Document:

Exhibit 10.2

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (this “Agreement”) between EARTHLINK, INC., a Delaware
corporation (the “Company”), and JOSEPH M. WETZEL (referred to herein as “You”)
is entered into on December 30, 2008. 
This Agreement amends, restates and supersedes the Employment Agreement
between the Company and you dated August 27, 2007 (the “Previous Agreement”).

 

RECITALS

 

1.                                       The Company is engaged in the business of providing
integrated communication services and related value added services to
individual consumers and business customers throughout the States of the United
States; and

 

2.                                       The Company previously determined that, in view of Your
knowledge, expertise and experience in the integrated communication services
and related value-added services industries, Your services as the Chief
Operating Officer of the Company would be of great value to the Company, and
accordingly, the Company desired to enter into the Previous Agreement with You
on the terms set forth therein in order to secure Your services; and

 

3.                                       You desired to serve as the Chief Operating Officer of the
Company on the terms set forth in the Previous Agreement; and

 

4.                                       The Company and You now desire to amend and restate the
Previous Agreement to address Section 409A of the Code (as defined below)
and the final regulations issued thereunder.

 

NOW,
THEREFORE, in consideration of Your employment by the Company,
the above premises and the mutual agreements hereinafter set forth, You and the
Company agree as follows:

 

1.                                      Definitions.

 

(a)                         “Affiliate” means any trade or business with whom the
Company would be considered a single employer under Sections 414(b) or 414(c) of
the Code (except that for purposes of determining Your Termination of
Employment, the language “at least fifty percent (50%)” shall be used instead
of “at least eighty percent (80%)” each place it appears in Sections 414(b) or
414(c) of the Code).

 

(b)                        “Beneficial Ownership” means beneficial ownership as
that term is used in Rule 13d-3 promulgated under the Securities Exchange
Act of 1934, as amended.

 

(c)                         “Business Combination” means a reorganization, merger
or consolidation of the Company.

 

 

(d)                        “Business of the Company” means the business of
providing integrated communication services and related value added services to
individual consumers and business customers.

 

(e)                         “Cause” means (i) Your commission of any act of
fraud or dishonesty relating to and adversely affecting the business affairs of
the Company; (ii) Your conviction of any felony; or (iii) Your
willful and continued failure to perform substantially Your duties owed to the
Company after written notice specifying the nature of such non-performance and
a reasonable opportunity to cure such non-performance.  No act or omission shall be considered “willful”
unless it is done or omitted in bad faith or without reasonable belief that the
action or omission was in the best interests of the Company.

 

(f)                           “Change in Control Event” of the Company means the
occurrence of any of the following events:

 

(1)                                  The
accumulation in any number of related or unrelated transactions by any Person
of Beneficial Ownership of more than fifty percent (50%) of the combined voting
power of the Company’s Voting Stock; provided that for purposes of this
subparagraph (1), a Change in Control Event 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 (a) by
the Company, (b) by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any Affiliate, or (c) by any Person
pursuant to a Business Combination that complies with clauses (a) and (b) of
subparagraph (2) below; or

 

(2)                                  Consummation of
a Business Combination, unless, immediately following that Business
Combination, (a) all or substantially all of the Persons who were the
beneficial owners of Voting Stock of the Company immediately prior to that
Business Combination beneficially own, directly or indirectly, more than fifty
percent (50%) of the then outstanding shares of common stock and more than
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
common stock and Voting Stock of the Company, and (b) 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 a right to
dilute either of such 

 

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percentages by appointing additional members to the
Board of Directors or otherwise without election or other action by the
stockholders; or

 

(3)                                  A sale or other
disposition of all or substantially all of the assets of the Company, except
pursuant to a Business Combination that complies with clauses (a) and (b) of
subparagraph (2) above; or

 

(4)                                  Approval by the
shareholders of the Company of a complete liquidation or dissolution of the
Company, except pursuant to a Business Combination that complies with clauses (a) and
(b) of subparagraph 2 above.

 

(g)                        “Code” means the Internal Revenue Code of 1986, as
amended, and any regulations promulgated thereunder.

 

(h)                        “Company” shall mean EarthLink, Inc.

 

(i)                            “Confidential Information” means any and all
non-public information concerning, relating to and/or in the possession of the
Company and/or its Affiliates and/or the Business of the Company treated as
confidential or secret by the Company and/or its Affiliates (that is, such
business information is subject to efforts by the Company and/or its Affiliates
that are reasonable under the circumstances to maintain its secrecy) that does
not constitute a Trade Secret, including, without limitation, information
concerning the Company’s or an Affiliate’s financial position and results of
operations (including revenues, assets, net income, etc.), annual and long
range business plans, product and service plans, marketing plans and methods,
employee lists and information, in whatever form and whether or not computer or
electronically accessible.

 

(j)                            “Eligible Earnings” has the same meaning given to
that term in the Company’s bonus plan and payroll policies.

 

(k)                         “Good Reason” means, with respect to Your Termination
of Employment, any of the following acts or omissions that are not cured within
thirty (30) days after written notice of such act or omission is delivered to
the Company, the Chairman of the Board of Directors and the Chairman of the
Leadership and Compensation Committee of the Board of Directors (which notice
must be given no later than ninety (90) days after the initial occurrence of
such event):

 

(1)                                  without Your
express written consent (i) the assignment to You of any duties materially
inconsistent in any respect with Your position, authority, duties or
responsibilities as contemplated by Section 2, (ii) the requirement
by the Company that You report to any officer or employee other than directly
to the Chief Executive Officer, the President of the Company (excluding a
President of any division of the Company) or the Board of Directors of the
Company, (iii) any other action by the Company that results in a
significant diminution in such position, authority, duties or responsibilities,
or (iv) any failure by the Company to comply in any material respect with
any of the provisions of Sections 4(a), (b) and (d) of this
Agreement;

 

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(2)                                  any requirement
that You relocate outside of, or any relocation of the Company’s principal
executive office outside of, the metropolitan area of Atlanta, Georgia; or

 

(3)                                  any breach by
the Company of any other material provision of this Agreement.

