Document:

Exhibit 10.30

 

EARTHLINK, INC.

 

EXECUTIVES’ POSITION ELIMINATION

 

AND SEVERANCE PLAN

 

AND SUMMARY PLAN DESCRIPTION

 

(As Amended and Restated Effective as of December 15,
2008)

 

 

EarthLink, Inc.

Executives’ Position Elimination And Severance Plan

(As Amended And Restated Effective As Of December 15, 2008)

 

EarthLink, Inc.
(the “Company”) adopted the EarthLink, Inc. Executives’ Position
Elimination and Severance Plan (the “Plan”), effective as of October 21,
2002, to provide eligible employees with severance pay and benefits in the
event their positions with the Company are eliminated.  The Company amended and restated the Plan
effective as of December 1, 2003, April 22, 2005 and February 17,
2006.  The Company hereby amends and
restates the Plan, as set forth herein, effective as of December 15,
2008.  The Company and its Affiliates
have the responsibility of maintaining business practices that are within the
bounds of local, state and federal laws, applying the same practices
consistently to all employees and treating individuals with dignity, respect,
fairness and compassion.

 

The Plan is an
unfunded welfare benefit plan for purposes of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) and a severance pay plan within the
meaning of United States Department of Labor Regulations Section 2510.3-2(b).  This document serves as both the Plan
document and the summary plan description for the Plan.  The Plan supersedes any prior EarthLink
severance plans, programs or policies covering employees eligible under this
Plan, both formal and informal, other than those plans, programs or policies
the terms of which specifically provide that they cannot be superseded or
terminated.

 

Eligible Employees

 

The Plan
applies to regular employees of the Company and its Affiliates who are employed
in positions at the Vice President Level or the Executive Level of the Career
Band System and whose positions with the Company and its Affiliates are
eliminated, except as otherwise provided herein.  If an employee regularly works less than
forty (40) hours per week, benefits under the Plan will be prorated according
to the employee’s established workweek. 
Independent contractors, consultants, individuals performing services
through an independent contractor, consulting or similar agreement, leased
employees and temporary employees are not eligible for benefits under the Plan.

 

Conditions of Ineligibility

 

An otherwise
eligible employee shall not be eligible for severance pay under the Plan if:

 

·              the
employee ceases to be an eligible employee as described above, other than as a
result of a position elimination;

 

·              the
employee is involuntarily terminated for reasons other than a position
elimination;

 

·              the
employee retires, resigns, quits, dies, becomes disabled or abandons his or her
position;

 

 

·              the
employee accepts another position with the Company or with an Affiliate of the
Company (“Affiliate” means any entity with whom the Company would be considered
a single employer under Sections 414(b) or 414(c) of the Internal Revenue Code
of 1986, as amended (the “Code”));

 

·              the
employee is offered another position within the Company or an Affiliate, with
the same or a higher level of salary or wages, at the employee’s current
location of employment or at another location within fifty (50) miles of the
employee’s current location of employment;

 

·              the
employee is assigned to any part of the Company’s or an Affiliate’s business
that is sold or otherwise transferred to a different company, whether or not
the employee retains his or her job with such other company;

 

·              the
termination of the employee’s employment entitles the employee to benefits
under any employment agreement, severance agreement or other termination or
separation agreement between the employee and the Company or an Affiliate;

 

·              the
termination of the employee’s employment entitles the employee to benefits
under the EarthLink, Inc. Position Elimination and Severance Plan for
Eligible Employees Continuously Employed Since December 31, 2007, the
EarthLink, Inc. Position Elimination and Severance Plan for Eligible
Employees Whose Current Employment Started on or after January 1, 2008,
the EarthLink, Inc. Change-in-Control Accelerated Vesting and Severance
Plan, the EarthLink Network, Inc. Key Employee Compensation Continuation
Plan, the EarthLink Accelerated Vesting and Compensation Continuation Plan, or
any other similar severance or compensation continuation plan of the Company,
its Affiliates or any of their predecessors; or

 

·              the
Plan is terminated.

 

Position Elimination

 

From time to
time, individual Business Divisions within the Company will identify positions
to be eliminated, and the employees in those positions, and will provide this
information to Human Resources (“HR”).

 

The Business
Divisions will provide HR with the reasons for the elimination of the
position.  HR will document the business
reasons for the position elimination. 
The Company is committed to the practice of non-discrimination.

 

Position Elimination Categories

 

When a
position is eliminated there are four potential scenarios for the eligible
employee.

 

I.                                       The employee’s
current position is eliminated and the employee is offered another position
with the Company or an Affiliate with the same or a higher level salary or
wages at the employee’s current location of employment, or at another location
within fifty (50) 

 

2

 

miles of the employee’s current location of
employment.  If the employee accepts the
new position, the employee’s employment relationship with the Company or an
Affiliate continues.  If the employee
declines the position offered, the employee will not be entitled to any
severance pay or benefits under the Plan.

 

II.                                   The employee’s
current position is eliminated and the employee is offered another position
with the Company or an Affiliate with lower salary or wages at the same or
another location of employment.  The
employee will have the option of accepting the new position or taking the
severance package.  If the employee
accepts the new position, the employee’s employment relationship with the
Company or an Affiliate continues.  If
the employee declines the offered position, the employee will be given the
severance package as stated below.

 

III.                               The employee’s current
position is eliminated and the employee is offered another position with the
Company or an Affiliate with the same or a higher salary or wages at another
location that is fifty (50) or more miles from the employee’s current location
of employment.  The employee will have
the option of accepting the new position or taking the severance package.  If the employee accepts the new position, the
employee’s employment relationship with the Company or an Affiliate
continues.  If the new position entitles
the employee to relocation benefits under the Company’s Corporate Relocation
Policy, the employee will be offered the Corporate Relocation Package.  The expense of the relocation will be paid by
the employee’s new department.  If the
employee declines the offered position, the employee will be given the
severance package as stated below.

 

IV.                               The employee’s current
position is eliminated and no other position is offered.  In this case, the employee will be given the
severance package as stated below.

 

Severance Pay and Benefits

 

In exchange
for providing the Company with an enforceable Waiver and Release Agreement in a
form acceptable to the Company, and for not later revoking that Waiver and
Release Agreement, each eligible employee shall be entitled to receive
severance pay and benefits, as stated below. 
Please note that the severance pay described below will be prorated for
those eligible employees who work a regular schedule of less than forty (40) hours
per week.

 

I.                                         Employees
Whose Positions are at the Vice President Level of the Career Band System.  After the notice period, eligible employees
will receive the following severance pay and benefits:

 

·              Six
(6) months base salary paid in a lump sum as soon as administratively
practicable following the termination of employee’s employment with the Company
and all Affiliates but no later than the 15th day of the third
month of the calendar year following the calendar year in which the employee’s
right to the payment vests.  Base salary
excludes overtime, incentive compensation, bonuses, and any other forms of
compensation over and above the employee’s base salary rate.

 

3

 

·              For
employees eligible and participating in the Company’s medical, dental, and
vision plans, the Company will pay to eligible employees an amount equal to the
employer portion of active employees’ premiums for those plans, plus the two
percent COBRA administration fee, for four (4) months of COBRA benefits
coverage.  The Company will make this
payment in a single lump sum as soon as administratively practicable following
termination of the employee’s employment but no later than the 15th day of the third month of the calendar year
following the calendar year in which the employee’s right to the payment
vests.  The Company shall withhold or
obtain payment for applicable income and employment taxes from any payments for
COBRA benefits.  Ex-employees may continue
COBRA for the COBRA eligibility period by paying 100 percent of the COBRA
premium.

 

·              Six
(6) months of outplacement services provided by a vendor selected by the
Company, with a value of up to $4,800, beginning immediately following the
termination of employee’s employment with the Company and all Affiliates.  No cash payment is available in lieu of the
outplacement services.

