Document:

Filed by Bowne Pure Compliance

 

EXHIBIT 10.1*

CONFIDENTIAL TREATMENT REQUESTED BY

EASYLINK SERVICES INTERNATIONAL CORPORATION

UNDER RULE 24b-2

*CONFIDENTIAL TREATMENT

CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO THE RULES AND REGULATIONS OF
THE SECURITIES AND EXCHANGE COMMISSION. “X” HAS BEEN USED TO IDENTIFY INFORMATION WHICH IS SUBJECT
TO A CONFIDENTIAL TREATMENT REQUEST.

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (the “Agreement”) is entered into on April 1,
2008 (the “Effective Date”) between EasyLink Services International Corporation (as
successor-in-interest to Internet Commerce Corporation) (the “Company”) and Thomas J. Stallings
(“Stallings”). This Agreement amends, restates and supersedes the Employment Agreement (the “Original Agreement”) between the Company
and Stallings effective as of August 28, 2007 (the “Original Effective Date”).

In consideration of the mutual covenants and conditions set forth herein, the parties hereby
agree as follows:

1. Employment. The Company hereby employs Stallings in the capacity of Chief Executive
Officer. Stallings accepts such employment and agrees to perform such services as are customary to
such office and as shall from time to time be assigned to him by the Board of Directors of the
Company (the “Board”). Stallings will perform his duties so as to cause the Business of the
Company to be operated in accordance with an annual operating plan and budget developed jointly by
the Board and Stallings and approved by the Board. For purposes of this Agreement, the “Business”
of the Company is to provide business-to-business supply chain data interchange in multiple
electronic formats.

2. Term. The employment hereunder shall be for a period of two years year, commencing on the
Original Effective Date and ending on the first anniversary of such date (the “Employment Period”).
Unless either party elects not to extend the term of this Agreement by so notifying the other in
writing at least 30 days prior to the first anniversary of the Original Effective Date and each
anniversary thereafter, the Employment Period shall automatically extend for an additional one year
upon each such anniversary. Stallings’ employment will be on a full-time basis requiring the
devotion of such amount of his productive time as is necessary for the efficient operation of the
Business of the Company.

3. Compensation and Benefits.

3.1 Salary. For the performance of Stallings’ duties hereunder, the Company shall pay
Stallings (i) an annual base salary in the amount as provided on Exhibit A, a copy of which is
attached hereto and incorporated herein by reference, payable in accordance with the Company’s
standard payroll policies, which may be changed from time to time (but in no case less frequently
than monthly.

 

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3.2 Annual Cash Incentive. Stallings will receive the opportunity to earn an annual cash
incentive pursuant to the terms of Exhibit A attached hereto (the “Annual Cash Incentive”). The
Company agrees to negotiate in good faith a new Annual Cash Incentive Plan for each year of
Stallings’ employment subsequent to 2007. If the Company fails to negotiate a new Cash Incentive
Plan for any year after 2007, then the Annual Cash Incentive in effect for the preceding year will
govern. Notwithstanding any of the provisions of this Agreement, the Annual Cash Incentive, to the
extent payable for any fiscal year of the Company, will be paid no later than the 15th
day of the third month following the end of the fiscal year of the Company to which the Annual Cash
Incentive relates.

3.3 Benefits. The Company shall provide to Stallings the benefits as described on Exhibit B
attached hereto.

3.4 Reimbursement of Expenses. Stallings shall be entitled to be reimbursed for all actual and
reasonable expenses, including but not limited to, expenses for travel, meals and entertainment,
incurred by Stallings in connection with and reasonably related to the furtherance of the Company’s
Business, per Company travel guidelines in effect from time to time. Subject to the Company travel
guidelines in effect from time to time, the Company will reimburse Stallings for such actual and
reasonable expenses no later than the last day of the calendar year following the calendar year in
which Stallings incurs the reimbursable expense.

3.5 Equity Grants. The parties incorporate the terms of Exhibit A attached hereto regarding
the equity grants, provided however, that upon any Change in Control of the Company as defined in
Section 4 of this Agreement or if Stallings’ employment is
terminated under Sections 5.1(a), (b),
(d) or (e) of this Agreement, any of Stallings’ Equity Grants that have not yet vested will vest
immediately.

4. Change of Control. For the purposes of this Agreement, the term “Change of Control” shall
mean a change in the beneficial ownership of the Company’s voting stock pursuant to which:

(a) any “person,” including a “syndicate” or “group” as those terms are used in Section
13(d)(3) of the Securities Exchange Act of 1934, is or becomes the beneficial owner,
directly or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding “Voting Securities,” which is any
security that ordinarily possesses the power to vote in the election of the board of
directors of a corporation without the happening of any precondition or contingency; or

(b) the Company is merged or consolidated with another corporation and immediately
after giving effect to the merger or consolidation less than 40% of the outstanding Voting
Securities of the surviving or resulting entity are then beneficially owned in the aggregate
by either the shareholders of the Company immediately prior to such merger or consolidation,
or, if a record date has been set to determine the shareholders of the Company entitled to
vote on such merger or consolidation, the shareholders of the Company as of such record
date; or

(c) the Company transfers substantially all of its assets to another corporation, other
than a corporation of which the Company owns, directly or indirectly, at least 40% of the
combined voting power of such corporation’s outstanding voting securities.

 

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5. Termination.

