Document:

Exhibit 10.5

 

EARTHLINK, INC.

2006 EQUITY AND CASH INCENTIVE PLAN

 

Restricted Stock Unit Agreement

 

No. of Restricted Stock

Units Awarded Hereunder:               
                               

 

THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”)
dated as of the        day of                     ,
200    , between EarthLink, Inc., a Delaware corporation
(the “Company”), and                                       
(the “Participant”) is made pursuant and subject to the provisions of the
Company’s 2006 Equity and Cash Incentive Plan (the “Plan”), a copy of which is
attached hereto.  All terms used herein
that are defined in the Plan have the same meaning given them in the Plan.

 

1.             Grant of Restricted Stock Units.  Pursuant to the Plan, the Company, on                     
     , 200      (the “Date of
Grant”), granted to the Participant                    
Restricted Stock Units, each Restricted Stock Unit corresponding to one share
of the Common Stock of the Company (this “Award”).  Subject to the terms and conditions of the
Plan, each Restricted Stock Unit represents an unsecured promise of the Company
to deliver, and the right of the Participant to receive, one share of the
Common Stock of the Company at the time and on the terms and conditions set forth
herein.  As a holder of Restricted Stock
Units, the Participant has only the rights of a general unsecured creditor of
the Company.

 

2.             Terms and Conditions.  This Award is subject to the following terms
and conditions:

 

(a)           Expiration Date.  This Award shall expire at 11:59 p.m. on                        
         , 200    
(the “Expiration Date”).  In no event
shall the Expiration Date be later than 10 years from the Date of Grant.

 

(b)           Vesting of Award.

 

(i)            In General.  Except as otherwise provided below,                             
percent (     %) of the outstanding Restricted Stock
Units shall become earned and payable on the first annual anniversary of the
Date of Grant and an additional                         percent (      %)
of the Restricted Stock Units shall become payable on each subsequent annual
anniversary thereafter until One Hundred percent (100%) of the Restricted Stock
Units have become earned and payable, provided the Participant has been
continuously employed by, or providing services to, the Company or an Affiliate from the Date of Grant until
each such time.

 

(ii)           Vesting Date.  Outstanding Restricted Stock Units shall be
forfeitable until they become earned and payable as described above.  Each date upon which Restricted Stock Units
become earned and payable shall be referred to as a “Vesting Date” with respect
to such number of Restricted Stock Units.

 

 

(c)           Settlement of Award.  Subject to the terms of this Section 2 and
Section 3 below, and except to the extent the Participant defers receipt of
such shares of Common Stock pursuant to Section 8 below, the Company shall issue to the
Participant one share of Common Stock for each Restricted Stock Unit that has
become earned and payable under Section 2(b) above and shall deliver to the
Participant certificates representing such shares as soon as practicable after
the respective Vesting Date.  As a
condition to the settlement of the Award, the Participant shall be required to
pay any required withholding taxes attributable to the Award in cash or cash
equivalent acceptable to the Committee. 
However, the Company in its discretion may, but is not required to,
allow the Participant to satisfy any such applicable withholding taxes (i) by
allowing the Participant to surrender shares of Common Stock that the
Participant already owns (but only for the minimum required withholding), (ii)
through a cashless transaction through a broker, (iii) by such other medium of
payment as the Committee shall authorize or (iv) by any combination of the allowable
methods of payment set forth herein.

 

3.             Termination of Award.  Notwithstanding any other provision of this
Agreement, outstanding Restricted Stock Units that have not become earned and
payable prior to the Expiration Date shall expire and may not become earned and
payable after such time.  Additionally,
any Restricted Stock Units that have not become earned and payable on or before
the termination of the Participant’s employment with the Company and any Affiliate shall expire and may not
become earned and payable after such time.

 

4.             Shareholder Rights.  The Participant shall not have any rights as
a shareholder with respect to shares of Common Stock subject to any Restricted
Stock Units until issuance of the certificates representing such shares of Common
Stock.  The Company may include on any
certificates representing shares of Common Stock issued pursuant to this Award
such legends referring to any representations, restrictions or any other
applicable statements as the Company, in its discretion, shall deem
appropriate.

