Document:

GUARANTY OF RCN CORPORATION

 

Exhibit 10.02

GUARANTY

         THIS GUARANTY is made and entered into this 19th day of June, 2002 (the
“Effective Date”), by RCN Corporation, a Delaware corporation and RCN Telecom
Services of Massachusetts, Inc., a Massachusetts corporation (the
“Guarantors”).

W I T N E S S E T H

         WHEREAS, the Guarantors are affiliates of RCN-BecoCom, LLC, a
Massachusetts limited liability company (the “Obligor”); and

         WHEREAS, the Obligor is a party to that certain Second Amended and
Restated Operating Agreement, of even date herewith (the “Operating
Agreement”), whereby the Obligor shall be required to pay to NSTAR
Communications, Inc., a Massachusetts corporation (“NSTARCOM”), as holder of
any Class B Membership Interest, certain amounts as set forth in Section 5.1 of
the Operating Agreement (the “Class B Payments”); and

         WHEREAS, the Guarantor acknowledges that NSTARCOM is relying on this
Guaranty in entering into the Operating Agreement with the Obligor; and

         WHEREAS, it is in the best interest of the Guarantors to facilitate
investment in Class B Membership Interests.

         NOW, THEREFORE, in consideration of these premises and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Guarantors do hereby covenant and agree with NSTARCOM as
follows:

         1.     GUARANTY OF PAYMENT AND PERFORMANCE. The Guarantors hereby guarantee
the full and punctual payment of any Class B Payments, and the performance of
all liabilities, agreements and other obligations of the Obligor to NSTARCOM
pursuant to Sections 5.1 and 5.5(b) of the Operating Agreement, and upon
liquidation of the Obligor shall guarantee the full and punctual payment of the
Redemption Price, as such term is defined in the Operating Agreement (the
“Obligations”). This Guaranty is an absolute, unconditional and continuing
guaranty of the full and punctual payment and performance of the Obligations.
Upon an Event of Default, and for so long as such Event of Default shall be
uncured and continuing, the obligations of the Guarantors hereunder shall
become immediately due and payable to NSTARCOM, without demand or notice of any
nature, all of which are expressly waived by the Guarantors. Payments by the
Guarantors hereunder may be required by NSTARCOM on any number of occasions.
For purposes hereof, the Obligations shall be due and payable when and as the
same shall be due and payable under the terms thereof

 

 

 notwithstanding the fact that the collection or enforcement thereof may be
stayed or enjoined under Title 11 of the United States Code, as from time to
time in effect, or other applicable law.

         2.     WAIVERS BY GUARANTORS. The Guarantors agree that the Obligations will
be paid and performed strictly in accordance with their respective terms
regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of NSTARCOM with respect
thereto. The Guarantors agree that the Guarantors’ obligations under this
Guaranty shall be absolute and unconditional and shall remain in full force and
effect until the Obligations shall have been paid in full. The Guarantors
represent that it has discussed with its counsel the various defenses that may
be available to a guarantor or surety under law, and, to the fullest extent
permitted by law, the Guarantors waive each and every defense (other than
payment) which may be available to it in respect of its obligations under this
Guaranty and covenants that this Guaranty will not be discharged except by
complete payment and performance of the Obligations as provided above. Without
limiting the foregoing, the Guarantors waive presentment, demand, protest,
notice of acceptance, notice of obligations incurred and all other notices and
demands of any kind, all defenses which may be available by virtue of any stay,
moratorium law or other similar law now or hereafter in effect, any requirement
to proceed first against the Obligor, any right to require the marshaling of
assets of the Obligor, and all suretyship defenses generally and any defenses
in the nature thereof. Without limiting the generality of the foregoing, the
Guarantors agree to the provisions of any agreement evidencing, or otherwise
executed in connection with, any Obligation and agrees that the obligations of
the Guarantors hereunder shall not be released or discharged, in whole or in
part, or otherwise affected by (i) the failure of NSTARCOM to assert any claim
or demand or to enforce any right or remedy against the Obligor; (ii) any
extensions or renewals of any Obligation; or (iii) any rescissions, waivers,
amendments or modifications of any of the terms or provisions of any agreement
evidencing, or otherwise executed in connection with, any Obligation. The
Guarantors acknowledge and agree that it has made such investigation as it
deems desirable of the risks undertaken in entering into this Guaranty and
hereby waives any obligation on your part to inform it of such risks or changes
therein or of matters affecting the business, operations, or condition,
financial or otherwise, of the Obligor.

         3.     UNENFORCEABILITY OF OBLIGATIONS AGAINST OBLIGOR. If for any reason the
Obligor has no legal existence or is under no legal obligation to discharge any
of the Obligations, or if any of the Obligations have become irrecoverable from
the Obligor by operation of law or for any other reason, this Guaranty shall
nevertheless be binding on the Guarantors to the same extent as if the
Guarantors at all times had been the principal obligor on all such Obligations.

