Document:

ELNK-EX10.24_2013.12.31-10K

Exhibit 10.24

EARTHLINK, INC.
AMENDED AND RESTATED
CHANGE-IN-CONTROL ACCELERATED VESTING
AND SEVERANCE PLAN
THIS EARTHLINK, INC. AMENDED AND RESTATED CHANGE-IN-CONTROL ACCELERATED VESTING AND SEVERANCE PLAN (this “Plan”), of EarthLink, Inc., a Delaware corporation (“Employer”), and its Affiliates (as defined below) for the benefit of the eligible employees described herein, is effective as of the 21st day of July, 2009.  This Plan replaces and supersedes the terms of the Plan as in effect prior to this amendment and restatement.
WITNESSETH:
WHEREAS, the Employees (as defined below) are currently employed by Employer or an Affiliate (as defined below); and
WHEREAS, Employer and its Affiliates previously established the Plan to provide certain security to the Employees in connection with their employment with the Employer or an Affiliate in the event of a Change in Control of the Employer (as defined below); and
WHEREAS, in Section 14 of the Plan, Employer generally reserved the right to amend the Plan from time to time, and in Section 17 of the Plan the Employer reserved specifically the right to amend the Plan as appropriate to address Section 409A of the Code (as defined below); and 
WHEREAS, the Employer now desires to amend and restate the Plan to clarify certain provisions under Section 409A of the Code.  
NOW, THEREFORE, Employer and its Affiliates hereby amend and restate the Plan as set forth below.
		
	1.
	Definitions.

For purposes of this Plan:
(a)    “Affiliate” means any entity with whom the Employer would be considered a single employer under Code Sections 414(b) or 414(c) (except that, for purposes of determining whether a Termination of Employment has occurred, the language “at least 50%” shall be substituted for “at least 80%” each place it appears therein).
(b)    “Beneficial Ownership” means beneficial ownership as that term is used in Rule 13d-3 promulgated under the Exchange Act.
(c)    “Beneficiary” shall mean the person or entity an Employee designates, by written instrument delivered to the Employer or an Affiliate, to receive the benefits payable under this Plan after the Employee’s death.  If an Employee fails to designate a Beneficiary, or if no designated Beneficiary survives the Employee, such benefits shall be paid:

(1)    to Employee’s surviving spouse; or
(2)    if there is no surviving spouse, to Employee’s living descendants per stirpes; or
(3)    if there is neither a surviving spouse nor living descendants, to Employee’s estate.
(d)    “Benefit Category” shall mean one of the following benefit categories:  (1) the Gold Benefit Category, (2) the Silver Benefit Category or (3) the Bronze Benefit Category.  For purposes of this Plan, the Gold Benefit Category shall include the Chief Executive Officer and President of the Employer; the Silver Benefit Category shall include the Chief Financial Officer of the Employer and any other officer of the Employer or any Affiliate whose position is designated by the Employer through its Board of Directors as an executive officer and included within the Silver Benefit Category; and the Bronze Benefit Category shall include the Vice Presidents Classified Jobs of the Employer or any Affiliate.  Notwithstanding the foregoing, the Chief Executive Officer, President and Chief Financial Officer of any Affiliate shall be included in the Silver Benefit Category provided the position was included in the Silver Benefit Category prior to May 8, 2008 and Director Band Jobs of the Employer or any Affiliate shall be included in the Bronze Benefit Category provided the position was in the Blue Zone Band and included in the Bronze Benefit Category prior to May 8, 2008, provided in either case only with respect to an Employee who received prior to May 8, 2008 a notice of eligibility to participate in the Plan.  If the Employer designates additional Qualifying Positions, then the Employer also shall specify into which Benefit Category that Qualifying Position will be included.  The Employee’s Benefit Category shall be determined based on the Employee’s Qualifying Position at the time of the Change in Control of the Employer, and any Employee in more than one Qualifying Position shall be deemed for purposes of this Plan to be in only the Qualifying Position that would entitle such Employee to the greatest benefits under this Plan.
(e)    “Benefits Severance Period” shall mean (1) for an Employee in the Gold Benefit Category, the one and one-half years, (2) for an Employee in the Silver Benefit Category, the one and one-half years, and (3) for an Employee in the Bronze Benefit Category, the one year, beginning in each case on the Employee’s Termination of Employment.
(f)    “Bonus Target” shall mean the annual incentive bonus payable to the Employee at the greater of the rate in effect on (1) the date the Change in Control of the Employer occurs or (2) the date of the Employee’s Termination of Employment under the circumstances described in Section 2(a).
(g)    “Business Combination” means a reorganization, merger or consolidation of the Employer.
(h)    “Cash Severance” shall mean a lump-sum cash payment equal to (1) for an Employee in the Gold Benefit Category, one hundred and fifty percent (150%) of the sum of the Employee’s Salary and Bonus Target, (2) for an Employee in the Silver Benefit Category, one hundred and fifty percent (150%) of the sum of the Employee’s Salary and Bonus Target, and (3) for an Employee 

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in the Bronze Benefit Category, one hundred percent (100%) of the sum of the Employee’s Salary and Bonus Target.
(i)    “Cause” shall exist where the Employee’s Termination of Employment is by the Employer or an Affiliate upon (1) the Employee’s willful and continued failure to substantially perform his or her employment duties (other than any failure On Account of a Disability), after a written notice is delivered to the Employee by an executive officer of the Employer or Affiliate which employs Employee or the person in charge of the Human Resources function of such Employer or Affiliate (or if the Employee is the Chief Executive Officer or President of the Employer, the Chairman of the Compensation Committee of the Board of Directors of the Employer) that specifically identifies the manner in which such executive officer or person in charge of the Human Resources function (or such Chairman) believes that the Employee has failed to substantially perform his or her employment duties and after a reasonable opportunity is afforded to the Employee to cure his or her performance failure(s), or (2) the Employee willfully engaging in misconduct that is materially injurious to the Employer or an Affiliate, monetarily or otherwise.  For purposes of this definition, no act, or failure to act, on the Employee’s part will be considered “willful” unless done, or omitted to be done, by the Employee not in good faith and without reasonable belief that his or her act or omission was in the best interest of the Employer or an Affiliate.  Notwithstanding the above, the Employee will not be deemed to have had a Termination of Employment for Cause unless and until he or she has been given a copy of the notice of termination from an executive officer or person in charge of the Human Resources function (or in case of the Chief Executive Officer or President of the Employer, the Chairman of the Compensation Committee of the Board of Directors), after reasonable notice to the Employee and an opportunity for him or her, together with his or her counsel, to be heard before (1) the Chief Executive Officer of the Employer, or (2) if the Employee is an officer of the Employer or an Affiliate who has been elected or appointed by the Board of Directors of the Employer or Affiliate, as the case may be, to such office, the Board of Directors of the Employer or Affiliate, or (3) in all cases not involving an elected officer and where the Chief Executive Officer of the Employer otherwise directs or delegates this responsibility, the executive officer or person in charge of the Human Resources function or a direct report to such Chief Executive Officer to whom such responsibility was delegated, finding that in the good faith opinion of the Chief Executive Officer, or, in the case of an elected officer, finding that in the good faith opinion of two-thirds of the applicable Board of Directors, or, in all other cases, finding that in the good faith opinion of the applicable executive officer or person in charge of the Human Resources function or a direct report to the Chief Executive Officer to whom such responsibility was delegated, that the Employee committed the conduct set forth above in clauses (1) or (2) of this definition and specifying the particulars of that finding in detail.
(j)    “Change in Control” of the Employer 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 Employer’s Voting Stock; provided that for purposes of this subparagraph (1), a Change in Control will not be deemed to have occurred if the accumulation of more than fifty percent (50%) of the voting power of the Employer’s Voting Stock results from any acquisition of Voting Stock 

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(a) directly from the Employer that is approved by the Incumbent Board, (b) by the Employer, (c) by any employee benefit plan (or related trust) sponsored or maintained by the Employer or any Subsidiary, or (d) 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 Employer immediately prior to that Business Combination beneficially own, directly or indirectly, at least fifty percent (50%) of the then outstanding shares of common stock and at least fifty percent (50%) of the combined voting power of the then outstanding Voting Stock entitled to vote generally in the election of directors of the entity resulting from that Business Combination (including, without limitation, an entity that as a result of that transaction owns the Employer or all or substantially all of the Employer’s assets either directly or through one or more subsidiaries) in substantially the same proportions relative to each other as their ownership, immediately prior to that Business Combination, of the Voting Stock of the Employer, 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 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 Employer, except pursuant to a Business Combination that complies with clauses (a) and (b) of subparagraph (2); or
(4)    Approval by the shareholders of the Employer of a complete liquidation or dissolution of the Employer, except pursuant to a Business Combination that complies with clauses (a) and (b) of subparagraph 2; or
(5)    The acquisition by any Person of the right to Control the Employer.
(k)    “Code” means the Internal Revenue Code of 1986, amended, and any successor thereto. 
(l)    “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the Employer (a) through the ownership of securities which provide the holder with such power excluding voting rights attendant with such securities or (b) by contract.
(m)    “Employee” shall mean a full-time common-law employee of Employer or an Affiliate who is employed by the Employer or an Affiliate and selected to participate in the Plan and who holds a Qualifying Position in the Employer or an Affiliate at all times from initial participation in the Plan through the Change in Control of the Employer.  All full-time common-law employees of the Employer or an Affiliate who were employed by the Employer or an Affiliate 

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and who held a Qualifying Position in the Employer or an Affiliate immediately prior to May 8, 2008, and have been continuously employed since that time, participate in the Plan as of such May 8, 2008 date, subject to compliance with the other terms and conditions of the Plan.  All full-time common-law employees of the Employer or an Affiliate who were employed by the Employer or an Affiliate and who held a Qualifying Position in the Employer or an Affiliate beginning on and after May 8, 2008 (and are not described in the preceding sentence) shall participate in the Plan as of the date the Employer selects such individual for participation, subject to compliance with the other terms and conditions of the Plan.  A full-time common law employee only includes an individual who renders personal services to the Employer or an Affiliate and who, in accordance with the established payroll accounting and personnel policies of the Employer or an Affiliate, is characterized by the Employer or an Affiliate as a full-time common law employee.  Notwithstanding the foregoing, independent contractors are not employees for purposes of this Plan.  Moreover, notwithstanding the foregoing, an Employee does not include a person whom the Employer or an Affiliate has identified on its payroll, personnel or tax records as an independent contractor or a person who has acknowledged in writing to the Employer or an Affiliate that such person is an independent contractor whether or not a court, the Internal Revenue Service or any other entity ultimately determines such classification to be correct as a matter of law.  Exhibit A attached hereto shall contain the names of each Employee and his or her Qualifying Position and Benefit Category.  The Employer shall update Exhibit A as necessary to always reflect the Employees participating in the Plan.  Notwithstanding any other provision of this Plan, an individual who is covered under and participates in the EarthLink, Inc. Accelerated Vesting and Compensation Continuation Plan shall not become an Employee and participate in this Plan unless and until he or she waives and releases any and all rights to benefits and coverage he or she has under the EarthLink, Inc. Accelerated Vesting and Compensation Continuation Plan.
(n)    “Exchange Act” means the Securities Exchange Act of 1934, including amendments, or successor statutes of similar intent.
(o)    “For Good Reason” means the Employee’s Termination of Employment is by the Employee other than on death or On Account of Disability and based on:
(1)    With respect to an Employee in either the Gold or Silver Benefit Category, the assignment to the Employee of duties inconsistent with his or her position and status with the Employer or Affiliate as they existed immediately prior to a Change in Control of the Employer, or a substantial change in his or her title, offices or authority, or in the nature of his or her other responsibilities, as they existed immediately prior to a Change in Control of the Employer, except in connection with the Employee’s Termination of Employment for Cause or On Account of Disability or as a result of his or her death or by the Employee other than For Good Reason; or
(2)    With respect to an Employee in the Bronze Benefit Category, the assignment to the Employee of duties requiring skills and experience that are inconsistent with the skills and experience required for his or her duties with the Employer immediately prior to a Change in Control of the Employer, except in connection with the Employee’s Termination of Employment for Cause or On Account of Disability or as a result of his or her death or by Employee other than for Good Reason; or