 

5.             Transferability.  Except as provided herein, this Award is
nontransferable except by will or the laws of descent and distribution.  If this Award is transferred by will or the
laws of descent and distribution, the Award must be transferred in its entirety
to the same person or persons or entity or entities.  Notwithstanding the foregoing, the
Participant, at any time prior to the Participant’s death, may transfer all or
any portion of this Award to the Participant’s children, grandchildren, spouse,
one or more trusts for the benefit of such family members or a partnership in
which such family members are the only partners, on such terms and conditions
as are appropriate for such transferees to be included in the class of
transferees who may rely on a Form S-8 registration statement under the
Securities Act of 1933 to sell shares received pursuant to the Award.  Any such transfer will be permitted only if
(i) the Participant does not receive any consideration for the transfer and
(ii) the Committee expressly approves the transfer.  Any transferee to whom this Award is
transferred shall be bound by the same terms and conditions that governed the
Award during the time it was held by the Participant (which terms and
conditions shall still be read from the perspective of the Participant);
provided, however, that such transferee may not transfer the Award except than
by will or the laws of descent and distribution.  Any such transfer shall be evidenced by an
appropriate written document that the Participant executes and the Participant
shall deliver a copy thereof to the Committee on or before the effective date
of the transfer.  No right or interest of
the Participant or any transferee

 

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in this Award shall be liable for, or subject
to, any lien, liability or obligation of the Participant or transferee.

 

6.             Cash Dividends.  For so long as the Participant holds
outstanding Restricted Stock Units, if the Company pays any cash dividends on
its Common Stock, then the Company in its discretion (a) may pay the
Participant in cash for each outstanding Restricted Stock Unit covered by this
Award as of the record date for such dividend, less any required withholding
taxes, the per share amount of such dividend or (b) may increase the number of
outstanding Restricted Stock Units covered by this Award by the number of
Restricted Stock Units, rounded down to the nearest whole number, equal to (i)
the product of the number of the Participant’s outstanding Restricted Stock
Units as of the record date for such dividend multiplied by the per share
amount of the dividend divided by (ii) the Fair Market Value of a share of
Common Stock on the payment date of such dividend.  In the event the Company awards additional
Restricted Stock Units pursuant to this Section 6, such Restricted Stock Units
shall be subject to the same terms and conditions set forth in the Plan and
herein as the outstanding Restricted Stock Units with respect to which they
were granted.  Notwithstanding the
foregoing, the Company in its sole discretion may choose not to pay the cash
amounts described above and not to increase the number of outstanding
Restricted Stock Units covered by this Award, and this Section 6 shall not
constitute any agreement or commitment that the Company take any such
actions.  The additional payments or
awards, if any, pursuant to this Section 6 shall be treated as a separate
arrangement.  If the Company is to pay
the Participant such cash or increase the number of Restricted Stock Units
covered by the Award as a result of any such cash dividends, then the cash
shall be paid, or the Restricted Stock Units shall be increased, as applicable,
no later than the 15th day of the third month following the calendar
year in which the relevant cash dividends were paid.

 

7.             Change in Capital Structure.  The terms of this Award shall be adjusted in
accordance with the terms and conditions of the Plan as the Committee
determines is equitably required in the event the Company effects one or more
stock dividends, stock splits, subdivisions or consolidations of shares or
other similar changes in capitalization.

 

8.             Deferral of Common Stock.  If the Participant is eligible to participate
in the Deferred Compensation Program, then the Participant may elect to defer
the receipt of Common Stock issuable pursuant to this Award in accordance with
rules the Committee prescribes for the Deferred Compensation Program.  If the Participant elects to defer the
receipt of Common Stock hereunder, the shares of Common Stock shall be deferred
and credited under the Deferred Compensation Program and shall become payable
and issuable pursuant to the terms and at such time or times as set forth in
the Deferred Compensation Program, but will be paid, if at all, only in shares
of Common Stock.

 

3

 

9.             Notice.  Any notice or other communication given
pursuant to this Agreement, or in any way with respect to the Award, shall be
in writing and shall be personally delivered or mailed by United States
registered or certified mail, postage prepaid, return receipt requested, to the
following addresses:

 

	
  If to the Company:

  	
  EarthLink, Inc.

  
	
   

  	
  1375 Peachtree Street - Level A

  
	
   

  	
  Atlanta,
  Georgia 30309

  
	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  
	
  If to the Participant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

10.           No Right to Continued Employment
or Service.  Neither the Plan, the granting of this Award
nor any other action taken pursuant to the Plan or this Award constitutes or is
evidence of any agreement or understanding, express or implied, that the
Company or any Affiliate will retain the Participant as an employee or other
service provider for any period of time or at any particular rate of
compensation.

