Document:

Exhibit 10.4

 

EARTHLINK, INC.

STOCK INCENTIVE PLAN

(as amended effective October 23, 2003)

 

Restricted Stock Unit Agreement

 

No. of Restricted
Stock

Units Awarded Hereunder:

 

THIS
RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) dated as of the           
day of                   ,
200    , between EarthLink, Inc., a Delaware
corporation (the “Company”), and                                       
(the “Participant”) is made pursuant and subject to the provisions of the
Company’s Stock Incentive Plan (as amended effective October 23, 2003)
(the “Plan”), a copy of which is attached hereto.  All terms used herein that are defined in the
Plan have the same meaning given them in the Plan.

 

1.                                       Award of Units.  Pursuant to the Plan, the Company, on                   
    , 200     (the “Date of Award”),
awarded to the Participant                     
Restricted Stock Units, each Restricted Stock Unit corresponding to one share
of the Company’s $0.01 par value Common Stock (this “Award”).  Subject to the terms and conditions of the
Plan, each Restricted Stock Unit represents an unsecured promise of the Company
to deliver, and the right of the Participant to receive, one share of the $0.01
par value common stock of the Company (the “Common Stock”) at the time and on the
terms and conditions set forth herein. 
As a holder of Restricted Stock Units, the Participant has only the
rights of a general unsecured creditor of the Company.

 

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

 

(a)                                  Expiration
Date.  This Award shall expire at
11:59 p.m. on                      ,
200     (the “Expiration Date”).  In no event shall the Expiration Date be
later than 10 years from the Date of Award.

 

(b)                                 Vesting
of Award.

 

(i)                                     In
General.  Except as otherwise
provided below,                           
percent (      %) of the outstanding Restricted
Stock Units shall become nonforfeitable and payable on the         
annual anniversary of the Date of Award and an additional                             percent (      %)
of the Restricted Stock Units shall become payable on each subsequent annual
anniversary thereafter until One Hundred percent (100%) of the Restricted Stock
Units have become nonforfeitable and payable, provided the Participant is still
an Employee of the Company or any Subsidiary
at each such time.

 

(ii)                                  Change
in Control.  Outstanding Restricted
Stock Units that are not then nonforfeitable and payable shall become
nonforfeitable and payable immediately before

 

 

the consummation of a Change
in Control, provided the Participant is still an Employee of the Company or any
Subsidiary at such time.

 

(iii)                               Vesting
Date.  Outstanding Restricted Stock
Units shall be forfeitable until they become nonforfeitable and payable as
described above.  Each date upon which
Restricted Stock Units become nonforfeitable and payable shall be referred to
as a “Vesting Date” with respect to such number of Restricted Stock Units.

 

(c)                                  Settlement
of Award.  Subject to the terms of
this Section 2 and Section 3 below and except to the extent the
Participant defers receipt of such shares of Common Stock pursuant to Section 8
below, the Company shall issue to
the Participant one share of Common Stock for each Restricted Stock Unit that
becomes nonforfeitable and payable under Section 2(b) above and shall
deliver to the Participant certificates representing such Shares as soon as
practicable after the respective Vesting Date. 
As a condition to the settlement of the Award, the Participant shall be
required to pay any required withholding taxes attributable to the Award in
cash or cash equivalent acceptable to the Committee.  The Company may allow the Participant to
satisfy any such applicable withholding taxes (i) by allowing the
Participant to deliver shares of Common Stock that the Participant has owned
for at least six months valued at their Fair Market Value on the day preceding
such date, (ii) through a cashless exercise through a broker, (iii) by
such other medium of payment as the Company shall authorize, or (iv) by any
combination of the allowable methods of payment set forth herein.

 

3.                                       Termination of Award.  Outstanding Restricted Stock Units that have
not become nonforfeitable and payable prior to the Expiration Date shall expire
and may not become nonforfeitable and payable after such time.  Additionally, any Restricted Stock Units that
have not become nonforfeitable and payable on or before the termination of the
Participant’s employment with the
Company and any Subsidiary shall expire and may not become nonforfeitable and
payable after such time.

