent of Employer; provided that
Employee’s obligation of confidentiality shall not extend to any Information which becomes
generally available to the public other than as a result of disclosure by Employee.

8. New Developments. All ideas, inventions, discoveries, concepts, trade secrets,
trademarks, service marks or other developments or improvements, whether patentable or not,
conceived by Employee, alone or with others, at any time during the term of Employee’s employment,
whether or not during working hours or on Employer’s premises, which are within the scope of or
related to the business operations of Employer or its Affiliates (“New Developments”), shall be and
remain the exclusive property of Employer. Employee agrees that any New Developments which, within
one year after the cessation of employment with Employer, are made, disclosed, reduced to a
tangible or written form or description or are reduced to practice by Employee and which are based
upon, utilize or incorporate Information shall, as between Employee and Employer, be presumed to
have been made during Employee’s employment by Employer. Employee further agrees that Employee
will not, during the term of Employee’s employment with Employer, improperly use or disclose any
proprietary information or trade secrets of any former employer or other person or entity and that
Employee will not bring onto Employer premises any unpublished document or proprietary information
belonging to any such employer, person or entity unless consented to in writing by such employer,
person or entity.

     At all times during the term of this Agreement and thereafter, Employee shall do all things
reasonably necessary to ensure ownership of such New Developments by Employer, including the
execution of documents assigning and transferring to Employer all of Employee’s rights, title and
interest in and to such New Developments and the execution of all documents required to enable
Employer to file and obtain patents, trademarks, service marks and copyrights in the United States
and foreign countries on any of such New Developments.

9. Surrender of Material Upon Termination. Employee hereby agrees that upon cessation of
Employee’s employment, for whatever reason and whether voluntary or involuntary, Employee will
immediately surrender to Employer all of the property and other things of value in his

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possession or in the possession of any person or entity under Employee’s control that are the
property of Employer or any of its Affiliates, including without any limitation all personal notes,
drawings, manuals, documents, photographs or the like, including copies and derivatives thereof,
and e-mails and other electronic and digital information of all types regardless of where or the
type of device on which such materials may be stored by Employee, relating directly or indirectly
to any Information, materials or New Developments, or relating directly or indirectly to the
business of Employer or any of its Affiliates.

10. Remedies.

     A. Employer and Employee hereby acknowledge and agree that the services rendered by Employee
to Employer, the information disclosed to Employee during and by virtue of Employee’s employment
and Employee’s commitments and obligations to Employer and its Affiliates herein are of a special,
unique and extraordinary character, and that the breach of any provision of this Agreement by
Employee will cause Employer irreparable injury and damage, and consequently the Employer shall be
entitled to, in addition to all other remedies available to it, injunctive and equitable relief to
prevent a breach of Sections 7, 8, 9, 11 and 12 of this Agreement and to secure the enforcement of
this Agreement.

     B. Except as provided in Section 10.A., the parties hereto agree to submit to final and
binding arbitration any dispute, claim or controversy, whether for breach of this Agreement or for
violation of any of Employee’s statutorily created or protected rights, arising between the parties
that either party would have been otherwise entitled to file or pursue in court or before any
administrative agency (herein “claim”), and each party waives all right to sue the other party.

          (i) This agreement to arbitrate and any resulting arbitration award are enforceable under and
subject to the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (“FAA”). If the FAA is held not to
apply for any reason, then Ohio Revised Code Chapter 271l regarding the enforceability of
arbitration agreements and awards will govern this Agreement and the arbitration award.

          (ii) (a) All of a party’s claims must be presented at a single arbitration hearing. Any claim
not raised at the arbitration hearing is waived and released. The arbitration hearing will take
place in Cincinnati, Ohio.

               (b) The arbitration process will be governed by the Employment Dispute Resolution Rules of the
American Arbitration Association (“AAA”) except to the extent they are modified by this Agreement.
In the event that any provisions of this Section 10 are determined by AAA to be unenforceable or
impermissibly contrary to AAA rules, then this Section 10 shall be modified as necessary to comply
with AAA requirements.