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(3)    A reduction by the Employer or an Affiliate in the Employee’s base salary as in effect on the date of this Plan or as his or her salary may be increased from time to time, without Employee’s written consent; or
(4)    A reduction by the Employer or an Affiliate in the target cash bonus payable to the Employee under any incentive compensation plan(s), as it (or they) may be modified from time to time, in effect immediately prior to a Change in Control of the Employer, or a failure by the Employer or an Affiliate to continue the Employee as a participant in the incentive compensation plan(s) on at least the basis of the Employee’s participation immediately prior to a Change in Control of the Employer or to pay the Employee the amounts that he or she would be entitled to receive in accordance with such plan(s); or
(5)    The Employer or an Affiliate requiring the Employee to be based more than thirty-five (35) miles from the location where he or she is based immediately prior to a Change in Control of the Employer, except for travel on the Employer’s or Affiliate’s business that is required or necessary to performance of his or her job and substantially consistent with his or her business travel obligations prior to the Change in Control of the Employer, or if the Employee consents to that relocation, the failure by the Employer or an Affiliate to pay (or reimburse the Employee for) all reasonable moving expenses incurred by the Employee or to indemnify the Employee against any loss realized in the sale of his or her principal residence in connection with that relocation; or
(6)    The failure by the Employer or an Affiliate to continue in effect any material retirement or compensation plan, performance share plan, stock option plan, life insurance plan, health and accident plan, disability plan or another benefit plan in which the Employee is participating immediately prior to a Change in Control of the Employer (or provide plans providing him or her with substantially similar benefits), the taking of any action by the Employer or an Affiliate that would adversely affect the Employee’s participation or materially reduce his or her benefits under any of those plans or deprive him or her of any material fringe benefit enjoyed by the Employee immediately prior to a Change in Control of the Employer, or the failure by the Employer or an Affiliate to provide the Employee with the number of paid vacation days to which he or she is then entitled in accordance with normal vacation practices in effect immediately prior to a Change in Control of the Employer; or
(7)    The failure by the Employer or an Affiliate to obtain the assumption of the agreement to perform this Plan by any successor; or
(8)    Any purported Termination of Employment that is not effected pursuant to a notice of termination satisfying the requirements of a Termination of Employment for “Cause.”
Notwithstanding the foregoing, for purposes of Section 3 of the Plan regarding accelerated vesting of outstanding restricted stock units only, "For Good Reason" means the Employee's Termination of Employment is by the Employee other than on death or On Account of Disability and based on: 
(i)    With respect to an Employee in either the Gold or Silver Benefit Category, the assignment to the Employee of duties materially inconsistent with his or her position 

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and status with the Employer or Affiliate as they existed immediately prior to a Change in Control of the Employer, or a substantial diminution in his or her title, offices or authority, or in the nature of his or her other responsibilities, as they existed immediately prior to a Change in Control of the Employer, except in connection with the Employee’s Termination of Employment for Cause or On Account of Disability or as a result of his or her death or by the Employee other than For Good Reason; or
(ii)    With respect to an Employee in the Bronze Benefit Category, the assignment to the Employee of duties requiring skills and experience that are materially inconsistent with the skills and experience required for his or her duties with the Employer immediately prior to a Change in Control of the Employer, except in connection with the Employee’s Termination of Employment for Cause or On Account of Disability or as a result of his or her death or by Employee other than for Good Reason; or
(iii)    A material reduction by the Employer or an Affiliate in the Employee’s base salary as in effect on the date of this Plan or as his or her salary may be increased from time to time, without Employee’s written consent; or
(iv)    A material reduction by the Employer or an Affiliate in the target cash bonus payable to the Employee under any incentive compensation plan(s), as it (or they) may be modified from time to time, in effect immediately prior to a Change in Control of the Employer, or a failure by the Employer or an Affiliate to continue the Employee as a participant in such incentive compensation plan(s) on a basis that is not materially less than the Employee’s participation immediately prior to a Change in Control of the Employer or to pay the Employee the amounts that he or she would be entitled to receive in accordance with such plan(s); or
(v)    The Employer or an Affiliate requiring the Employee to be based more than thirty-five (35) miles from the location where he or she is based immediately prior to a Change in Control of the Employer, except for travel on the Employer’s or Affiliate’s business that is required or necessary to performance of his or her job and substantially consistent with his or her business travel obligations prior to the Change in Control of the Employer.
Additionally, for purposes of Section 3 of the Plan regarding accelerated vesting of outstanding restricted stock units, Employee must give Employer notice of any event or condition that would constitute "For Good Reason" within thirty (30) days of the event or condition which would constitute "For Good Reason," and upon receipt of such notice the Company shall have thirty (30) days to remedy such event or condition, and if such event or condition is not remedied within such thirty (30)-day period, any Termination of Employment by the Employee "For Good Reason" must occur within sixty (60) days after the period for remedying such condition or event has expired.  
(p)    “Incumbent Board” means a Board of Directors at least a majority of whom consist of individuals who either are (a) members of the Employer’s Board of Directors as of April 19, 2001 or (b) members who become members of the Employer’s Board of Directors subsequent to such date whose election, or nomination for election by the Employer’s shareholders, was approved by a vote of at least sixty percent (60%) of the directors then comprising the Incumbent Board 

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(either by a specific vote or by approval of the proxy statement of the Employer 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 Exchange Act) 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.
(q)    “On Account of Disability” shall exist where the Employee’s Termination of Employment results from the Employee being “Disabled” as a result of a “Disability” in accordance with the policies of the Employer or Affiliate that employed the Employee in effect at the time of the Change in Control of the Employer.
(r)    “Person” means any individual, entity or group within the meaning of Section 13(D)(3) or 14(d)(2) of the Exchange Act.
(s)    “Qualifying Position” shall mean any one of the following:  (1) the Chief Executive Officer or President of the Employer; (2) the Chief Financial Officer of the Employer and any other officer of the Employer or any Affiliate who is designated by the Employer through its Board of Directors as an executive officer and being in a Qualifying Position; (3) the Vice Presidents Classified Jobs of the Employer or any Affiliate; (4) Director Band Jobs of the Employer or any Affiliate that were banded in the Blue Zone Band and the Chief Executive Officer, President and Chief Financial Officer of any Affiliate, provided in either case only with respect to an Employee in a Qualifying Position prior to May 8, 2008 and who received a prior notice of eligibility to participate in the Plan, and (5) any other position or job classification that the Employer hereafter designates as being a Qualifying Position.
(t)    “Retirement Plan” shall mean any qualified or supplemental employee pension benefit plan, as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), currently made available by Employer or an Affiliate in which Employee participates.
(u)    “Salary” shall mean the Employee’s base salary at the greater of the rate in effect on (1) the date the Change in Control of the Employer occurs or (2) the date of the Employee’s Termination of Employment under circumstances described in Section 2(a).
(v)    “Specified Employee” means an employee (as that term is used in Code Section 416) who is (i) an officer of the Employer having annual compensation greater than $135,000 (with certain adjustments for inflation after 2005), (ii) a five-percent owner of the Employer or (iii) a one-percent owner of the Employer having annual compensation greater than $150,000.  For purposes of this Section, no more than 50 employees (or, if lesser, the greater of three or 10 percent of the employees) shall be treated as officers.  Employees who (i) normally work less than 17 1/2 hours per week, (ii) normally work not more than 6 months during any year, (iii) have not attained age 21 or (iv) are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and the Employer (except as otherwise provided in regulations issued under the Code) shall be excluded for purposes of determining the number of officers.  For purposes of this Section, the term “five-percent 

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owner”  (“one-percent owner”) means any person who owns more than five percent (one percent) of the outstanding stock of the Employer or stock possessing more than five percent (one percent) of the total combined voting power of all stock of the Employer.  For purposes of determining ownership, the attribution rules of Section 318 of the Code shall be applied by substituting “five percent” for “50 percent” in Section 318(a)(2) and the rules of Sections 414(b), 414(c) and 414(m) of the Code shall not apply.  For purposes of this Section, the term “compensation” has the meaning given such term by Section 414(q)(4) of the Code.  The determination of whether the Employee is a Specified Employee will be based on a December 31 identification date such that if the Employee satisfies the above definition of Specified Employee at any time during the 12-month period ending on December 31, he will be treated as a Specified Employee if he has a Termination of Employment during the 12-month period beginning on the first day of the fourth month following the identification date.  This definition is intended to comply with the specified employee rules of Section 409A(a)(2)(B)(i) of the Code and shall be interpreted accordingly.   
(w)    “Termination of Employment” means the termination of the Employee’s employment with the Employer and all Affiliates; provided, however, that the Employee will not be considered as having had a Termination of Employment if (i) the Employee continues to provide services to the Employer or any Affiliate (whether as an employee or as an independent contractor) at an annual rate that is more than 20 percent of the level of services rendered, on average, during the immediately preceding 36 months of employment (or, if employed less than 36 months, such lesser period) or (ii) the Employee is on military leave, sick leave or other bona fide leave of absence (such as temporary employment by the government) so long as the period of such leave does not exceed six months, or if longer, so long as the individual’s right to reemployment with the Employer or any Affiliate is provided either by statute or by contract.  If the period of leave (i) ends or (ii) exceeds six months and the Employee’s right to reemployment is not provided either by statute or by contract, the Employee’s Termination of Employment will be deemed to occur on the first date immediately following such time if not reemployed by the Employer or any Affiliate before such time and eligibility for payments and benefits hereunder will be determined as of that time.  For purposes of this Section, Termination of Employment shall be construed consistent with the requirements for a “separation from service” within the meaning of Section 409A of the Code.
(x)    “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.
(y)    “Welfare Plan” shall mean any health and dental plan, disability plan, survivor income plan, life insurance plan or similar plan, as defined in Section 3(1) of ERISA, currently made available by the Employer or an Affiliate in which an Employee participates.
		
	2.
	Benefits Upon Termination of Employment.

(a)    The following provisions will apply if and only if, at any time within eighteen (18) months after a Change in Control of the Employer occurs, (i) the Employee has a Termination of Employment by the Employer or an Affiliate for any reason other than Cause, On Account of Disability or death, or (ii) the Employee voluntarily has a Termination of Employment for Good Reason:

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(1)    Employer or an Affiliate shall pay Employee Cash Severance in one lump sum payment, subject to all applicable withholdings and employment taxes and subject to reductions pursuant to Sections 4 and 16 of this Plan, as soon as practical (and within 30 days) after the Employee’s Termination of Employment, subject to any required delays under Sections 2(a)(4) or 4 below.
(2)    The Employer or an Affiliate shall pay any and all amounts with respect to COBRA continuation coverage that the Employee elects under any Welfare Plan of the Employer or an Affiliate for him or her or his or her spouse or dependents through the Benefits Severance Period, including all attendant administrative fees and expenses, however described or denominated.  All such payments shall be made, no less frequently than monthly, in such manner as to permit Employee to continue his or her COBRA coverage on a timely basis; provided that the Company will make all such payments as soon as administratively practicable, subject to any required delays under Sections 2(a)(4) or 4 below.
(3)    The Employee or his Beneficiary, or any other person entitled to receive benefits with respect to the Employee under any Retirement Plan, Welfare Plan, or other plan or program maintained by Employer or any Affiliate in which Employee participates at the date of the Employee’s Termination of Employment, shall receive any and all benefits accrued under any such Retirement Plan, Welfare Plan or other plan or program to the date of the Employee’s Termination of Employment, the amount, form and time of payment of such benefits to be determined by the terms of such Retirement Plan, Welfare Plan, or other plan or program.
(4)    Notwithstanding any other provision of this Plan, however, if the Employee is a Specified Employee on Termination of Employment and if the benefits and payments under this Plan are not otherwise exempt from Code Section 409A, then to the extent necessary to comply with Section 409A no payments may be made hereunder (including, if necessary, any COBRA payments or reimbursements) before the date which is six months after the Specified Employee’s Termination of Employment or, if earlier, the date of death of the Specified Employee.  In the event any such payments are otherwise due to be made in installments or periodically prior to the earlier of six months after the Specified Employee’s Termination of Employment or, if earlier, the date of death of the Specified Employee, the payments which would otherwise have been made shall be accumulated and paid in a lump sum as soon as such period ends, and the balance of the payments shall be made as otherwise scheduled.  In the event any benefits are required to be deferred hereunder, any such benefits may be provided during such deferral period at Employee’s expense, with Employee to be reimbursed from the Employer once the deferral period ends, and the balance of the benefits shall be provided as otherwise scheduled.
(b)    If the Employee has a Termination of Employment by the Employer or an Affiliate or by the Employee other than under the circumstances set forth in Section 2(a), including without limitation on the death or On Account of Disability of the Employee, by the Employer or an Affiliate for Cause or by the Employee other than for Good Reason, then the Employee’s compensation shall be paid through the date of his or her Termination of Employment (no less frequently than monthly and consistent with Employer’s customary payroll practices), and the Employer and its Affiliates shall have no further obligation with respect to the Employee under this Plan.  Such Termination 

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of Employment shall have no effect upon an Employee’s other rights, including but not limited to rights under any Retirement Plan, Welfare Plan or other plan or program in which Employee participates, the amount, form and time of payment of such benefits to be determined by the terms of such Retirement Plan, Welfare Plan, or other plan or program.
(c)    This Section 2 shall have no effect, and Employer shall have no obligations hereunder with respect to, an Employee who has a Termination of Employment for any reason at any time other than within eighteen (18) months after a Change in Control of the Employer occurs under the circumstances described in Section 2(a) above.
(d)    The Employer or Affiliate that employs the Employee on his or her Termination of Employment will fund the payments to be made under the Plan to such Employee from its general assets.
(e)    Exhibit B attached hereto provides a summary of the benefits to which an Employee will be entitled based on the Benefit Category for which such Employee qualifies.  In the event of any conflict between such summary and the terms of Section 2 of the Plan, the provisions of Section 2 of the Plan shall govern.
		