5.1 Termination Events. Stallings’ employment hereunder will terminate upon the occurrence of
any of the following events:

(a) Death;

(b) Disability: If Stallings is unable perform the duties assigned to him hereunder
for a continuous period exceeding 90 days by reason of injury, physical or mental illness or
other disability, which condition has been certified by a physician; then, upon written
notice to Stallings or his personal representative setting forth specifically the nature of
the disability and the resulting performance failures and Stallings’ failure to cure the
cited performance failures within ten days of receipt of such notice, the Company may
discharge Stallings;

(c) Cause: As used in this Agreement, “Cause” shall mean:

	 	(i)	 	Stallings’ conviction of (or pleading guilty or nolo contendere to) a felony or
any misdemeanor involving dishonesty or moral turpitude; provided, however, that prior
to discharging Stallings for Cause, the Board shall give a written statement of
findings to Stallings setting forth specifically the grounds on which Cause is based,
and Stallings shall have a period of ten days thereafter to respond in writing to the
Board’s findings; or

	 	(ii)	 	Stallings’ willful and continued failure to substantially perform his duties
with the Company (other than any failure resulting from illness or disability) that
has, or can reasonably be expected to have, a direct and material adverse monetary
effect on the Company, provided that the Board has tendered written notice to Stallings
specifying the nature of the misconduct or performance deficiency and giving Stallings
20 days to cure such deficiency. For purposes of this subsection (ii), no act or
failure to act on Stallings’ part shall be considered “willful” if done, or omitted to
be done, by Stallings in good faith and with reasonable belief that Stallings’ action
or omission was in the best interest of the Company. Any act, or failure to act, based
upon authority given pursuant to a resolution duly adopted by the Board or based upon
the advice of counsel for the Company shall be conclusively presumed to be done, or
omitted to be done, by the Employee in good faith and in the best interests of the
Company;

(d) Without Cause: The Board may terminate Stallings by issuing at least 30 days’
advance written notice, subject to the severance provisions set forth below;

(e) By Stallings With Cause: Stallings may terminate his employment due to either (i) a
material default by the Company in the performance of any of its obligations hereunder, or
(ii) an Adverse Change in Duties (as defined below), which default or Adverse Change in
Duties remains unremedied by the Company for a period of 30 days following its receipt of
written notice thereof from Stallings; provided, however, that Stallings must provide
written notice to the Company of the condition which would constitute cause for terminating
his employment hereunder within 90 days of the initial existence of the condition, and,
assuming such default or Adverse Change in Duties remains unremedied by the Company after
the 30-day period set forth above, Stallings then must terminate his employment within 12
months of the initial existence of the condition; or

 

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(f) By Stallings Without Cause: Stallings may terminate his employment for any reason
upon the furnishing of at least 30 days’ advance written notice to the Board.

As used herein, “Adverse Change in Duties” means an action or series of actions taken by the
Company, without Stallings’ prior written consent, that results in:

(1) A material diminution in Stallings’s authority, duties or responsibilities;

(2) A material diminution in Stallings’s base compensation;

(3) A material diminution in the authority, duties or responsibilities of the
supervisor to whom Stallings is required to report;

(4) A material diminution in the budget over which Stallings retains authority; and

(5) A material change in the geographic location of the Company, as located at the time
of this Agreement, at which Stallings performs his duties.

5.2 Effects of Termination.

(a) Upon termination of Stallings’ employment hereunder for any reason, the Company
will promptly (but in no event later than 30 days after termination of employment) pay
Stallings all compensation owed to Stallings and unpaid through the date of termination
(including, without limitation, salary and employee expense reimbursements).

(b) In addition, if Stallings’ employment is terminated under Sections 5.1(a), (b), (d) or (e),
the Company shall also pay Stallings an aggregate a severance amount equal to 12 months
of Stallings’ then-applicable base monthly salary plus any target Annual Cash Incentive that
would have accrued for the fiscal year in which the termination occurred, which aggregate
amount shall be paid in equal, or as nearly equal as practicable, installments in accordance
with the Company’s then-existing standard payroll policies (including payroll deductions) as
if the payments were being made in equal installments over the following 12 months (no less
frequently than monthly), starting with the first payroll payment date following Stallings’s
termination of employment until the 15th day of the third-month following the
end of (i) the calendar year or (ii) the fiscal year of the Company, whichever is later,
which includes the termination of Stallings’s employment, at which time all remaining
amounts shall be paid in a single lump sum no later than such 15th day of the
third-month following the end of (i) the calendar year or (ii) the fiscal year of the
Company, whichever is later, in which Stallings’s employment terminates, or, if earlier,
after all such payments have been made.

(c) The Company shall have the right to offset against any damages resulting from a
breach by Stallings of Section 5.3 or Section 6 of this Agreement, in which case, such
offset shall be applied in full against the payments remaining to be paid to Stallings, from
earliest to latest, and then to recover any amounts previously paid.

5.3 Restrictive Covenants. Upon termination of Stallings’ employment hereunder for any reason,
Stallings agrees that for the one-year period following the termination of employment, Stallings
will not:

 

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(a) directly or indirectly, within a ten-mile radius of Stallings’ office at the
Company, whether for his own account or as an individual, employee, director, consultant or
advisor, or in any other capacity whatsoever, provide services that are substantially
similar to the services he provided to the Company to any person, firm, corporation or other
business enterprise that competes with the Business of the Company, unless he obtains the
prior written consent of the Board;

(b) directly or indirectly encourage or solicit, or attempt to encourage or solicit, on
behalf of any person, firm, corporation or other business enterprise that competes with the
Business of the Company, any individual to leave the Company’s employ for any reason or
interfere in any other manner with the employment relationships at the time existing between
the Company and its current or prospective employees; or

(c) induce or attempt to induce, on behalf of any person, firm, corporation or other
business enterprise that competes with the Business of the Company, any provider, payor,
customer, supplier, distributor, licensee or other business relation of the Company with
whom Stallings dealt at any time during the two-year period preceding his termination of
employment to cease doing business with the Company or in any way interfere with the
existing business relationship between any such customer, supplier, distributor, licensee or
other business relation described above and the Company.