 

·              Employees
given notice that their positions are being eliminated after the first quarter
but prior to July 1st of any calendar year will be paid the pro-rata
bonus, if any, otherwise payable under the EarthLink Employee Bonus Plan based
on regular earnings and management’s estimate of the year-end bonus
payout.  This payment will be calculated
at the time of and paid with the lump sum severance payment described
above.  Employees given notice that their
positions are being eliminated after July 1 of any calendar year will be
eligible for the pro-rata bonus, if any, otherwise payable under the EarthLink
Employee Bonus Plan, based on regular earnings for that year and actual
business results, payable at the normal time of the bonus payout; provided,
however, that such pro-rata bonus will be paid no later than the 15th day of the third month of the calendar year
following the calendar year in which the employee’s right to such pro-rata
bonus vests.  Severance pay is not
considered regular earnings.  Employees
given notice that their positions are being eliminated during the first quarter
of any calendar year will not be eligible for any bonus otherwise payable under
the EarthLink Employee Bonus Plan for that year.

 

II.                                     Employees Whose
Positions are at the Executive Level of the Career Band System.  Eligible employees whose positions are at the
Executive Level of the Career Band System will receive, after the notice
period, the following severance pay and benefits:

 

·              Twelve
(12) months base salary paid in a lump sum as soon as administratively
practicable following the termination of employee’s employment with the Company
and all Affiliates but no later than the 15th day of the third
month of the calendar year following the calendar year in which the employee’s
right to the payment vests.  Base salary
excludes overtime, incentive compensation, bonuses, and any other forms of
compensation over and above the employee’s base salary rate.

 

·              For
employees eligible and participating in the Company’s medical, dental and
vision plans, the Company will pay to the eligible employees an amount equal to
the 

 

4

 

employer portion of the employees’ premiums
for those plans, plus the two percent COBRA administration fee, for four (4) months
of COBRA benefits coverage.  The Company
will make this payment in a single lump sum as soon as administratively
practicable following termination of the employee’s employment but no later
than the 15th day of the third month of the calendar year
following the calendar year in which the employee’s right to the payment
vests.  The Company shall withhold or
obtain payment for applicable income and employment taxes from any payments for
COBRA benefits.  Ex-employees may
continue COBRA for the COBRA eligibility period by paying 100 percent of the
COBRA premium.

 

·              Twelve
(12) months of executive-level outplacement services provided by a vendor
selected by the Company with a value of up to $6,800, beginning immediately
following the termination of employee’s employment with the Company and all
Affiliates.  No cash payment is available
in lieu of the outplacement services.

 

·              Employees
given notice that their positions are being eliminated after the first quarter
of any calendar year will be eligible for the pro-rata bonus, if any, otherwise
payable under the EarthLink Executive Bonus Plan, based on regular earnings for
that year and actual business results, payable at the normal time of the bonus
payout; provided, however, that such pro-rata bonus will be paid no later than
the 15th day of the third month of the calendar year
following the calendar year in which the employee’s right to such pro-rata
bonus vests.  Severance pay is not
considered regular earnings.  Employees
given notice that their positions are being eliminated during the first quarter
of any calendar year will not be eligible for any bonus otherwise payable under
the EarthLink Executive Bonus Plan for that year.

 

The
consideration for the voluntary Waiver and Release Agreement shall be the
severance pay and benefits provided under this Plan that the eligible employee
would otherwise not be eligible to receive.

 

The Company
may, in its sole discretion, enhance the amount of severance pay that an
eligible employee is entitled to receive under this Plan in addition to the
amount of severance described above or make available additional or other forms
of severance benefits hereunder. 
Furthermore, the Company or an Affiliate may, in its sole discretion,
award severance pay to an employee who is not otherwise eligible to receive it
under this Plan provided the employee is not otherwise entitled to any
severance or similar benefits under any employment agreement, severance
agreement or other termination or severance agreement or under any other
severance or compensation continuation plan of the Company or any of its
Affiliates.  To the extent the Company in
its sole discretion enhances the amount of severance pay or provides any
additional forms of severance benefits under this Plan, such enhanced severance
pay and additional forms of severance benefits shall be provided under the Plan
and pursuant to the terms and other conditions hereof.  Notwithstanding the foregoing, however, no
other severance or other benefits provided an employee shall be deemed enhanced
severance pay or additional or other forms of severance benefits provided under
this Plan unless such other arrangements specifically reference that they are
being provided under this Plan.  All
legally required federal, state and 

 

5

 

local
withholding taxes and any sums owing to the Company shall be deducted from
severance pay and benefits due under this Plan.

 

Delay in Payment for Specified Employees

 

Notwithstanding
any other provision of this Plan, if an otherwise eligible employee is a
Specified Employee (as defined below), and if the severance package payable to
such Specified Employee hereunder is not otherwise exempt from Section 409A
of the Code, then, to the extent necessary to comply with Section 409A, no
payments may be made hereunder (including, if necessary, any payments for COBRA
benefits) before the date which is six months after the Specified Employee’s
separation from service within the meaning of Section 409A or, if earlier,
the date of death of the Specified Employee. 
Because the amounts paid pursuant to this Plan will be paid in all
events by the 15th day of the third month following the end of the calendar
year in which employee’s right to the payments vest, all amounts payable
hereunder should be exempt from Section 409A.  These Specified Employee six-month delay
provisions will only be applicable if it is subsequently determined that the
amounts paid pursuant to this Plan are not exempt from Section 409A.

 

For purposes
of this Plan, “Specified Employee” means an employee who is (i) an officer
of the Company having annual compensation greater than $135,000 (with certain
adjustments for inflation after 2005), (ii) a five-percent owner of the
Company or (iii) a one-percent owner of the Company having annual
compensation greater than $150,000.  For
purposes of this Section, no more than 50 employees (or, if lesser, the greater
of three or 10 percent of the employees) shall be treated as officers.  Employees who (i) normally work less
than 17 1/2 hours per week, (ii) normally work not more than 6 months
during any year, (iii) have not attained age 21 or (iv) are included
in a unit of employees covered by an agreement which the Secretary of Labor
finds to be a collective bargaining agreement between employee representatives
and the Company (except as otherwise provided in regulations issued under the
Code) shall be excluded for purposes of determining the number of
officers.  For purposes of this Section,
the term “five- percent owner” (“one-percent owner”) means any person who owns
more than five percent (One percent) of the outstanding stock of the Company or
stock possessing more than five percent (one percent) of the total combined
voting power of all stock of the Company. 
For purposes of determining ownership, the attribution rules of Section 318
of the Code shall be applied by substituting “five percent” for “50 percent” in
Section 318(a)(2) and the rules of Sections 414(b), 414(c) and 414(m)
of the Code shall not apply.  For
purposes of this Section, the term “compensation” has the meaning given such
term by Section 414(q)(4) of the Code. 
The determination of whether the employee is a Specified Employee will
be based on a December 31 identification date such that if the employee
satisfies the above definition of Specified Employee at any time during the
12-month period ending on December 31, he will be treated as a Specified
Employee if he has a termination of employment during the 12-month period
beginning on the first day of the fourth month following the identification date.  This definition is intended to comply with
the specified employee rules of Section 409A(a)(2)(B)(i) of the Code
and shall be interpreted accordingly.

 

6

 

Compliance with Code Section 409A

 

This Plan is intended
to be exempt from the applicable requirements of Section 409A of the Code
and shall be construed and interpreted in accordance therewith.  All rights to the payments and benefits under
the Plan shall be treated as rights to receive a series of separate payments
and benefits to the fullest extent permitted by Section 409A of the
Code.  The Company may at any time amend,
suspend or terminate this Plan, or any payments to be made hereunder, as
necessary to maintain such exemption or be in compliance with Section 409A.  Notwithstanding the preceding, the Company
and its Affiliates shall not be liable to any employee or any other person if
the Internal Revenue Service or any court or other authority having
jurisdiction over such matter determines for any reason that any amount under
this Plan is subject to taxes, penalties or interest as a result of failing to
comply with Code Section 409A.

 

Reemployment and Death

 

In the event a
former employee receiving severance pay or benefits under the Plan is subsequently
rehired by the Company or hired by an Affiliate, the employee shall not be
required to repay any severance pay or benefits previously received under the
Plan and shall still be entitled to receive the payment of any pro-rata bonus
payable under the Plan; provided, however, that payment of such prorated bonus
under the Plan shall be reduced (but not below zero) to the extent the rehired
employee is entitled to receive all or any portion of such bonus after rehire
under the EarthLink Employee Bonus Plan or the hired employee is entitled to
receive all or any portion of a similar bonus alternative by an Affiliate;
there being no intent to provide duplicate payments to such employee with
respect to such bonus.  However, such
employee will not be entitled to receive under this Plan any severance pay or
benefits not yet paid.  In the event a
former employee receiving severance pay or benefits under the Plan is offered
and rejects another position with the Company or an Affiliate, all unpaid
severance pay and benefits shall continue. 
In the event a former employee receiving severance pay or benefits under
the Plan dies, all unpaid severance pay and benefits shall continue and shall
be paid to the employee’s designated beneficiary or estate.