	3.
	Accelerated Vesting of Options and Restricted Stock Units.

(a)    (i)    In the event no provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with a Change in Control of the Employer of outstanding stock options the Employer or an Affiliate granted before the Change in Control of the Employer, then contemporaneously with the Change in Control of the Employer, all outstanding stock options that the Employer or any Affiliate previously granted to an Employee in either the Gold or Silver Benefit Category shall be exercisable in full, if not then already fully exercisable, in accordance with the terms of such options and the applicable plans pursuant to which they were granted, notwithstanding any provisions in the stock options or plans to the contrary regarding the exercisability of such options.  If provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with the Change in Control of the Employer of outstanding stock options the Employer or an Affiliate granted before the Change in Control of the Employer, then on the Employee’s Termination of Employment on or after a Change in Control of the Employer occurs, all outstanding stock options that the Employer or any Affiliate previously granted to an Employee in either the Gold or Silver Benefit Category shall be exercisable in full, if not then already fully exercisable, in accordance with the terms of such options and the applicable plans pursuant to which they were granted, notwithstanding any provisions in the stock options or plans to the contrary regarding the exercisability of such stock options.  
(ii)    In the event no provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with a Change in Control of the Employer of outstanding stock options the Employer or an Affiliate granted before the Change in Control of the Employer, then contemporaneously with the Change in Control of the Employer, all outstanding stock options that the Employer or any Affiliate previously granted to an Employee in the Bronze Benefit Category shall be exercisable, in accordance with the terms of such options and the applicable plans pursuant to which they were granted, notwithstanding any provisions in the stock options or 

11

plans to the contrary regarding the exercisability (and only exercisability) of such options, on at least the basis they would have been exercisable had Employee remained employed with the Employer or any Affiliate for twenty-four (24) months after the Change in Control of the Employer occurs, if not then already exercisable to such extent.  If provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with the Change in Control of the Employer of outstanding stock options the Employer or an Affiliate granted before the Change in Control of the Employer, then on the Employee’s Termination of Employment on or after a Change in Control occurs, all outstanding stock options that the Employer or any Affiliate previously granted to an Employee in the Bronze Benefit Category shall be exercisable, in accordance with the terms of such options and the applicable plans pursuant to which they were granted, notwithstanding any provisions in the stock options or plans to the contrary regarding the exercisability (and only exercisability) of such stock options, on at least the basis they would have been exercisable had Employee remained employed with the Employer or an Affiliate for twenty-four (24) months after the Change in Control of the Employer occurs, if not then already exercisable to such extent.  
(iii)    It is deemed under this Plan that the Employer or an Affiliate consistent with the plans and agreements governing the applicable stock options accelerated the exercisability of such outstanding stock options at such time and on such basis.  Notwithstanding any other provision of this Plan, this Section 3 only impacts the exercisability and vesting of the applicable stock option; it is not intended to nor does it extend the terms or expiration dates of the applicable stock options.
(iv)    Notwithstanding any of the foregoing, for purposes of this Section 3 only, an Employee in the Bronze Benefit Category who previously participated in the EarthLink, Inc. Accelerated Vesting and Compensation Continuation Plan and who elected to participate in this Plan and waive any and all rights to benefits he or she had under the EarthLink, Inc. Accelerated Vesting and Compensation Continuation Plan shall be treated for purposes of this Section 3 as if he or she were in the Silver Benefit Category solely for purposes of the accelerated vesting of stock options.  Exhibit C attached hereto shall show the names of each employee who is included in the foregoing position and who is entitled to the treatment described in this Section 3(a)(iv) if they become an Employee under this Plan.
(v)    Exhibit B attached hereto provides a summary of the accelerated vesting to which an Employee will be entitled based on the Benefit Category for which such Employee qualifies.  In the event of any conflict between such summary and the terms of Section 3 of the Plan, the provisions of Section 3 of the Plan shall govern.
(b)    (i)    In the event no provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with a Change in Control of the Employer of outstanding restricted stock units the Employer or an Affiliate granted before the Change in Control of the Employer, then contemporaneously with the Change in Control of the Employer, all outstanding restricted stock units that the Employer or any Affiliate previously granted to an Employee in either the Gold or Silver Benefit Category shall be earned and payable in full, if not then already fully earned and payable, in accordance with the terms of such restricted stock units and the applicable plans pursuant to which they were granted, notwithstanding any provisions in 

12

the restricted stock units or plans to the contrary regarding their becoming fully earned and payable; provided that a restricted stock unit that contains performance criteria shall not become fully earned and payable if the date, if any, for attainment of the performance criteria on which such restricted stock unit would have become fully earned and payable has passed as of the date of the Change of Control.  If provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with the Change in Control of the Employer of outstanding restricted stock units the Employer or an Affiliate granted before the Change in Control of the Employer, then on the Employee’s Termination of Employment on or after a Change in Control of the Employer occurs, all outstanding restricted stock units that the Employer or any Affiliate previously granted to an Employee in either the Gold or Silver Benefit Category shall be earned and payable in full, if not then already fully earned and payable, in accordance with the terms of such restricted stock units and the applicable plans pursuant to which they were granted, notwithstanding any provisions in the restricted stock units or plans to the contrary regarding their becoming fully earned and payable; provided that a restricted stock unit that contains performance criteria shall not become fully earned and payable if the date, if any, for attainment of the performance criteria on which such restricted stock unit would have become fully earned and payable has passed as of the date of the Change of Control.
(ii)    In the event no provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with a Change in Control of the Employer of outstanding restricted stock units the Employer or an Affiliate granted before the Change in Control of the Employer, then contemporaneously with the Change in Control of the Employer, all outstanding restricted stock units that the Employer or any Affiliate previously granted to an Employee in the Bronze Benefit Category shall be earned and payable, in accordance with the terms of such restricted stock units and the applicable plans pursuant to which they were granted, notwithstanding any provisions in the restricted stock units or plans to the contrary regarding their becoming fully earned and payable on at least the basis they would have been earned and payable had Employee remained employed with the Employer or any Affiliate for twenty-four (24) months after the Change in Control of the Employer occurs, if not then already earned and payable to such extent; provided that a restricted stock unit that contains performance criteria shall not become fully earned and payable if the date, if any, for attainment of the performance criteria on which such restricted stock unit would have become fully earned and payable has passed as of the date of the Change of Control or occurs more than twenty-four (24) months after the date of the Change in Control.  If provision is made for the continuance, assumption or substitution by the Employer or its successor in connection with the Change in Control of the Employer of outstanding restricted stock units the Employer or an Affiliate granted before the Change in Control of the Employer, then on the Employee’s Termination of Employment on or after a Change in Control occurs, all outstanding restricted stock units that the Employer or any Affiliate previously granted to an Employee in the Bronze Benefit Category shall be earned and payable, in accordance with the terms of such restricted stock units and the applicable plans pursuant to which they were granted, notwithstanding any provisions in the restricted stock units or plans to the contrary regarding their becoming earned and payable, on at least the basis they would have been earned and payable had Employee remained employed with the Employer or an Affiliate for twenty-four (24) months after the Change in Control of the Employer occurs, if not then already earned and payable to such extent; provided that a restricted stock unit that contains performance criteria shall not become fully earned 

13

and payable if the date, if any, for attainment of the performance criteria on which such restricted stock unit would have become fully earned and payable has passed as of the date of the Change of Control or occurs more than twenty-four (24) months after the date of the Change in Control.
(iii)    It is deemed under this Plan that the Employer or an Affiliate consistent with the plans and agreements governing the applicable restricted stock units accelerated such restricted stock units becoming earned and payable at such time and on such basis.  Notwithstanding any other provision of this Plan, this Section 3 only impacts the vesting of the applicable restricted stock units; it is not intended to nor does it extend the terms or expiration dates of the applicable restricted stock units.
(iv)    Notwithstanding any of the foregoing, for purposes of this Section 3 only, an Employee in the Bronze Benefit Category who previously participated in the EarthLink, Inc. Accelerated Vesting and Compensation Continuation Plan and who elected to participate in this Plan and waive any and all rights to benefits he or she had under the EarthLink, Inc. Accelerated Vesting and Compensation Continuation Plan shall be treated for purposes of this Section 3 as if he or she were in the Silver Benefit Category solely for purposes of the accelerated vesting of restricted stock units.  Exhibit C attached hereto shall show the names of each employee who is included in the foregoing position and who is entitled to the treatment described in this Section 3(b)(iv) if they become an Employee under this Plan.
(v)    Exhibit B attached hereto provides a summary of the accelerated vesting to which an Employee will be entitled based on the Benefit Category for which such Employee qualifies.  In the event of any conflict between such summary and the terms of Section 3 of the Plan, the provisions of Section 3 of the Plan shall govern.
(c)    Notwithstanding subsections (a) and (b) above, accelerated vesting of outstanding stock options and restricted stock units only applies with respect to the Employee in connection with (i) a Change in Control of Employer if Employee has remained employed with the Employer or an Affiliate until the Change in Control or (ii) Employee's Termination of Employment on or after a Change in Control if, at any time within eighteen (18) months after a Change in Control of the Employer occurs, (A) the Employee has a Termination of Employment by the Employer or any Affiliate for any reason other than Cause, On Account of Disability or death, or (B) the Employee voluntarily has a Termination of Employment For Good Reason.
		
	4.
	Release and Setoff.

Notwithstanding any other provision of this Plan, payments shall be made under the Plan to any Employee or his Beneficiary only after the Employee executes a release and waiver containing such terms and conditions as the Employer and its Affiliates may reasonably require, including non-solicitation, non-competition and confidentiality provisions on or within 21 days, (45 days in the event of a group termination) after the Employee’s Termination of Employment, but not prior to such Termination of Employment.  Each Employee’s right to participate under this Plan and to receive benefits hereunder (including the benefits described in Section 3 of the Plan) is contingent upon the Employee’s agreement to this Section 4 and his or her continued compliance with any agreements entered into hereunder.  The Employer and its Affiliates also may reduce and set-off 

14

any payments to or with respect to an Employee pursuant to this Plan by any amount the Employee or his Beneficiary may owe to Employer or any Affiliate.  Notwithstanding any other provision of this Plan, no payments shall be made or benefits provided pursuant to this Plan during the first 30 days (60 days in the event of a group termination) after the Employee’s Termination of Employment and any payments or benefits that are to be provided in that period shall be accumulated and paid (or provided or reimbursed) in a lump sum as soon as such period ends.
		
	5.
	Death.

If an Employee has a Termination of Employment under circumstances described in Section 2(a), then upon the Employee’s subsequent death, all unpaid amounts payable to the Employee under Section 2(a)(1) or (2) shall be paid to his Beneficiary.  Any death benefits owing under Section 2(a)(3) shall be paid as specified by the applicable Retirement Plan, Welfare Plan or other plan or program.
		
	6.
	Claim for Benefits.

(a)    Employees do not need to complete a claim for benefits to obtain benefits under the Plan.  However, Employees who dispute the amount of, or their entitlement to, Plan benefits must file a claim with the Employer to obtain Plan benefits.  Any claim by an Employee who disputes the amount of, or his or her entitlement to, Plan benefits must be filed in writing within ninety (90) days of the event that the Employee is asserting constitutes an entitlement to such Plan benefits.  Failure by the Employee to submit such claim within the ninety (90)-day period shall bar the Employee from any claim for benefits under the Plan as a result of the occurrence of such event.
(b)    Claims for benefits shall be filed in writing with the Employer.  Written notice of the decision on such claim shall be furnished to the claimant within ninety (90) days of receipt of such claim unless special circumstances require an extension of time for processing the claim.  If the Employer needs an extension of time to process a claim, written notice will be delivered to the claimant before the end of the initial ninety (90) day period.  The notice of extension will include a statement of the special circumstances requiring an extension of time and the date by which the Employer expects to render its final decision.  However, that extension may not exceed ninety (90) days after the end of the initial period.  If the Employer rejects a claim for failure to furnish necessary material or information, the written notice to the claimant will explain what more is needed and why, and will tell the claimant that the claimant may refile a proper claim.
(c)    The Employer shall provide payment for the claim only if the Employer determines, in its sole discretion, that the claimant is entitled to the claimed benefit.
(d)    If any part of a claim for benefits under this Plan is denied, the Employer will provide the claimant with a written notice stating (i) the specific reason or reasons for the denial; (ii) the specific reference to pertinent Plan provisions on which the denial was based; (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) appropriate information as to the steps to be taken if the claimant wishes to submit a claim for review, including a statement 

15

of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.
(e)    The full value of any payment made according to the Plan satisfies that much of the claim and all related claims under the Plan.
(f)    If a claim is denied, the claimant may appeal the denial by delivering a written notice to the Employer specifying the reasons for the appeal.  That notice must be delivered within sixty (60) days after receiving the notice of denial.  The claimant may submit written comments, documents, records and other information relating to the claimant’s claim for benefits.  The claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits.  The Employer’s review will take into account all such written comments, documents, records and other information the claimant submits relating to the claim, without regard to whether such information was submitted or considered initially.
(g)    The Employer will advise the claimant in writing of the final determination after review.  The decision on review will be written in a manner calculated to be understood by the claimant, and it will include specific reasons for the decision and specific references to the pertinent provisions of the Plan or related documents on which the decision is based.  Such written notification also will include a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits, the claimant’s right to obtain the information about such procedures and a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following a denial on review.  The written decision will be rendered within sixty (60) days after the request for review is received, unless special circumstances require an extension of time for processing.  If an extension is necessary the Employer will furnish written notice of the extension to the claimant before the end of the 60-day period and indicate the special circumstances requiring the extension of time.  The extension notice will indicate the date by which the Employer expects to render a decision.  The decision will then be rendered as soon as possible, but no later than one hundred twenty (120) days after receipt of the request for review.
(h)    If the Employer holds regularly scheduled meetings at least quarterly, the time periods for rendering the written decision described in the preceding paragraph shall not apply and the Employer shall instead make a benefit determination no later than the date of the meeting of the Employer that immediately follows the Plan’s receipt of a request for review, unless the request for review is filed within 30 days preceding the date of such meeting.  In such case, a benefit determination may be made by no later than the date of the second meeting following the Plan’s receipt of the request for review.  If special circumstances require a further extension of time for processing, a benefit determination will be rendered no later than the third meeting of the Employer following the Plan’s receipt of the request for review.  If such an extension of time for review is required because of special circumstances, the Employer will provide the claimant with written notice of the extension, describing the special circumstances and the date as of which the benefit determination will be made, prior to the commencement of the extension.  The Employer will notify 

16

the claimant of the benefit determination as soon as possible, but not later than five days after the benefit determination is made.
(i)    In no event shall an Employee or other claimant be entitled to challenge a decision of the Employer in court or in any other administrative proceeding unless and until these claim review and appeal procedures have been complied with and exhausted.  The claimant shall have ninety (90) days from the date of receipt of the Employer’s decision on review in which to file suit regarding a claim for benefits under the Plan.  If suit is not filed within such 90-day period, it shall be forever barred.  The decisions made hereunder shall be final and binding on Employees and any other party.
		