 

A termination by You shall not constitute termination for Good Reason
unless You resign within two (2) years after the initial occurrence of
such uncured event.

 

(l)                            “Incumbent Board” means a Board of Directors
consisting of individuals who either are (a) members of the Company’s
Board of Directors on the date hereof or (b) members who become members of
the Company’s Board of Directors subsequent to the date hereof 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 a specific vote or by approval of the 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 actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board of
Directors.

 

(m)                      “Non-Public Change in Control Event” means any Change
in Control Event that is not a Public Change in Control Event.

 

(n)                        “Person” means any individual, entity or group within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended.

 

(o)                        “Public Change in Control Event” means any Change in
Control Event as defined in clause (f) above where (i) the
Person that accumulates Beneficial Ownership of more than fifty percent (50%)
of the combined voting power of the Company’s Voting Stock has, or such Person
is a direct or indirect subsidiary of a Person that has, a class of common
stock (or depositary receipts or other certificates representing common equity
interests) traded on a U.S. national securities exchange or quoted on NASDAQ or
another established over-the-counter trading market in the United States or
which will be so traded or quoted when issued or exchanged in connection with
such Change in Control Event or (ii) upon the consummation of such Change
in Control Event, the Voting Stock of the Company will remain trading on a U.S.
national securities exchange or quoted on NASDAQ or another established
over-the-counter trading market in the United States.

 

(p)                        “Specified Employee” means an employee who is (i) an
officer of the Company or an Affiliate having annual compensation greater than
$145,000 (with certain adjustments for inflation after 2008), (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 

 

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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, (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 or an Affiliate (except as otherwise provided in regulations issued
under the Code) or (v) who have not completed six months of service shall
be excluded for purposes of determining the number of officers for this
determination.  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)(C) 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
You are a Specified Employee will be based on a December 31 identification
date such that if You satisfy the above definition of Specified Employee at any
time during the 12-month period ending on December 31, You will be treated
as a Specified Employee if You have 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.

 

(q)                        “Termination of Employment” means the termination of
Your employment and service with the Company and all Affiliates.  You will not be considered as having had a
Termination of Employment if (i) You continue to provide services to the
Company or any Affiliate as an employee or independent contractor at an annual
rate that is more than 20 percent of the services rendered, on average, during
the immediately preceding 36 months of employment (or, if employed less than 36
months, such lesser period) or (ii) You are on military leave, sick leave
or other bona fide leave of absence so long as the period of such leave does
not exceed six months, or if longer, so long as Your right to reemployment with
the Company or any Affiliate is provided either by statute or by contract.  If the period of leave (i) ends or (ii) exceeds
six months and Your right to reemployment is not provided either by statute or
by contract, the Termination of Employment will be deemed to occur on the first
date immediately following such six-month period if not reemployed by the
Company or any Affiliate before such time and eligibility for payments and
benefits hereunder will be determined as of that time.  Termination of Employment shall be construed
consistent with the meaning of a “separation from service” under Section 409A
of the Code.

 

(r)                           “Total Disability” means Your inability, through
physical or mental illness or accident, to perform the majority of Your usual
duties and responsibilities hereunder (as such duties are constituted on the
date of the commencement of such disability) in the manner and to the extent
required under this Agreement for a period of at least ninety (90) consecutive
days.  Total Disability shall be deemed
to have occurred on the first day following the expiration of such ninety (90)
day period.

 

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(s)                         “Trade Secrets”
means any and all information concerning, relating to and/or in the possession
of, the Company and/or its Affiliates and/or the Business of the Company that
qualifies as a trade secret as defined by the laws of the State of Georgia on
the date of this Agreement and as such laws are amended from time to time
thereafter.

 

(t)                           “Voting Stock” means the then outstanding securities
of an entity entitled to vote generally in the election of members of that
entity’s Board of Directors.

 

2.                                      Employment; Duties.

 

(a)                         The Company agrees to employ You as Chief Operating Officer
of the Company with the duties and responsibilities generally associated with
such position and such other reasonable additional responsibilities and
positions as may be added to Your duties from time to time by the Chief
Executive Officer, the President of the Company (excluding a President of any
division of the Company) or the Board of Directors consistent with Your
position.

 

(b)                        During Your employment hereunder, You shall (i) diligently
follow and implement all Company employee policies and all management policies
and decisions communicated to You by the Chief Executive Officer, the President
or the Board of Directors; and (ii) timely prepare and forward to the
Chief Executive Officer, the President or the Board of Directors all reports
and accountings as may be reasonably requested of You.

 

3.                                      Term.  The term hereof commenced on August 27, 2007, continued
for a period of one (1) year, was extended for an additional year from the
anniversary of August 27, 2007 and shall be automatically extended from
year-to-year thereafter unless terminated in accordance with Section 6
hereof (the “Term”).

 

4.                                      Compensation.

 

(a)                         (1)  You shall be paid an annual base salary of not
less than Four Hundred and Sixteen Thousand Dollars ($416,000) per year (the “Base
Salary”).  The Base Salary shall accrue
and be due and payable in equal, or as nearly equal as practicable, biweekly
installments and the Company may deduct from each such installment all amounts
required to be deducted and withheld in accordance with applicable federal and
state income, FICA and other withholding tax requirements.

 

(2)  The Base Salary
shall be reviewed by the Board of Directors at least once during each year of
the Term and may be increased from time to time and at any time by the Board of
Directors.  The Base Salary shall in no event
be reduced or decreased below the highest level attained at any time by You,
unless You and the Board of Directors agree to implement a salary reduction
program for cost abatement purposes.

 

(3)  As the Term begins
on other than the first business day of a calendar month and as the Term hereof
shall terminate on other than the last day of a calendar month, Your
compensation for such month shall be prorated according to the number of days
during such month that occur within the Term.