 

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

 

5.                                       Nontransferability.  Except as described below, this Award is
nontransferable except by will or the laws of descent and distribution.  If this Award is transferred by will or the
laws of descent and distribution, the Award must be transferred in its entirety
to the same person or persons or entity or entities.  Notwithstanding the foregoing, the
Participant, at any time prior to the Participant’s death, may transfer all or
any portion of this Award to a Permitted Transferee.  In that event, the Permitted Transferee will
be entitled to all the rights of the Participant with respect to the
transferred Award (except that such Permitted Transferee may not transfer the
Award other than by will or the laws of descent and distribution), and such
portion of the Award shall continue to be subject to all of the terms,
conditions and restrictions applicable to the Award as set forth herein and in
the Plan immediately prior to the effective date of the transfer.  Any such transfer will be permitted only if (i) the
Participant does not receive any

 

2

 

consideration for the
transfer and (ii) the Board expressly approves the transfer.  Any such transfer shall be evidenced by an
appropriate written document that the Participant executes and the Participant
shall deliver a copy thereof to the Board on or prior to the effective date of
the transfer.  No right or interest of
the Participant in this Award shall be liable for, or subject to, any lien,
liability or obligation of the Participant.

 

6.                                       Cash Dividends.  For so long as the Participant holds
outstanding Restricted Stock Units, if the Company pays any cash dividends on
its Common Stock, then the Company in its discretion (a) may pay the
Participant in cash for each outstanding Restricted Stock Unit covered by this
Award as of the record date for such dividend, less any required withholding
taxes, the per share amount of such dividend or (b) may increase the
number of outstanding Restricted Stock Units covered by this Award by the
number of Restricted Stock Units, rounded down to the nearest whole number,
equal to (i) the product of the number of the Participant’s outstanding
Restricted Stock Units as of the record date for such dividend multiplied by
the per share amount of the dividend divided by (ii) the Fair Market Value
of a share of Common Stock on the payment date of such dividend.  In the event the Company awards additional
Restricted Stock Units pursuant to this Section 6, such Restricted Stock
Units shall be subject to the same terms and conditions set forth in the Plan
and herein as the outstanding Restricted Stock Units with respect to which they
were granted.  Notwithstanding the
foregoing, the Company in its sole discretion may choose not to pay the cash
amounts described above and not to increase the number of outstanding
Restricted Stock Units covered by this Award, and this Section 6 shall not
constitute any agreement or commitment that the Company take any such actions.

 

7.                                       Change in Capital Structure.  The terms of this Award shall be adjusted in
accordance with the terms and conditions of the Plan if the Company effects one
or more stock dividends or stock splits. 
If there is a subdivision or consolidation of shares or other similar
change in capitalization other than as a result of stock dividends or stock
splits, the Board may adjust the terms of this Award to the extent the Board in
its discretion may consider appropriate.

 

8.                                       Deferral of Common Stock.  If the Participant is eligible to participate
in the Deferred Compensation Program, then the Participant may elect to defer
the receipt of Common Stock issuable pursuant to this Award in accordance with rules the
Board prescribes for the Deferred Compensation Program.  If the Participant elects to defer the
receipt of Common Stock hereunder, the shares of Common Stock shall be deferred
and credited under the Deferred Compensation Program and shall become payable
and issuable pursuant to the terms and at such time or times as set forth in
the Deferred Compensation Program, but will be paid, if at all, only in shares
of Common Stock.

 

9.                                       Golden Parachute Provisions.

 

(a)                                  If
any payment to the Participant hereunder or in conjunction with any other
payment pursuant to any other agreement, policy, plan or program would subject
the Participant to an excise tax imposed by Code Section 4999 or to any
similar tax imposed by state or local law or any related interest or penalties
(such tax or taxes, together with any such interest or penalties, being
hereinafter collectively referred to as the “Excise Tax”), then the payments
provided under this Agreement shall be reduced (but not below zero) if, and
only to the extent that, such reduction will allow the Participant to receive a
greater “Net After Tax Amount” than

 

3

 

the Participant would
receive absent any such reduction.  “Net
After Tax Amount” means the amount of any Parachute Payments (as defined in (b) below)
or Capped Payments (as defined in (c) below), as applicable, net of taxes
imposed under Code Sections 1, 3101(b) and 4999 and any State or local
income taxes applicable to the Participant on the date of payment.  The determination of the Net After Tax Amount
shall be made using the highest combined effective rate imposed by the
foregoing taxes on income of the same character as the Parachute Payments or
Capped Payments, as applicable, in effect on the date of payment.

 

(b)                                 The
independent accounting firm that the Company, in its sole discretion, engages
(the “Accounting Firm”) will first determine the amount of any “Parachute
Payments” that are payable to the Participant. 
“Parachute Payment” means a payment that is described in Code Section 280G(b)(2),
determined in accordance with Code Section 280G and the regulations
promulgated or proposed thereunder.  The
Accounting Firm also will determine the Net After Tax Amount attributable to
the Participant’s total Parachute Payments.