	7.
	Administration of the Plan.

The Employer through its Board of Directors shall interpret and administer the Plan.  The Employer shall establish rules for the administration of the Plan.  The Employer shall have the discretionary authority to construe the terms of the Plan and shall determine all questions arising in its administration, interpretation and application, including those concerning eligibility for benefits.  All determinations of the Employer shall be final and binding on all Employees and Beneficiaries.  The Employer may appoint a committee or an agent or other representative to act on its behalf and may delegate to such committee or agent or representative any of its powers hereunder.  Any action that such committee or agent or representative takes shall be considered to be the action of the Employer, when the committee or agent or representative is acting within the scope of the authority that the Employer delegated to it, and the Employer shall be responsible for all such actions.  If the Employer appoints a committee or other agent or representative to act on its behalf, the Employer will pay all the expenses relating to such administration, and, as permitted by law, the Employer will indemnify and save each committee member or agent or representative harmless against expenses, claims, and liabilities arising out of being such committee member or agent or representative within the time, if any, required by Section 409A of the Code.  The Employer also may employ such accountants, counsel, specialists and other advisory clerical persons as it deems necessary or desirable in connection with administration of the Plan.  The Employer is entitled to rely conclusively on any opinions from its accountants or counsel.  The Employer will keep all books of account, records and other data necessary for proper administration of the Plan.
		
	8.
	Employee Assignment.

No interest of any Employee, his or her spouse or any Beneficiary under this Plan, or any right to receive any payment or distribution hereunder, shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind, nor may such interest or right to receive a payment or distribution be taken, voluntarily or involuntarily, for the satisfaction of the obligations or debts of, or other claims against, the Employee or his or her spouse or Beneficiary, including claims for alimony, support, separate maintenance, and claims in bankruptcy proceedings.

17

		
	9.
	Benefits Unfunded.

All rights under this Plan of the Employees and their spouses and Beneficiaries, shall at all times be entirely unfunded, and no provision shall at any time be made with respect to segregating any assets of Employer or any Affiliate for payment of any amounts due hereunder.  The Employees, their spouses and Beneficiaries shall have only the rights, if any, of general unsecured creditors of Employer and its Affiliates.
		
	10.
	Applicable Law.

This Plan shall be construed and interpreted pursuant to the laws of the State of Delaware (other than its choice-of-law rules), except to the extent those laws are superceded by the laws of the United States of America.
		
	11.
	No Employment Contract.

Nothing contained in this Plan shall be construed to be an employment contract between an Employee and the Employer or an Affiliate.  The creation, continuance or change of this Plan or any payment hereunder does not give any person a non-statutory legal or equitable right against the Employer or an Affiliate to remain employed by the Employer or an Affiliate.  This Plan does not modify the terms of any Employee’s employment.
		
	12.
	Severability.

In the event any provision of this Plan is held illegal or invalid, the remaining provisions of this Plan shall not be affected thereby.
		
	13.
	Successors.

The Plan shall be binding upon and inure to the benefit of Employer, its Affiliates, the Employees and their respective heirs, representatives and successors.
		
	14.
	Amendment and Termination.

Notwithstanding any other provision of this Plan, Employer shall have the right (i) to declare that an individual who previously was selected to participate as an Employee in the Plan shall no longer participate as an Employee in the Plan, (ii) to amend the Plan from time to time and (iii) to terminate the Plan at any time; provided that, within four (4) months before a Change in Control of the Employer occurs or after a Change in Control of the Employer occurs, without the Employee’s consent, (i) the Employer may not declare that an individual who previously was selected to participate as an Employee in the Plan no longer participates as an Employee in the Plan, (ii) no amendment may be made that diminishes any Employee’s rights under the Plan and (iii) the Plan may not be terminated until all benefits that become payable under the Plan are paid in full.  An amendment may be made retroactively to the Plan if it is necessary to make this Plan conform to applicable law.  Upon termination of the Plan, the Plan shall no longer be of any further force or effect, and neither the Employer, any Affiliate nor any Employee shall have any obligations or rights 

18

under this Plan.  Likewise, the rights of any individual who was an Employee and whose designation as an Employee is revoked or rescinded by the Employer shall cease upon such action.
		
	15.
	Notice.

Notices under this Plan shall be in writing and sent by registered mail, return receipt requested, to the following addresses or to such other address as the party being notified may have previously furnished to the other party by written notice:
If to Employer:
EarthLink, Inc.
1375 Peachtree Street, N.W.
Suite 7 North
Atlanta, Georgia 30309-2935
Attention: Chief People Officer

If to an Employee:
The address last indicated on the records of Employer.
		
	16.
	Excise Tax.

Despite any other provisions of this Plan to the contrary, if the receipt of any payments or benefits under this Plan would subject an Employee to tax under Code Section 4999, the Employer may determine whether some amount of payments or benefits would meet the definition of a “Reduced Amount.”  If the Employer determines that there is a Reduced Amount, the total payments or benefits to the Employee hereunder must be reduced to such Reduced Amount, but not below zero.  If the Employer determines that the benefits and payments must be reduced to the Reduced Amount, the Employer must promptly notify the Employee of that determination, with a copy of the detailed calculations by the Employer.  All determinations of the Employer under this Section are final, conclusive and binding upon the Employee.  It is the intention of the Employer and the Employee to reduce the payments under this Plan only if the aggregate Net After Tax Receipts to the Employee would thereby be increased.  Any such reduction shall first reduce any non-cash benefits on a pro-rata basis and then reduce any cash payments on a pro-rata basis.  As a result of the uncertainty in the application of Code Section 4999 at the time of the initial determination by the Employer under this Section, however, it is possible that amounts will have been paid under the Plan to or for the benefit of an Employee which should not have been so paid (“Overpayment”) or that additional amounts which will not have been paid under the Plan to or for the benefit of an Employee could have been so paid (“Underpayment”), in each case consistent with the calculation of the Reduced Amount.  If the Employer, based either upon the assertion of a deficiency by the Internal Revenue Service against the Employer or the Employee, which the Employer believes has a high probability of success, or controlling precedent or other substantial authority, determines that an Overpayment has been made, any such Overpayment must be treated for all purposes as a loan which the Employee must repay to the Employer together with interest at the applicable Federal rate under Code Section 7872(f)(2); provided, however, that no such loan may be deemed to have 

19

been made and no amount shall be payable by the Employee to the Employer if and to the extent such deemed loan and payment would not either reduce the amount on which the Employee is subject to tax under Code Section 1, 3101 or 4999 or generate a refund of such taxes.  If the Employer, based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, the Employer must pay the amount of the Underpayment to the Employee as soon as administratively practicable (and within 30 days) after the final determination of Underpayment has been made.  For purposes of this Section, (i) “Net After Tax Receipt” means the Present Value of a payment under this Plan net of all taxes imposed on the Employee with respect thereto under Code Sections 1, 3101 and 4999, determined by applying the highest marginal rate under Code Section 1 which applies to the Employee’s taxable income for the applicable taxable year; (ii) “Present Value” means the value determined in accordance with Code Section 280G(d)(4) and (iii) “Reduced Amount” means the largest aggregate amount of all payments and benefits under this Plan which (a) is less than the sum of all payments and benefits under this Plan and (b) results in aggregate Net After Tax Receipts which are equal to or greater than the Net After Tax Receipts which would result if the aggregate payments and benefits under this Plan were any other amount less than the sum of all payments and benefits to be made under this Plan.
		
	17.
	Miscellaneous.

(a)    The failure of the Employer or an Affiliate to enforce any provisions of the Plan shall in no way be construed to be a waiver of those provisions, nor in any way effect the validity of the Plan or any part thereof, or the right of the Employer or an Affiliate thereafter to enforce such provision.
(b)    The benefits provided under this Plan are in addition to and not in lieu of any other similar benefits that the Employer or any Affiliate may specify from time to time in any employee handbook or in any other agreement between the Employee and the Employer or an Affiliate.  Additionally, the benefits that this Plan provides shall not be reduced or offset by any other payments or benefits that the Employee may receive from any other third party or other employer after the Employee’s Termination of Employment.
(c)    Whenever any benefits become payable under the Plan, the Employer and its Affiliates shall have the right to withhold such amounts as are sufficient to satisfy any applicable federal, state or local withholding, tax, excise tax or similar requirements.
(d)    The terms of an Employee’s benefits are as set forth in this document, which cannot be changed by the promises of any individual employee or manager.  Only the Employer may change the terms of the Plan, and then only through a written amendment.  No promises (oral or written) that are contrary to the terms of the Plan and its written amendments are binding upon the Plan or the Employer.
(e)    The terms and conditions of this Plan and the Employees’ benefits under the Plan shall remain strictly confidential.  Employees may not discuss or disclose any terms of this Plan or its benefits with anyone except their attorneys, accountants and immediate family members who shall be instructed to maintain the confidentiality agreed to under this Plan, except as may be required by law.

20

(f)    Benefits under the Plan are not considered eligible earnings for the Employer’s 401(k) Plan or any other benefit program.
(g)    This Plan is intended to comply with the applicable requirements of Section 409A of the Code and shall be construed and interpreted in accordance therewith.  The Employer may at any time amend, suspend or terminate this Plan, or any payments to be made hereunder, as necessary to be in compliance with Section 409A of the Code.  For purposes of this Plan, all rights to payments and benefits 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. Notwithstanding the preceding, the Employer and all Affiliates shall not be liable to any Employee or any other person if the Internal Revenue Service or any court or other authority having jurisdiction over such matter determines for any reason that any amount under this Plan is subject to taxes, penalties or interest as a result of failing to comply with Code Section 409A of the Code.
(h)    This Plan is intended to be a “Welfare Plan” and not a “Pension Plan” as defined in ERISA Sections 3(1) and 3(2), respectively.  Accordingly, the Plan must be interpreted and administered in a manner that is consistent with that intent.

21

IN WITNESS WHEREOF, Employer has caused this instrument to be executed in its name by its duly authorized officer, all as of the day and year first above written.

EARTHLINK, INC.

By:    
Title:    

EARTHLINK, INC.
CHANGE-IN-CONTROL ACCELERATED VESTING AND SEVERANCE PLAN
SUMMARY PLAN DESCRIPTION
NAME OF PLAN:
EarthLink, Inc. Change-in-Control Accelerated Vesting and Severance Plan
NAME, ADDRESS, AND TELEPHONE NUMBER OF SPONSOR AND PLAN
ADMINISTRATOR:
EarthLink, Inc. (“Employer”)
1375 Peachtree Street, N.W.
Suite 7 North
Atlanta, Georgia 30309-2935
(404) 815-0770

The Employer administers the Plan.
EMPLOYER IDENTIFICATION NUMBER:
58-2511877
PLAN NUMBER ASSIGNED TO THIS PLAN:
501
ORIGINAL EFFECTIVE DATE:
April 19, 2001
PLAN YEAR:
Calendar year beginning on January 1 of each year and ending on December 31.
FISCAL YEAR FOR MAINTAINING PLAN RECORDS:
Calendar year beginning on January 1 of each year and ending on December 31.
TYPE OF WELFARE PLAN:
The Plan is a severance pay plan that provides benefits to certain Employees in the event of termination of their employment due to certain specified reasons.
TYPE OF ADMINISTRATION OF THE PLAN:
The Employer administers the Plan as described in Section 7.
PROVISIONS FOR ELIGIBILITY REQUIREMENTS:
The Plan generally describes eligibility requirements in Sections 2 and 3.
DESCRIPTION OF PLAN BENEFITS:
The Plan generally describes conditions for payment of benefits and the amount of such benefits in Sections 2 and 3.
SOURCES OF CONTRIBUTIONS TO THE PLAN AND FUNDING MEDIUM:
The general assets of the Employer or the Affiliate that employs Employee shall fund the severance pay from the Plan.
PROCEDURES FOR PRESENTING CLAIMS AND REDRESS OF DENIED CLAIMS:
Section 6 provides detailed instructions for filing a claim and redress of a denied claim.
AGENT FOR SERVICE OF PROCESS:
EarthLink, Inc.
1375 Peachtree Street, N.W.
Suite 7 North
Atlanta, Georgia 30309-2935
Attention: Chief People Officer

In addition to the agent listed above, service of process may be made upon the Employer itself.