 

11.           Agreement to Terms of Plan and
Agreement.  The Participant has received a copy of the
Plan, has read and understands the terms of the Plan and this Agreement, and
agrees to be bound by their terms and conditions.

 

12.           Tax Consequences.  The Participant acknowledges that (i) there
may be adverse tax consequences upon acquisition or disposition of the shares
of Common Stock issued pursuant to this Award and (ii) Participant should
consult a tax adviser prior to such acquisition or disposition.  This Award is intended to be exempt from Code
Section 409A, except to the extent the Award is deferred under the Deferred
Compensation Program pursuant to Section 15.12 of the Plan.  However, the Participant is solely
responsible for determining tax consequences of the Award and for satisfying
the Participant’s tax obligations with respect to the Award (including, but not
limited to, any income or excise taxes resulting from the application of Code
Section 409A), and the Company shall not be liable if this Award is subject to
Code Section 409A.

 

13.           Binding Effect.  Subject to the limitations stated above and
in the Plan, this Agreement shall be binding upon and inure to the benefit of
the distributees, legatees and personal representatives of the Participant and
the successors of the Company.

 

14.           Conflicts.  In the event of any conflict between the
provisions of the Plan and the provisions of this Agreement, the provisions of
the Plan shall govern.  All references
herein to the Plan shall mean the Plan as in effect on the date hereof.

 

15.           Counterparts.  This Agreement may be executed in a number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one in the same instrument.

 

4

 

16.           Miscellaneous.  The parties agree to execute such further
instruments and take such further actions as may be necessary to carry out the
intent of the Plan and this Agreement. 
This Agreement and the Plan shall constitute the entire agreement of the
parties with respect to the subject matter hereof.

 

17.           Governing Law.  This Agreement shall be governed by the laws
of the State of Delaware, except to the extent federal law applies.

 

5

 

 

IN WITNESS WHEREOF, the Company has caused
this Agreement to be signed by a duly authorized officer, and the Participant
has affixed his signature hereto.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  EARTHLINK,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Participant’s Name]

  
						

 

6Exhibit 4.4

 

EARTHLINK, INC. STOCK OPTION PLAN 

FOR INDUCEMENT AWARDS RELATING TO THE 

ACQUISITION OF NEW EDGE HOLDING COMPANY

 

Stock Option Agreement

 

Grant of Stock Option. Effective                                ,
200      (the “Date of Grant”), EarthLink granted to                                
this Option to purchase from EarthLink all or any part of an aggregate of                  
shares of Stock pursuant to the EarthLink, Inc. Stock Option Plan for
Inducement Awards Relating to the Acquisition of New Edge Holding Company (the “Plan”),
a copy of which is attached hereto. The Option is subject to the terms and
conditions set forth herein and in the Plan. All terms used herein that are
defined in the Plan have the same meaning given them in the Plan.

 

Option Exercise Price. The purchase price per share
of Stock subject to the Option is $         
per share, which is the Fair Market Value of a share of Stock on the Date of
Grant.

 

Exercise of Option. This Option shall become
exercisable at the time or times set forth in the Plan. This Option may be
exercised by delivering written notice of exercise to the attention of
EarthLink’s Secretary or his designee at EarthLink’s principal office located
at 1375 Peachtree Street, Level A, Atlanta, Georgia 30309. The exercise date
shall be (i) in the case of notice by mail, the date of postmark, or (ii) if
delivered in person, the date of delivery. Such notice shall be accompanied by
payment of the Option price in full, in such form of payment authorized in the
Plan. The Optionee shall be responsible for satisfying any applicable income
and employment tax withholding obligations with respect to exercise of the
Option.

 

Nontransferability. This Option is nonassignable
and nontransferable, except by will or by the laws of descent and distribution.

 

Shareholder Rights. The Optionee shall not have
any rights as a shareholder with respect to shares of Stock subject to this
Option until the issuance to the Optionee of the certificates representing the
shares of Stock for which the Option is exercised.

 

IN WITNESS
WHEREOF, EarthLink has caused this Option Agreement to be signed by a duly
authorized officer, and the Optionee has affixed his signature hereto.

 

	
   

  	
  EARTHLINK, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Optionee’s Name]

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