         4.     REINSTATEMENT OF OBLIGATIONS; NO SUBROGATION. If NSTARCOM is required
by any court or otherwise to return to the Obligor or the Guarantor (or any
representative of the Obligor or the Guarantors), any amount of the
Obligations, then the Guarantors’ obligations hereunder in respect of the
pertinent

2

 

Obligations, to the extent theretofore discharged, shall be reinstated.
The Guarantors hereby agree that it shall not be entitled to any right of
subrogation in relation to the Obligor in respect of any of the Obligations
until payment in full of the Obligations.

         5.     ASSIGNMENT; SUCCESSORS AND ASSIGNS. This Guaranty shall be binding
upon the Guarantor, its successors and assigns, and shall inure to the benefit
of and be enforceable by NSTARCOM and its successors, transferees and assigns.
Without limiting the generality of the foregoing sentence, the Guarantors may
assign or otherwise transfer the Guaranty, to any other person or entity, and
such other person or entity shall thereupon become liable for full and punctual
payment and performance of the Obligations to the extent set forth herein.
Notwithstanding the foregoing, no assignment by the Guarantors shall release
the Guarantors of its obligations hereunder.

         6.     AMENDMENT AND WAIVERS. The Guarantors acknowledges that NSTARCOM is
relying on the Guaranty in entering into the Operating Agreement with the
Obligor and that this Guaranty may not be revoked in whole or in part. No
amendment or waiver of any provision of this Guaranty nor consent to any
departure by the Guarantors therefrom shall be effective unless the same shall
be in writing and signed by NSTARCOM. No failure on the part of NSTARCOM to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right.

         7.     ENFORCEMENT OF GUARANTY. If the Guarantors shall fail to pay or
perform its obligations under this Guaranty when and as such obligations are
required to be paid or performed hereunder, the Guarantors will pay, on demand,
all costs and expenses incurred by NSTARCOM in enforcing this Guaranty,
including reasonable attorney’s fees.

         8.     NOTICES. All notices and other communications called for hereunder
shall be made in writing and, unless otherwise specifically provided herein,
shall be deemed to have been duly made or given when delivered by hand or
mailed first class mail postage prepaid or, in the case of telegraphic or
telexed notice, when transmitted, answer back or other confirmation of
transmittal received, addressed as follows: if to the Guarantors, at the
address set forth beneath its signature hereto, and if to NSTARCOM, to 800
Boylston Street, Boston, Massachusetts, 02199, Fax: (617) 424-2733.

         9. CONSENT TO JURISDICTION. The Guarantors agrees that any suit for the
enforcement of this Guaranty may be brought in the courts of the Commonwealth
of Massachusetts or any Federal Court sitting therein and consents to the
non-exclusive jurisdiction of such court and to service of process in any such
suit being made upon the Guarantors by mail at the address specified herein.
The Guarantors hereby waive any objection that it may now or hereafter have to
the venue of any such suit or any such court or based on such suit having been
brought in an inconvenient court.

3

 

         10.     GOVERNING LAW. All rights, duties and remedies of the parties hereto
shall be governed as to interpretation, validity, effect and enforcement, and
in all other respects, by the law of the Commonwealth of Massachusetts.

         11.     MISCELLANEOUS. This Guaranty constitutes the entire agreement of the
Guarantor with respect to the matters set forth herein. The rights and
remedies herein provided are cumulative and not exclusive of any remedies
provided by law or any other agreement, and this Guaranty shall be in addition
to any other guaranty of the Obligations. The invalidity or unenforceability
of any one or more sections of this Guaranty shall not affect the validity or
enforceability of its remaining provisions. Captions are for the ease of
reference only and shall not affect the meaning of the relevant provisions.
The meanings of all defined terms used in this Guaranty shall be equally
applicable to the singular and plural forms of the terms defined. Any
capitalized terms used herein which are not specifically defined shall have the
meanings ascribed to them in the Operating Agreement unless provided to the
contrary herein.

         IN WITNESS WHEREOF, the Guarantors have caused this Guaranty to be
executed under seal and delivered by its duly authorized officer as of the
Effective Date.

	 
	RCN CORPORATION
	 
	By:  /s/ Timothy J. Stoklosa

Title:  Executive Vice President
	 
	RCN TELECOM SERVICES OF
MASSACHUSETTS, INC.
	 