               (c) Employee has had an opportunity to review the AAA rules and the requirements that Employee
must pay a filing fee for which Employer has agreed to split on an equal basis.

               (d) The arbitrator will be selected from a panel of arbitrators chosen by the AAA. After the
filing of a Request for Arbitration, the AAA will send simultaneously to Employer and Employee an
identical list of names of five persons chosen from the panel. Each

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party will have 10 days from the transmittal date in which to strike up to two names, number the
remaining names in order of preference and return the list to the AAA.

               (e) Any pre-hearing disputes will be presented to the arbitrator for expeditious, final and
binding resolution.

               (f) The award of the arbitrator will be in writing and will set forth each issue considered
and the arbitrator’s finding of fact and conclusions of law as to each such issue.

               (g) The remedy and relief that may be granted by the arbitrator to Employee are limited to
lost wages, benefits, cease and desist and affirmative relief, compensatory, liquidated and
punitive damages and reasonable attorney’s fees, and will not include reinstatement or promotion.
If the arbitrator would have awarded reinstatement or promotion, but for the prohibition in this
Agreement, the arbitrator may award front pay. The arbitrator may assess to either party, or
split, the arbitrator’s fee and expenses and the cost of the transcript, if any, in accordance with
the arbitrator’s determination of the merits of each party’s position, but each party will bear any
cost for its witnesses and proof.

               (h) Employer and Employee recognize that a primary benefit each derives from arbitration is
avoiding the delay and costs normally associated with litigation. Therefore, neither party will be
entitled to conduct any discovery prior to the arbitration hearing except that: (i) Employer will
furnish Employee with copies of all non-privileged documents in Employee’s personnel file; (ii) if
the claim is for discharge, Employee will furnish Employer with records of earnings and benefits
relating to Employee’s subsequent employment (including self-employment) and all documents relating
to Employee’s efforts to obtain subsequent employment; (iii) the parties will exchange copies of
all documents they intend to introduce as evidence at the arbitration hearing at least 10 days
prior to such hearing; (iv) Employee will be allowed (at Employee’s expense) to take the
depositions, for a period not to exceed four hours each, of two representatives of Employer, and
Employer will be allowed (at its expense) to depose Employee for a period not to exceed four hours;
and (v) Employer or Employee may ask the arbitrator to grant additional discovery to the extent
permitted by AAA rules upon a showing that such discovery is necessary.

               (i) Nothing herein will prevent either party from taking the deposition of any witness where
the sale purpose for taking the deposition is to use the deposition in lieu of the witness
testifying at the hearing and the witness is, in good faith, unavailable to testify in person at
the hearing due to poor health, residency and employment more than 50 miles from the hearing site,
conflicting travel plans or other comparable reason.

               (j) Arbitration must be requested in writing no later than 6 months from the date of the
party’s knowledge of the matter disputed by the claim. A party’s failure to initiate arbitration
within the time limits herein will be considered a waiver and release by that party with respect to
any claim subject to arbitration under this Agreement.

               (k) Employer and Employee consent that judgment upon the arbitration award may be entered in
any federal or state court that has jurisdiction.

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               (1) Except as provided in Section 10.A., neither party will commence or pursue any litigation
on any claim that is or was subject to arbitration under this Agreement.

               (m) All aspects of any arbitration procedure under this Agreement, including the hearing and
the record of the proceedings, are confidential and will not be open to the public, except to the
extent the parties agree otherwise in writing, or as may be appropriate in any subsequent
proceedings between the parties, or as may otherwise be appropriate in response to a governmental
agency or legal process or as may be required to be disclosed by Employer pursuant to applicable
law, rule or regulation to which Employer is subject, including requirements of the Securities and
Exchange Commission and any stock exchanges on which Employer’s securities are listed.