 

Waiver and Release Agreement

 

In order to
receive the severance pay and benefits available under the Plan, an eligible
employee must submit a signed Waiver and Release Agreement, in a form
acceptable to the Company, to the Plan Administrator on or within 21 days (45
days in the event of a group termination) after the employee’s date of
termination of employment, but not prior to the date of termination of
employment.

 

An eligible
employee may revoke a signed Waiver and Release Agreement within seven (7) days
of signing the Waiver and Release Agreement. 
Any such revocation must be made in writing and must be received by the
Plan Administrator within such seven (7) day period.  An eligible employee who timely revokes the
Waiver and Release Agreement shall not be eligible to receive severance pay or
benefits under the Plan.  An eligible
employee who timely submits a signed Waiver and Release Agreement and who does
not exercise the right of revocation shall be

 

7

 

eligible to
receive severance pay and benefits under the Plan only after the applicable
period for revoking such Waiver and Release Agreement has expired.

 

Eligible
employees are advised to contact their personal attorneys at their own expense
to review the Waiver and Release Agreement if they so desire.

 

No Duplicate Payments

 

The severance
pay and benefits available under the Plan are the maximum to which an employee
is entitled from the Company and its Affiliates in the event of involuntary
termination of employment.  The Company
or an Affiliate and an eligible employee may be parties to other agreements,
policies, plans, programs or arrangements relating to the employee’s employment
which do not specifically disqualify the employee from participation in this
Plan.  In such an event, this Plan shall
be construed and interpreted so that severance pay and benefits are provided
under this Plan only to the extent that similar amounts of severance and
benefits are not paid or provided to such employee under any other agreements,
policies, plans, programs or arrangements; it being the intent of this Plan not
to provide to the employee any duplicative payments of severance pay or other
benefits.  The Company or Affiliate, as
applicable, in its sole discretion, shall determine whether payments or other
benefits to the employee under any other such agreements, policies, plans,
programs or arrangements shall constitute duplicative payments of severance pay
or benefits hereunder.  In the event the
Company or Affiliate determines that payments or other benefits to the employee
under any other such agreements, policies, plans, programs or arrangements
constitute duplicative payments, the severance pay or benefits otherwise
payable under this Plan shall be reduced to the extent of such duplicative
payments.

 

To the extent
that a federal, state or local law requires the Company or Affiliate to provide
notice and/or make a payment to an eligible employee because of involuntary
termination of employment, or in accordance with a plant closing law, such as
the WARN Act, the severance pay and benefits available under the Plan for
periods for which the employee is not required to report to work shall be
reduced by the amount of any such mandated payment.

 

Confidentiality

 

The terms and
conditions of this Plan and the employees’ severance pay and benefits under the
Plan shall remain strictly confidential. 
Employees may not discuss or disclose any terms of this Plan or its
benefits with anyone except their attorneys, accountants and immediate family
members who shall be instructed to maintain the confidentiality agreed to under
this Plan, except as may be required by law. 
In the event employee or employee’s attorneys, accountants or immediate
family members breach the terms of this provision, employee shall forfeit any
and all rights to receive the severance pay and benefits under the Plan and
shall be required to return the aggregate amount of severance pay and benefits
received previously under the Plan.

 

Confidential Information/Cooperation

 

In order to
receive severance pay and benefits under the Plan, eligible employees shall be
required to confirm in the Waiver and Release Agreement the terms of their
Employee Confidentiality and Invention Assignment Agreement or other employee confidentiality

 

8

 

agreement(s) with
the Company or Affiliate and, at the Company’s or Affiliate’s discretion, to
agree in the Waiver and Release Agreement to such other terms relating to the
protection and return of the Company’s or Affiliate’s confidential and
proprietary business information and other Company or Affiliate property as the
Company or Affiliate deems appropriate.

 

After an
employee’s termination of employment with the Company and its Affiliates, he or
she shall, with reasonable notice, furnish information as may be in his or her
possession, control or knowledge and to otherwise cooperate with and assist the
Company or Affiliate as reasonably may be requested in connection with any
claims or legal actions in which the Company or Affiliate is or may become a
party, or in any matter in which he or she was involved or of which he or she
had knowledge while employed by the Company or Affiliate.  No employee shall be entitled to any
compensation for such cooperation except for reimbursement by the Company or
Affiliate for his or her actual out-of-pocket expenses or costs incurred with
this cooperation as soon as administratively practicable after the expenses are
incurred.

 

Return of Company Property

 

Upon
termination of employment, employees shall return to the Company or Affiliate
all property of the Company or Affiliate in their possession, custody or
control, including keys, credit cards, identification cards, laptop computers,
Personal Digital Assistants (PDAs), car and mobile telephones, pagers, parking
stickers, correspondence, notes, memoranda, reports, manuals, notebooks,
drawings, sketches, blueprints, formulae, prototypes, models, computer disks,
computer printouts, information stored electronically on computers, and the
trade secrets and other confidential information of the Company or
Affiliate.  Employees shall not make any
copies, nor shall they retain any originals or copies of such property.

 

Plan Administration

 

The Company
shall act as the Plan Administrator of the Plan (or shall have the power to
appoint a Plan Administrator of the Plan) and the “named fiduciary” within the
meaning of such terms as defined in ERISA. 
It shall be the principal duty of the Plan Administrator to see that the
Plan is carried out, in accordance with its terms, and operated uniformly for
similarly situated individuals.

 

Authority of Plan Administrator

 

The Plan
Administrator shall have sole discretionary power to administer the Plan,
subject to applicable requirements of law. 
The Plan Administrator shall have the authority to interpret the Plan
and to determine all questions arising under or in connection with the Plan,
including all questions of fact and questions of eligibility to participate and
obtain benefits under the Plan.  The Plan
Administrator shall pay benefits under the Plan, in accordance with its terms,
but only if it determines in its sole discretion that the claimant is entitled
to them.

 

The Plan
Administrator may delegate to other persons responsibilities for performing
certain of the duties of the Plan Administrator under the Plan and may seek
expert advice as the Plan Administrator deems reasonably necessary with respect
to the Plan.  The Plan Administrator 

 

9

 

shall be
entitled to rely upon the information and advice furnished by such persons and
experts, unless actually knowing such information and advice to be inaccurate
or unlawful.

 

All actions
and determinations of the Plan Administrator shall be final, binding and
conclusive on all parties.  As permitted
by law, the Company will indemnify and save the Plan Administrator’s designees
harmless against expenses, claims and liabilities arising out of his or their
actions on behalf of the Company in connection with the administration of the
Plan, except expenses, claims and liabilities arising out of such person’s own
gross negligence or bad faith or for which applicable law does not permit such
indemnification.

 

Claim Procedures

 

Employees do
not need to complete a claim for benefits to obtain benefits under the
Plan.  However, employees who dispute the
amount of, or their entitlement to, Plan benefits must file a claim with the
Plan Administrator to obtain Plan benefits. 
Any claim by an employee who disputes the amount of, or his or her
entitlement to, Plan benefits must be filed in writing within ninety (90) days
of the event that the employee is asserting constitutes an entitlement to such
Plan benefits.  Failure by the employee
to submit such claim within the ninety (90)-day period shall bar the employee
from any claim for benefits under the Plan as a result of the occurrence of
such event.

 

Claims for
benefits shall be filed in writing with the Plan Administrator.  Written notice of the decision on such claim
shall be furnished to the claimant within ninety (90) days of receipt of such
claim unless special circumstances require an extension of time for processing
the claim.  If the Plan Administrator
needs an extension of time to process a claim, written notice will be delivered
to the claimant before the end of the initial ninety (90) day period.  The notice of extension will include a
statement of the special circumstances requiring an extension of time and the
date by which the Plan Administrator expects to render its final decision.  However, that extension may not exceed ninety
(90) days after the end of the initial period. 
If the Plan Administrator rejects a claim for failure to furnish
necessary material or information, the written notice to the claimant will
explain what more is needed and why, and will tell the claimant that the
claimant may refile a proper claim.