	By:  /s/ Timothy J. Stoklosa

Title:  Executive Vice President

ADDRESS:

RCN Corporation

105 Carnegie Center

Princeton, NJ 08540

Attn: General Counsel

4LETTER AGREEMENT

 

Exhibit 10.03

RCN Corporation

105 Carnegie Center

Princeton, NJ 08540-6215

June 19, 2002

NSTAR 800 Boylston Street

Boston, MA 02100

         RE: RCN-BecoCom, LLC — Third Exchange  — Standstill Agreement

Ladies and Gentlemen:

In connection with the exchange of the investment of $152,145,000.00 in
RCN-BecoCom, LLC by your subsidiary, NSTAR Communications, Inc. (“NSTARCOM”),
for 7.5 million shares of common stock of RCN Corporation (the “Corporation”),
pursuant to the terms of the Exchange Agreement dated as of June 17, 1997
(“Exchange Agreement”) by and among C-TEC Corporation, as predecessor in
interest to the Corporation, and NSTARCOM, you have agreed to limit further
acquisitions of the Corporation’s securities, or any interest therein, upon the
terms and conditions hereinafter set forth.

Neither you nor any of your Controlled Affiliates will, without the prior
written consent of the Corporation or its Board of Directors, for a period of
one year from the date of this letter agreement:

	 	(a)	 	acquire, offer to acquire, or agree to acquire, directly or
indirectly, by purchase or otherwise, any securities or direct or
indirect rights to acquire any securities (together, “Securities”)
of the Corporation or any person that is a subsidiary thereof as of
the date hereof or hereafter (a “Subsidiary”), or any assets of
the Corporation or any Subsidiary or division thereof if, as a
result thereof, you and your Controlled Affiliates will beneficially
own Securities of the Corporation, or securities convertible or
exchangeable into such securities, that in the aggregate are
entitled to more than 10.75% of the aggregate number of votes which
may be cast by holders of Securities of the Corporation in the
election of its directors (the “Total Voting Power”), provided,
however, that the prior written consent of the Corporation or its
Board of Directors shall not be required for the for the acquisition
of any Securities directly from the Corporation or resulting from
any stock split, stock dividend or similar recapitalization of the
Corporation, or pursuant to any rights plan adopted by the
Corporation;

 

 

	 	(b)	 	grant any “proxies” (as defined in the Exchange Act) with
respect to any voting securities of the Corporation, or securities
convertible or exchangeable into such securities (except as
recommended by the Board of Directors of the Corporation) or deposit
any such securities in a voting trust or enter into any other
arrangement or agreement with respect to the voting thereof;
	 
	 	(c)	 	make, or in any way participate in, directly or indirectly,
any “solicitation” of “proxies” to vote (as such terms are used in
the rules of the Securities and Exchange Commission), or seek to
advise or influence any person or entity with respect to the voting
of any voting securities of the Corporation;
	 
	 	(d)	 	offer, propose, seek to enter into, make any public
announcement with respect to, or otherwise participate in (with or
without conditions), any acquisition transaction, business
combination or other similar extraordinary transaction involving the
Corporation or any Subsidiary or any of its or their securities or
assets;
	 
	 	(e)	 	form, join or in any way participate in a “group” as defined
in Section 13(d)(3) of the Exchange Act, as amended, in connection
with any of the foregoing;
	 
	 	(f)	 	take any action which might force the Corporation or any
Subsidiary to make a public announcement with respect to any of the
foregoing;
	 
	 	(g)	 	seek or propose, alone or in concert with others, to
influence or control the management or policies of the Corporation;
or
	 
	 	(h)	 	request the Corporation or any of its representatives,
directly or indirectly, to amend or waive any provision of this
agreement.

Terms used herein not otherwise defined shall have the same meaning as set
forth in the Exchange Agreement. The term “Controlled Affiliate” shall mean
any Person controlled by NSTAR. Nothing herein shall be deemed to restrict
Thomas J. May in his capacity as a director of the Corporation. Nothing herein
shall be deemed to restrict or prevent the sale by NSTAR of Securities of the
Corporation, including in response to an offer to purchase or exchange for cash
or other consideration of securities of the Corporation or pursuant to a
merger, consolidation or other business combination involving the Corporation.

The name “NSTAR” means the trustee or trustees for the time being (as
trustee or trustees but not personally) under a Declaration of Trust dated
April 20, 1999, as amended from time to time, which is hereby referred to, and
a copy of which, as amended, has been filed with the Secretary of The
Commonwealth of Massachusetts.

 

 

Any obligation, agreement, or liability made, entered into, or incurred by or
on behalf of NSTAR binds only its trust estate, and no shareholder, director,
trustee, officer or agent thereof assumes or shall be held to any liability
therefor.

Kindly confirm your acceptance of these terms by having the enclosed copy of
this letter executed by an authorized officer of NSTAR and returned to me.

Sincerely yours,

/s/Timothy J. Stoklosa

Name: Timothy J. Stoklosa

Title: Executive Vice President

ACKNOWLEDGED AND AGREED:

NSTAR

	 	 	 	 	 
	By:	 	
/s/Douglas S. Horan
	 	June 19, 2002
	
	
	
	

	 	 	
Its: Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]