11. Covenant Not to Compete, No Interference; No Solicitation. For purposes of this
Section 11 only, the: term “Employer” shall mean, collectively, Employer and each of its
Affiliates. At all times during the term of this Agreement and during the one year period
following cessation of Employee’s employment with Employer for any reason (or if this period is
unenforceable by law, then for such period as shall be enforceable), Employee will not engage in
any business offering services related to the current business of Employer, whether as a principal,
partner, joint venture, agent, employee, salesman, consultant, director or officer, where such
position would involve Employee in any business activity in competition with Employer. This
restriction will be limited to the geographical area where Employer is then engaged in such
competing business activity or to such other geographical area as a court shall find reasonably
necessary to protect the goodwill and business of Employer.

     During the one year period following cessation of Employee’s employment with Employer for any
reason (or if this period is unenforceable by law, then for such period as shall be enforceable),
Employee will not interfere with or adversely affect, either directly or indirectly, Employer’s
relationships with any person, firm, association, corporation or other entity which is known by
Employee to be, or is included on any listing to which Employee had access during the course of
employment, as a customer, client, supplier, consultant or employee of Employer and that Employee
will not divert or change, or attempt to divert or change, any such relationship to the detriment
of Employer or to the benefit of any other person, firm, association, corporation or other entity.

     During the one year period following cessation of Employee’s employment with Employer for any
reason (or if this period is unenforceable by law, then for such period as shall be enforceable),
Employee shall not, without the prior written consent of Employer, accept employment, as an
employee, consultant or otherwise, with any company or entity which is a supplier of Employer at
any time during the final year of Employee’s employment with Employer.

     Employee will not, during or at any time within one year after the cessation of Employee’s
employment with Employer, induce or seek to induce any other employee of Employer to terminate his
or her employment relationship with Employer.

     Employee acknowledges and agrees that the covenants, restrictions, agreements and obligations
set forth herein are founded upon valuable consideration and, with respect to the covenants,
restrictions, agreements and obligations set forth in this Section 11, are reasonable in duration
and geographic scope. The time period and geographical area set forth in this Section

6

 

10 are each divisible and separable, and, in the event that the covenants not to compete
and/or not to divert business or employees contained therein are judicially held invalid or
unenforceable as to such time period and/or geographical area, they will be valid and enforceable
in such geographical area(s) and for such time period(s) which the court determines to be
reasonable and enforceable. Employee agrees that in the event that any court of competent
jurisdiction determines that the above covenants are invalid or unenforceable to join with Employer
in requesting such court to construe the applicable provision by limiting or reducing it so as to
be enforceable to the extent compatible with the then applicable law. Furthermore, it is agreed
that any period of restriction or covenant hereinabove stated shall not include any period of
violation or period of time required for litigation or arbitration to enforce such restrictions or
covenants.

12. Goodwill. During the term of this Agreement and thereafter, Employee will not
disparage Employer or any of its Affiliates in any way which could adversely affect the goodwill,
reputation and business relationships of Employer or any of its Affiliates with the public
generally, or with any of their customers, suppliers or employees, and Employer will not disparage
Employee. Employee understands and agrees that Employer shall be entitled to make any such public
disclosures as are required by applicable law, rule or regulation regarding Employee, including
termination of Employee’s employment with Employer, and that any public disclosures so made by
Employer and other statements materially consistent with such public disclosures shall not be
restricted in any manner by this Section 12.

13. Termination.

     A. (i) Employer or Employee may terminate this Agreement upon Employee’s failure or inability
to perform the services required hereunder, because of any physical or mental infirmity for which
Employee receives disability benefits under any Disability Plans, over a period of one hundred
twenty consecutive working days during any twelve consecutive month period (a “Terminating
Disability”).

          (ii) If Employer or Employee elects to terminate this Agreement in the event of a Terminating
Disability, such termination shall be effective immediately upon the giving of written notice by
the terminating party to the other.