YOUR RIGHTS UNDER ERISA
The following statement is required by law to be included in this Summary Plan Description:
As a participant in the EarthLink, Inc. Change-in-Control Accelerated Vesting and Severance Plan (the “Plan”) you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  ERISA provides that all Plan participants shall be entitled to:
Examine, without charge, at the Employer’s office and at other specified location, such as worksites, all Plan documents and a copy of the latest Annual Report (Form 5500 series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration.
Obtain, upon written request to the Employer, copies of all Plan documents governing the operation of the Plan and copies of the latest Annual Report (Form 5500 series) and an updated summary plan description.  The Employer may make a reasonable charge for the copies.
Receive a summary of the Plan’s annual financial report.  The Employer is required by law to furnish each Employee with a copy of this summary annual report.
In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan.  The people who operate your Plan, called fiduciaries, have a duty to do so prudently and in the interest of you and other Plan participants.  No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way solely in order to prevent you from obtaining a benefit or exercising your rights under ERISA.  If your claim for a benefit is denied, in whole or in part, you must receive a written explanation of the reason for the denial.  You have the right to have the Plan review and reconsider your claim.  Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request materials from the Plan and do not receive them within 30 days, you may file suit in a federal court.  In such a case, the court may require the Employer to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Employer.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court.  If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees.  If you have any questions about your Plan, you should contact the Employer.  If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Pension and Welfare Benefits Administration.

Exhibit B - Page 1
	
			
	Benefits
	Gold and Silver 
Benefit Category
	Bronze 
Benefit Category

	Cash Severance
	Lump sum cash payment of 1.5 times the sum of employee’s salary plus bonus target, if within 18 months after a change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no cash severance if termination of employment is on account of the employee’s death or disability.
	Lump sum cash payment equal to the sum of employee’s salary plus bonus target, if within 18 months after a change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no cash severance if termination of employment is on account of the employee’s death or disability.

	COBRA Benefits
	Company will pay all amounts payable with respect to the employee’s elected COBRA coverage (including coverage for spouse and dependents) for 1.5 years from the termination of the employee’s employment, if within 18 months of the change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no paid COBRA benefits if the termination of employment is on account of the employee’s death or disability.
	Company will pay all amounts payable with respect to the employee’s COBRA coverage (including coverage for spouse and dependents) for 1 year from the termination of the employee’s employment, if within 18 months of the change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no paid COBRA benefits if termination of employment is on account of the employee’s death or disability.

	Accelerated vesting of outstanding stock options
	If stock options are assumed or continued after a change in control, all outstanding stock options granted on or before the change in control will vest and be exercisable in full, if not already fully vested, on termination of employee’s employment, if within 18 months of the change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no such vesting if the termination of employment is on account of the employee’s death or disability; if options are not assumed or continued after the change in control, all outstanding stock options are vested and exercisable in full contemporaneously with the change in control, if not already fully vested, provided employee remains employed until the change in control.
	If stock options are assumed or continued after a change in control, all outstanding stock options granted on or before the change in control will vest and be exercisable at least as much as if the employee had remained employed for 24 months after the change in control occurs, if not already vested to such extent, if within 18 months of the change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no such vesting if the termination of employment is on account of the employee’s death or disability; if options are not assumed or continued after the change in control, all outstanding stock options are vested and exercisable at least as much as if the employee had remained employed for 24 months after the change in control occurs, if not already vested to such extent, provided employee remains employed until the change in control.  Individuals in the Bronze benefit category are grandfathered into the vesting under the Silver benefit category if they participated in the Accelerated Vesting and Compensation Continuation Plan and elected to participate in this Plan.

	Accelerated vesting of outstanding restricted stock units
	If restricted stock units are assumed or continued after a change in control, all outstanding restricted stock units granted on or before the change in control will vest and be earned and payable in full, if not already fully vested, on termination of employee’s employment, if within 18 months of the change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no such vesting if the termination of employment is on account of the employee’s death or disability; if restricted stock units are not assumed or continued after the change in control, all outstanding restricted stock units are vested and earned and payable in full contemporaneously with the change in control, if not already fully vested, provided that employee remains employed until the change in control, except that restricted stock units that contain performance criteria will not vest if the date for attainment of those criteria has passed.
	If restricted stock units are assumed or continued after a change in control, all outstanding restricted stock units granted on or before the change in control will vest and be earned and payable at least as much as if the employee had remained employed for 24 months after the change in control occurs, if not already vested to such extent, if within 18 months of the change in control the company terminates employee’s employment without cause or employee voluntarily terminates his or her employment for good reason; no such vesting if the termination of employment is on account of the employee’s death or disability; if restricted stock units are not assumed or continued after the change in control, all outstanding restricted stock units are vested and earned and payable at least as much as if the employee had remained employed for 24 months after the change in control occurs, if not already vested to such extent, provided that employee remains employed until the change in control, except that restricted stock units that contain performance criteria will not vest if the date for attainment of those criteria has passed or occurs more than 24 months after the change in control.  Individuals in the Bronze benefit category are grandfathered into the vesting under the Silver benefit category if they participated in the Accelerated Vesting and Compensation Continuation Plan and elected to participate in this Plan.

1736999v8

22ELNK-EX10.25_2013.12.31-10K

Exhibit 10.25

EARTHLINK SHARED SERVICES, LLC
SEVERANCE PLAN
AND SUMMARY PLAN DESCRIPTION
(Effective as of January 1, 2014)

EarthLink Shared Services, LLC 
Severance Plan 
(Effective as of January 1, 2014)
EarthLink Shared Services, LLC (the “Company”) hereby adopts the EarthLink Shared Services, LLC Severance Plan (f/k/a the EarthLink, Inc. Severance Plan) (the “Plan”), effective as of January 1, 2014, to provide eligible employees with certain severance pay and benefits in the event their employment is terminated by the Company and its Affiliates due to a reduction in the workforce, layoff, sale or discontinuance of a business operation or other job or position elimination caused by a lack of work, as described herein.  For purposes of the Plan, “Affiliate” means any entity that is part of a controlled group of corporations or is under common control with the Company within the meaning of Sections 1563(a), 414(b) or 414(c) of the Internal Revenue Code of 1986, as amended (the “Code”), except that, in making any such determination, fifty percent (50%) shall be substituted for eighty percent (80%) each place it appears under such Code Sections and related regulations.  The Company and its Affiliates have the responsibility of maintaining business practices that are within the bounds of local, state and federal laws, applying the same practices consistently to all employees and treating individuals with dignity, respect, fairness and compassion.
The Board of Directors of EarthLink, Inc. (“EarthLink”) previously adopted the EarthLink, Inc. Severance Plan effective as of January 1, 2012.  EarthLink entered into an Agreement and Plan of Merger with EarthLink Holdings Corp. (“HoldCo”) and EarthLink, LLC (“MergerSub”) pursuant to which (i) EarthLink merged with and into MergerSub, with MergerSub being the surviving entity in the merger, (ii) the outstanding capital stock of EarthLink was converted into the capital stock of HoldCo, and (iii) MergerSub became a wholly-owned subsidiary of HoldCo (collectively the “Holding Company Reorganization”).  In connection with the Holding Company Reorganization, EarthLink has transferred (including sponsorship of), and the Company has assumed (including sponsorship of), the Plan.  
The Plan is an unfunded welfare benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and a severance pay plan within the meaning of United States Department of Labor Regulations Section 2510.3-2(b).  This document serves as both the Plan document and the summary plan description for the Plan.  The Plan supersedes any prior severance plans, programs or policies sponsored by the Company or any of its Affiliates covering employees eligible under this Plan, both formal and informal, including without limitation EarthLink’s (i) Position Elimination and Severance Plan for Eligible Employees Continuously Employed Since December 31, 2007, (ii) Position Elimination and Severance Plan for Eligible Employees Whose Current Employment Started on or after January 1, 2008, (iii) Executives’ Position Elimination and Severance Plan, and (iv) Severance Plan and Summary Plan Description (effective January 1, 2012), other than those severance plans, programs or policies the terms of which specifically provide that they cannot be superseded or terminated.
Eligible Employees
The Plan applies to regular employees of the Company and its Affiliates (as denoted on the payroll records of the Company and its Affiliates) whose employment with the Company and its Affiliates is terminated by the Company and its Affiliates due to a reduction in the workforce, layoff, sale or 

discontinuance of a business operation or other job or position elimination caused by lack of work, except as otherwise provided herein.  The Company, as the Administrator of the Plan, shall in its sole discretion determine in all cases whether an employee is eligible for severance pay and benefits under the Plan.  If an eligible employee regularly works less than forty (40) hours per week, severance pay and benefits under the Plan will be prorated according to the employee’s established workweek.  Independent contractors, consultants, individuals performing services through an independent contractor, consulting or similar agreement, leased employees and temporary or seasonal employees are not eligible to participate under the Plan.  
Conditions of Ineligibility
An otherwise eligible employee shall not be eligible for severance pay and benefits under the Plan if:
•the employee ceases to be an eligible employee as described above, other than as a result of a reduction in the workforce, layoff, sale or discontinuance of a business operation or other job or position elimination caused by lack of work;
•    the employee is involuntarily terminated for reasons other than a reduction in the workforce, layoff, sale or discontinuance of a business operation or other job or position elimination caused by lack of work, including without limitation any involuntary termination because of performance issues or any other employer-initiated termination or discharge of an at-will employee other than as the result of a reduction in work force, layoff, sale or discontinuance of a business operation or other job or position elimination caused by lack of work;
•    the employee retires, resigns, quits, dies, terminates employment on account of a disability or abandons his or her position;
•    the employee accepts another position with the Company or with an Affiliate of the Company;
•    the employee is offered another position with the Company or an Affiliate of the Company, with the same or a higher level of salary or wages, at the employee’s current location of employment or at another location within fifty (50) miles of the employee’s current location of employment, whether or not employee accepts such offer;
•    the employee is eligible for sick or short-term disability benefits or workers’ compensation; 
•    the employee is eligible for long-term disability benefits and/or Social Security benefits; 
•    the employee is on an approved leave of absence;
•    the employee becomes eligible under the Plan as the direct result of the acquisition by the Company or any Affiliate of the business, assets or ownership interest of 

2

a non-Affiliate entity (regardless of the structure or method of such acquisition) and such employee is receiving severance pay or other similar amounts under any employment or other agreement, policy, plan, program or arrangement covering such employee’s previous employment with such non-Affiliate entity; 
•    in case of a sale of a business operation, or part of a business operation, the employee is offered employment with the purchaser with the same or higher level salary or wages at employee’s current location or at another location within fifty (50) miles of employee’s current location of employment, whether or not employee accepts such offer;
•    the employee terminates employment due to his or her employer outsourcing that employee’s job or function if the employee is offered employment with the vendor that will continue to provide the job or function that employee previously provided, with the same or higher level salary or wages, at employee’s current location or at another location within fifty (50) miles of employee’s current location of employment, whether or not employee accepts such offer;
•    the termination of the employee’s employment entitles the employee to benefits under any employment agreement, severance agreement or other termination or separation agreement between the employee and the Company or an Affiliate;
•    the termination of the employee’s employment entitles the employee to benefits under the Company’s Change-in-Control Accelerated Vesting and Severance Plan, the EarthLink Network, Inc. Key Employee Compensation Continuation Plan, the EarthLink Accelerated Vesting and Compensation Continuation Plan, or any other similar severance or compensation continuation plan of the Company, its Affiliates or any of their predecessors; or
•    the Plan is terminated prior to the employee’s right to the severance pay and benefits becoming vested hereunder.
Termination of Employment
From time to time, individual Business Divisions within the Company or an Affiliate will identify an employee whose employment will be terminated, and will provide this information to Human Resources (“HR”).
The Business Divisions will provide HR with the reasons for the termination of employee’s employment.  HR will document the business reasons for the termination of employment.  The Company is committed to the practice of non-discrimination.
1    Termination Categories
When the eligible employee’s employment is terminated, there are four potential scenarios for the eligible employee.

3

		
	I.
	The eligible employee’s current employment is to be terminated due to one or more of the reasons covered by this Plan and the employee is offered another position with the Company or an Affiliate with the same or a higher level salary or wages at the employee’s current location of employment or at another location within fifty (50) miles of the employee’s current location of employment.  If the employee accepts the new position, the employee’s employment relationship with the Company or an Affiliate continues.  If the employee declines the position offered, the employee will not be entitled to any severance pay or benefits under the Plan.