 

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

 

(d)                                 The
Participant then will receive the total Parachute Payments or the Capped
Payments, whichever provides the Participant with the higher Net After Tax
Amount.  If the Participant will receive
the Capped Payments (i.e. some amount less than the total Parachute Payments),
the total Parachute Payments will be adjusted by first reducing the amount of
any benefits under this Agreement or the noncash benefits under any other plan,
agreement or arrangement (with the source of the reduction to be directed by
the Participant) and then by reducing the amount of any cash benefits under any
other plan, agreement or arrangement (with the source of the reduction to be
directed by the Participant).  The
Accounting Firm will notify the Participant and the Company if it determines
that the Parachute Payments must be reduced and will send the Participant and
the Company a copy of its detailed calculations supporting that determination.

 

(e)                                  As
a result of the uncertainty in the application of Code Sections 280G and 4999
at the time that the Accounting Firm makes its determinations under this Section 9,
it is possible that amounts will have been paid or distributed to the
Participant that should not have been paid or distributed under this Section 9
(“Overpayments”), or that additional amounts should be paid or distributed to
the Participant under this Section 9 (“Underpayments”).  If the Accounting Firm determines, based on
either the assertion of a deficiency by the Internal Revenue Service against
the Company or the Participant, which assertion the Accounting Firm believes
has a high probability of success or controlling precedent or substantial
authority, that an Overpayment has been made, that Overpayment will be treated
for all purposes as a loan that the Participant must repay to the Company
together with interest at the applicable federal rate under Code Section 7872(f)(2);
provided, however, that no loan will be deemed to have been made and no amount
will be payable by the Participant to the Company unless, and then only to the
extent that, the deemed loan and payment would either reduce the amount on
which the Participant is subject to tax under Code Sections 1, 3101 or 4999 or
generate a refund of such taxes.  If the
Accounting Firm determines, based upon controlling precedent or other
substantial

 

4

 

authority, that an
Underpayment has occurred, the Accounting Firm will notify the Participant and
the Company of that determination and the amount of that Underpayment will be
paid to the Participant promptly by the Company.

 

(f)                                    The
fees and expenses of the Accounting Firm for its services in connection with
the determinations and calculations contemplated by the preceding subsections
shall be borne by the Company.  If such
fees and expenses are initially paid by Participant, the Company shall
reimburse Participant the full amount of such fees and expenses within five
business days after receipt from Participant of a statement therefor and
reasonable evidence of Participant’s payment thereof.

 

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

 

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

 

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

 

If to the Company:                                             EarthLink, Inc.

1375 Peachtree Street - Level A

Atlanta, Georgia 30309

Attention: General Counsel

 

If to the Participant:

 

 

 

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

 

5

 

12.                                 Participant Bound by Plan.  The Participant hereby acknowledges receipt
of a copy of the Plan and agrees to be bound by all the terms and provisions of
the Plan.

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  EARTHLINK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Participant’s Name]

  
						

 

7Exhibit 10.5

 

EARTHLINK, INC.

EQUITY PLAN

FOR NON-EMPLOYEE DIRECTORS

Nonqualified Stock Option Agreement

 

No. of
Shares Subject to

Nonqualified
Stock Option:                

 

THIS
NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) dated as of the 2nd
day of January 2004 between EarthLink, Inc., a Delaware Corporation
(the “Company”), and                       
(the “Non-Employee Director”) is made pursuant and subject to the provisions of
the Company’s Equity Plan for Non-Employee Directors (the “Plan”), a copy of
which is attached hereto.  All terms used
herein that are defined in the Plan have the same meaning given them in the
Plan.

 

1.                                       Grant of Option.  Pursuant to the Plan, the Company, on                       
(the “Date of Grant”), granted to the Non-Employee Director, subject to the
terms and conditions of the Plan and subject further to the terms and
conditions herein set forth, the right and option to purchase from the Company
all or any part of an aggregate of         
Shares, at the price of $          
per share, which is the Fair Market Value of a Share at the Date of
Grant.  This Option is to be treated as a
Nonqualified Stock Option.  This Option
is exercisable as hereinafter provided.

 

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

 

(a)                                  Expiration Date.  This Option shall expire at           
on                         
(the “Expiration Date”) which is 10 years from the Date of Grant.