          (iii) Upon termination of this Agreement on account of Terminating Disability, Employer shall
pay Employee Employee’s accrued compensation hereunder, whether Base Salary, Bonus or otherwise
(subject to offset for any amounts received pursuant to the Disability Plans), to the date of
termination. In the event of a Terminating Disability, Employer also shall provide Employee with
disability benefits and all other benefits according to the provisions of the applicable Disability
Plans and any other Employer plans in which Employee is then participating. Furthermore, Employee
shall continue to accrue service as an employee in accordance with the provisions of the applicable
Disability Plans and pension plan(s), and for purposes of vesting under any outstanding incentive
awards granted to Employee, as may be set forth in the applicable incentive plan or related award
letter.

          (iv) If the parties elect not to terminate this Agreement upon an event of a Terminating
Disability and Employee returns to active employment with Employer prior to such a termination, or
if such disability exists for less than one hundred twenty consecutive working days, the provisions
of this Agreement shall remain in full force and effect.

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     B. This Agreement terminates immediately and automatically on the death of Employee, provided,
however, that Employee’s estate shall be paid Employee’s accrued compensation hereunder, whether
Base Salary, Bonus or otherwise, to the date of death.

     C. Employer may terminate this Agreement immediately, upon written notice to Employee, for
Cause. For purposes of this Agreement, Employer shall have “Cause” to terminate this Agreement
only if Employer’s Board of Directors determines that there has been fraud, misappropriation,
embezzlement or misconduct constituting serious criminal activity on the part of Employee. Upon
termination for Cause, Employee shall be entitled to receive only Employee’s accrued compensation
hereunder, whether Base Salary, Bonus or otherwise, to the date of termination.

     D. Employer may terminate this Agreement immediately, upon written notice to Employee for any
reason other than those set forth in Sections 13.A., B. and C., provided, however, that Employer
shall have no right to terminate this Agreement under this Section 13.D. within one year after a
Change in Control. In addition, Employee may terminate this Agreement immediately, upon written
notice to Employer, as a result of a Constructive Termination, provided, however, that Employee
shall have no right to terminate this Agreement under this Section 13.D. within one year after a
Change in Control. In the event of a termination of this Agreement by Employer, or by Employee as
a result of a Constructive Termination, under this Section 13.D.:

          (i) within five days after (and not before) the date which is six months after Employee’s
termination of employment with Employer, Employer shall pay Employee in a lump sum cash payment an
amount equal to one point six (1.6) times the Employee’s annual Base Salary rate in effect at the
time of the termination of this Agreement;

          (ii) for purposes of any outstanding stock option issued by Employer to Employee, outstanding
restricted stock issued by Employer to Employee or other outstanding incentive award granted by
Employer to Employee, Employee’s employment with Employer shall not be deemed to have terminated
until the end of the Current Term;

          (iii) if applicable, an amount equal to the sum of (a) any forfeitable benefits of Employee
under any nonqualified (i.e., not qualified under Code Section 401(a)) pension, profit
sharing, savings or deferred compensation plan of Employer or any Affiliate which would have
vested prior to the end of the Current Term if this Agreement had not terminated, plus (b) any
additional vested benefits which would have accrued for Employee under any nonqualified defined
benefit pension plan if this Agreement had not terminated prior to the end of the Current Term and
if Employee’s annual Base Salary and annual Bonus target had neither increased nor decreased after
such termination, shall be payable by Employer at the same time and in the same manner as such
benefits would have been paid under such plan or plans had such benefits become vested and accrued
under such plan or plans at the time of the termination of this Agreement;

          (iv) if applicable, an amount equal to the sum of (a) any forfeitable benefits of Employee
under any qualified (i.e., qualified under Code Section 401(a)) pension, profit sharing,
401(k) or deferred compensation plan of Employer or any Affiliate which would have vested prior to
the end of the Current Term if this Agreement had not terminated, plus (b) any additional vested
benefits which would have accrued for Employee under any qualified defined benefit