Stallings acknowledges that monetary damages will not be sufficient to compensate the Company
for any economic loss that may be incurred by reason of breach of the foregoing restrictive
covenants. Accordingly, in the event of any such breach, the Company shall, in addition to any
remedies available to the Company at law, be entitled to obtain equitable relief in the form of an
injunction precluding Stallings from continuing to engage in such breach.

In the event that any of the foregoing restrictive covenants are too broad to be enforceable,
the parties request and agree that they may be reduced to such lesser breadth as may be necessary
to make them enforceable. The covenants in this Section 5.3 shall be construed as an agreement
independent of any other agreement between the parties. Stallings agrees that the existence of any
claim or cause of action of Stallings against the Company, whether predicated upon this Agreement
or otherwise, shall not constitute a defense to the enforcement by the Company of these covenants.

6. Confidentiality. During the term of this Agreement and for 36 months after Stallings’
termination of employment with the Company, Stallings will continue to be bound by the terms of
that certain Confidentiality Agreement entered into between Stallings and the Company on or about
April 26, 2005.

7. General Provisions.

7.1 Assignment. Stallings may not assign or delegate any of his rights or obligations under
this Agreement. The Company may assign its rights and obligations under this Agreement to any
successor to the Company through merger, consolidation, sale or the like.

7.2 Entire Agreement. This Agreement contains the entire agreement between the parties with
respect to the subject matter hereof and supersedes any and all prior agreements between the
parties relating to such subject matter, including without limitation that certain Employment
Agreement dated August 28, 2007.

 

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7.3 Modifications. This Agreement may be changed or modified only by an agreement in writing
signed by the party against whom enforcement is sought.

7.4 Successors and Assigns. The rights and duties under this Agreement shall inure to the
benefit of, and be binding upon, the parties hereto and their successors and assigns, legal
representatives, heirs, legatees, distributees, assigns and transferees by operation of law,
whether or not any such person or entity shall have become a party to this Agreement and have
agreed in writing to join and be bound by the terms and conditions hereof.

7.5 Governing Law. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of Georgia.

7.6 Severability; Partial Invalidity. If any provision of this Agreement or any instrument or
document delivered in connection herewith is held to be illegal, invalid or unenforceable under
present or future laws effective during the term of this Agreement (the “Offending Provision”), the
Offending Provision shall be fully severable; this Agreement shall be construed and enforced as if
the Offending Provision had never comprised a part of this Agreement; and the remaining provisions
of this Agreement shall remain in full force and effect and shall not be affected by the Offending
Provision or by its severance from this Agreement. Furthermore, in lieu of the Offending
Provision, there shall be added automatically as a part of this Agreement a provision as similar in
terms to the Offending Provision as may be possible and be legal, valid and enforceable.

7.7 Further Assurances. The parties will execute such further instruments and take such
further actions as may be reasonably necessary to carry out the intent of this Agreement.

7.8 Notices. Any notices or other communications required or permitted hereunder shall be in
writing and shall be deemed received by the recipient when delivered personally or, if mailed, five
(5) days after the date of deposit in the United States mail, certified or registered, postage
prepaid and addressed, in the case of the Company, to:

6025 The Corners Parkway

Suite 100

Norcross, Georgia 30092

and, in the case of Stallings, to:

63 West Wieuca Road

Atlanta, Georgia 30342

or to such other address as either party may later specify by at least ten (10) days’ advance
written notice delivered to the other party in accordance herewith.

7.9 No Waiver. The failure of either party to enforce any provision of this Agreement shall
not be construed as a waiver of that provision, nor prevent that party thereafter from subsequently
enforcing that provision or any other provision of this Agreement.

 

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7.10 Legal Fees and Expenses. In the event of any disputes under this Agreement, each party
shall be responsible for his or its own legal fees and expenses that may be incurred in resolving
such dispute.

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

7.12 Omnibus 409A Provision. This Agreement is intended to be exempt from treatment as
deferred compensation under Section 409A of the Internal Revenue Code (the “Code”)  and shall be construed and interpreted in
accordance therewith. All rights to payments under this Agreement shall be treated as rights to
receive a series of separate payments to the fullest extent permitted by Section 409A of the Code.
Notwithstanding the preceding, the Company shall not be liable to Stallings 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 payment under this Agreement is subject to taxes, penalties or
interest as a result of failing to comply with Section 409A of the Code.

Notwithstanding any of the provisions of this Agreement, if Stallings is a “specified
employee” (within the meaning of Section 409A of the Code), and any payments hereunder are not
otherwise exempt from Section 409A of the Code, then, to the extent necessary to comply with
Section 409A of the Code, no payments may be made hereunder before the date which is six months
after the date of Stallings’s “separation from service” within the meaning of Section 409A of the
Code or, if earlier the date of Stallings’s death. Because the amounts payable hereunder will be
made in all events no later than the 15th day of the third month following the end of
(i) the calendar year or (ii) the fiscal year of the Company in which Stallings terminates
employment, whichever is later, then all amounts payable hereunder should be exempt from Section
409A of the Code as a short-term deferral. Consequently, this “specified employee” six-month delay
provision will only be applicable if it is subsequently determined that the amounts to be paid
pursuant to this Agreement are not exempt from Section 409A of the Code. For purposes hereof,
termination of employment shall be read to mean a “separation from service” within the meaning of
Section 409A of the Code where it is reasonably anticipated that no further services would be
performed after such date or that the level of bona fide services Stallings would perform after
that date (whether as an employee or an independent contractor) would permanently decrease to no
more than 20 percent of the average level of bona fide services performed over the immediately
preceding 36-month period.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	 	/s/ Thomas J. Stallings
	 	 	 
	 	 	Thomas J. Stallings
	 
	 	 	 	 
	 	 	EasyLink Services International Corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Glen E. Shipley
	 

	 	 	 	 
	 

	 	 	 	Name: Glen E. Shipley
	 

	 	 	 	Title: Chief Financial Officer

 

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EXHIBIT A

2008 and 2009 Compensation Plan

Mr. Thomas J. Stallings, CEO

SALARY

The
Company shall pay you a salary of $350,000 annually going to $400,000
upon the first to occur of (a)  the
Company reporting three consecutive quarters of revenue greater than
$[XXXXXXXX] or (b) Fiscal 2009. The Company, through the Compensation Committee of the Board of Directors, will
review your salary annually and, in its sole discretion, may increase but not decrease your salary
as appropriate, subject to the approval of the Compensation Committee of the Board of Directors.