 

The Plan
Administrator shall provide payment for the claim only if the Plan
Administrator determines, in its sole discretion, that the claimant is entitled
to the claimed benefit.

 

If any part of
a claim for benefits under this Plan is denied, the Plan Administrator will
provide the claimant with a written notice stating (i) the specific reason
or reasons for the denial; (ii) the specific reference to pertinent Plan
provisions on which the denial was based; (iii) a description of any
additional material or information necessary for the claimant to perfect the
claim and an explanation of why such material or information is necessary; and (iv) appropriate
information as to the steps to be taken if the claimant wishes to submit a
claim for review, including a statement of the claimant’s right to bring a
civil action under Section 502(a) of ERISA following an adverse benefit determination
on review.

 

10

 

The full value
of any payment made according to the Plan satisfies that much of the claim and
all related claims under the Plan.

 

Appeal Procedures

 

If a claim is
denied, the claimant may appeal the denial by delivering a written notice to
the Plan Administrator specifying the reasons for the appeal.  That notice must be delivered within sixty
(60) days after receiving the notice of denial. 
The claimant may submit written comments, documents, records and other
information relating to the claimant’s claim for benefits.  The claimant will be provided, upon request
and free of charge, reasonable access to, and copies of, all documents, records
and other information relevant to the claimant’s claim for benefits.  The Plan Administrator’s review will take
into account all such written comments, documents, records and other
information the claimant submits relating to the claim, without regard to
whether such information was submitted or considered initially.

 

The Plan
Administrator will advise the claimant in writing of the final determination
after review.  The decision on review
will be written in a manner calculated to be understood by the claimant, and it
will include specific reasons for the decision and specific references to the
pertinent provisions of the Plan or related documents on which the decision is
based.  Such written notification also
will include a statement that the claimant is entitled to receive, upon request
and free of charge, reasonable access to, and copies of, all documents, records
and other information relevant to the claimant’s claim for benefits, the
claimant’s right to obtain the information about such procedures and a
statement of the claimant’s right to bring a civil action under Section 502(a)
of ERISA following a denial on review. 
The written decision will be rendered within sixty (60) days after the
request for review is received, unless special circumstances require an
extension of time for processing.  If an
extension is necessary the Plan Administrator will furnish written notice of
the extension to the claimant before the end of the 60-day period and indicate
the special circumstances requiring the extension of time.  The extension notice will indicate the date
by which the Plan Administrator expects to render a decision.  The decision will then be rendered as soon as
possible, but no later than one hundred twenty (120) days after receipt of the
request for review.

 

If the Plan
Administrator holds regularly scheduled meetings at least quarterly, the time
periods for rendering the written decision described in the preceding paragraph
shall not apply and the Plan Administrator shall instead make a benefit
determination no later than the date of the meeting of the Plan Administrator
that immediately follows the Plan’s receipt of a request for review, unless the
request for review is filed within 30 days preceding the date of such
meeting.  In such case, a benefit
determination may be made by no later than the date of the second meeting
following the Plan’s receipt of the request for review.  If special circumstances require a further
extension of time for processing, a benefit determination will be rendered no
later than the third meeting of the Plan Administrator following the Plan’s
receipt of the request for review.  If
such an extension of time for review is required because of special
circumstances, the Plan Administrator will provide the claimant with written
notice of the extension, describing the special circumstances and the date as
of which the benefit determination will be made, prior to the commencement of
the extension.  The Plan Administrator
will notify the claimant of the 

 

11

 

benefit
determination as soon as possible, but not later than five days after the
benefit determination is made.

 

In no event
shall an employee or other claimant be entitled to challenge a decision of the
Plan Administrator in court or in any other administrative proceeding unless
and until these claim review and appeal procedures have been complied with and
exhausted.  The claimant shall have
ninety (90) days from the date of receipt of the Plan Administrator’s decision
on review in which to file suit regarding a claim for benefits under the
Plan.  If suit is not filed within such
90-day period, it shall be forever barred. 
The decisions made hereunder shall be final and binding on participants,
employees and any other party.

 

Amendment / Termination / No
Vesting

 

Eligible employees
do not have any vested right to severance pay and benefits under the Plan.  The Company reserves the right, in its sole
discretion, to amend or terminate the Plan at any time by written action of its
Chief Executive Officer, Chief Financial Officer or Chief People Officer or any
of their designees or by such other action as the Company may determine.

 

No Representations Contrary to
the Plan

 

The terms of
an employee’s severance pay and benefits are as set forth in this document,
which cannot be changed by the promises of any individual employee or
manager.  Only the Company may change the
terms of the Plan, and then only through a written amendment.  No promises (oral or written) that are
contrary to the terms of the Plan and its written amendments are binding upon
the Plan, the Plan Administrator or the Company or any of its Affiliates.

 

Plan Funding

 

The Plan is
funded entirely through Company payments from its operating assets.  Severance pay and benefits are not held under
any trust, are paid from the general assets of the Company, are unsecured, and
are subject to the claims of the Company’s general creditors.  The rights of eligible employees are no
greater than those of an unsecured general creditor of the Company.

 

Coordination With Other Benefits

 

Severance pay
and benefits under the Plan are not considered eligible earnings for the
Company’s 401(k) Plan or any other benefit program.

 

Restriction Against Assignment

 

Severance pay
and benefits under the Plan may not be assigned, pledged or encumbered in any
manner, and any attempt to do so shall be void. 
The Company and its Affiliates shall make deductions from Plan severance
payments to the extent required by court-ordered garnishment, wage assignment
or similar law.

 

12

 

Controlling Law

 

Except to the
extent superseded by laws of the United States, the laws of the State of
Delaware shall be controlling in all matters relating to the Plan.

 

Reemployment Other Than As An
Employee

 

The Company or
Affiliate may, in its sole discretion, determine how an employee whose position
is eliminated but who is offered another position as an independent contractor
or consultant with the Company or with an Affiliate shall be treated for
purposes of the Plan.  In that respect,
the Company or Affiliate, in its sole discretion, may make all such
determinations under the Plan, including without limitation, determining (i) whether
a regular employee whose position has been eliminated but who is rehired as an
independent contractor or consultant is an eligible employee, (ii) whether
an otherwise eligible employee will be eligible for severance pay if the
employee is retained, or hired by the Company or an Affiliate, as an
independent contractor or consultant under any agreement that provides for
severance or similar benefits on termination of service, (iii) whether an
employee whose position has been eliminated but who is offered work by the
Company or an Affiliate as an independent contractor or consultant qualifies
for severance pay and benefits under any of the position elimination categories
set forth under the Plan, and (iv) whether any employee whose position is
eliminated is deemed to be re-employed to the extent the employee is retained,
or hired by the Company or an Affiliate, as an independent contractor or
consultant.  Notwithstanding the
foregoing, an eligible employee will not be given a severance package under the
Plan if the eligible employee continues to provide services to the Company or
any of its Affiliates in a capacity other than as an eligible employee and such
services are provided at an annual rate that is 50 percent or more of the
services rendered, on average, during the immediately preceding thirty-six (36)
months of employment (or, if employed less than thirty-six (36) months, such
lesser period).

 

Temporary Leave of Absence

 

An eligible
employee will not be considered to have had a termination of employment and
will not be entitled to the severance pay and benefits under this Plan if the
otherwise eligible employee goes on military leave, sick leave or other bona
fide leave of absence (such as temporary employment by the government) for a
period of less than six months, or for a longer period if the employee’s right
to reemployment is provided either by statute or by contract; provided,
however, if the eligible employee otherwise meets the requirements for
receiving severance pay and benefits under this Plan and if the period of leave
(i) ends or (ii) exceeds six months and the employee’s right to reemployment
is not provided either by statute or by contract, then the eligible employee
will be considered to have had a termination of employment and will be entitled
to the severance pay and benefits as of the first date immediately following
such time if the eligible employee otherwise would be entitled to such benefits
if the eligible employee terminated employment as of such time.

 

13

 

General Plan Information

 

Plan Name

 

EarthLink, Inc.
Executives’ Position Elimination and Severance Plan (As Amended and Restated
Effective as of December 15, 2008)

 

Plan Sponsor

 

EarthLink, Inc.