 

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(b)                        For each fiscal year of the Company, You shall be entitled
to receive an annual target bonus opportunity in an amount equal to sixty-five
percent (65%) of Your Eligible Earnings (the “Annual Target Bonus”), with the
ability to earn Fifty Percent (50%) (threshold) to One Hundred Fifty Percent
(150%) (maximum) of Your Annual Target Bonus if the bonus criteria for such
annual period, as set by the Board of Directors of the Company, are satisfied
(the “Target Bonus Payment”); provided that if such bonus criteria are not
satisfied, no Annual Target Bonus shall be payable.  The criteria to earn Your Annual Target Bonus
and other levels between the threshold and maximum for each year of the Term
shall be based upon good faith negotiations between You and the Board of
Directors.  All Target Bonus Payments
that become payable shall be paid to You in accordance with the applicable
bonus plan but in no event later than 21⁄2 months after the end of the fiscal
year of the Company to which Your Target Bonus Payments relate.

 

(c)                         While You are performing the services described herein, the
Company shall reimburse You for all reasonable and necessary expenses incurred
by You in connection with the performance of Your duties of employment
hereunder in accordance with the Company’s expense reimbursement policy, as
applied to the Company’s executive officers, as soon as administratively
practicable but no later than 2 1⁄2 months after the end of the year in which You
incur the reimbursable expense.

 

(d)                        Pursuant to this Section 4(d), You shall participate in
the Change-In-Control Accelerated Vesting and Severance Plan amended and
restated effective December 15, 2008 and any plan(s) or program(s) that
supersede, replace and/or supplement such plan, as in effect from time to time
(the “AV/SP”), at the second highest and second most beneficial level of
participation provided under the AV/SP. 
With respect to each individual benefit, or category of similar benefit,
provided to You under each of the AV/SP and this Agreement, the two (2) benefits
shall not be cumulative, and You shall be entitled to receive each such
benefit, or category of benefit, under the terms of the AV/SP or the terms of
this Agreement, whichever would be the greater amount or value to You, except
that the timing and manner of payment of such benefits shall be consistent with
the terms of this Agreement, regardless of whether the amount or value of the
benefits You are entitled to receive are determined under the AV/SP or this
Agreement.  The restrictions on cumulation
of benefits in this Section 4(d), and the application of the terms of the
AV/SP to benefits provided thereunder, shall not apply to Your right to qualify
for and participate in the AV/SP at the second highest and second most
beneficial level of participation.

 

(e)                         You shall receive paid vacation during each twelve (12)
month period of Your employment in accordance with the Company’s vacation
policy.  To the extent that You do not
use Your accrued vacation during such twelve (12) month period, any remaining
accrued vacation shall be subject to the carryover restrictions applicable in
the Company’s normal vacation policies.

 

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5.                                      Equity Rights.

 

(a)                         Upon execution of the Previous Agreement, You received
50,000 RSUs which shall vest in accordance with the terms of the EarthLink, Inc.
2006 Equity and Cash Incentive Plan, with 25,000 RSUs vesting on August 27,
2009, 12,500 RSUs vesting on August 27, 2010 and 12,500 RSUs vesting on August 27,
2011, assuming Your continued employment until each such time, or as otherwise
vested pursuant to Section 6.  Upon execution of the Previous
Agreement, You also received 150,000 stock options which vest over a period of
four years in accordance with the terms of the EarthLink, Inc. 2006 Equity
and Cash Incentive Plan and the Company’s standard vesting schedule for stock
options.

 

(b)                        The stock options and restricted stock units granted by the
Company to You from time to time are hereinafter collectively called the “Stock
Options and RSUs.”  You shall be given
the period permitted under Your respective Stock Option agreements to exercise
Your Stock Options after Your termination of employment, except as otherwise
provided in Section 5(c) below.

 

(c)                         Vested Stock Options shall be exercisable for thirty (30)
days following termination of employment but in no event beyond the latest
expiration date as set forth in the respective Stock Option agreement.

 

6.                                      Termination.

 

(a)                         A Termination of Employment shall occur only as follows:

 

(1)                                  For Cause
immediately by the Company; or

 

(2)                                  At Your option
for Good Reason; or

 

(3)                                  At Your option
upon thirty (30) days prior written notice of termination delivered by You to
the Company; or

 

(4)                                  For any reason
by the Company upon three (3) calendar months prior written notice of
termination delivered to You, except during a period of Your disability that
may qualify as the period for qualification for Your Termination of Employment
due to Your Total Disability as set forth in Section 6(a)(6); or

 

(5)                                  By the Company
upon Your death; or

 

(6)                                  By the Company
because of Your Total Disability upon thirty (30) days prior written notice of
termination delivered to you.

 

(b)                        If You have a Termination of Employment that is not in
connection with a Change in Control Event (i) by the Company for other
than “Cause,” Your death or Your Total Disability or (ii) by You for “Good
Reason,” You shall be paid an amount equal to one hundred percent (100%) of the
sum of (i) Your Base Salary as of the effective date of 

 

8

 

Your
Termination of Employment and (ii) Your
Annual Target Bonus for the year in which your Termination of Employment occurs.  Subject to Section 19
below, such amount shall be paid in a lump sum as
soon as administratively practicable (and within thirty (30) days) after Your Termination of Employment.  However, You will not be entitled to any
payment under this Section 6(b) if you previously received payments
under Section 6(c) below.  In
addition, in the event of such Termination of Employment as described in this Section 6(b),
You shall become immediately vested in all Your outstanding Stock Options and
RSUs that otherwise would have vested during the 18-month period immediately
following such Termination of Employment.