ANNUAL CASH INCENTIVE

You shall have the opportunity to earn a cash incentive based on the Company’s and your
personal performance during Fiscal 2008 and Fiscal 2009. The Company, through the Compensation
Committee of the Board of Directors, retains the right to adjust your cash incentive plan at any
time as business circumstances or other factors reasonably dictate.

Your targeted annual incentive compensation for Fiscal 2008 is $350,000. Payment of 2008
incentive compensation will be at fiscal year end and will be determined by the Compensation
Committee of the Board of Directors by September 15, 2008 (but no later than as set forth in your
employment agreement).

Your targeted annual incentive compensation for Fiscal 2009 is $400,000. Payment of 2009
incentive compensation will be at fiscal year end and will be determined by the Compensation
Committee of the Board of Directors prior to the end of Fiscal 2009.

With respect to the annual incentive compensation for Fiscal 2008, the Compensation Committee
will determine the payout of this amount based on a combination of 25% payout on personal
objectives and 75% payout on Company objectives as noted below:

PERSONAL OBJECTIVES

	 	1.	 	Post merger integration of EasyLink Services Corporation.

	 
	 	2.	 	Smart revenue retention.

	 
	 	3.	 	Customer/Staff management.

	 
	 	4.	 	Margin.

 

 

 

COMPANY OBJECTIVES

	 	1.	 	Total revenue of $[XXXXXXXX] — half of the executive’s Company Bonus (the
“Revenue Company Bonus”) will be earned if the Company achieves a minimum of
$[XXXXXXXX] in total revenue for FY 2008 (the “Revenue Target”), in
accordance with the following. None of the Revenue Company Bonus will be earned
if the Company achieves less than 91% of the Revenue Target. For each 1% (but
not a fraction thereof) above 90% of the Revenue Target that the Company
achieves, 10% of the Revenue Company Bonus will be earned, so that at 91% of the
Revenue Target, 10% of the Revenue Company Bonus will be earned, at 92% of the
Revenue Target, 20% of the Revenue Company Bonus will be earned, up to 100% of
the Revenue Company Bonus at 100% of the Revenue Target. In addition, for each
1% (but not a fraction thereof) above 100% of the Revenue Target that the Company
achieves, an additional amount equal to 10% of the Revenue Company Bonus will be
earned.

	 	2.	 	EBITDA of $[XXXXXXXX] — the other half of the executive’s Company Bonus (the
“EBITDA Company Bonus”) will be earned if the Company achieves a minimum of $[XXXXXXXX]
in EBITDA for FY 2008 (the “EBITDA Target”), in accordance with the following. None of
the EBITDA Company Bonus will be earned if the Company achieves less than 91% of the
EBITDA Target. For each 1% (but not a fraction thereof) above 90% of the EBITDA Target
that the Company achieves, 10% of the EBITDA Company Bonus will be earned, so that at
91% of the EBITDA Target, 10% of the EBITDA Company Bonus will be earned, at 92% of the
EBITDA Target, 20% of the EBITDA Company Bonus will be earned, up to 100% of the EBITDA
Company Bonus at 100% of the EBITDA Target. In addition, for each 1% (but not a
fraction thereof) above 100% of the EBITDA Target that the Company achieves, an
additional amount equal to 10% of the EBITDA Company Bonus will be earned. For
purposes of this paragraph, EBITDA shall mean net profit before taxes, interest expense
(net of capitalized interest expense), depreciation expense and amortization expense,
all in accordance with GAAP, excluding stock-based compensation expense, incentive
compensation expense, cumulative effect of accounting changes and one-time,
nonrecurring items.

SPECIAL BONUS AND LONG TERM STOCK INCENTIVE

On execution of your Original Agreement, you received a special one time bonus of $300,000 in
cash and a special one time grant of 80,000 shares of restricted Company stock to vest monthly over
2 years. That cash bonus and stock incentive were made in light of the extraordinary effort
required to complete the acquisition of EasyLink Services Corporation. The restricted stock grant
was granted pursuant to the terms of, and evidenced by, a written agreement entered into between
you and the Company.

 

 

 

EXHIBIT B

Benefits

You will be eligible to participate in benefit plans and/or programs which the Company may
offer to its employees or executives from time to time. Your eligibility for such plans and/or
programs will be determined by the terms of such plans and/or programs. Among the benefits
currently offered by the Company to its employees are medical and dental insurance, a stock option
plan and a 401k plan, which are described below. Please be advised, however, that the Company
reserves the right to amend, modify, or terminate any of its benefits plans and/or programs at any
time in its sole discretion. You will be eligible for four weeks vacation in accordance with the
Company’s accrual policy.

Medical Insurance. Currently, the Company offers its employees medical insurance. The
Company currently contributes a portion of your premium for employee coverage, and you will be
responsible for contributing for additional family coverage through pre-tax payroll deduction.

Dental Insurance. The Company presently offers its employees dental insurance. The
Company currently contributes a portion of your premium for employee coverage, and you will be
responsible for contributing for additional family coverage through pre-tax payroll deduction.