8

 

pension plan if this Agreement had not terminated prior to the end of the Current Term and if
Employee’s annual Base Salary and annual Bonus target had neither increased nor decreased after
such termination, shall be paid by Employer from its general assets (and not under such plan or
plans) in one lump sum within five days after (and not before) the date which is six months after
Employee’s termination of employment with Employer; and

          (v) for the remainder of the Current Term, Employer shall continue to provide Employee with
medical, dental, vision and group term life coverage comparable to the medical, dental, vision and
group term life coverage in effect for Employee immediately prior to the termination of this
Agreement (with the cost of such benefits shared between Employee and Employer on a basis
comparable to the cost-sharing of such benefits immediately prior to the termination of this
Agreement), and, to the extent that Employee would have been eligible for any post-retirement
medical, dental, vision or group term life benefits from Employer if Employee had continued in
employment through the end of the Current Term, Employer shall provide such post-retirement
benefits to Employee after the end of the Current Term.

     E. This Agreement shall terminate automatically in the event and at the time that both there
is a Change in Control and either (1) Employee elects to terminate his employment with Employer
within one year after the Change in Control as a result of a Constructive Termination or (2)
Employee’s employment with Employer is actually terminated by Employer within one year after the
Change in Control for any reason other than those set forth in Sections 13.A., B. and C. In the
event of a termination of this Agreement under this Section 13.E.:

          (i) within five days after (and not before) the date which is six months after Employee’s
termination of employment with Employer, Employer shall pay Employee in a lump sum cash payment an
amount equal to the product obtained by multiplying (a) the sum of the annual Base Salary rate in
effect at the time of the termination of this Agreement and the annual Bonus target in effect at
the time of such termination by (b) two;

          (ii) all outstanding stock options and other incentive awards issued by Employer to Employee
that are not vested and exercisable at the time of the termination of this Agreement shall become
immediately vested and exercisable (and Employee shall be afforded the opportunity to exercise
them until the earlier of (a) the latest date, determined in accordance with the terms of such
stock options or awards, that would apply if such stock options or awards had become vested and
exercisable immediately before the termination of this Agreement or (b) the end of the Current
Term) and the restrictions applicable to all outstanding restricted stock issued by Employer to
Employee shall lapse upon the termination of this Agreement;

          (iii) an amount equal to the sum of (a) any forfeitable benefits of Employee under any
nonqualified (i.e., not qualified under Code Section 401(a)) pension, profit sharing,
savings or deferred compensation plan of Employer or any Affiliate which would have vested prior
to the end of the Current Term if this Agreement had not terminated, plus (b) any additional
vested benefits which would have accrued for Employee under any nonqualified defined benefit
pension plan if this Agreement had not terminated prior to the end of the Current Term and if
Employee’s annual Base Salary and annual Bonus target had neither increased nor decreased after
such termination, shall be payable by Employer at the same time and in the same manner as such
benefits would have been paid under such plan or plans had such benefits become vested and accrued
under such plan or plans at the time of the termination of this Agreement;

9

 

          (iv) an amount equal to the sum of (a) any forfeitable benefits of Employee under any
qualified (i.e., qualified under Code Section 401(a)) pension, profit sharing, 401(k) or
deferred compensation plan of Employer or any Affiliate which would have vested prior to the end
of the Current Term if this Agreement had not terminated, plus (b) any additional vested benefits
which would have accrued for Employee under any qualified defined benefit pension plan if this
Agreement had not terminated prior to the end of the Current Term and if Employee’s annual Base
Salary and annual Bonus target had neither increased nor decreased after such termination, shall
be paid by Employer from its general assets (and not under such plan or plans) in one lump sum
within five days after (and not before) the date which is six months after Employee’s termination
of employment with Employer;