 

(c)                         If a Non-Public Change in Control Event occurs (and such
Non-Public Change-in-Control constitutes a “change in control event” within the
meaning of Section 409A of the Code
and applicable regulations) and
you have not previously incurred a Termination of Employment, You shall be paid
as soon as administratively practicable (and within thirty (30) days) after
such Change in Control Event an amount equal to one hundred and fifty percent (150%) of
the sum of (i) Your Base Salary as of the effective date of the Non-Public
Change in Control Event and (ii) Your Annual Target Bonus for the year in
which the Non-Public Change in Control Event occurs.  In the event You receive any payments under
this Section 6(c), Your right to receive payments under Sections 6(b) and
6(d) will be terminated.

 

(d)                        If, in connection with a Public Change in Control Event (or
a Non-Public Change-in-Control that does not meet
the
definition of a “change in control event” in Section 409A of the Code
and applicable regulations), You
have a Termination of Employment (i) by the Company for other than “Cause,”
Your death or Your Total Disability or (ii) by You for “Good Reason,” You
shall be paid an amount equal to (a) one hundred and fifty percent (150%)
of the sum of (i) Your Base Salary as
of the effective date of Your Termination of Employment and (ii) Your
Annual Target Bonus for the year in which Your Termination of Employment occurs.  Subject to Section 19
below, such amount shall be paid in a lump sum as
soon as administratively practicable (and within thirty (30) days) after Your Termination of Employment.  However, You will not be entitled to any
payment under this Section 6(d) if you have received payments under Section 6(c) above.

 

(e)                         If You have a Termination of Employment by the Company for
Cause, Your death or Your Total Disability or by You for reasons other than for
“Good Reason,” the Company will have no obligations to pay You any amount
beyond the effective date of such Termination of Employment whether as Base
Salary, Annual Target Bonus or otherwise or to provide You with any benefits
arising hereunder or otherwise except as required by law.

 

(f)                           For purposes of this Section 6, Your Termination of
Employment will be deemed to be in connection with a Change in Control Event if
it occurs on or after the Change in Control Event or after the public
announcement of or execution of a definitive agreement for a transaction or
event that would, if consummated, be a Change in Control Event.

 

9

 

7.                                      Confidential Information and
Trade Secrets.  You acknowledge that the nature
of Your engagement by the Company is such that You shall have access to the
Confidential Information and the Trade Secrets, each of which has great value
to the Company, provides the Company a competitive advantage, and constitutes
the foundation upon which the Business of the Company is based.  You agree to hold all of the Confidential
Information and the Trade Secrets in confidence and to not use, disclose,
publish or otherwise disseminate any of such Confidential Information and the
Trade Secrets to any other person, except to the extent such disclosure is (i) necessary
to the performance of this Agreement and in furtherance of the Company’s best
interests, (ii) required by applicable law, (iii) as a result of
portions of the Confidential Information and/or the Trade Secrets becoming
lawfully obtainable from other sources, (iv) authorized in writing by the
Company, or (v) necessary to enforce this Agreement.  The restrictions set forth in this Section 7
shall remain in full force and effect (a) with respect to the Confidential
Information, for the three (3) year period following the effective date of
Your Termination of Employment, and with respect to the Trade Secrets, until the
Trade Secrets no longer retain their status or qualify as trade secrets under
applicable law.  Upon Your Termination of
Employment, You shall deliver to the Company all documents, records, notebooks,
work papers, and all similar material containing Confidential Information and
Trade Secrets, whether prepared by You, the Company or anyone else.

 

8.                                      Inventions and Patents. 
All
inventions, designs, improvements, patents, copyrights and discoveries
conceived by You during the term of this Agreement which are useful in or
directly or indirectly relate to the business of the Company or to any
experimental work carried on by the Company, shall be the property of the
Company.  You agree to promptly and fully
disclose to the Company all such inventions, designs, improvements, patents,
copyrights and discoveries (whether developed individually or with other
persons) and at the Company’s expense, to take all steps necessary and
reasonably required to assure the Company’s ownership thereof and to assist the
Company in protecting or defending the Company’s proprietary rights therein.

 

9.                                      Restrictive Covenants.

 

(a)                         Non-Competition.  You agree that during Your employment, and
for a period of twelve (12) calendar months following Termination of
Employment, You shall not perform within the 50 states of the United States of
America any services which are in competition with the Business of the Company
during Your employment, or following Your Termination of Employment any
services which are in competition with a Material line of Business engaged in
by the Company at the time of Your Termination of Employment, and which are the
same as or similar to those services You performed for the Company under this
Agreement; provided, however, if the other business competitive with the
Business of the Company has multiple lines, divisions, segments or units, some
of which are not competitive with the Business of the Company, nothing herein
shall prevent You from being employed by or providing services to such line,
division, segment or unit that is not competitive with the Business of the
Company.  For purposes of this Section 9(a),
“Material” means a line of Business that represents 20% or more of the Company’s
consolidated revenues or adjusted EBITDA for the four fiscal quarters immediately
preceding Your Termination of Employment.

 

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(b)                        Non-Recruitment.  You agree that during Your employment and for
a period of twelve (12) calendar months following Termination of Employment,
You will not, directly or indirectly:  (1) solicit,
induce, recruit, or cause a Restricted Employee to resign employment with the
Company or its Affiliates, or (2) participate in making hiring decisions,
encourage the hiring of, or aid in the hiring process of a Restricted Employee
on behalf of any employer other than the Company and its Affiliates.  As used herein, “Restricted Employee” means
any employee of the Company or its Affiliates with whom You had material
business-related contact while performing services under this Agreement, and
who is:  (1) a member of executive
management; (2) a corporate officer of the Company or any of its
Affiliates; or (3) any employee of the Company or any of its Affiliates
engaged in product or service development or product or service management.