401k Plan. The Company presently offers its employees a 401k plan. You may elect to
contribute pre-tax deferrals through payroll deduction pursuant to the terms of the 401k plan.Filed by Bowne Pure Compliance

 

EXHIBIT 10.2*

CONFIDENTIAL TREATMENT REQUESTED BY

EASYLINK SERVICES INTERNATIONAL CORPORATION

UNDER RULE 24b-2

*CONFIDENTIAL TREATMENT

CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO THE RULES AND REGULATIONS OF
THE SECURITIES AND EXCHANGE COMMISSION. “X” HAS BEEN USED TO IDENTIFY INFORMATION WHICH IS SUBJECT
TO A CONFIDENTIAL TREATMENT REQUEST.

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (the “Agreement”) is entered into on April 1,
2008 (the “Effective Date”) between EasyLink Services International Corporation (the “Company”) and
Glen E. Shipley (“Shipley”). This Agreement amends, restates and supersedes the Employment
Agreement (the “Original Agreement”) between the Company and Shipley effective as of August 28,
2007 (the “Original Effective Date”).

In consideration of the mutual covenants and conditions set forth herein, the parties hereby
agree as follows:

1. Employment. The Company hereby employs Shipley in the capacity of Chief Financial Officer.
Shipley accepts such employment and agrees to perform such services as are customary to such office
and as shall from time to time be assigned to him by the Company’s Chief Executive Officer and/or
Board of Directors of the Company (the “Board”). Shipley will perform his duties so as to cause
the Business of the Company to be operated in accordance with an annual operating plan and budget
developed jointly by the Board and the Company’s management and approved by the Board. For
purposes of this Agreement, the “Business” of the Company is to provide business-to-business supply
chain data interchange in multiple electronic formats.

2. Term. The employment hereunder shall be for a period of one year, commencing on the
Original Effective Date and ending on the first anniversary of such date (the “Employment Period”).
Unless either party elects not to extend the term of this Agreement by so notifying the other in
writing at least 30 days prior to the first anniversary of the Original Effective Date and each
anniversary thereafter, the Employment Period shall automatically extend for an additional one year
period upon each such anniversary. Shipley’s employment will be on a full-time basis requiring the
devotion of such amount of his productive time as is necessary for the efficient operation of the
Business of the Company.

3. Compensation and Benefits.

3.1 Salary. For the performance of Shipley’s duties hereunder, the Company shall pay Shipley
an annual base salary in the amount as provided on Exhibit A, a copy of which is attached hereto
and incorporated herein by reference, payable in accordance with the Company’s standard payroll policies, which may be changed from time to time (but in no case less frequently than
monthly).

 

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3.2 Annual Cash Incentive. Shipley will also have the opportunity to earn an annual cash
incentive pursuant to the terms of Exhibit A attached hereto (the “Annual Cash Incentive”). The
Company agrees to negotiate in good faith a new Annual Cash Incentive Plan for each year of
Shipley’s employment subsequent to 2008. If the Company and Shipley fail to agree upon a new Cash
Incentive Plan for any year after 2008, then the Annual Cash Incentive in effect for the preceding
year will govern. Notwithstanding any of the provisions of this Agreement, the Annual Cash
Incentive, to the extent payable for any fiscal year of the Company, will be paid no later than the
15th day of the third month following the end of the fiscal year of the Company to which
the Annual Cash Incentive relates.

3.3 Benefits. The Company shall provide to Shipley the benefits as described on Exhibit B
attached hereto.

3.4 Reimbursement of Expenses. Shipley shall be entitled to be reimbursed for all actual and
reasonable expenses, including but not limited to, expenses for travel, meals and entertainment,
incurred by Shipley in connection with and reasonably related to the furtherance of the Company’s
Business, per Company travel guidelines in effect from time to time. Subject to the Company travel
guidelines in effect from time to time, the Company will reimburse Shipley for such actual and
reasonable expenses no later than the last day of the calendar year following the calendar year in
which Shipley incurs the reimbursable expense.

3.5 Bonus and Equity Grants. The parties incorporate the terms of Exhibit A attached hereto
regarding the special one-time bonus and equity grants described therein, provided however, that
upon any Change of Control of the Company as defined in Section 4 of this Agreement or if Shipley’s
employment is terminated under Sections 5.1(a), (b), (d) or (e) of this Agreement, any of
Shipley’s equity grants that have not yet vested will vest immediately.

4. Change of Control. For the purposes of this Agreement, the term “Change of Control” shall
mean a change in the beneficial ownership of the Company’s voting stock pursuant to which:

(a) any “person,” including a “syndicate” or “group” as those terms are used in Section
13(d)(3) of the Securities Exchange Act of 1934, is or becomes the beneficial owner,
directly or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding “Voting Securities,” which is any
security that ordinarily possesses the power to vote in the election of the board of
directors of a corporation without the happening of any precondition or contingency;

(b) the Company is merged or consolidated with another corporation and immediately
after giving effect to the merger or consolidation less than 50% of the outstanding Voting
Securities of the surviving or resulting entity are then beneficially owned in the aggregate
by either the shareholders of the Company immediately prior to such merger or consolidation,
or, if a record date has been set to determine the shareholders of the Company entitled to
vote on such merger or consolidation, the shareholders of the Company as of such record
date; or

 

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(c) the Company transfers substantially all of its assets to another corporation, other
than a corporation of which the Company owns, directly or indirectly, at least 50% of the
combined voting power of such corporation’s outstanding voting securities.