		
	II.
	The eligible employee’s current employment is to be terminated for one or more of the reasons covered by this Plan, and the employee is offered another position with the Company or an Affiliate with lower salary or wages at the same or another location of employment.  The employee will have the option of accepting the new position or taking the severance package.  If the employee accepts the new position, the employee’s employment relationship with the Company or an Affiliate continues.  If the employee declines the offered position, the employee will be given the severance package as stated below.

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

		
	IV.
	The eligible employee’s current employment is to be terminated for one or more of the reasons covered by this Plan, and no other position is offered.  In this case, the employee will be given the severance package as stated below.

Severance Pay and Benefits
In exchange for providing the Company and its Affiliates with an enforceable Waiver and Release Agreement in a form acceptable to the Company, and for not later revoking that Waiver and Release Agreement, each eligible employee shall be entitled to receive the severance pay and benefits stated below, except that the severance pay and benefits described below will be prorated for those eligible employees who work a regular schedule of less than forty (40) hours per week.
		
	I.
	Eligible Employees in Executive Vice President or Executive Officer Positions.  Eligible employees who are in Executive Vice President or Executive Officer positions will receive, after any applicable notice period, the following severance pay and benefits:

4

•    Twelve (12) months base salary paid in a lump sum as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests.  Base salary excludes overtime, incentive compensation, bonuses, and any other forms of compensation over and above the employee’s base salary rate.
•    For employees eligible and participating in the Company’s medical, dental and vision plans, the Company will pay to the eligible employees an amount equal to the employer portion of the employees’ premiums for those plans, plus the two percent COBRA administration fee, for twelve (12) months of COBRA benefits coverage.  The Company will make this payment in a single lump sum as soon as administratively practicable following termination of the employee’s employment but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests.  The Company shall withhold or obtain payment for applicable income and employment taxes from any payments for COBRA benefits.  Such ex-employees may continue COBRA for the COBRA eligibility period by paying 100 percent of the COBRA premium.
•    Twelve (12) months of executive-level outplacement services provided by a vendor selected by the Company with a value of up to $20,000, beginning immediately following the termination of employee’s employment with the Company and all Affiliates.  No cash payment is available in lieu of the outplacement services.
•    Employees given notice that their positions are being eliminated after the first quarter of any calendar year will be eligible for the pro-rata bonus, if any, otherwise payable under the applicable Company bonus plan in which they participated for that year, based on regular earnings for that year and actual business results, payable at the normal time of the bonus payout; provided, however, that such pro-rata bonus will be paid no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to such pro-rata bonus vests.  Severance pay is not considered regular earnings.  Employees given notice that their positions are being eliminated during the first quarter of any calendar year will not be eligible for any bonus otherwise payable under the applicable Company bonus plan in which they participated for that year.
		
	II.
	Eligible Employees in Senior Vice President Positions.  Eligible employees in Senior Vice President positions (who are not also in Executive Officer positions) will receive, after any applicable notice period, the following severance pay and benefits:

•    Nine (9) months base salary paid in a lump sum as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests.  Base salary excludes overtime, incentive compensation, bonuses, and any other forms of compensation over and above the employee’s base salary rate.

5

•    For employees eligible and participating in the Company’s medical, dental, and vision plans, the Company will pay to eligible employees an amount equal to the employer portion of active employees’ premiums for those plans, plus the two percent COBRA administration fee, for nine (9) months of COBRA benefits coverage.  The Company will make this payment in a single lump sum as soon as administratively practicable following termination of the employee’s employment but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests.  The Company shall withhold or obtain payment for applicable income and employment taxes from any payments for COBRA benefits.  Such ex-employees may continue COBRA for the COBRA eligibility period by paying 100 percent of the COBRA premium.
•    Nine (9) months of outplacement services provided by a vendor selected by the Company, with a value of up to $15,000, beginning immediately following the termination of employee’s employment with the Company and all Affiliates.  No cash payment is available in lieu of the outplacement services.
•    Employees given notice that their positions are being eliminated after the first quarter of any calendar year will be paid the pro-rata bonus, if any, otherwise payable under the applicable Company bonus plan in which they participated for that year, based on regular earnings for that year and actual business results, payable at the normal time of the bonus payout; provided, however, that such pro-rata bonus will be paid no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to such pro-rata bonus vests.  Severance pay is not considered regular earnings.  Employees given notice that their positions are being eliminated during the first quarter of any calendar year will not be eligible for any bonus otherwise payable under the applicable Company bonus plan in which they participated for that year.
		
	III.
	Eligible Employees in Vice President Positions.  Eligible employees who are in Vice President positions will receive, after any applicable notice period, the following severance pay and benefits:

•    Six (6) months base salary paid in a lump sum as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests.  Base salary excludes overtime, incentive compensation, bonuses, and any other forms of compensation over and above the employee’s base salary rate.
•    For employees eligible and participating in the Company’s medical, dental and vision plans, the Company will pay to the eligible employees an amount equal to the employer portion of the employees’ premiums for those plans, plus the two percent COBRA administration fee, for six (6) months of COBRA benefits coverage.  The Company will make this payment in a single lump sum as soon as administratively practicable following termination of the employee’s employment but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment 

6

vests.  The Company shall withhold or obtain payment for applicable income and employment taxes from any payments for COBRA benefits.  Such ex-employees may continue COBRA for the COBRA eligibility period by paying 100 percent of the COBRA premium.
•    Six (6) months of executive-level outplacement services provided by a vendor selected by the Company with a value of up to $12,000, beginning immediately following the termination of employee’s employment with the Company and all Affiliates.  No cash payment is available in lieu of the outplacement services.
•    Employees given notice that their positions are being eliminated after the first quarter of any calendar year will be eligible for the pro-rata bonus, if any, otherwise payable under the applicable Company bonus plan in which they participated for that year, based on regular earnings for that year and actual business results, payable at the normal time of the bonus payout; provided, however, that such pro-rata bonus will be paid no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to such pro-rata bonus vests.  Severance pay is not considered regular earnings.  Employees given notice that their positions are being eliminated during the first quarter of any calendar year will not be eligible for any bonus otherwise payable under the applicable Company bonus plan in which they participated for that year.
		
	IV.
	Eligible Employees Who Are Not in Executive Vice President, Executive Officer, Senior Vice President or Vice President Positions.  Eligible employees who are not in Executive Vice President, Executive Officer, Senior Vice President or Vice President positions will receive, after any applicable notice period, the following severance pay and benefits, except as otherwise set forth below:

•    The weeks of base salary set forth below paid in either (i) equal installments in accordance with the Company’s normal payroll procedures (but no less frequently than monthly) beginning as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than thirty (30) days following the effective date of the employee’s Waiver and Release Agreement described below or (ii) a lump sum as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests, in either case as the Company in its sole discretion shall determine.  Similarly-situated employees need not be treated the same with respect to how their severance will be paid. Base salary excludes overtime, incentive compensation, bonuses, and any other forms of compensation over and above the employee’s base salary rate.

7

	
		
	Employee Category
	Weeks of Base Salary

	Directors
	Eight (8) weeks (minimum) plus one (1) week for each full year of continuous employment with the Company and its Affiliates from the employee’s most recent date of hire; with a maximum of sixteen (16) weeks.

	Salaried Employees (other than Directors)
	Six (6) weeks (minimum) plus one (1) week for each full year of continuous employment with the Company and its Affiliates from the employee’s most recent date of hire; with a maximum of twelve (12) weeks.

	Hourly Employees
	Four (4) weeks (minimum) plus one (1) week for each full year of continuous employment with the Company and its Affiliates from the employee’s most recent date of hire; with a maximum of eight (8) weeks.

•    For employees eligible and participating in the Company’s medical, dental and vision plans, the Company will pay to the eligible employees an amount equal to the employer portion of the employees’ premiums for those plans, plus the two percent COBRA administration fee, for the number of months of COBRA benefits coverage set forth below.  The Company will make this payment in either (i) equal installments in accordance with the Company’s normal payroll procedures (but no less frequently than monthly) beginning as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than thirty (30) days following the effective date of the employee’s Waiver and Release Agreement described below or (ii) a single lump sum as soon as administratively practicable following termination of the employee’s employment but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests, in either case as the Company in its sole discretion shall determine.  Similarly-situated employees need not be treated the same with respect to how their COBRA benefits will be paid. The Company shall withhold or obtain payment for applicable income and employment taxes from any payments for COBRA benefits.  Such ex-employees may continue COBRA for the COBRA eligibility period by paying 100 percent of the COBRA premium.
	
		
	Employee Category
	Months of COBRA

	Directors
	Four (4) months

	Salaried Employees (other than Directors)

	Two (2) months

	Hourly Employees
	One (1) month

8

•    Directors, salaried employees and hourly employees will not be entitled to receive any outplacement services under IV hereof.  
•    Employees given notice that their positions are being eliminated after the first quarter of any calendar year will be eligible for the pro-rata bonus, if any, otherwise payable under the applicable Company bonus plan in which they participated for that year, based on regular earnings for that year and actual business results, payable at the normal time of the bonus payout; provided, however, that such pro-rata bonus will be paid no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to such pro-rata bonus vests.  Severance pay is not considered regular earnings.  Employees given notice that their positions are being eliminated during the first quarter of any calendar year will not be eligible for any bonus otherwise payable under the applicable Company bonus plan in which they participated for that year.
•    Employees participating in sales commission or sales bonus plans will be paid any commissions or bonuses that have been earned prior to their termination date.  The Company will make such payments in a single lump sum as soon as administratively practicable following the termination of the employee’s employment but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to such amounts vests.
•    Notwithstanding the foregoing, however, in no event will the aggregate of the weeks of base salary and COBRA benefits to be paid to any eligible employee who is not in an Executive Vice President, Executive Officer, Senior Vice President or Vice President position (i) exceed two times the lesser of (a) the employee’s annual compensation for the preceding calendar year (adjusted for any increase during that year that was expected to continue indefinitely if the employee had not terminated employment) and (b) the Code Section 401(a)(17) qualified plan compensation limit for the calendar year in which the employee terminates employment (i.e., $245,000 for 2011), or (ii) be paid later than December 31 of the second calendar year following the year in which the employee terminates employment.  The Company in its sole discretion will determine what adjustments will be made to comply with the foregoing limitations.  

		
	V.
	Legacy Employees.  Notwithstanding the foregoing, eligible employees who are not in Executive Vice President, Executive Officer, Senior Vice President or Vice President positions, and who have been continuously employed since December 31, 2007 and designated by the Plan Administrator as “Legacy Employees” for purposes of the Plan, will receive, after any applicable notice period, no less than the following severance pay and benefits, except as otherwise set forth below:

•    The weeks of base salary set forth below paid in either (i) equal installments in accordance with the Company’s normal payroll procedures (but no less frequently than monthly) beginning as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than thirty (30) days following the effective date of the employee’s Waiver and Release Agreement described 

9

below or (ii) a lump sum as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests, in either case as the Company in its sole discretion shall determine.  Similarly-situated employees need not be treated the same with respect to how their severance will be paid..  Base salary excludes overtime, incentive compensation, bonuses, and any other forms of compensation over and above the employee’s base salary rate.
	
		
	Employee Category
	Weeks of Base Salary

	Employees Earning Annual Base Salary or Wages of $75,000 or more
	Sixteen (16) weeks (minimum) plus one (1) week for each full year of continuous employment with the Company and its Affiliates from the employee’s most recent date of hire; with a maximum of twenty-four (24) weeks.

	Employees Earning Annual Base Salary or Wages of $35,000 to $74,999
	Eight (8) weeks (minimum) plus one (1) week for each full year of continuous employment with the Company and its Affiliates from the employee’s most recent date of hire; with a maximum of sixteen (16) weeks.

	Employees Earning Annual Base Salary or Wages of less than $35,000
	Four (4) weeks (minimum) plus one (1) week for each full year of continuous employment with the Company and its Affiliates from the employee’s most recent date of hire; with a maximum of twelve (12) weeks.

•    For employees eligible and participating in the Company’s medical, dental and vision plans, the Company will pay to the eligible employees an amount equal to the employer portion of the employees’ premiums for those plans, plus the two percent COBRA administration fee, for the number of months of COBRA benefits coverage set forth below.  The Company will make this payment in either (i) equal installments in accordance with the Company’s normal payroll procedures (but no less frequently than monthly) beginning as soon as administratively practicable following the termination of employee’s employment with the Company and all Affiliates but no later than thirty (30) days following the effective date of the employee’s Waiver and Release Agreement described below or (ii) a single lump sum as soon as administratively practicable following termination of the employee’s employment but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to the payment vests, in either case as the Company in its sole discretion shall determine.  Similarly-situated employees need not be treated the same with respect to how their COBRA benefits will be paid.  The Company shall withhold or obtain payment for applicable income and employment taxes from any payments for COBRA benefits.  Such ex-employees may continue COBRA for the COBRA eligibility period by paying 100 percent of the COBRA premium.