 

(c)                         Effect of Breach.  The obligation of the Company to continue to
fulfill its payment and benefit obligations to You pursuant to Sections 6(b), 6(c) and
6(d) is conditioned upon Your compliance with the provisions of this Section 9
and Sections 7 and 8.  Accordingly,
in the event that You shall materially breach the provisions of this Section 9
and/or Sections 7 and/or 8 and not cure or cease (as appropriate) such
material breach within ten (10) days of receipt of notice thereof from the
Company (the “Default Date”), the Company’s obligations under Sections 6(b), 6(c) and
6(d) shall terminate and You shall promptly (within thirty (30) days after
the Default Date) refund to the Company a prorata portion of the amounts
previously paid to You pursuant to Sections 6(b), 6(c) and 6(d) equal
to a fraction, the numerator of which is the number of full months from the
Default Date to the eighteen-month (18-month) anniversary of Your Termination
of Employment, and the denominator of which is eighteen (18).  Termination of the Company’s obligations
under Sections 6(b), 6(c) and 6(d) shall not be the Company’s sole
and exclusive remedy for a breach of this Section 9 and/or Sections 7
and/or 8.  In addition to the remedy
provided in this Section 9(c), the Company shall be entitled to seek
damages and injunctive relief to enforce this Section 9 and
Sections 7 and 8, in the event of a breach by You of this Section 9
and/or Sections 7 and/or 8.

 

10.                               Remedies.

 

(a)                         The parties hereto agree that
the services to be rendered by You pursuant to this Agreement, and the rights
and privileges granted to the Company pursuant to this Agreement, are of a
special, unique, extraordinary and intellectual character, which gives them a
peculiar value; the loss of which cannot be reasonably or adequately
compensated in damages in any action at law, and that a breach by You of any of
the terms of this Agreement will cause the Company great and irreparable injury
and damage.  You hereby agree that the
definition of the Business of the Company set forth in Section 1 is
correct, that the Company and its Affiliates conduct business throughout the 50
states of the United States of America and beyond, and that these restrictions
are reasonably necessary to protect the legitimate business interests of the
Company.  You hereby expressly agree that
the Company shall be entitled to the remedies of injunction, specific
performance and other equitable relief to prevent a breach of this Agreement by
You.  This Section 10 shall not be
construed as a waiver of any other rights or remedies which the Company may
have for damages or otherwise.

 

11

 

(b)                        In the event of any dispute over
the interpretation or application of this Agreement, the Company shall
reimburse you for your reasonable attorneys’ fees and costs incurred in
connection with that dispute unless the Company is determined, by final
judgment of a court of competent jurisdiction, to be the prevailing party on
all or substantially all of the issues in dispute, which reimbursement shall be
made promptly, (and within thirty (30) days) following final judgment.

 

11.                               Construction and Severability. 
The
parties hereto agree that the provisions of this Agreement shall be presumed to
be enforceable, and any reading causing unenforceability shall yield to a
construction permitting enforcement.  In
the event a court should determine not to enforce a provision of this Agreement
due to overbreadth, violation of public policy, or similar reasons, the parties
specifically authorize such reviewing court to enforce said covenant to the
maximum extent reasonable, whether said revisions be in time, territory, scope
of prohibited activities, or other respects. 
If any single covenant, provision, word, clause or phrase in this
Agreement shall be found unenforceable, it shall be severed and the remaining
covenants and provisions enforced in accordance with the tenor of the
Agreement.

 

12.                               Assignment. 
This
Agreement and the rights and obligations of the hereunder may not be assigned
by either party hereto without the prior written consent of the other party
hereto.

 

13.                               Notices. 
Except
as otherwise specifically provided herein, any notice required or permitted to
be given to You pursuant to this Agreement shall be given in writing, and
personally delivered or mailed to You by certified mail, return receipt
requested, at the address set forth below Your signature on this Agreement or
at such other address as You shall designate by written notice to the Company given
in accordance with this Section 13, and any notice required or permitted
to be given to the Company, the Chairman of the Board of Directors or the
Chairman of the Leadership and Compensation Committee of the Board of Directors
shall be given in writing, and personally delivered or mailed to that recipient
by certified mail, return receipt requested, addressed to the appropriate
recipient at the address set forth under the signature of the Chief Executive
Officer of the Company or his designee on this Agreement or at such other
address as the Company shall designate by written notice to You given in
accordance with this Section 13. 
Any notice complying with this Section 13 shall be deemed received
upon actual receipt by the addressee.

 

14.                               Waiver. 
The
waiver by either party hereto of any breach of this Agreement by the other
party hereto shall not be effective unless in writing, and no such waiver shall
operate or be construed as the waiver of the same or another breach on a
subsequent occasion.

 

15.                               Governing Law. 
This
Agreement and the rights of the parties hereunder shall be governed by and
construed in accordance with the laws of the State of Georgia.

 

16.                               Beneficiary. 
All of
the terms and provisions of this Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors, heirs, executors, administrators and permitted assigns.

 

12

 

17.                               Entire Agreement. 
This
Agreement embodies the entire agreement of the parties hereto relating to Your
employment by the Company in the capacity herein stated and, except as
specifically provided herein, no provisions of any employee manual, personnel
policies, Company directives or other agreement or document shall be deemed to
modify the terms of this Agreement.  No
amendment or modification of this Agreement shall be valid or binding upon You
or the Company unless made in writing and signed by the parties hereto.  All prior understandings and agreements
relating to Your employment by the Company, in whatever capacity, are hereby
expressly terminated.

 

18.                               Excise Tax.

 

(a)                         If any payment or distribution
by the Company and/or any Affiliate of the Company to or for Your benefit,
whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise pursuant to or by reason of any other agreement,
policy, plan, program or arrangement, including without limitation any stock
option, stock appreciation right or similar right, or the lapse or termination
of any restriction on or the vesting or exercisability of any of the foregoing
(a “Payment”), would be subject to the excise tax imposed by Section 4999
of the Code or to any similar tax imposed by state or local law, or any
interest or penalties with respect to such tax (such tax or taxes, together
with any such interest and penalties, being hereafter collectively referred to
as the “Excise Tax”), then the payments and benefits payable or provided under
this Agreement (or other Payments as described below) shall be reduced (but not
below the amount of the payments or benefits provided under this Agreement) if,
and only to the extent that, such reduction will allow You to receive a greater
Net After Tax Amount than You would receive absent such reduction.