1375 Peachtree Street

Atlanta, GA 30309

(404) 815-0770

 

Employer Identification Number
(BIN

 

58-2511877

 

Plan Number

 

506

 

Plan Type

 

The Plan is a
welfare benefit plan that pays severance benefits.

 

Plan Administrator

 

Plan
Administrator, EarthLink, Inc. Executives’ Position Elimination and
Severance Plan

 

c/o EarthLink, Inc.

1375 Peachtree Street

Atlanta, GA 30309

(404) 815-0770

 

Agent for Service of Legal
Process

 

c/o EarthLink, Inc.

Chief People Officer

1375 Peachtree Street

Atlanta, GA 30309

(404) 815-0770

 

Plan Year

 

The calendar
year.

 

14

 

ERISA Rights Statement

 

As participant
in this Plan, you are entitled to certain rights and protections under
ERISA.  ERISA provides that all Plan
participants shall be entitled to:

 

·              examine,
without charge at the Plan Administrator’s office and at other specified
locations, such as worksites and union halls, all documents governing the Plan,
including collective bargaining agreements, and a copy of the latest Annual
Report (Form 5500 series), if any, filed by the Plan with the U.S.
Department of Labor and available at the Public Disclosure Room of the
Employee Benefits Security Administration (f/k/a the Pension Welfare Benefits
Administration).

 

·              obtain
copies of all documents governing the operation of the Plan including
collective bargaining agreements and copies of the latest Annual Report (Form 5500
series), if any, and an updated summary plan description, by making a written
request to the Plan Administrator and paying a reasonable charge for the
copies.

 

·              receive
a summary of the Plan’s annual financial report.  The Plan Administrator is required by law to
furnish each participant under the Plan with a copy of this summary annual
report.

 

In addition to
creating rights for Plan participants, ERISA imposes duties upon the people who
are responsible for the operation of the Plan. 
The people who operate the Plan, called “fiduciaries” of the Plan, have
a duty to do so prudently and in your interest and in the interest of the other
Plan participants and beneficiaries.

 

No one,
including your employer, your union, or any other person may fire you or
otherwise discriminate against you, in any way solely to prevent you from
getting a benefit or exercising your rights under ERISA.  If your claim for a benefit is denied or
ignored, in whole or in part, you have a right to know why this was done, to
obtain copies of documents relating to the decision without charge, and to
appeal any denial, all within certain time schedules.

 

Under ERISA,
there are steps you can take to enforce the above rights.  For instance, if you request a copy of Plan
documents or the latest Annual Report from the Plan and do not receive them
within thirty (30) days, you may file suit in federal court.  In such a case, the court may require the
Plan Administrator to provide the documents and pay you up to $110 a day until
you receive them, unless they were not sent because of reasons beyond the
control of the Plan Administrator.

 

If you have a
claim for benefits which is denied or ignored, in whole or in part, you may
file suit in a state or federal court. 
If it should happen that Plan fiduciaries misuse the Plan’s money, or if
you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor or you may file suit in a federal
court.  The court will decide who should
pay court costs and legal fees.  If your
suit is successful, the court may order the person you have sued to pay costs
and fees.  If you lose, the court may
order you to pay these costs and fees, for example, if it finds your claim is
frivolous.

 

15

 

If you have
any questions about the Plan, you should contact the Plan Administrator.  If you have any questions about your rights
under ERISA, or if you need assistance in obtaining documents from the Plan
Administrator, you should contact the nearest office of the Employee Benefits
Security Administration, U.S. Department of Labor listed in your telephone
directory or the Division of Technical Assistance and Inquiries, Employee
Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue,
N.W., Washington, D.C. 20210.  You may
also obtain certain publications about your rights and responsibilities under
ERISA by calling the publications hotline of the Employee Benefits Security
Administration.

 

16Exhibit
10.32

 

EARTHLINK,
INC.

 

2009 SHORT-TERM
INCENTIVE BONUS PLAN

 

1.                                      STATEMENT OF PURPOSE

 

1.1                                 Statement of
Purpose.  The purpose of the EarthLink, Inc.
2009 Short-Term Incentive Bonus Plan (the “Plan”) is to encourage the creation
of shareholder value by establishing a direct link between Adjusted EBITDA (as
defined below) and, in certain cases, Revenue (as defined below) achieved and
the incentive compensation of Participants in the Plan.

 

Participants contribute to
the success of EarthLink, Inc. (the “Company”) through the application of
their skills and experience in fulfilling the responsibilities associated with
their positions. The Company desires to benefit from the contributions of the
Participants and to provide an incentive bonus plan that encourages the
sustained creation of shareholder value.

 

2.                                      DEFINITIONS

 

2.1                                 Definitions.  Capitalized terms used in the Plan shall have
the following meanings:

 

“Adjusted EBITDA”
means EBITDA excluding stock-based compensation expense under SFAS No. 123(R),
facility exit and restructuring costs, net losses of equity affiliates, gain
(loss) on investments, net, impairment of goodwill and intangible assets.

 

“Bonus Award” means the
Participant’s Performance Bonus or such lesser amount as the Committee in its
sole discretion may determine as of a result of the failure by the individual
Participant to achieve desired individual performance levels for the Bonus
Period.

 

“Bonus Period(s)”
means (i) for Management Participants, the 2009 calendar year and (ii) for
all other Participants, the period beginning January 1, 2009 and ending June 30,
2009 and the period beginning July 1, 2009 and ending December 31,
2009, in respect of which the Corporate Performance Objectives are measured and
the Participants’ Bonus Awards, if any, are to be determined.

 

“Cause” has the same
definition as under any employment or service agreement between the Employer
and the Participant or, if no such employment or service agreement exists or if
such employment or service agreement does not contain any such definition,
Cause means (i) the Participant’s willful and repeated failure to comply
with the lawful directives of the Board of Directors of any Employer or any
supervisory personnel of the Participant; (ii) any criminal act or act of
dishonesty or willful misconduct by the Participant that has a material adverse
effect on the property, operations, business or reputation of any Employer; (iii) the
material breach by the Participant of the terms of any confidentiality,
non-competition, non-solicitation or other such agreement that the Participant
has with any Employer or (iv) acts by the Participant of willful
malfeasance or gross negligence in a matter of material importance to any
Employer.

 

“Change in Control” means the occurrence of
any of the following events:

 

 

(a)                                  the accumulation in any number of related or
unrelated transactions by any person of beneficial ownership (as such term is
used in Rule 13d-3 promulgated under the Securities Exchange Act of 1934,
as amended) of more than fifty percent (50%) of the combined voting power of
the Company’s voting stock; provided that, for purposes of this subsection (a),
a Change in Control will not be deemed to have occurred if the accumulation of
more than fifty percent (50%) of the voting power of the Company’s voting stock
results from any acquisition of voting stock (i) directly from the Company
that is approved by the Incumbent Board, (ii) by the Company, (ii) by
any employee benefit plan (or related trust) sponsored or maintained by the Company
or any Employer, or (iv) by any person pursuant to a merger,
consolidation, or reorganization (a “Business Combination”) that would not
cause a Change in Control under clauses (i) and (ii) of subsection (b) below;
or

 

(b)                                 consummation of a Business Combination, unless,
immediately following that Business Combination, (i) all or substantially
all of the persons who are the beneficial owners of voting stock of the Company
immediately prior to that Business Combination beneficially own, directly or
indirectly, at least fifty percent (50%) of the then outstanding shares of
common stock and at least fifty percent (50%) of the combined voting power of
the then outstanding voting stock entitled to vote generally in the election of
directors of the entity resulting from that Business Combination (including,
without limitation, an entity that as a result of that transaction owns the
Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries), in substantially the same proportions
relative to each other as their ownership, immediately prior to that Business
Combination, of the voting stock of the Company, and (ii) at least sixty
percent (60%) of the members of the Board of Directors of the entity resulting
from that Business Combination holding at least sixty percent (60%) of the
voting power of such Board of Directors were members of the Incumbent Board at
the time of the execution of the initial agreement or of the action of the
Board of Directors providing for that Business Combination and, as a result of
or in connection with such Business Combination, no person has the right to
dilute either such percentages by appointing additional members to the Board of
Directors or otherwise without election or action by the shareholders; or

 

(c)                                  a sale or other disposition of all or substantially
all the assets of the Company, except pursuant to a Business Combination that
would not cause a Change in Control under clauses (i) and (ii) of
subsection (b) above, or

 

(d)                                 approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company, except pursuant to a
Business Combination that would not cause a Change in Control under clauses (i) and
(ii) of subsection (b) above; or

 

(e)                                  the acquisition by any person,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of the Company (i) through the ownership of
securities which provide the holder with such power, excluding voting rights
attendant with such securities, or (ii) by contract; provided the Change
in Control will not be deemed to have occurred if such power was acquired (x) directly
from the Company in a transaction approved by the Incumbent Board, (y) by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Employer or (z) by any person pursuant to a Business
Combination that would not cause a Change in Control under clauses (i) and
(ii) of subsection (b) above.