 

(b)                                 Exercise of Option.  Except as otherwise provided in the Plan and
in paragraph 3, 4, 5 or 6, this Option shall become exercisable with respect to
one-fourth of the Shares subject to this Option on each annual anniversary of
the Date of Grant, provided the Non-Employee Director is still serving as a
Non-Employee Director of the Company at such time, until the Option becomes
exercisable with respect to all of the Shares subject to the Option.  Once this Option has become exercisable in
accordance with the preceding sentence, it shall continue to be exercisable
until the earlier of the termination of the Non-Employee Director’s rights
hereunder pursuant to paragraphs 3, 4, 5 or 6 or until the Expiration
Date.  A partial exercise of this Option
shall not affect the Non-Employee Director’s right to exercise this Option with
respect to the remaining Shares, subject to the conditions of the Plan and this
Agreement.

 

(c)                                  Method of Exercise and Payment
for Shares.  This Option shall be exercised by delivering
written notice to the attention of the Company’s Secretary at the Company’s
principal office located at 1375 Peachtree Street, Atlanta, Georgia 30309.  The exercise date shall be (i) in the
case of notice by mail, the date of

 

 

postmark, or (ii) if delivered in
person, the date of delivery.  Such
notice shall specify the number of Shares with respect to which the Option is
being exercised and shall be accompanied by payment of the Option price, in
cash or a cash equivalent acceptable to the Board, or, if the Board permits, by
(i) the surrender of Shares that the Non-Employee Director has owned for
at least six months with an aggregate Fair Market Value (determined as of the
preceding business day) which, together with any cash or cash equivalent the
Non-Employee Director pays, is not less than the Option price of the number of
Shares for which the Option is being exercised, (ii) by a cashless
exercise through a broker or (iii) by any combination of the
aforementioned methods of payment.

 

(d)                                 Nontransferability.  This Option shall not be transferable
otherwise than by will or by the laws of descent and distribution and shall be
exercised during the lifetime of the Non-Employee Director only by the
Non-Employee Director or by the Non-Employee Director’s guardian or legal
representative.  Notwithstanding the
preceding sentence, the Non-Employee Director, at any time prior to his death,
may assign all or any portion of the Option granted to him to (i) his
spouse or lineal descendant, (ii) the trustee of a trust established for
the primary benefit of his spouse or lineal descendant, or (iii) a
partnership of which his spouse or lineal descendants are the only
partners.  In such event , the spouse,
lineal descendants, trustee or partnership will be entitled to all the rights
of the Non-Employee Director with respect to the assigned portion of such
Option (except that such transferee may not transfer the Option other than by
will or by the laws of descent and distribution), and such portion of the
Option will continue to be subject to all the terms, conditions and
restrictions applicable to the Option as set forth herein immediately prior to
the effective date of the assignment. 
Any such assignment will be permitted only if (i) the Non-Employee
Director does not receive any consideration therefor and (ii) the
assignment is expressly approved by the Board. 
Any such assignment shall be evidenced by an appropriate written
document executed by the Non-Employee Director and a copy thereof shall be
delivered to the Board on or prior to the effective date of the assignment.

 

3.                                       Exercise in the Event of Death.  This Option shall be exercisable for all or
part of the number of Shares that the Non-Employee Director is entitled to
purchase pursuant to paragraph 2(b) as of the date of the Non-Employee
Director’s death, reduced by the number of shares for which the Non-Employee
Director previously exercised the Option, in the event the Non-Employee
Director dies while serving as a Non-Employee Director and prior to the
Expiration Date and prior to the termination of the Non-Employee Director’s  rights under paragraphs 4, 5, or 6.  In that event, this Option may be exercised
by the Non-Employee Director’s estate, or the person or persons to whom his
rights under this Option shall pass by will or the laws of descent and
distribution, during the remainder of the period preceding the Expiration Date
or within one year of the date the Non-Employee Director dies, whichever is
shorter.

 

4.                                       Exercise in the Event of
Disability.  This Option shall be exercisable for all or
part of the number of Shares that the Non-Employee Director is entitled to
purchase pursuant to paragraph 2(b) as of the date the Non-Employee
Director incurs a Disability, reduced by the

 

2

 

number of Shares for which the Non-Employee Director previously
exercised the Option, if the Non-Employee Director incurs a Disability while
serving as a Non-Employee Director and prior to the Expiration Date and prior
to the termination of the Non-Employee Director’s rights under paragraphs 3, 5,
or 6.  In that event, the Non-Employee
Director or his legal representative may exercise this Option during the
remainder of the period preceding the Expiration Date or within one year of the
date the Non-Employee Director ceases serving as a Non-Employee Director on
account of such Disability, whichever is shorter.