 

(b)                        The Accounting Firm will first
determine the amount of any Parachute Payments (as defined below), that are
payable to You.  The Accounting Firm also
will determine the Net After Tax Amount (as defined below), attributable to
Your total Parachute Payments.

 

(c)                         The Accounting Firm will next
determine the largest amount of Payments that may be made to You without
subjecting You to the Excise Tax (the “Capped Payments”).  Thereafter, the Accounting Firm will
determine the Net After Tax Amount attributable to the Capped Payments.

 

(d)                        You then will receive the total
Parachute Payments or the Capped Payments or such other amount less than the
total Parachute Payments, whichever provides You with the higher Net After Tax
Amount, but in no event will any such reduction imposed by this Section 18
be in excess of the amount of payments or benefits payable or provided under
this Agreement.  If You will receive the
Capped Payments or some other amount lesser than the total Parachute Payments,
the total Parachute Payments will be adjusted by first reducing the amount of
any noncash benefits under this Agreement or any other plan, agreement or
arrangement on a pro rata basis and then by reducing the amount of any cash
benefits under this Agreement or any other plan, agreement or arrangement on a
pro rata basis.  The Accounting Firm will
notify You and the Company if it determines 

 

13

 

that the Parachute
Payments must be reduced and will send You and the Company a copy of its
detailed calculations supporting that determination.

 

(e)                         As a result of the uncertainty
in the application of Code Sections 280G and 4999 at the time that the
Accounting Firm makes its determinations under this Section 18, it is
possible that amounts will have been paid or distributed to You that should not
have been paid or distributed under this Section 18 (“Overpayments”), or
that additional amounts should be paid or distributed to You under this Section 18
(“Underpayments”).  If the Accounting
Firm determines, based on either the assertion of a deficiency by the Internal
Revenue Service against the Company or You, which assertion the Accounting Firm
believes has a high probability of success or controlling precedent or
substantial authority, that an Overpayment has been made, that Overpayment will
be treated for all purposes as a debt ab initio that You must repay to the
Company together with interest at the applicable Federal rate under Code Section 7872;
provided, however, that no debt will be deemed to have been incurred by You and
no amount will be payable by You to the Company unless, and then only to the
extent that, the deemed debt and payment would either reduce the amount on
which You are subject to tax under Code Section 4999 or generate a
refund of tax imposed under Code Section 4999.  If the Accounting Firm determines, based upon
controlling precedent or substantial authority, that an Underpayment has
occurred, the Accounting Firm will notify You and the Company of that
determination and the amount of that Underpayment will be paid to You promptly
(and no later than thirty (30) days after the final determination of the
Underpayment) by the Company.

 

(f)                           For purposes of this Section 18,
the following terms shall have their respective meanings:

 

(i)                                     “Accounting Firm”
means the· independent accounting firm engaged by the Company in the Company’s
sole discretion.

 

(ii)                                  “Net After Tax Amount”
means the amount of any Parachute Payments, Capped Payments or other payments
described in this Section 18, as applicable, net of taxes imposed under
Code Sections 1, 3101(b) and 4999 and any State or local income taxes
applicable to You on the date of payment. 
The determination of the Net After Tax Amount shall be made using the
highest combined effective rate imposed by the foregoing taxes on income of the
same character as the Parachute Payments or Capped Payments, as applicable, in
effect on the date of payment.

 

(iii)                               “Parachute Payment”
means a payment that is described in Code Section 280G(b)(2), determined
in accordance with Code Section 280G and the regulations promulgated or
proposed thereunder.

 

(g)                        The fees and expenses of the
Accounting Firm for its services in connection with the determinations and
calculations contemplated by the preceding subsections shall be borne by the
Company.  If such fees and expenses are
initially paid by You, the Company shall reimburse You the full amount of such
fees and expenses within five 

 

14

 

business days after
receipt from You of a statement therefore and reasonable evidence of Your
payment thereof but in no event later than the end of the year immediately
following the year in which You incur such reimbursable fees and expenses.

 

(h)                        The Company and You shall each
provide the Accounting Firm access to and copies of any books, records and
documents in the possession of the Company or You, as the case may be,
reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting
Firm in connection with the preparation and issuance of the determinations and
calculations contemplated by the preceding subsections.  Any determination by the Accounting Firm
shall be binding upon the Company and You.

 

(i)                            The federal, state and local
income or other tax returns filed by You shall be prepared and filed on a
consistent basis with the determination of the Accounting Firm with respect to
the Excise Tax payable by You.  You, at
the request of the Company, shall provide the Company true and correct copies
(with any amendments) of Your federal income tax return as filed with the
Internal Revenue Service and corresponding state and local tax returns, if
relevant, as filed with the applicable taxing authority, and such other
documents reasonably requested by the Company, evidencing such conformity.

 

(j)                            All payments to be made to You
under this Section 18 must be paid no earlier than when the applicable
taxes are to be remitted and by the end of Your taxable year next following the
year in which the taxes that are the subject of the audit or litigation are
remitted to the taxing authorities or, where no such taxes are remitted, the
end of Your taxable year following the year in which the audit is completed or
there is a final and non-appealable settlement or the resolution of the
litigation.