 

2

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Committee” means the
Leadership and Compensation Committee of the Board of Directors of the Company which
will administer the Plan.

 

“Compensation” means
the Participant’s actual wages earned during the Bonus Period, excluding
incentive payments, salary continuation, bonuses, income from equity awards,
stock options, restricted stock, restricted stock units, deferred compensation,
commissions, and any other forms of compensation over and above the Participant’s
actual wages earned during the Bonus Period.

 

“Common Stock” means
the common stock, $.01 par value per share, of the Company.

 

“Corporate Performance
Objectives” means Adjusted EBITDA and, in certain cases, Revenues in such
amounts as the Committee shall determine in its sole discretion for each Bonus
Period that must be achieved for the Participant’s Performance Bonus Multiplier
for the Bonus Period to be greater than zero (0). The Committee shall adjust
the Corporate Performance Objectives as the Committee in its sole discretion may
determine is appropriate in the event of unanticipated circumstances, unbudgeted
acquisitions or divestitures, or other unexpected changes to fairly and
equitably determine the Bonus Awards and to prevent any inappropriate
enlargement or dilution of the Bonus Awards. 
In that respect, the Corporate Performance Objectives may be adjusted to
reflect the impairment of any tangible or intangible assets, litigation or
claim judgments or settlements, changes in tax law, accounting principles or
other such laws or provisions affecting reported results, business
combinations, reorganizations and/or restructuring programs, reductions in
force and early retirement incentives and any other extraordinary, unusual, infrequent
or non-reoccurring items separately identified in the financial statements
and/or notes thereto in accordance with generally accepted accounting
principles.  To the extent any such
adjustments affect any Bonus Award, the intent is that the adjustments shall be
in a form that allows the Bonus Award to continue to meet the requirements of Section 162(m) of
the Code for deductibility.

 

“Disability” means
where the Participant is “disabled” or has incurred a “disability” in
accordance with the policies of the Employer that employs the Employee in
effect at the applicable time.

 

“Distribution” means
the payment of cash under the Plan.

 

“Distribution Date”
means the date on which the Distribution occurs.

 

“EBITDA” means income
(loss) from continuing operations before interest income (expense) and other,
net, income, taxes, depreciation and amortization.

 

“Effective Date”
means January 1, 2009.

 

“Employee” means a
full-time common law employee of an Employer. 
A full-time common law employee of an Employer only includes an
individual who renders personal services to the Employer and who, in accordance
with the established payroll, accounting and personnel policies of the Employer,
is characterized by the Employer as a full-time, common law employee.  

 

3

 

An
Employee does not include any person whom the Employer has identified on its
payroll, personnel or tax records as an independent contractor or a person who
has acknowledged in writing to the Employer that such person is an independent
contractor, whether or not a court, the Internal Revenue Service or any other
authority ultimately determines such classification to be correct or incorrect
as a matter of law.

 

“Employer” means EarthLink, Inc.
(also referred to as the “Company”) and any other entity that is part of a
controlled group of corporations or is under common control with the Company
within the meaning of Sections 1563(a), 414(b) or 414(c) of the Code,
except that, in making any such determination, fifty percent (50%) shall be
substituted for eighty percent (80%) each place therein.

 

“Incumbent Board”
means a Board of Directors of the Company at least a majority of whom consist
of individuals who either are (a) members of the Company’s Board of
Directors as of the Effective Date of the adoption of this Plan or (b) members
who become members of the Company’s Board of Directors subsequent to the date
of the adoption of this Plan whose election, or nomination for election by the
Company’s shareholders, was approved by a vote of at least sixty percent (60%)
of the directors then comprising the Incumbent Board (either by specific vote
or by approval of a proxy statement of the Company in which that person is
named as a nominee for director, without objection to that nomination), but
excluding, for that purpose, any individual whose initial assumption of office
occurs as a result of an actual or threatened election contest  (within the meaning of Rule 14a-11 of
the Securities Exchange act of 1934, as amended) with respect to the election
or removal of directors or other action or threatened solicitation of proxies
or consents by or on behalf of a person other than the  Board of Directors of the Company.

 

“Management” means
the executive officers of EarthLink, Inc., individually or as a group,
whose positions are in the Red Zone of the Career Band System.

 

“Maximum Bonus Award”
means the maximum bonus award, denoted as a dollar amount, that can be earned
and paid to the Participant for the Bonus Period as established by the Committee.

 

“Participant” means
an Employee of an Employer who is selected to participate in the Plan.

 

“Performance Bonus”
means the dollar amount which results from multiplying the Participant’s Compensation
for the Bonus Period by the product of the Participant’s Target Bonus Percent
and the Participant’s Performance Bonus Multiplier.

 

“Performance Bonus
Multiplier” means either (i) zero (0) or (ii) the percentage from
fifty percent (50%) to two hundred percent (200%) that applies to determine the
Participant’s Performance Bonus for the Bonus Period.  The Committee shall establish the Performance
Bonus Multipliers that relate to the levels of Corporation Performance Objectives
that must be achieved during the Bonus Period to calculate the Participant’s Performance
Bonus.

 

“Plan” means this EarthLink, Inc.
2009 Short-Term Incentive Bonus Plan, in its current form and as it may be
hereafter amended.

 

4

 

“Revenues” means
revenues as reported on the Company’s financial statements filed with the
Securities and Exchange Commission.

 

“Target Aggregate Bonus”
means the Bonus Award that would be earned if the Participant’s Performance
Bonus Multiplier were one hundred percent (100%).

 

“Target Bonus Percent”
means the percent of the Participant’s Compensation that will be earned as a Performance
Bonus where the Corporate Performance Objectives that are achieved for the Bonus
Period result in a Performance Bonus Multiplier of one hundred percent (100%).  The Target Bonus Percent for each Participant’s
position shall be established by the Committee.

 

3.                                      ADMINISTRATION OF THE PLAN

 

3.1                                 Administration
of the Plan.  The Committee
shall be the sole administrator of the Plan and shall have full authority to
formulate adjustments and make interpretations under the Plan as it deems
appropriate. The Committee shall also be empowered to make any and all of the
determinations not herein specifically authorized which may be necessary or
desirable for the effective administration of the Plan. Any decision or
interpretation of any provision of this Plan adopted by the Committee shall be
final and conclusive. Benefits under this Plan shall be paid only if the Committee
determines, in its sole discretion, that the Participant or Beneficiary is
entitled to them. None of the members of the Committee shall be liable for any
act done or not done in good faith with respect to this Plan. The Company shall
bear all expenses of administering this Plan.

 

4.                                      ELIGIBILITY

 

4.1                                 Establishing
Participation.  The Committee
shall select each Employee who shall participate in the Plan for each Bonus
Period by name, position or zone within the Career Band System.  The Committee shall retain the discretion to
name as a Participant any Employee hired or promoted after the commencement of
the Bonus Period.

 

5.                                      AMOUNT OF BONUS AWARDS

 

5.1                                 Establishment
of Bonuses.

 

(a)                                  Initial
Determinations.  For each
Bonus Period, the Committee shall establish generally for each Participant the
Target Bonus Percent and the Performance Bonus Multiplier that will apply with
respect to the designated levels of achievement of the Corporate Performance Objectives.
 The Performance Bonus Multiplier for
each Participant will be based on the achievement of such Corporate Performance
Objectives as the Committee shall designate, which may include the achievement
of one or more Corporate Performance Objectives or any combination of Corporate
Performance Objectives as the Committee may select.