5. Termination.

5.1 Termination Events. Shipley’s employment hereunder will terminate upon the occurrence of
any of the following events:

(a) Death;

(b) Disability: If Shipley is unable perform the duties assigned to him hereunder for
a continuous period exceeding 90 days by reason of injury, physical or mental illness or
other disability, which condition has been certified by a physician, then, upon written
notice to Shipley or his personal representative setting forth specifically the nature of
the disability and the resulting performance failures and Shipley’s failure to cure the cited
performance failures within ten days of receipt of such notice, the Company may discharge
Shipley;

(c) Cause: As used in this Agreement, “Cause” shall mean:

	 	(i)	 	Shipley’s conviction of (or pleading guilty or nolo contendere to) a felony or
any misdemeanor involving dishonesty or moral turpitude; provided, however, that prior
to discharging Shipley for Cause, the Board shall give a written statement of findings
to Shipley setting forth specifically the grounds on which Cause is based, and Shipley
shall have a period of ten days thereafter to respond in writing to the Board’s
findings; or

	 	(ii)	 	Shipley’s willful and continued failure to substantially perform his duties
with the Company (other than any failure resulting from death, illness or disability)
that has, or can reasonably be expected to have, a direct and material adverse monetary
effect on the Company, provided that the Board has tendered written notice to Shipley
specifying the nature of the misconduct or performance deficiency and giving Shipley 20
days to cure such deficiency. For purposes of this subsection (ii), no act or failure
to act on Shipley’s part shall be considered “willful” if done, or omitted to be done,
by Shipley in good faith and with reasonable belief that Shipley’s action or omission
was in the best interest of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or based upon the
advice of counsel for the Company shall be conclusively presumed to be done, or omitted
to be done, by Shipley in good faith and in the best interests of the Company;

(d) Without Cause: The Board may terminate Shipley by issuing at least 30 days’ advance
written notice, subject to the severance provisions set forth below;

(e) By Shipley With Cause: Shipley may terminate his employment due to either (i) a
material default by the Company in the performance of any of its obligations hereunder, or
(ii) an Adverse Change in Duties (as defined below), which default or Adverse Change in
Duties remains unremedied by the Company for a period of 30 days following its receipt of
written notice thereof from Shipley; provided, however, that Shipley must provide written
notice to the Company of the condition which would constitute cause for terminating his
employment hereunder within 90 days of the initial existence of the condition, and, assuming such default or Adverse Change in Duties remains unremedied by the Company after the
30-day period set forth above, Shipley then must terminate his employment within 12 months
of the initial existence of the condition; or

 

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(f) By Shipley Without Cause: Shipley may terminate his employment for any reason upon
the furnishing of at least 30 days’ advance written notice to the Board.

As used herein, “Adverse Change in Duties” means an action or series of actions taken by the
Company, without Shipley’s prior written consent, that results in:

(1) A material diminution in Shipley’s authority, duties or responsibilities;

(2) A material diminution in Shipley’s base compensation;

(3) A material diminution in the authority, duties or responsibilities of the
supervisor to whom Shipley is required to report;

(4) A material diminution in the budget over which Shipley retains authority; and

(5) A material change in the geographic location of the Company, as located at the time
of this Agreement, at which Shipley performs his duties.

5.2 Effects of Termination.

(a) Upon termination of Shipley’s employment hereunder for any reason, the Company will
promptly (but in no event later than 30 days after termination of employment) pay Shipley
all compensation owed to Shipley and unpaid through the date of termination (including,
without limitation, salary and employee expense reimbursements).

(b) In addition, if Shipley’s employment is terminated under Sections 5.1 (a), (b), (d)
or (e), the Company shall also pay Shipley an aggregate severance amount equal to 12 months
of Shipley’s then-applicable base monthly salary plus any target Annual Cash Incentive that
would have accrued for the fiscal year in which the termination occurred, which aggregate
amount shall be paid in equal, or as nearly equal as practicable, installments in accordance
with the Company’s then-existing standard payroll policies (including payroll deductions) as
if the payments were being made in equal installments over the following 12 months (no less
frequently than monthly), starting with the first payroll payment date following Shipley’s
termination of employment until the 15th day of the third-month period following the end
of (i) the calendar year or (ii) the fiscal year of the Company, whichever is later, which
includes the termination of Shipley’s employment, at which time all remaining amounts shall
be paid in a single lump sum no later than such 15th day of the third month
following the end of (i) the calendar year or (ii) the fiscal year of the Company, whichever
is later, in which Shipley’s employment terminates, or, if earlier, after all such payments
have been made.

(c) The Company shall have the right to offset against any damages resulting from a
breach by Shipley of Section 5.3 or Section 6 of this Agreement, in which case, such offset
shall be applied in full against the payments remaining to be paid to Shipley, from earliest
to latest, and then to recover any amounts previously paid.

 

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5.3 Restrictive Covenants. Upon termination of Shipley’s employment hereunder for any reason,
Shipley agrees that for the one-year period following the termination of employment, Shipley will
not:

(a) directly or indirectly, within a ten-mile radius of Shipley’s office at the
Company, whether for his own account or as an individual, employee, director, consultant or
advisor, or in any other capacity whatsoever, provide services that are substantially
similar to the services he provided to the Company to any person, firm, corporation or other
business enterprise that competes with the Business of the Company, unless he obtains the
prior written consent of the Board;

(b) directly or indirectly encourage or solicit, or attempt to encourage or solicit, on
behalf of any person, firm, corporation or other business enterprise that competes with the
Business of the Company, any individual to leave the Company’s employ for any reason or
interfere in any other manner with the employment relationships at the time existing between
the Company and its current or prospective employees; or

(c) induce or attempt to induce, on behalf of any person, firm, corporation or other
business enterprise that competes with the Business of the Company, any provider, payor,
customer, supplier, distributor, licensee or other business relation of the Company with
whom Shipley dealt at any time during the two-year period preceding his termination of
employment to cease doing business with the Company or in any way interfere with the
existing business relationship between any such customer, supplier, distributor, licensee or
other business relation described above and the Company.

