Document:

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.

 

EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”) is entered
into on August 28, 2007 (the “Effective Date”) between, EasyLink Services
International Corporation (the “Company”) and Thomas J. Stallings (“Stallings”).

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
Effective Date and ending on the second 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 second anniversary of the Effective Date and each
anniversary thereafter, the Employment Period shall automatically extend for an
additional one year period 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 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.

3.2          Annual
Cash Incentive. Stallings 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 Stallings’ employment subsequent to 2009.  If the Company and Stallings fail to agree
upon a new Cash Incentive Plan for any year after 2009, then the Annual Cash
Incentive in effect for the preceding year will govern.

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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.

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 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;

(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

(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.

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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;

(ii)                                  Stallings’
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 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 Stallings 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;

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(e)           By Stallings With Cause: Stallings
may terminate his employment due to either (i) a 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 20 days following its receipt of
written notice thereof from Stallings; or

(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 change in Stallings’ reporting responsibilities, titles, job responsibilities
or offices that results in a material diminution of his status, control or
authority;

(2)
The assignment to Stallings of any positions, duties or responsibilities that
are materially inconsistent with Stallings’ positions, duties and
responsibilities or status with the Company immediately prior to the change;

(3)
A requirement by the Company that Stallings be based or perform his duties
anywhere other than the principal executive offices of the Company, as located
(i) at Stallings’ office location on the date of this Agreement or
(ii) within 25 miles of such current location; or

(4)
A failure by the Company to provide for Stallings’ participation in any employee
benefit plans at a level or to an extent that is at least commensurate with
that of other executive officers of the Company.

5.2          Effects
of Termination.

(a)           Upon termination of Stallings’
employment hereunder for any reason, the Company will promptly 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 a severance amount equal to 12 months of the 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 amount shall be
paid in accordance with the Company’s then-existing

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standard payroll policies (including payroll deductions) over the
12-month period following such termination.

(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.

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:

(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.

(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

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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
November 17, 2005 between the Company and Stallings.

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

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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:

EasyLink Services
International Corporation

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.

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.

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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

EasyLink Services International Corporation (the “Company”)

PERSONAL
OBJECTIVES

1.  Post-merger
integration of EasyLink Services Corporation.

2.  Smart
revenue retention.

3. 
Customer/Staff management.

4.  Margin.

SALARY

The Company shall pay you a
salary of $350,000 annually going to $400,000 in Fiscal 2009 if and when the
Company reports three consecutive quarters of revenue greater than [XXXX]
million per quarter.  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
modify 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 the Fiscal 2008 and
Fiscal 2009.  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 $350,000.  Payment of 2008 incentive compensation will
be at fiscal year end and will be determined by the Compensation Committee by
September 15, 2007.

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 prior to the end of Fiscal 2008.

SPECIAL BONUS AND LONG
TERM STOCK INCENTIVE

Upon execution of this
Agreement, you will receive 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 in 24 equal monthly installments
beginning September 28, 2007 and ending August 28, 2009.  This cash bonus and stock incentive are being
made in light of the extraordinary effort required to complete the acquisition
of EasyLink Services Corporation. The restricted stock grant shall be made
pursuant to the terms of, and evidenced by, a written agreement to be entered
into between you and the Company.

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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 will contribute 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 will contribute 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.EXHIBIT 10.2

EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”) is entered
into on August 28, 2007 (the “Effective Date”) between, EasyLink Services
International Corporation (the “Company”) and Glen E. Shipley (“Shipley”).

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 year, commencing on the
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 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.

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.

 

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.

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

(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.

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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’ 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;

(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;

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(e)           By Shipley With Cause: Shipley may
terminate his employment due to either (i) a 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 20 days following its receipt of
written notice thereof from Shipley; or

(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’ prior
written consent, that results in:

(1)
A change in Shipley’s reporting responsibilities, titles, job responsibilities
or offices that results in a material diminution of his status, control or
authority;

(2)
The assignment to Shipley of any positions, duties or responsibilities that are
materially inconsistent with Shipley’ positions, duties and responsibilities or
status with the Company immediately prior to the change;

(3)
A requirement by the Company that Shipley be based or perform his duties
anywhere other than the principal executive offices of the Company, as located
(i) at Shipley’s office location on the date of this Agreement or
(ii) within 25 miles of such current location; or

(4)
A failure by the Company to provide for Shipley’s participation in any employee
benefit plans at a level or to an extent that is at least commensurate with
that of other executive officers of the Company.

5.2          Effects
of Termination.

(a)           Upon termination of Shipley’s
employment hereunder for any reason, the Company will promptly 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 a severance amount equal to 12 months of the 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 amount shall be
paid in accordance with the Company’s then-existing

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standard payroll policies (including payroll deductions) over the
12-month period following such termination.

(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.

5.3          Restrictive
Covenants. Upon termination of Shipley’ 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.

(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

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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’ 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.

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 November
1, 2004 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

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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:

EasyLink Services
International Corporation

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.

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.

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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

EasyLink Services International Corporation (the “Company”)

PERSONAL OBJECTIVES

1.  Post-merger
integration of EasyLink Services Corporation.

2. 
Market/Analyst management.

3.  Net
operating profit.

4.  Cash flow.

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
modify 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 and will be determined by the Compensation Committee by
September 15, 2007.

SPECIAL BONUS AND LONG
TERM STOCK INCENTIVE

Upon execution of this
Agreement, you will receive 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 are being made in light of the extraordinary effort required to
complete the acquisition of EasyLink Services Corporation.  The restricted stock grant shall be made pursuant
to the terms of, and evidenced by, a written agreement to be 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 will contribute 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 will contribute 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.

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