 

(b)                                 Performance
Objectives.  For each
Bonus Period, the Committee shall establish the Corporate Performance Objectives
that must be achieved to determine each Participant’s Performance Bonus Multiplier
for the Bonus Period. To the extent the Corporate Performance Objectives are
not achieved, the Performance Bonus Multiplier shall be zero (0).  The 

 

5

 

Corporate Performance Objectives to be
achieved must take into account and be calculated with respect to the full
accrual and payment of the Bonus Awards under the Plan.

 

The
Corporate Performance Objectives must be established in writing no later than
the earlier of (i) ninety (90) days after the beginning the period of
service to which they relate and (ii) before the lapse of twenty-five
percent (25%) of the period of service to which they relate; they must be
uncertain of achievement at the time they are established; and the achievement
of the Corporate Performance Objectives must be determinable by a third party
with knowledge of the relevant facts.  The
Corporate Performance Objectives may be stated with respect to the Company’s,
an Affiliate’s, a product’s, and/or a business unit’s Revenue, Adjusted EBITDA
and/or any combination of the foregoing as the Committee may designate.  The Corporate Performance Conditions may, but
need not, be based upon an increase or positive result under the aforementioned
business criteria and could include, for example and not by way of limitation,
maintaining the status quo or limiting the economic losses (measured, in each
case, by reference to the specific business criteria).

 

5.2                                 Calculation of
Bonus Awards.

 

(a)                                  Timing of the
Calculation.  The calculations
necessary to determine the Bonus Awards for the Bonus Period most recently
ended shall be made no later than the fifteenth day of the third month
following the end of the Bonus Period for which the Bonus Awards are to be calculated.
Such calculation shall be carried out in accordance with this Section 5.2.

 

(b)                                 Calculation.  Following the end of each Bonus Period, each Participant’s
Performance Bonus shall be calculated, and the Participant’s Bonus Award shall
be either the Participant’s Performance Bonus or such lesser amount as the
Committee in its sole discretion may determine as set forth in Section 5.2(d).  Notwithstanding any other provision of the
Plan, the Participant’s Bonus Award may not exceed the Maximum Bonus Award.

 

(c)                                  Written
Determination.  For the
Performance Bonus, which is based on the achievement of Corporate Performance Objectives,
the Committee shall certify in writing whether such Corporate Performance Objectives
have been achieved.  The Bonus Awards
payable under this Plan are intended to constitute Awards (as defined therein)
under the Company’s 2006 Equity and Cash Incentive Plan.  Accordingly, the Bonus Awards hereunder also will
be subject to the terms of the 2006 Equity and Cash Incentive Plan to the
extent applicable.  Any Bonus Awards or
portions thereof that do not comply with the terms of such 2006 Equity and Cash
Incentive Plan shall be deemed separate Bonus Awards that are granted under
this Plan but outside of the 2006 Equity and Cash Incentive Plan.

 

(d)                                 Negative
Discretion. 
Notwithstanding any other provision of the Plan, the Participant’s Performance
Bonus may be reduced, but not below zero (0), if the Participant’s individual
performance for the Bonus Period falls below that expected of such Participant.
Management “subject to the approval of the Committee” may determine if any
Participant’s Performance Bonus should be reduced to determine the Participant’s
Bonus Award as a result of the Participant’s failure to achieve required
individual performance levels during the Bonus Period. The Committee shall
determine in its discretion whether any Performance Bonuses for Management Participants
should be reduced to determine the Participant’s Bonus Award for 

 

6

 

failure
to achieve the desired individual performance levels during the Bonus Period.
Any reduction of a Participant’s Performance Bonus shall be at the sole and
absolute discretion of the Committee.

 

6.                                      PAYMENT OF AWARDS

 

6.1                                 Eligibility for
Payment.  Except as otherwise set forth
in Sections 7.1 and 8.1 of this Plan or under any other agreement between the
Employer and the Participant or any other benefit plan of the Employer, Bonus
Awards shall not be paid to any Participant who is not employed by an Employer
on the date the Distribution is to be made, and a Participant who terminates
employment with all Employers shall not be eligible to receive any Distribution
for (i) the Bonus Period that includes such termination of employment, (ii) any
prior Bonus Period to the extent not paid before such termination of employment
nor (iii) any future Bonus Periods.

 

6.2                                 Timing of
Payment.  Any Distribution to be paid
for a Bonus Period shall be paid no later than the 15th day of the third month following the end of
the Bonus Period, except that (i) the amount of any Bonus Award payable to
a Participant for the Bonus Period beginning January 1, 2009 and ending June 30,
2009 that exceeds the Participant’s Target Aggregate Bonus for such Bonus
Period shall be paid at the time Distributions are to be made for the Bonus
Period beginning July 1, 2008 and ending December 31, 2009 (subject
to the provisions of Section 6.1 above).

 

6.3                                 Payment of
Award.  The amount of the Bonus Award
to be paid to the Participant pursuant to this Section 6 shall be paid in
one lump sum cash payment by the Employer that employs the Participant.

 

6.4                                 Taxes;
Withholding.  To the
extent required by law, the Employer shall withhold from all Distributions made
hereunder any amount required to be withheld by the Federal and any state or
local government or other applicable laws.

 

7.                                      CHANGE IN CONTROL

 

7.1                                 Payment After a
Change in Control.  If at any
time after a Change in Control occurs the Participant’s employment with all Employers
is terminated by an Employer for any reason other than Cause, death or Disability,
then, the Participant shall be entitled to receive for the Bonus Period that
includes the date of the Participant’s termination of employment the greater of
(i) the Participant’s Target Aggregate Bonus for the Bonus Period or (ii) the
Bonus Award that would result based on the Corporate Performance Objectives
achieved during the Bonus Period through the time of the Participant’s
termination of employment (annualized or otherwise adjusted considering progress
towards goals and the portion of the Bonus Period preceding the Participant’s
termination of employment compared to the entire Bonus Period), calculated on
the same basis as other similarly-situated Participants, except that the Bonus Award
for that Bonus Period shall be based solely upon the Participant’s Compensation
for that Bonus Period through the time of termination of employment.  In that event, the Participant also shall be
entitled to receive any Bonus Award payable for any Bonus Period that ended
before the termination of the Participant’s employment.  Such Bonus Awards shall be paid no later than
the time they would have been paid if the Participant had remained employed.

 

7

 

8.                                      POSITION ELIMINATION

 

8.1                                 Payment after a
Position Elimination.  If before a
Change in Control occurs the Participant’s employment with all Employers is
terminated by an Employer as a result of a position elimination, such that the
Participant is entitled to receive benefits under any position elimination and
severance plan maintained by the Company or any Affiliate, then, the Participant
shall be entitled to receive for the Bonus Period that includes the date of the
Participant’s termination of employment as a result of a position elimination,
the Bonus Award that would result based on the Corporate Performance Objectives
achieved during the Bonus Period through the time of the Participant’s
termination of employment (annualized or otherwise adjusted considering progress
toward goals and the portion of the Bonus Period preceding the Participant’s
termination of employment compared to the entire Bonus Period), calculated on
the same basis as other similarly-situated Participants, except that the Bonus
Award for that Bonus Period shall be based solely upon the Participant’s
Compensation for that Bonus Period through the time of the position elimination.  In that event, the Participant also shall be
entitled to receive any Bonus Award payable for any Bonus Period that ended
before the termination of the Participant’s employment.  Such Bonus Awards shall be paid no later than
the time they would have been paid had the Participant remained employed.

 

9.                                      MISCELLANEOUS

 

9.1                                 Unsecured
General Creditor.  Participants
and their beneficiaries, heirs, successors and assigns shall have no legal or
equitable rights, interests, or other claim in any property or assets of the
Employer. Any and all assets shall remain general, unpledged, unrestricted
assets of the Employer. The Employer’s obligation under the Plan shall be that
of an unfunded and unsecured promise to pay money or shares of Common Stock in
the future, and there shall be no obligation to establish any fund, any
security or any other restricted asset in order to provide for the payment of
amounts under the Plan.