 

19.                               Tax Liabilities and Code Section 409A. 
Any payments or benefits that you receive pursuant to this Agreement
shall be subject to reduction for any applicable employment or withholding
taxes.  Notwithstanding any other
provision of this Plan, if You are a Specified Employee as of Your Termination
of Employment, and if the amounts that You are entitled to receive pursuant to Section 6
are not otherwise exempt from Section 409A of the Code, then to the extent
necessary to comply with Section 409A, no payments for such amounts may be
made under this Agreement (including, if necessary, any payments for welfare or
other benefits in which case You may be required to pay for such coverage or
benefits and receive reimbursement when payment is no longer prohibited) before
the date which is six (6) months after Your Termination of Employment or,
if earlier, Your date of death.  All such
amounts, which would have otherwise been required to be paid over such six (6) months
after Your Termination of Employment or, if earlier, until Your date of death,
shall be paid to You in one lump sum payment as soon as administratively
feasible after the date which is six (6) months after Your Termination of
Employment or, if earlier, your date of death. 
All such remaining payments shall be made as if they had begun as set
forth in this Agreement.  For purposes of
this Agreement, Your rights to payments shall be treated as rights to receive a
series of separate payments to the fullest extent allowable under Section 409A
of the Code.  This Agreement is intended
to comply with 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 Agreement, or any payments to be made hereunder, as necessary to
be in compliance with 

 

15

 

Section 409A of
the Code to avoid the imposition on You of any potential excise taxes relating
to Section 409A.

 

IN WITNESS WHEREOF, You
and the Company have executed and delivered this Agreement as of the date first
shown above.

 

	
  YOU:

  	
  THE
  COMPANY:

  
	
   

  	
   

  
	
  JOSEPH
  M. WETZEL

  	
  EARTHLINK,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Joseph M. Wetzel

  	
   

  	
  By

  	
  : /s/ Rolla
  P. Huff

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  1375
  Peachtree Street

  	
  Name:

  	
  Rolla Huff

  
	
   

  	
  7-North Atlanta,
  GA 30309

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  1375
  Peachtree Street

  
	
   

  	
   

  	
   

  	
  7-North Atlanta,
  GA 30309

  
							

 

16Exhibit 10.3

 

EARTHLINK, INC.

2006 EQUITY AND CASH INCENTIVE PLAN

Executive Retention Incentive Award Agreement

 

Stated
Dollar Value of Executive Retention Incentive Award

Granted
Hereunder:  $                

 

THIS EXECUTIVE RETENTION INCENTIVE AWARD AGREEMENT
(this “Agreement”) dated as of the 17th day of February, 2009, between
EarthLink, Inc., a Delaware corporation (the “Company”), and                       
(the “Participant”) is made pursuant and subject to the provisions of the
Company’s 2006 Equity and Cash Incentive Plan (the “Plan”), a copy of which is
attached hereto.  All terms used herein
that are defined in the Plan have the same meaning given them in the Plan,
except that the term “Change in Control” shall have the same meaning given it in
the EarthLink Inc. Change-In-Control Accelerated Vesting and Severance Plan
(the “CIC Plan”).

 

1.                                       Grant of Incentive
Award.  Pursuant to the Plan, the
Company, on February 3 2009 (the “Date of Grant”), granted to the
Participant an Incentive Award (as defined in the Plan) with a stated dollar
value of $                    
(this “Award”).  Subject to the terms and
conditions of the Plan, this Award represents an unsecured promise of the
Company to pay, and the right of the Participant to receive, up to $                  ,
payable in cash, shares of the Common Stock of the Company or a combination
thereof, at the time and on the terms and conditions set forth herein.  As the holder of the Award, the Participant
has only the rights of a general unsecured creditor of the Company.

 

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

 

(a)                                  Vesting of
Award.

 

(i)                                     In General.

 

(A)                              This Award shall become
earned and payable as to fifty percent (50%) of its stated dollar value as of
the end of 2009, provided the Participant has been continuously employed by, or
providing services to, the Company or an Affiliate from the Date of Grant through
the end of 2009.

 

(B)                                The remaining fifty percent
(50%) of the stated dollar value of the Award shall become earned and payable in
full as of the end of 2010, provided the Participant has been continuously
employed by, or providing services to, the Company or an Affiliate from the
Date of Grant through the end of 2010.

 

(ii)                                  Termination of Employment On
or After a Change in Control.

 

(A)                              Notwithstanding
the foregoing, if at any time on or after a Change in Control the Participant’s
employment is terminated (1) by the Company or an Affiliate for any reason
other than Cause (as such term is defined 

 

 

in the CIC Plan) and other than “On Account
of Disability” (as such term is defined in the CIC Plan) or death or (2) by
the Participant “For Good Reason” (as such term is defined in the CIC Plan),
then, to the extent the outstanding Award has not become earned and payable in
full, one hundred percent (100%) of the remaining stated dollar value of the
outstanding Award shall become earned and payable in full as of the end of the
year in which occurs the termination of the Participant’s employment.

 

(iii)                               Position
Elimination.

 

(A)                              Notwithstanding the
foregoing, if at any time before a Change in Control and during 2009, the
Participant’s employment is terminated by the Company or an Affiliate as the
result of a position elimination, and the Participant is entitled to receive
benefits under any position elimination and severance plan maintained by the
Company or any Affiliate, the Award shall become earned and payable, as of the
end of 2009, with respect to that percentage of its stated dollar value that
equals fifty percent (50%) multiplied by a fraction, the numerator of which
equals the number of full or partial months of 2009 during which the
Participant remained continuously employed by, or providing services to, the
Company or an Affiliate and the denominator of which is twelve (12). Notwithstanding
the immediately preceding sentence, however, if the Participant’s employment is
terminated as a result of a position elimination during 2009 (and the
Participant is eligible to receive benefits as described above) and a Change in
Control occurs thereafter and before the end of 2009, one hundred percent
(100%) of the remaining stated dollar value of the Award shall become earned
and payable in full as of the end of 2009.