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	Employee Category
	Months of COBRA

	Employees Earning Annual Base Salary or Wages of $75,000 or more

	Four (4) months

	Employees Earning Annual Base Salary or Wages of $35,000 to $74,999

	Two (2) months

	Employees Earning Annual Base Salary or Wages of less than $35,000
	One (1) month

•    One (1) month of outplacement services for eligible employees earning annual base salary or wages of $75,000 or more, provided by a vendor selected by the Company with a value of up to $2,400, beginning immediately following the termination of employee’s employment with the Company and all Affiliates.  No cash payment is available in lieu of the outplacement services.  No outplacement services will be provided for eligible employees earning annual base salary or wages of less than $75,000.
•    Employees given notice that their positions are being eliminated after the first quarter of any calendar year will be eligible for the pro-rata bonus, if any, otherwise payable under the applicable Company bonus plan in which they participated for that year, based on regular earnings for that year and actual business results, payable at the normal time of the bonus payout; provided, however, that such pro-rata bonus will be paid no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to such pro-rata bonus vests.  Severance pay is not considered regular earnings.  Employees given notice that their positions are being eliminated during the first quarter of any calendar year will not be eligible for any bonus otherwise payable under the applicable Company bonus plan in which they participated for that year.
•    Employees participating in sales commission or sales bonus plans will be paid any commissions or bonuses that have been earned prior to their termination date.  The Company will make such payments in a single lump sum as soon as administratively practical following the termination of the employee’s employment but no later than the 15th day of the third month of the calendar year following the calendar year in which the employee’s right to such amounts vests.
•    Notwithstanding the foregoing, however, in no event will the aggregate of the weeks of base salary and COBRA benefits to be paid to any eligible employee who is not in an Executive Vice President, Executive Officer, Senior Vice President or Vice President position and who has been continuously employed since December 31, 2007 and designated by the Plan Administrator as a “Legacy Employee” for purposes of the Plan, (i) exceed two times the lesser of (a) the employee’s annual compensation for the preceding calendar year (adjusted for any increase during that year that was expected to continue indefinitely if the employee had not terminated employment) and (b) the Code Section 401(a)(17) qualified plan compensation limit for the calendar year in which the employee terminates employment (i.e., $245,000 for 2011), or (ii) be paid later than December 31 of 

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the second calendar year following the year in which the employee terminates employment.  The Company in its sole discretion will determine what adjustments will be made to comply with the foregoing limitations.

		
	VI.
	Reduction in Severance of All Eligible Employees.  Notwithstanding any other provision of this Plan, the aggregate severance pay that an eligible employee might otherwise receive under I, II, III, IV or V above will be reduced, on a dollar-for-dollar basis, for any severance pay or compensation continuation the employee previously received under any severance or compensation continuation plan of the Company or any of its Affiliates, including, without limitation, the Company’s (i) Executives’ Position Elimination and Severance Plan, (ii) Position and Elimination and Severance Plan for Eligible Employees Whose Current Employment Started on or after January 1, 2008, (iii) Change-in-Control Accelerated Vesting and Severance Plan, (iv) Key Employee Compensation Continuation Plan, (v) Accelerated Vesting and Compensation Continuation Plan, (vi) Position Elimination and Severance Plan for Eligible Employees Continuously Employed Since December 31, 2007, or any other similar severance or compensation continuation Plan of the Company or any of its Affiliates or any of their predecessors or any employment, severance, compensation continuation, separation or other termination agreement between the employee and the Company or an Affiliate, if the eligible employee was rehired by the Company or an Affiliate within one (1) year of the employee’s termination of employment with respect to which the employee received such severance or compensation continuation; it being the intent of this Plan not to provide severance pay to an otherwise eligible employee to the extent the eligible employee previously received severance pay or compensation continuation from the Company or any of its Affiliates in connection with the employee’s prior termination of employment and the employee was then rehired within one (1) year of such prior termination of employment.  The foregoing reduction shall be applied to the aggregate severance pay that otherwise would be paid to such employee after the application of the maximum limit of severance that might be paid to the employee.  

The consideration for the voluntary Waiver and Release Agreement shall be the severance pay and benefits provided under this Plan that the eligible employee would otherwise not be eligible to receive.
The Company may, in its sole discretion, enhance the amount of severance pay that an eligible employee is entitled to receive under this Plan in addition to the amount of severance described above or make available additional or other forms of severance benefits hereunder.  Furthermore, the Company or an Affiliate may, in its sole discretion, award severance pay to an employee who is not otherwise eligible to receive it under this Plan provided the employee is not otherwise entitled to any severance or similar benefits under any employment agreement, severance agreement or other termination or severance agreement or under any other severance or compensation continuation plan of the Company or any of its Affiliates.  To the extent the Company in its sole discretion enhances the amount of severance pay or provides any additional forms of severance benefits under this Plan, such enhanced severance pay and additional forms of severance benefits shall be provided under the Plan and pursuant to the terms and other conditions hereof.  

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Notwithstanding the foregoing, however, no other severance or other benefits provided an employee shall be deemed enhanced severance pay or additional or other forms of severance benefits provided under this Plan unless such other arrangements specifically reference that they are being provided under this Plan.  All legally required federal, state and local withholding taxes and any sums owing to the Company shall be deducted from severance pay and benefits due under this Plan.
Delay in Payment for Specified Employees
Notwithstanding any other provision of this Plan, if an otherwise eligible employee is a Specified Employee (as defined below), and if the severance package payable to such Specified Employee hereunder is not otherwise exempt from Section 409A of the Code, then, to the extent necessary to comply with Section 409A of the Code, no payments may be made hereunder (including, if necessary, any payments for COBRA benefits) before the date which is six months after the Specified Employee’s separation from service within the meaning of Section 409A or, if earlier, the date of death of the Specified Employee.  Because the amounts to be paid pursuant to this Plan should satisfy one or more exceptions to treatment as nonqualified deferred compensation subject to Code Section 409A, these Specified Employee six-month delay provisions should only be applicable if it is subsequently determined that the amounts to be paid pursuant to this Plan are not exempt from Section 409A.  
For purposes of this Plan, “Specified Employee” means an employee who is (i) an officer of the Company or any Affiliate having annual compensation greater than $135,000 (with certain adjustments for inflation after 2005), (ii) a five-percent owner of HoldCo or (iii) a one-percent owner of HoldCo having annual compensation greater than $150,000.  For purposes of this Section, no more than 50 employees (or, if lesser, the greater of three or 10 percent of the employees) shall be treated as officers.  Employees who (i) normally work less than 17 1/2 hours per week, (ii) normally work not more than 6 months during any year, (iii) have not attained age 21 or (iv) are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and the Company (except as otherwise provided in regulations issued under the Code) shall be excluded for purposes of determining the number of officers.  For purposes of this Section, the term “five- percent owner” (“one-percent owner”) means any person who owns more than five percent (One percent) of the outstanding stock of HoldCo or stock possessing more than five percent (one percent) of the total combined voting power of all stock of HoldCo.  For purposes of determining ownership, the attribution rules of Section 318 of the Code shall be applied by substituting “five percent” for “50 percent” in Section 318(a)(2) and the rules of Sections 414(b), 414(c) and 414(m) of the Code shall not apply.  For purposes of this Section, the term “compensation” has the meaning given such term by Section 414(q)(4) of the Code.  The determination of whether the employee is a Specified Employee will be based on a December 31 identification date such that if the employee satisfies the above definition of Specified Employee at any time during the 12-month period ending on December 31, he will be treated as a Specified Employee if he has a termination of employment during the 12-month period beginning on the first day of the fourth month following the identification date.  This definition is intended to comply with the specified employee rules of Section 409A(a)(2)(B)(i) of the Code and shall be interpreted accordingly.

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Compliance with Code Section 409A
This Plan and all payments to be made or benefits to be provided hereunder are intended to be exempt from the applicable requirements of Section 409A of the Code and shall be construed and interpreted in accordance therewith.  All rights to the payments and benefits under the Plan shall be treated as rights to receive a series of separate payments and benefits to the fullest extent permitted by Section 409A of the Code.  The Company may at any time amend, suspend or terminate this Plan, or any payments to be made hereunder, as necessary to maintain such exemption or be in compliance with Section 409A.  Notwithstanding the preceding, the Company and its Affiliates shall not be liable to any employee or any other person if the Internal Revenue Service or any court or other authority having jurisdiction over such matter determines for any reason that any amount under this Plan is subject to taxes, penalties or interest as a result of failing to comply with Code Section 409A.
Reemployment and Death
In the event a former employee receiving severance pay or benefits under the Plan is subsequently rehired by the Company or an Affiliate, the employee shall not be required to repay any severance pay or benefits previously received under the Plan and shall still be entitled to receive the payment of any pro-rata bonus payable under the Plan; provided, however, that payment of such prorated bonus under the Plan shall be reduced (but not below zero) to the extent the rehired employee is entitled to receive all or any portion of such bonus after rehire under the applicable Company bonus plan in which such employee previously participated or the hired employee is entitled to receive all or any portion of a similar bonus alternative by the Company or an Affiliate; there being no intent to provide duplicate payments to such employee with respect to such bonus.  However, such employee will not be entitled to receive under this Plan any severance pay or benefits not yet paid.  In the event a former employee receiving severance pay or benefits under the Plan is offered and rejects another position with the Company or an Affiliate, all unpaid severance pay and benefits shall continue.  In the event a former employee receiving severance pay or benefits under the Plan dies, all unpaid severance pay and benefits shall continue and shall be paid to the employee’s designated beneficiary or estate.
Waiver and Release Agreement
In order to receive the severance pay and benefits available under the Plan, an eligible employee must submit a signed Waiver and Release Agreement, in a form acceptable to the Company, to the Plan Administrator on or within 21 days (45 days in the event of a group termination) after the employee’s date of termination of employment, but not prior to the date of termination of employment.
An eligible employee may revoke a signed Waiver and Release Agreement within seven (7) days of signing the Waiver and Release Agreement.  Any such revocation must be made in writing and must be received by the Plan Administrator within such seven (7) day period.  An eligible employee who does not submit a signed Waiver and Release Agreement or, having submitted one, timely revokes the Waiver and Release Agreement shall not be eligible to receive severance pay or benefits under the Plan.  An eligible employee who timely submits a signed Waiver and Release Agreement 

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and who does not exercise his or her right of revocation shall be eligible to receive severance pay and benefits under the Plan only after the applicable period for revoking such Waiver and Release Agreement has expired.
Eligible employees are advised to contact their personal attorneys at their own expense to review the Waiver and Release Agreement if they so desire.
No Duplicate Payments
The severance pay and benefits available under the Plan are the maximum to which an employee is entitled from the Company and its Affiliates in the event of involuntary termination of employment.  The Company or an Affiliate and an eligible employee may be parties to other agreements, policies, plans, programs or arrangements relating to the employee’s employment which do not specifically disqualify the employee from participation in this Plan.  In such an event, this Plan shall be construed and interpreted so that severance pay and benefits are provided under this Plan only to the extent that similar amounts of severance and benefits are not paid or provided to such employee under any other agreements, policies, plans, programs or arrangements; it being the intent of this Plan not to provide to the employee any duplicative payments of severance pay or other benefits.  The Company or Affiliate, as applicable, in its sole discretion, shall determine whether payments or other benefits to the employee under any other such agreements, policies, plans, programs or arrangements shall constitute duplicative payments of severance pay or benefits hereunder.  In the event the Company or Affiliate determines that payments or other benefits to the employee under any other such agreements, policies, plans, programs or arrangements constitute duplicative payments, the severance pay or benefits otherwise payable under this Plan shall be reduced to the extent of such duplicative payments.
To the extent that a federal, state or local law requires the Company or Affiliate to provide notice and/or make a payment to an eligible employee because of involuntary termination of employment, or in accordance with a plant closing law, such as the WARN Act, the severance pay and benefits available under the Plan for periods for which the employee is not required to report to work shall be reduced by the amount of any such mandated payment.
Confidentiality
The terms and conditions of this Plan and the employees’ severance pay and benefits under the Plan shall remain strictly confidential.  Employees may not discuss or disclose any terms of this Plan or its benefits with anyone except their attorneys, accountants and immediate family members who shall be instructed to maintain the confidentiality agreed to under this Plan, except as may be required by law.  In the event employee or employee’s attorneys, accountants or immediate family members breach the terms of this provision, employee shall forfeit any and all rights to receive the severance pay and benefits under the Plan and shall be required to return the aggregate amount of severance pay and benefits received previously under the Plan.
Confidential Information/Cooperation

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In order to receive severance pay and benefits under the Plan, eligible employees shall be required (i) to confirm in the Waiver and Release Agreement the terms of their Employee Confidentiality and Invention Assignment Agreement or other employee confidentiality agreement(s) with the Company or Affiliate and, at the Company’s or Affiliate’s discretion, and (ii) to agree in the Waiver and Release Agreement to such other terms relating to the protection and return of the Company’s or Affiliate’s confidential and proprietary business information and other Company or Affiliate property as the Company or Affiliate deems appropriate.
After an employee’s termination of employment with the Company and its Affiliates, he or she shall, with reasonable notice, furnish information as may be in his or her possession, control or knowledge and to otherwise cooperate with and assist the Company or Affiliate as reasonably may be requested in connection with any claims or legal actions in which the Company or Affiliate is or may become a party, or in any matter in which he or she was involved or of which he or she had knowledge while employed by the Company or Affiliate.  No employee shall be entitled to any compensation for such cooperation except for reimbursement by the Company or Affiliate for his or her actual out-of-pocket expenses or costs incurred with this cooperation as soon as administratively practicable after the expenses are incurred.
Return of Company Property
Upon termination of employment, employees shall return to the Company or Affiliate all property of the Company or Affiliate in their possession, custody or control, including keys, credit cards, identification cards, laptop computers, Personal Digital Assistants (PDAs), car and mobile telephones, pagers, parking stickers, correspondence, notes, memoranda, reports, manuals, notebooks, drawings, sketches, blueprints, formulae, prototypes, models, computer disks, computer printouts, information stored electronically on computers, and the trade secrets and other confidential information of the Company or Affiliate.  Employees shall not make any copies, nor shall they retain any originals or copies of such property.
Plan Administration
The Company shall act as the Plan Administrator of the Plan (or shall have the power to appoint a Plan Administrator of the Plan) and the “named fiduciary” within the meaning of such terms as defined in ERISA.  It shall be the principal duty of the Plan Administrator to see that the Plan is carried out, in accordance with its terms, and operated uniformly for similarly situated individuals.
1    Authority of Plan Administrator
The Plan Administrator shall have sole discretionary power to administer the Plan, subject to applicable requirements of law.  The Plan Administrator shall have the authority to interpret the Plan and to determine all questions arising under or in connection with the Plan, including all questions of fact and questions of eligibility to participate and obtain benefits under the Plan.  The Plan Administrator shall pay benefits under the Plan, in accordance with its terms, but only if it determines in its sole discretion that the claimant is entitled to them.