 

9.2                                 Obligations to
the Employer.  If a
Participant becomes entitled to a Distribution under the Plan, and, if, at the
time of the Distribution, such Participant has outstanding any debt, obligation
or other liability representing an amount owed to any Employer, then the
Employer may offset such amounts owing to it or any other Employer against the
amount of any Distribution. Such determination shall be made by the Committee.
Any election by the Committee not to reduce any Distribution payable to a Participant
shall not constitute a waiver of any claim for any outstanding debt,
obligation, or other liability representing an amount owed to the Employer.

 

9.3                                 Nonassignability.  Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate or convey in advance of
actual receipt the amounts, if any, payable hereunder, or any part thereof,
which are, and all rights to which are, expressly declared to be unassignable
and nontransferable. No part of a Distribution, prior to actual Distribution,
shall be subject to seizure or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, nor shall it be transferable by operation of law in the event of the
Participant’s or any other persons bankruptcy or insolvency, except as set
forth in Section 9.2 above.

 

8

 

9.4                                 Employment or
Future Pay or Compensation Not Guaranteed.  Nothing contained in this Plan nor any action
taken hereunder shall be construed as a contract of employment or as giving any
Participant or any former Participant any right to be retained in the employ of
an Employer or receive or continue to receive any rate of pay or other
compensation, nor shall it interfere in any way with the right of an Employer
to terminate the Participant’s employment at any time without assigning a
reason therefore.

 

9.5                                 Gender,
Singular and Plural.  All
pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine, or neuter, as the identity of the person or persons may require. As
the context may require, the singular may be read as the plural and the plural
as the singular.

 

9.6                                 Captions.  The captions to the articles, sections, and
paragraphs of this Plan are for convenience only and shall not control or
affect the meaning or construction of any of its provisions.

 

9.7                                 Applicable Law.  This Plan shall be governed and construed in
accordance with the laws of the State of Georgia.

 

9.8                                 Validity.  In the event any provision of the Plan is held
invalid, void, or unenforceable, the same shall not affect, in any respect
whatsoever, the validity of any other provision of the Plan.

 

9.9                                 Notice.  Any notice or filing required or permitted to
be given to the Committee shall be sufficient if in writing and hand delivered,
or sent by registered or certified mail, to the principal office of the
Company, directed to the attention of the President and CEO of the Company.
Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for
registration or certification.

 

9.10                        Compliance.  No Distribution shall be made hereunder except
in compliance with all applicable laws and regulations (including, without
limitation, withholding tax requirements), any listing agreement with any stock
exchange to which the Company is a party, and the rules of all domestic
stock exchanges on which the Company’s shares of capital stock may be listed.
The Company shall have the right to rely on an opinion of its counsel as to
such compliance. No Distribution shall be made hereunder unless the
Employer has obtained such consent or approval as the Employer may deem
advisable from regulatory bodies having jurisdiction over such matters.

 

9.11                           No Duplicate
Payments.  The
Distributions payable under the Plan are the maximum to which the Participant
is entitled in connection with the Plan. To the extent the Participant and the
Employer are parties to any other agreements or arrangements relating to the
Participant’s employment that provide for payments of any bonuses under this
Plan on termination of employment, this Plan shall be construed and interpreted
so that the Bonus Awards and Distributions payable under the Plan are only paid
once; it being the intent of this Plan not to provide the Participant any
duplicative payments of Bonus Awards. To the extent a Participant is entitled
to a bonus payment calculated under this Plan under any other agreement or
arrangement 

 

9

 

that would constitute a
duplicative payment of the Bonus Award or Distribution; to the extent of that
duplication, no Bonus Award or Distribution will be payable hereunder.

 

9.12                           Confidentiality.  The terms and conditions of this Plan and the
Participant’s participation hereunder shall remain strictly confidential. The
Participant may not discuss or disclose any terms of this Plan or its benefits
with anyone except for Participant’s attorneys, accountants and immediate
family members who shall be instructed to maintain the confidentiality agreed
to under this Plan, except as may be required by law.

 

9.13                           Temporary
Leaves of Absence.  The Committee
in its sole discretion may decide to what extent leaves of absence for
government or military service, illness, temporary disability or other reasons
shall, or shall not be, deemed an interruption or termination of employment.

 

10.                               AMENDMENT AND TERMINATION OF THE PLAN

 

10.1                           Amendment.  Except as set forth in Section 10.3 below,
the Committee in its sole discretion may at any time amend the Plan in whole or
in part.

 

10.2                           Termination of
the Plan.

 

(a)                                  Employer’s
Right to Terminate.  Except as
set forth in Section 10.3 below, the Committee may at any time terminate
the Plan, if it determines in good faith that the continuation of the Plan is
not in the best interest of the Company and its shareholders.  No such termination of the Plan shall reduce
any Distributions already made.

 

(b)                                 Payments Upon
Termination of the Plan.  Upon
the termination of the Plan under this Section, Awards for future Bonus Periods
shall not be made.  With respect to the
Bonus Period in which such termination takes place, the Employer will pay to
each Participant the Participant’s Bonus Award, if any, for such Bonus Period,
less any applicable withholdings, only to the extent the Committee provides for
any such payments on termination of the Plan (in which case all such payments
will be made no later than the 15th day of the
third month following the end of the Bonus Period that includes the effective
date of termination of the Plan).

 

10.3                           Amendment or
Termination After a Change in Control.  Notwithstanding any other provision of the
Plan, the Committee may not amend or terminate the Plan in whole or in part on
or after a Change in Control to the extent any such amendment or termination
would adversely affect the Participants’ rights hereunder or result in Bonus
Awards not being paid consistent with the terms of the Plan in effect prior to
such amendment or termination.

 

11.                               COMPLIANCE WITH SECTION 409A

 

11.1                           Tax Compliance.  This Plan is intended to be exempt from the
applicable requirements of Section 409A of the Code and shall be construed
and interpreted in accordance therewith. The Company may at any time amend,
suspend or terminate this Plan, or any payments to be made hereunder, as
necessary to be exempt from Section 409A of the Code. Notwithstanding the
preceding, neither the Company nor any Employer shall be liable to any Employee
or any other 

 

10

 

person if the Internal
Revenue Service or any court or other authority having jurisdiction over such
matter determines for any reason that any Bonus Award or Distribution to be
made under this Plan is subject to taxes, penalties or interest as a result of
failing to comply with Section 409A of the Code. The Distributions under
the Plan are intended to satisfy the exemption from Section 409A of the
Code for “short-term deferrals.”

 

12.                               CLAIMS PROCEDURES

 

12.1                           Filing of Claim.  If a Participant becomes entitled to a Bonus
Award or a Distribution has otherwise become payable, and the Participant has
not received the benefits to which the Participant believes he is entitled
under such Bonus Award or Distribution, then the Participant must submit a
written claim for such benefits to the Committee within ninety (90) days of the
date the Bonus Award would have become payable (assuming the Participant is
entitled to the Bonus Award) or the claim will be forever barred.

 

12.2                           Appeal of Claim.  If a claim of a Participant is wholly or
partially denied, the Participant or his duly authorized representative may
appeal the denial of the claim to the Committee. Such appeal must be made at
any time within thirty (30) days after the Participant receives written notice
from the Committee of the denial of the claim. In connection therewith, the
Participant or his duly authorized representative may request a review of the
denied claim, may review pertinent documents and may submit issues and comments
in writing. Upon receipt of an appeal, the Committee shall make a decision with
respect to the appeal and, not later than sixty (60) days after receipt of such
request for review, shall furnish the Participant with a decision on review in
writing, including the specific reasons for the decision, as well as specific references
to the pertinent provisions of the Plan upon which the decision is based.  Notwithstanding the foregoing, if the Committee
has not rendered a decision on appeal within sixty (60) days after receipt of
such request for review, the Participant’s appeal shall be deemed to have been
denied upon the expiration of the sixty (60)-day review period.

 

12.3                           Final Authority.  The Committee has discretionary and final
authority under the Plan to determine the validity of any claim. Accordingly,
any decision the Committee makes on the Participant’s appeal shall be final and
binding on all parties. If a Participant disagrees with the Committee’s final
decision, the Participant may bring suit, but only after the claim on appeal
has been denied or deemed denied. Any such lawsuit must be filed within ninety
(90) days of the Committee’s denial (or deemed denial) of the Participant’s
claim or the claim will be forever barred.

 

11

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