 

(B)                                Notwithstanding the foregoing,
if at any time before a Change in Control and during 2010, the Participant’s
employment is terminated by the Company or an Affiliate as a result of a
position elimination, and the Participant is entitled to receive benefits under
any position elimination severance plan maintained by the Company or any
Affiliate, the Award shall become earned and payable, as of the end of 2010,
with respect to that percentage of its stated dollar value that equals the
remaining fifty percent (50%) multiplied by a fraction, the numerator of which
is the number of full or partial months of 2010 during which the Participant
remained continuously employed by, or providing services to, the Company or an
Affiliate and the denominator of which is twelve (12). Notwithstanding the
immediately preceding sentence, however, if the Participant’s employment is
terminated as a result of a position elimination during 2010 (and the
Participant is eligible to receive benefits as described above) and a Change in
Control occurs thereafter and before the end of 2010, one hundred percent
(100%) of the remaining stated dollar value of the Award shall become earned
and payable in full as of the end of 2010.

 

(iv)                              Vesting Date.  The Award shall be forfeitable until it
becomes earned and payable as described above. 
Each date upon which the Award or any portion 

 

2

 

thereof becomes earned and payable shall be
referred to as a “Vesting Date” with respect to the applicable stated dollar
amount of the Award.

 

(b)                                 Settlement of
Award.  Subject to the terms of this Section 2
and Sections 3 and 15 below, the Company shall pay to the Participant the stated
dollar value of the Award that has become earned and payable under Section 2(a) above
as the Company may determine within the 90 days following the applicable
Vesting Date.  Payment shall be made in a
single lump sum in cash, shares of Common Stock of the Company (to the extent
available for payment under the Plan) or any combination thereof, as the
Company in its sole discretion shall determine. 
As a condition to the settlement of the Award, the Participant shall be
required to pay any required withholding taxes attributable to the Award in
cash or cash equivalent acceptable to the Committee.  However, the Company in its discretion may,
but is not required to, allow the Participant to satisfy any such applicable
withholding taxes by any other medium of payment as the Committee shall
authorize.

 

3.                                       Termination of
Award.  Notwithstanding any other
provision of this Agreement, the portion of the Award that have not become
earned and payable as of the latest time set forth above, or on or before the
termination of the Participant’s employment with the Company and any Affiliate,
shall expire and may not become earned and payable after such time, except as
described in Sections 2(a)(ii) and (iii) above.

 

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

 

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

 

3

 

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

 

6.                                       Restrictive
Covenants.

 

(a)                                  In return for
this Award, the Participant agrees that during Participant’s employment, and
for a period of eighteen (18) calendar months following Participant’s
termination of employment, that Participant will not, directly or indirectly, (i)(A) solicit,
induce, recruit, or cause any employee of the Company or its Affiliates to
resign employment with the Company or its Affiliates, or (B) participate
in making hiring decisions, encourage the hiring of, or aid in the hiring
process of any such employee on behalf of any employer other than the Company
and its Affiliates, or (ii) solicit any actual or prospective customers of
the Company and its Affiliates with whom Participant had material business-related
contact while performing services for the Company and its Affiliates for the
purpose of selling products or services that compete with the business of the
Company.

 

(b)                                 This Award is conditioned
upon the Participant’s compliance with the provisions of this Section 6.  In the event the Participant shall materially
breach the provisions of this Section 6 and not cure or cease (as
appropriate) such material breach within ten (10) days of receipt of
notice thereof from the Company, the vesting and payments above shall terminate
and Participant shall return to the Company the gross amount of all cash
payments paid in connection with this Award. Termination of such vesting and
payments shall not be the Company’s sole and exclusive remedy for a breach of
this Section 6.  In addition, the
Company shall be entitled to damages and injunctive relief to enforce this Section 6
in the event of a breach by the Participant.

 

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

 

If to the Company:                                                                                             EarthLink, Inc.

1375 Peachtree Street - Level A 

Atlanta, Georgia 30309

Attention:  General Counsel

 

If to the Participant:

 

 

 

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

 

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

 

4

 

10.                                 Tax
Consequences.  The
Participant acknowledges that (i) there may be tax consequences upon payment
of the Award and upon any acquisition or disposition of shares of Common Stock
issued pursuant to this Award and (ii) Participant should consult a tax
adviser regarding the tax consequences of this Award.  The Participant is solely responsible for
determining the tax consequences of the Award and for satisfying the
Participant’s tax obligations with respect to the Award (including, but not
limited to, any income or excise taxes resulting from the application of Code Section 409A),
and the Company shall not be liable if this Award is subject to Code Section 409A.

 

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

 

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

 

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

 

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

 

15.                                 Section 409A.  For purposes of this Agreement, all rights to
payments hereunder shall be treated as rights to receive a series of separate
payments and benefits to the fullest extent allowed by Section 409A of the
Code.  For purposes of this Agreement,
termination of employment shall be construed consistently with a “Termination
of Employment” (as defined in the CIC Plan). 
Additionally, if the Participant is a Specified Employee (as defined in
the CIC Plan) as of Participant’s Termination of Employment, and if the amounts
that Participant is entitled to receive hereto are not otherwise exempt from Section 409A
of the Code, then to the extent necessary to comply with Section 409A of
the Code, no payment that is triggered on the Participant’s Termination of
Employment (such as those under Sections 2(a)(ii) and (iii) above) may
be made hereunder until after the date which is six (6) months after the
Participant’s Termination of Employment or, if earlier, the Participant’s date
of death.  Any such amount that would
otherwise have been required to be paid during such six (6) months after
the Participant’s Termination of Employment or, if earlier, until the Participant’s
date of death shall be paid in one lump sum payment as soon as administratively
feasible after the date which is six (6) months after the Participant’s Termination
of Employment or, if earlier, the Participant’s date of death.  Any remaining amount shall be paid as
otherwise scheduled.  This Agreement is
intended to comply with 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 Agreement, or any payments to be made hereunder, as necessary to
be in compliance with Section 409A of the Code to avoid the imposition of
any potential taxes, penalty or interest as a result of failing to comply with Section 409A
of the Code.

 

5

 

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

 

6

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  EARTHLINK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  PARTICIPANT:

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