Shipley acknowledges that monetary damages will not be sufficient to compensate the Company
for any economic loss that may be incurred by reason of breach of the foregoing restrictive
covenants. Accordingly, in the event of any such breach, the Company shall, in addition to any
remedies available to the Company at law, be entitled to obtain equitable relief in the form of an
injunction precluding Shipley from continuing to engage in such breach.

In the event that any of the foregoing restrictive covenants are too broad to be enforceable,
the parties request and agree that they may be reduced to such lesser breadth as may be necessary
to make them enforceable. The covenants in this Section 5.3 shall be construed as an agreement
independent of any other agreement between the parties. Shipley agrees that the existence of any
claim or cause of action of Shipley against the Company, whether predicated upon this Agreement or
otherwise, shall not constitute a defense to the enforcement by the Company of these covenants.

6. Confidentiality. During the term of this Agreement and for 36 months after Shipley’s
termination of employment with the Company, Shipley will continue to be bound by the terms of that
certain Confidentiality Agreement entered into between Shipley and the Company on or about April
26, 2005.

7. General Provisions.

7.1 Assignment. Shipley may not assign or delegate any of his rights or obligations under this
Agreement. The Company may assign its rights and obligations under this Agreement to any successor
to the Company through merger, consolidation, sale or the like.

 

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7.2 Entire Agreement. This Agreement contains the entire agreement between the parties with
respect to the subject matter hereof and supersedes any and all prior agreements between the
parties relating to such subject matter, including without limitation those certain Employment
Agreements dated November 1, 2004 and August 28, 2007 between the Company and Shipley.

7.3 Modifications. This Agreement may be changed or modified only by an agreement in writing
signed by the party against whom enforcement is sought.

7.4 Successors and Assigns. The rights and duties under this Agreement shall inure to the
benefit of, and be binding upon, the parties hereto and their successors and assigns, legal
representatives, heirs, legatees, distributees, assigns and transferees by operation of law,
whether or not any such person or entity shall have become a party to this Agreement and have
agreed in writing to join and be bound by the terms and conditions hereof.

7.5 Governing Law. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of Georgia.

7.6 Severability; Partial Invalidity. If any provision of this Agreement or any instrument or
document delivered in connection herewith is held to be illegal, invalid or unenforceable under
present or future laws effective during the term of this Agreement (the “Offending Provision”), the
Offending Provision shall be fully severable; this Agreement shall be construed and enforced as if
the Offending Provision had never comprised a part of this Agreement; and the remaining provisions
of this Agreement shall remain in full force and effect and shall not be affected by the Offending
Provision or by its severance from this Agreement. Furthermore, in lieu of the Offending
Provision, there shall be added automatically as a part of this Agreement a provision as similar in
terms to the Offending Provision as may be possible and be legal, valid and enforceable.

7.7 Further Assurances. The parties will execute such further instruments and take such
further actions as may be reasonably necessary to carry out the intent of this Agreement.

7.8 Notices. Any notices or other communications required or permitted hereunder shall be in
writing and shall be deemed received by the recipient when delivered personally or, if mailed, five
(5) days after the date of deposit in the United States mail, certified or registered, postage
prepaid and addressed, in the case of the Company, to:

6025 The Corners Parkway

Suite 100

Norcross, Georgia 30092

and, in the case of Shipley, to:

3520 Miller Farms Lane

Duluth, Georgia 30096

or to such other address as either party may later specify by at least ten (10) days’ advance
written notice delivered to the other party in accordance herewith.

 

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7.9 No Waiver. The failure of either party to enforce any provision of this Agreement shall
not be construed as a waiver of that provision, nor prevent that party thereafter from subsequently
enforcing that provision or any other provision of this Agreement.

7.10 Legal Fees and Expenses. In the event of any disputes under this Agreement, each party
shall be responsible for his or its own legal fees and expenses that may be incurred in resolving
such dispute.

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

7.12 Omnibus 409A Provision. This Agreement is intended to be exempt from treatment as
deferred compensation under Section 409A of the Internal Revenue Code (the “Code”) and shall be construed and interpreted in
accordance therewith. All rights to payments under this Agreement shall be treated as rights to
receive a series of separate payments to the fullest extent permitted by Section 409A of the Code.
Notwithstanding the preceding, the Company shall not be liable to Shipley 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 payment under this Agreement is subject to taxes, penalties or
interest as a result of failing to comply with Section 409A of the Code.

Notwithstanding any of the provisions of this Agreement, if Shipley is a “specified employee”
(within the meaning of Section 409A of the Code), and any payments hereunder are not otherwise
exempt from Section 409A of the Code, then, to the extent necessary to comply with Section 409A of
the Code, no payments may be made hereunder before the date which is six months after the date of
Shipley’s “separation from service” within the meaning of Section 409A of the Code or, if earlier
the date of Shipley’s death. Because the amounts payable hereunder will be made in all events no
later than the 15th day of the third month following the end of (i) the calendar year or
(ii) the fiscal year of the Company in which Shipley terminates employment, whichever is later,
then all amounts payable hereunder should be exempt from Section 409A of the Code as a short-term
deferral. Consequently, this “specified employee” six-month delay provision will only be
applicable if it is subsequently determined that the amounts to be paid pursuant to this Agreement
are not exempt from Section 409A of the Code. For purposes hereof, termination of employment shall
be read to mean a “separation from service” within the meaning of Section 409A of the Code where it
is reasonably anticipated that no further services would be performed after such date or that the
level of bona fide services Shipley would perform after that date (whether as an employee or an
independent contractor) would permanently decrease to no more than 20 percent of the average level
of bona fide services performed over the immediately preceding 36-month period.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	 	/s/ Glen E. Shipley
	 	 	 
	 	 	Glen E. Shipley
	 
	 	 	 	 
	 	 	EasyLink Services International Corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas J. Stallings
	 

	 	 	 	 
	 

	 	 	 	Name: Thomas J. Stallings
	 

	 	 	 	Title: Chief Executive Officer

 

-8-

 

EXHIBIT A

2008 Compensation Plan

Mr. Glen E. Shipley, CFO

SALARY

The Company shall pay you a salary of $225,000 annually. The Company, through the Compensation
Committee of the Board of Directors (the “Compensation Committee”), will review your salary
annually and, in its sole discretion, may increase but not decrease your salary as appropriate,
subject to the approval of the Compensation Committee.