16

The Plan Administrator may delegate to other persons responsibilities for performing certain of the duties of the Plan Administrator under the Plan and may seek expert advice as the Plan Administrator deems reasonably necessary with respect to the Plan.  The Plan Administrator shall be entitled to rely upon the information and advice furnished by such persons and experts, unless actually knowing such information and advice to be inaccurate or unlawful.
All actions and determinations of the Plan Administrator shall be final, binding and conclusive on all parties.  Neither the Plan Administrator nor anyone acting on its behalf shall be liable in any manner for any action taken or determination made under the Plan in good faith.  Nevertheless, as permitted by law, the Company will indemnify and save the Plan Administrator’s designees harmless against expenses, claims and liabilities arising out of his or their actions on behalf of the Company in connection with the administration of the Plan, except expenses, claims and liabilities arising out of such person’s own gross negligence or bad faith or for which applicable law does not permit such indemnification.
2    Claim Procedures
Employees do not need to complete a claim for benefits to obtain benefits under the Plan.  However, employees who dispute the amount of, or their entitlement to, Plan benefits must file a claim with the Plan Administrator to obtain Plan benefits.  Any claim by an employee who disputes the amount of, or his or her entitlement to, Plan benefits must be filed in writing within ninety (90) days of the event that the employee is asserting constitutes an entitlement to such Plan benefits.  Failure by the employee to submit such claim within the ninety (90)-day period shall bar the employee from any claim for benefits under the Plan as a result of the occurrence of such event.
Claims for benefits shall be filed in writing with the Plan Administrator.  Written notice of the decision on such claim shall be furnished to the claimant within ninety (90) days of receipt of such claim unless special circumstances require an extension of time for processing the claim.  If the Plan Administrator needs an extension of time to process a claim, written notice will be delivered to the claimant before the end of the initial ninety (90) day period.  The notice of extension will include a statement of the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render its final decision.  However, that extension may not exceed ninety (90) days after the end of the initial period.  If the Plan Administrator rejects a claim for failure to furnish necessary material or information, the written notice to the claimant will explain what more is needed and why, and will tell the claimant that the claimant may refile a proper claim.
The Plan Administrator shall provide payment for the claim only if the Plan Administrator determines, in its sole discretion, that the claimant is entitled to the claimed benefit.
If any part of a claim for benefits under this Plan is denied, the Plan Administrator will provide the claimant with a written notice stating (i) the specific reason or reasons for the denial; (ii) the specific reference to pertinent Plan provisions on which the denial was based; (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) appropriate information as to the steps to be taken if the claimant wishes to submit a claim for review, including a statement of the claimant’s 

17

right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.
The full value of any payment made according to the Plan satisfies that much of the claim and all related claims under the Plan.
3    Appeal Procedures
If a claim is denied, the claimant may appeal the denial by delivering a written notice to the Plan Administrator specifying the reasons for the appeal.  That notice must be delivered within sixty (60) days after receiving the notice of denial.  The claimant may submit written comments, documents, records and other information relating to the claimant’s claim for benefits.  The claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits.  The Plan Administrator’s review will take into account all such written comments, documents, records and other information the claimant submits relating to the claim, without regard to whether such information was submitted or considered initially.
The Plan Administrator will advise the claimant in writing of the final determination after review.  The decision on review will be written in a manner calculated to be understood by the claimant, and it will include specific reasons for the decision and specific references to the pertinent provisions of the Plan or related documents on which the decision is based.  Such written notification also will include a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits, the claimant’s right to obtain the information about such procedures and a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following a denial on review.  The written decision will be rendered within sixty (60) days after the request for review is received, unless special circumstances require an extension of time for processing.  If an extension is necessary the Plan Administrator will furnish written notice of the extension to the claimant before the end of the 60-day period and indicate the special circumstances requiring the extension of time.  The extension notice will indicate the date by which the Plan Administrator expects to render a decision.  The decision will then be rendered as soon as possible, but no later than one hundred twenty (120) days after receipt of the request for review.
If the Plan Administrator holds regularly scheduled meetings at least quarterly, the time periods for rendering the written decision described in the preceding paragraph shall not apply and the Plan Administrator shall instead make a benefit determination no later than the date of the meeting of the Plan Administrator that immediately follows the Plan’s receipt of a request for review, unless the request for review is filed within 30 days preceding the date of such meeting.  In such case, a benefit determination may be made by no later than the date of the second meeting following the Plan’s receipt of the request for review.  If special circumstances require a further extension of time for processing, a benefit determination will be rendered no later than the third meeting of the Plan Administrator following the Plan’s receipt of the request for review.  If such an extension of time for review is required because of special circumstances, the Plan Administrator will provide the claimant with written notice of the extension, describing the special circumstances and the date as of which the benefit determination will be made, prior to the commencement of the extension.  The 

18

Plan Administrator will notify the claimant of the benefit determination as soon as possible, but not later than five days after the benefit determination is made.
In no event shall an employee or other claimant be entitled to challenge a decision of the Plan Administrator in court or in any other administrative proceeding unless and until these claim review and appeal procedures have been complied with and exhausted.  The claimant shall have ninety (90) days from the date of receipt of the Plan Administrator’s decision on review in which to file suit regarding a claim for benefits under the Plan.  If suit is not filed within such 90-day period, it shall be forever barred.  The decisions made hereunder shall be final and binding on participants, employees and any other party.
4    Amendment / Termination / No Vesting
Eligible employees do not have any vested right to severance pay and benefits under the Plan.  The Company reserves the right, in its sole discretion, to amend or terminate the Plan at any time by written action of its Chief Executive Officer or Chief Financial Officer or any of their designees or by such other action as the Company may determine.  On and after the termination of the Plan, no further awards of severance pay or other benefits shall be made or accrue under the Plan; provided, however, that any such termination of the Plan shall not materially and adversely affect any award of severance pay or other benefits made or accrued before the effective date of termination of the Plan.
5    No Representations Contrary to the Plan
The terms of an employee’s severance pay and benefits are as set forth in this document, which cannot be changed by the promises of any individual employee or manager.  Only the Company may change the terms of the Plan, and then only through a written amendment.  No promises (oral or written) that are contrary to the terms of the Plan and its written amendments are binding upon the Plan, the Plan Administrator or the Company or any of its Affiliates.
6    Plan Funding
The Plan is funded entirely through Company or Affiliate payments from its operating assets.  Severance pay and benefits are not held under any trust, are paid from the general assets of the Company or Affiliate, are unsecured, and are subject to the claims of the Company’s or Affiliate’s general creditors.  The rights of eligible employees are no greater than those of an unsecured general creditor of the Company or Affiliate, as applicable.
7    Coordination With Other Benefits
Severance pay and benefits under the Plan are not considered eligible earnings for the Company’s 401(k) Plan or any other benefit program.
8    Restriction Against Assignment
Severance pay and benefits under the Plan may not be assigned, pledged or encumbered in any manner, and any attempt to do so shall be void.  The Company and its Affiliates shall make deductions 

19

from Plan severance payments to the extent required by court-ordered garnishment, wage assignment or similar law.
9    Controlling Law
Except to the extent superseded by laws of the United States, the laws of the State of Delaware shall be controlling in all matters relating to the Plan.
10    Reemployment Other Than As An Employee
The Company or Affiliate may, in its sole discretion, determine how an employee whose employment is terminated but who is offered another position as an independent contractor or consultant with the Company or with an Affiliate shall be treated for purposes of the Plan.  In that respect, the Company or Affiliate, in its sole discretion, may make all such determinations under the Plan, including without limitation, determining (i) whether a regular employee whose employment is terminated but who is rehired as an independent contractor or consultant is an eligible employee, (ii) whether an otherwise eligible employee will be eligible for severance pay if the employee is retained, or hired by the Company or an Affiliate, as an independent contractor or consultant under any agreement that provides for severance or similar benefits on termination of service, (iii) whether an employee whose employment is terminated but who is offered work by the Company or an Affiliate as an independent contractor or consultant qualifies for severance pay and benefits under any of the position elimination categories set forth under the Plan, and (iv) whether any employee whose employment is terminated is deemed to be re-employed to the extent the employee is retained, or hired by the Company or an Affiliate, as an independent contractor or consultant.  Notwithstanding the foregoing, an eligible employee will not be given a severance package under the Plan if the eligible employee continues to provide services to the Company or any of its Affiliates in a capacity other than as an eligible employee and such services are provided at an annual rate that is 50 percent or more of the services rendered, on average, during the immediately preceding thirty-six (36) months of employment (or, if employed less than thirty-six (36) months, such lesser period).
11    Temporary Leave of Absence
An eligible employee will not be considered to have had a termination of employment and will not be entitled to the severance pay and benefits under this Plan if the otherwise eligible employee goes on military leave, sick leave or other bona fide leave of absence (such as temporary employment by the government) for a period of less than six months, or for a longer period if the employee’s right to reemployment is provided either by statute or by contract; provided, however, if the eligible employee otherwise meets the requirements for receiving severance pay and benefits under this Plan and if the period of leave (i) ends or (ii) exceeds six months and the employee’s right to reemployment is not provided either by statute or by contract, then the eligible employee will be considered to have had a termination of employment and will be entitled to the severance pay and benefits as of the first date immediately following such time if the eligible employee otherwise would be entitled to such benefits if the eligible employee terminated employment as of such time.

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General Plan Information
12    Plan Name
EarthLink Shared Services, LLC Severance Plan
13    Plan Sponsor
EarthLink Shared Services, LLC
1375 Peachtree Street, Level A
Atlanta, Georgia 30309
(404) 748-7317

14    Employer Identification Number (EIN)
51-0553722
15    Plan Number
508
16    Plan Type
The Plan is a welfare benefit plan that pays severance benefits.
17    Plan Administrator
Plan Administrator, EarthLink Shared Services, LLC Severance Plan
c/o EarthLink Shared Services, LLC
1375 Peachtree Street, Level A
Atlanta, Georgia 30309
(404) 748-7317

18    Agent for Service of Legal Process
c/o EarthLink Shared Services, LLC
General Counsel
1375 Peachtree Street, Level A
Atlanta, Georgia 30309
(404) 748-6634

19    Plan Year
The calendar year.
ERISA Rights Statement

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As participant in this Plan, you are entitled to certain rights and protections under ERISA.  ERISA provides that all Plan participants shall be entitled to:
•    examine, without charge at the Plan Administrator’s office and at other specified locations, such as worksites and union halls, all documents governing the Plan, including collective bargaining agreements, and a copy of the latest Annual Report (Form 5500 series), if any, filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration (f/k/a the Pension Welfare Benefits Administration).
•    obtain copies of all documents governing the operation of the Plan including collective bargaining agreements and copies of the latest Annual Report (Form 5500 series), if any, and an updated summary plan description, by making a written request to the Plan Administrator and paying a reasonable charge for the copies.
•    receive a summary of the Plan’s annual financial report.  The Plan Administrator is required by law to furnish each participant under the Plan with a copy of this summary annual report.
In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan.  The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in your interest and in the interest of the other Plan participants and beneficiaries.
No one, including your employer, your union, or any other person may fire you or otherwise discriminate against you, in any way solely to prevent you from getting a benefit or exercising your rights under ERISA.  If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of Plan documents or the latest Annual Report from the Plan and do not receive them within thirty (30) days, you may file suit in federal court.  In such a case, the court may require the Plan Administrator to provide the documents and pay you up to $110 a day until you receive them, unless they were not sent because of reasons beyond the control of the Plan Administrator.
If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court.  If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor or you may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If your suit is successful, the court may order the person you have sued to pay costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.
If you have any questions about the Plan, you should contact the Plan Administrator.  If you have any questions about your rights under ERISA, or if you need assistance in obtaining documents 

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from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
2319222v9 

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