 

5.                                       Exercise in the Event of Removal
Within One Year After a Change in Control.  This Option shall
be exercisable for all or part of the number of Shares that the Non-Employee
Director is entitled to purchase pursuant to paragraph 2(b) as of the date
of removal from the Board on or within one year after a Change in Control,
reduced by the number of Shares for which the Non-Employee Director previously
exercised the Option, if the Non-Employee Director is removed from the Board on
or within one year after a Change in Control and prior to the Expiration Date
and prior to the termination of Non-Employee Director’s rights under paragraphs
3, 4, or 6.  In that event, the
Non-Employee Director may exercise this Option during the remainder of the
period preceding the Expiration Date or until the date that is three months
after the date he ceases serving as a Non-Employee Director on account of
removal on or within one year after a Change in Control, whichever is shorter.

 

6.                                       Exercise After Termination of
Directorship.  This Option shall be exercisable for all or
part of the number of Shares that the Non-Employee director is entitled to
purchase pursuant to paragraph 2(b) as of the date the Non-Employee
Director ceases serving as a Non-Employee Director, reduced by the number of
Shares for which the Non-Employee Director previously exercised the Option, if
the Non-Employee Director ceases serving as a Non-Employee Director prior to
the Expiration Date other than on account of death, Disability or removal on or
within one year after a Change in Control and prior to the termination of
Non-Employee Director’s rights under paragraphs 3, 4, or 5.  In that event, the Non-Employee Director may
exercise this Option during the remainder of the period preceding the
Expiration Date or until the date that is three months after the date he ceases
serving as a Non-Employee Director other than on account of death, Disability
or removal on or within one year after a Change in Control, whichever is
shorter.

 

7.                                       Minimum Exercise.  This Nonqualified Stock Option may not be
exercised for less than 100 Shares unless it is exercised for the full number
of Shares that remain subject to the Nonqualified Stock Option.

 

8.                                       Fractional Shares.  Fractional Shares shall not be issuable
hereunder, and when any provision hereof may entitle the Non-Employee Director
to a fractional Share such fraction shall be disregarded.

 

9.                                       Shareholder Rights.  The Non-Employee Director shall not have any
rights as a shareholder with respect to Shares subject to the Option until
issuance of the certificates representing such Shares upon exercise of the
Option.  The Company may include on any
certificates representing Shares issued pursuant to the Option such legends referring
to any representations, restrictions or any other applicable statements as the
Company, in its discretion, shall deem appropriate.

 

3

 

10.                                 Change in Capital Structure.  The terms of this Option shall be adjusted in
accordance with the terms and conditions of the Plan as the Board determines is
equitably required in the event the Company effects one or more stock
dividends, stock split-ups, subdivisions or consolidations of shares or other
similar changes in capitalization.

 

11.                                 No Right to Continued Service.  This Option does not confer upon the
Non-Employee Director any right with respect to continued service as a
Non-Employee Director, nor shall it interfere in any way with any rights to
terminate the Non-Employee Director’s service as a director without assigning a
reason therefor.

 

12.                                 Non-Employee Director Bound by
Plan.  The Non-Employee Director hereby acknowledges
receipt of a copy of the Plan and agrees to be bound by all the terms and
provisions of the Plan.

 

13.                                 Binding Effect.  Subject to the limitations stated above and
in the Plan, this Agreement shall be binding upon and inure to the benefit of
the legatees, distributes, and personal representatives of the Non-Employee
Director and the successors of the Company.

 

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

 

15.                                 Taxes.  The Non-Employee Director shall satisfy all
amounts of any applicable withholding taxes attributable to the exercise of the
Option, and the Option shall not be deemed exercised and no Shares shall be
issued upon exercise until full payment has been made therefor.  Such withholding taxes may be paid in cash or
cash equivalent acceptable to the Board, or, if the Board permits (i) by
the surrender of Shares that the Participant has owned for at least six months
with an aggregate Fair Market Value (determined as of the preceding business
day) which, together with any cash or cash equivalent the Non-Employee Director
pays, is not less than the withholding taxes owed for the number of Shares for
which the Option is being exercised, (ii) by a cashless exercise through a
broker, or (iii) by any combination of the aforementioned methods of
payment.

 

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

 

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

 

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

 

4

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
  EarthLink, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Charles G. Betty

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  NON-EMPLOYEE DIRECTOR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  

 

5

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