          (v) for the remainder of the Current Term, Employer shall continue to provide Employee with
medical, dental, vision and group term life coverage comparable to the medical, dental, vision and
group term life coverage in effect for Employee immediately prior to the termination of this
Agreement (with the cost of such benefits shared between Employee and Employer on a basis
comparable to the cost-sharing of such benefits immediately prior to the termination of this
Agreement), and, to the extent that Employee would have been eligible for any post-retirement
medical, dental, vision or group term life benefits from Employer if Employee had continued in
employment through the end of the Current Term, Employer shall provide such post-retirement
benefits to Employee after the end of the Current Term.

     F. Employee may resign upon 60 days’ prior written notice to Employer. In the event of a
resignation under this Section 13.F., this Agreement shall terminate and Employee shall be entitled
to receive Employee’s Base Salary through the date of termination, any Bonus earned but not paid at
the time of termination and any other vested compensation or benefits called for under any
compensation plan or program of Employer.

     G. Upon termination of this Agreement as a result of an event of termination described in
this Section 13 and except for Employer’s payment of the required payments under this Section 13
(including any Base Salary accrued through the date of termination, any Bonus earned for the year
preceding the year in which the termination occurs and any nonforfeitable amounts payable under
any employee plan), all further compensation under this Agreement shall terminate. Employee
further agrees that as a condition precedent to Employee’s receipt of payments under this Section
13 (other than any Base Salary accrued through the date of termination, any Bonus earned for the
year preceding the year in which the termination occurs and all payments pursuant to Section
13.E.), upon the request of Employer and by a reasonable deadline set by Employer (to ensure that
payments can be made by the dates specified in this Section 13 following the expiration of the
time for revocation of such release as permitted by law), Employee will execute and not revoke a
release of claims against Employer, which release shall contain customary and appropriate terms
and conditions as determined in good faith by Employer.

     H. The termination of this Agreement shall not amend, alter or modify the rights and
obligations of the parties under Sections 7, 8, 9, 10, 11 and 12 hereof, the terms of which shall
survive the termination of this Agreement.

     I. To the extent provided below, the following provisions apply under this Section 13 and the
other provisions of the Agreement.

10

 

          (i) Notwithstanding any other provision of this Agreement, for purposes of Sections 13.D and
13.E., “Current Term” means the one year period beginning at the time of the termination of this
Agreement.

          (ii) For purposes of Sections 13.D. and 13.E., “Change in Control” means a Change in Control
as defined under the Cincinnati Bell Inc. Executive Deferred Compensation Plan (as such plan is
amended and restated effective as of January 1, 2005 and as it may thereafter be amended).

          (iii) For purposes of Section 13.D. and 13.E., “Constructive Termination” shall be deemed to
have occurred if, without Employee’s consent, there is a material reduction by Employer in
Employee’s authority, reporting relationship or responsibilities, there is a reduction by Employer
in Employee’s Base Salary or Bonus target or Employee is required by Employer to relocate from the
Greater Cincinnati, Ohio Area by 50 or more miles.

          (iv) When an amount (referred to in this Section 13.I.(iv) as the “principal sum”) that is
payable under Section 13.D.(i), 13.D.(iv), 13.E.(i), or 13.E.(iv) within five days after the date
which is six months after Employee’s termination of employment with Employer is paid, such payment
shall also include an amount that is equal to the amount of interest that would have been earned
by such principal sum for the period from the date of Employee’s termination of employment with
Employer to the date which is six months after Employee’s termination of employment had such
principal sum earned interest for such period at an annual rate of interest of 3.5%.