ANNUAL CASH INCENTIVE

You shall have the opportunity to earn a cash incentive based on the Company’s and your
personal performance during Fiscal 2008. The Company, through the Compensation Committee, retains
the right to adjust your cash incentive plan at any time as business circumstances or other factors
reasonably dictate.

Your targeted annual incentive compensation for Fiscal 2008 is $225,000. Payment of 2008
incentive compensation will be at fiscal year end (but no later than as set forth in your
employment agreement) and will be determined by the Compensation Committee by September 15, 2007
based on a combination of 25% payout on personal objectives and 75% payout on Company objectives as
noted below:

COMPANY OBJECTIVES

	 	1.	 	Total revenue of $[XXXXXXXX] — half of the executive’s Company Bonus (the
“Revenue Company Bonus”) will be earned if the Company achieves a minimum of
$[XXXXXXXX] in total revenue for FY 2008 (the “Revenue Target”), in accordance with the
following. None of the Revenue Company Bonus will be earned if the Company achieves
less than 91% of the Revenue Target. For each 1% (but not a fraction thereof) above
90% of the Revenue Target that the Company achieves, 10% of the Revenue Company Bonus
will be earned, so that at 91% of the Revenue Target, 10% of the Revenue Company Bonus
will be earned, at 92% of the Revenue Target, 20% of the Revenue Company Bonus will be
earned, up to 100% of the Revenue Company Bonus at 100% of the Revenue Target. In
addition, for each 1% (but not a fraction thereof) above 100% of the Revenue Target
that the Company achieves, an additional amount equal to 10% of the Revenue Company
Bonus will be earned.

 

 

 

	 	2.	 	EBITDA of $[XXXXXXXX] — the other half of the executive’s Company Bonus (the
“EBITDA Company Bonus”) will be earned if the Company achieves a minimum of $[XXXXXXXX]
in EBITDA for FY 2008 (the “EBITDA Target”), in accordance with the following. None of
the EBITDA Company Bonus will be earned if the Company achieves less than 91% of the
EBITDA Target. For each 1% (but not a fraction thereof) above 90% of the EBITDA Target
that the Company achieves, 10% of the EBITDA Company Bonus will be earned, so that
at 91% of the EBITDA Target, 10% of the EBITDA Company Bonus will be earned, at
92% of the EBITDA Target, 20% of the EBITDA Company Bonus will be earned, up to
100% of the EBITDA Company Bonus at 100% of the EBITDA Target. In addition, for
each 1% (but not a fraction thereof) above 100% of the EBITDA Target that the
Company achieves, an additional amount equal to 10% of the EBITDA Company Bonus
will be earned. For purposes of this paragraph, EBITDA shall mean net profit
before taxes, interest expense (net of capitalized interest expense),
depreciation expense and amortization expense, all in accordance with GAAP,
excluding stock-based compensation expense, incentive compensation expense,
cumulative effect of accounting changes and one-time, nonrecurring items.

PERSONAL OBJECTIVES

	 	1.	 	Manage the creation of a comprehensive set of financial reports that provides
senior management and the board of director with a forward looking view of the overall
health of the business.

	 	2.	 	Establish EasyLink’s human resources department as value added contributor to
the success of the operation especially as it pertains to employee retention and job
satisfaction.

	 	3.	 	Reduce over 90 accounts receivables by 50% through aggressive collection
programs while maintaining an under 50 DSO.

	 	4.	 	Support the Compensation Committee by providing annual third party salary and
benefits surveys.

	 	5.	 	Manage to $8.5 in Operating Profit for the year.

	 	6.	 	Establish yourself as an engaged leader and change agent; building a
well-informed team that is clear on the company direction and knows how to work in
support of the company’s objectives.

SPECIAL BONUS AND LONG TERM STOCK INCENTIVE

Upon execution of your Original Agreement, you received a special one- time bonus of $150,000
in cash and a special one- time grant of 40,000 shares of restricted Company stock to vest in 24
equal monthly installments beginning September 28, 2007 and ending August 28, 2009. This cash
bonus and stock incentive were made in light of the extraordinary effort required to complete the
acquisition of EasyLink Services Corporation. The restricted stock grant has been made pursuant to
the terms of, and evidenced by, a written agreement entered into between you and the
Company.

 

 

 

EXHIBIT B

Benefits

You will be eligible to participate in benefit plans and/or programs which the Company may
offer to its employees or executives from time to time. Your eligibility for such plans and/or
programs will be determined by the terms of such plans and/or programs. Among the benefits
currently offered by the Company to its employees are medical and dental insurance and a 401k plan,
which are described below. Please be advised, however, that the Company reserves the right to
amend, modify, or terminate any of its benefits plans and/or programs at any time in its sole
discretion. You will be eligible for four weeks vacation in accordance with the Company’s accrual
policy.

Medical Insurance. Currently, the Company offers its employees medical insurance. The
Company currently contributes a portion of your premium for employee coverage, and you will be
responsible for contributing for additional family coverage through pre-tax payroll deduction.

Dental Insurance. The Company presently offers its employees dental insurance. The
Company currently contributes a portion of your premium for employee coverage, and you will be
responsible for contributing for additional family coverage through pre-tax payroll deduction.

401k Plan. The Company presently offers its employees a 401k plan. You may elect to
contribute pre-tax deferrals through payroll deduction pursuant to the terms of the 401k plan.

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