          (v) To the extent that any of the benefits applicable to medical, dental and vision coverage
provided to Employee under Section 13.D.(v) or 13.E.(v) (referred to in this Section 13.I. as
“healthcare plan benefits”) are subject to federal income taxation, the following conditions shall
apply:

               (a) the amount of healthcare plan benefits provided or paid during any tax year of Employee
under Section 13.D.(v) or 13.E.(vi) shall not affect the amount of healthcare plan benefits that
are provided or eligible for payment in any other tax years of Employee (disregarding any limit on
the amount of medical expenses, as defined in Code Section 213(d), that may be paid or reimbursed
over some or all of the period in which such coverage is in effect because of a lifetime, annual
or similar limit on any covered person’s expenses that can be paid or reimbursed under Employer’s
health care plans under which the terms of such coverage is determined);

               (b) the payment or reimbursement of an expense for healthcare plan benefits that is eligible
for payment or reimbursement shall not be made prior to the date immediately following the date
which is six months after Employee’s termination of employment with Employer and shall in any
event be made no later than the last day of the tax year of Employee next following the tax year
of Employee in which the expense is incurred; and

               (c) Employee’s right to healthcare plan benefits shall not be subject to liquidation or
exchange for any other benefit.

          (vi) For purposes of this Agreement (including but not limited to Sections 13.D.(iii), (iv)
and (v) and 13.E.(iii), (iv), and (v), any reference to the termination of this

11

 

Agreement or to the termination of Employee’s employment with Employer shall mean and require
that, as of the date of such termination, Employee’s services for Employer and its Affiliates
shall have completely ceased or that Employee shall have otherwise separated from service with
Employer and its Affiliates within the meaning of Treasury Regulation Section 1.409-1(h).

14. Assignment. As this is an agreement for personal services involving a relation of
confidence and a trust between Employer and Employee, all rights and duties of Employee arising
under this Agreement, and the Agreement itself, are non-assignable by Employee.

15. Notices. Any notice required or permitted to be given under this Agreement shall be
sufficient if in writing and if delivered personally or by certified mail to Employee at Employee’s
place of residence as then recorded on the books of Employer or to Employer at its principal
office.

16. Waiver. No waiver or modification of this Agreement or the terms contained herein
shall be valid unless in writing and duly executed by the party to be charged therewith. The
waiver by any party hereto of a breach of any provision of this Agreement by the other party shall
not operate or be construed as a waiver of any subsequent breach by such party.

17. Governing Law. This agreement shall be governed by the laws of the State of Ohio and,
to the extent applicable, federal law.

18. Entire Agreement. This Agreement contains the entire agreement of the parties with
respect to Employee’s employment by Employer. There are no other contracts, agreements or
understandings, whether oral or written, existing between them except as contained or referred to
in this Agreement.

19. Severability. In case anyone or more of the provisions of this Agreement is held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or other
enforceability shall not affect any other provisions hereof, and this Agreement shall be construed
as if such invalid, illegal or unenforceable provisions have never been contained herein.

20. Successors and Assigns. Subject to the requirements of Paragraph 14 above, this
Agreement shall be binding upon Employee, Employer and Employer’s successors and assigns.

21. Confidentiality of Agreement Terms. The terms of this Agreement shall be held in
strict confidence by Employee and shall not be disclosed by Employee to anyone other than
Employee’s spouse, Employee’s legal counsel and Employee’s other advisors, unless required by law.
Further, except as provided in the preceding sentence, Employee shall not reveal the existence of
this Agreement or discuss its terms with any person (including but not limited to any employee of
Employer or its Affiliates) without the express authorization of the President of Employer,
provided that Employee shall advise any prospective new employer of the existence of Employee’s
non-competition, confidentiality and similar obligations under this Agreement. To the extent that
the terms of this Agreement have been disclosed by Employer, in a public filing or otherwise, the
confidentiality requirements of this Section 21 shall no longer apply to such terms.

12

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 	 	 

	CINCINNATI BELL INC.	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ John F. Cassidy
 

John F. Cassidy
	 	 	 	/s/ Tara L. Khoury
 

Tara L. Khoury
	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	July 30, 2010
	 	 	 	Date: July 30, 2010	 	 

13

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