Document:

Exhibit 10.29

 

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 3rd day of February, 2010.  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) 

 

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for an Employee 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 (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 

 

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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 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.  

 

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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

 

(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

 

5

 

(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 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 

 

6

 

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 (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 

 

7

 

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
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 

 

8

 

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:

 

(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) 

 

9

 

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 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.

 

10

 

(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 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

 

11

 

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 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 

 

12

 

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 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

 

13

 

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 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.

 

14

 

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 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 

 

15

 

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 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.

 

16

 

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.

 

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.

 

17

 

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 the Employer, its Affiliates, the Employees and their respective
heirs, representatives and successors.

 

14.                                 Amendment and Termination.

 

Notwithstanding any other provision of this Plan, the
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 (A) during
any period in which the Employer is involved in discussions with a third party
about a transaction that would result in a Change in Control of the Employer
(and before the complete abandonment of such discussions without the transaction
being consummated), (B) during any period the Employer has become a party
to a definitive agreement to consummate a transaction that would result in a
Change in Control of the Employer (and before the complete termination of such
agreement without the transaction being consummated) and (C) at any time
on or after a Change in Control of the Employer occurs, without the affected
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 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 (to the extent permitted under
the Plan) shall cease upon such action.

 

18

 

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 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 

 

19

 

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.

 

(f)            Benefits under the Plan are not
considered eligible earnings for the Employer’s 401(k) Plan or any other
benefit program.

 

20

 

(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:

  	
   

  

 

22

 

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.

 

2

 

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.

 

2

 

Exhibit B

 

	
  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 

  	
   

  	
  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 

  

 

1

 

	
  Benefits

  	
   

  	
  Gold and Silver

  Benefit Category

  	
   

  	
  Bronze

  Benefit Category

  
	
   

  	
   

  	
  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.

  	
   

  	
  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.

  

 

2Exhibit 10.32

 

EARTHLINK, INC.

 

2010 SHORT-TERM INCENTIVE BONUS PLAN

 

1.            STATEMENT OF PURPOSE

 

1.1           Statement of Purpose.  The purpose of the EarthLink, Inc. 2010
Short-Term Incentive Bonus Plan (the “Plan”) is to encourage the creation of
shareholder value by establishing a direct link between Adjusted EBITDA (as
defined below) and, in certain cases, Net Sent to Billing (as defined below) achieved and the incentive
compensation of Participants in the Plan.

 

Participants contribute to
the success of EarthLink, Inc. (the “Company”) through the application of
their skills and experience in fulfilling the responsibilities associated with
their positions. The Company desires to benefit from the contributions of the
Participants and to provide an incentive bonus plan that encourages the
sustained creation of shareholder value.

 

2.            DEFINITIONS

 

2.1           Definitions.  Capitalized terms used in the Plan shall have
the following meanings:

 

“Adjusted EBITDA”
means EBITDA excluding stock-based compensation expense under SFAS No. 123(R),
facility exit and restructuring costs, net losses of equity affiliates, gain
(loss) on investments, net, impairment of goodwill and intangible assets.  Additionally, to the extent any Bonus Award
to be paid to any Participant pursuant to the Plan is paid in shares of Common
Stock, the calculation of Adjusted EBITDA shall exclude any compensation
expense attributable to Bonus Awards paid in shares of Common Stock.

 

“Bonus Award” means
the Participant’s Performance Bonus or such lesser amount as the Committee in
its sole discretion may determine as of a result of the failure by the
individual Participant to achieve desired individual performance levels for the
Bonus Period.

 

“Bonus Period(s)”
means (i) for Management Participants, the 2010 calendar year and
(ii) for all other Participants, the period beginning January 1, 2010
and ending June 30, 2010 and the period beginning July 1, 2010 and
ending December 31, 2010, in respect of which the Corporate Performance
Objectives are measured and the Participants’ Bonus Awards, if any, are to be
determined.

 

“Cause” has the same
definition as under any employment or service agreement between the Employer
and the Participant or, if no such employment or service agreement exists or if
such employment or service agreement does not contain any such definition,
Cause means (i) the Participant’s willful and repeated failure to comply
with the lawful directives of the Board of Directors of any Employer or any
supervisory personnel of the Participant; (ii) any criminal act or act of
dishonesty or willful misconduct by the Participant that has a material adverse
effect on the property, operations, business or reputation of any Employer;
(iii) the material breach by the Participant of the terms of any
confidentiality, non-competition, non-solicitation or other such 

 

 

agreement that the Participant has with any Employer
or (iv) acts by the Participant of willful malfeasance or gross negligence
in a matter of material importance to any Employer.

 

“Change
in Control” means the occurrence of any of the following events:

 

(a)           the accumulation in any
number of related or unrelated transactions by any person of beneficial
ownership (as such term is used in Rule 13d-3 promulgated under the
Securities Exchange Act of 1934, as amended) of more than fifty percent (50%)
of the combined voting power of the Company’s voting stock; provided that, for
purposes of this subsection (a), 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 Company’s voting stock results from any acquisition of voting
stock (i) directly from the Company that is approved by the Incumbent
Board, (ii) by the Company, (ii) by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any Employer, or
(iv) by any person pursuant to a merger, consolidation, or reorganization
(a “Business Combination”) that would not cause a Change in Control under
clauses (i) and (ii) of subsection (b) below; or

 

(b)           consummation of a Business
Combination, unless, immediately following that Business Combination,
(i) all or substantially all of the persons who are the beneficial owners
of voting stock of the Company 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 Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries), in
substantially the same proportions relative to each other as their ownership,
immediately prior to that Business Combination, of the voting stock of the
Company, and (ii) 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 the right to dilute either such percentages by
appointing additional members to the Board of Directors or otherwise without
election or action by the shareholders; or

 

(c)           a sale or other disposition
of all or substantially all the assets of the Company, except pursuant to a
Business Combination that would not cause a Change in Control under clauses
(i) and (ii) of subsection (b) above, or

 

(d)           approval by the shareholders
of the Company of a complete liquidation or dissolution of the Company, except
pursuant to a Business Combination that would not cause a Change in Control
under clauses (i) and (ii) of subsection (b) above; or

 

(e)           the acquisition by any
person, directly or indirectly, of the power to direct or cause the direction
of the management and policies of the Company (i) through the ownership of
securities which provide the holder with such power, excluding voting rights
attendant with such securities, or (ii) by contract; provided the Change
in Control will not be deemed to have occurred 

 

2

 

if such power was acquired (x) directly from
the Company in a transaction approved by the Incumbent Board, (y) by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any Employer or (z) by any person pursuant to a Business Combination
that would not cause a Change in Control under clauses (i) and
(ii) of subsection (b) above.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Committee” means the
Leadership and Compensation Committee of the Board of Directors of the Company
which will administer the Plan.

 

“Compensation” means
the Participant’s actual wages earned during the Bonus Period, excluding
incentive payments, salary continuation, bonuses, income from equity awards,
stock options, restricted stock, restricted stock units, deferred compensation,
commissions, and any other forms of compensation over and above the
Participant’s actual wages earned during the Bonus Period.

 

“Common Stock” means
the common stock, $.01 par value per share, of the Company.

 

“Corporate Performance
Objectives” means Adjusted EBITDA and, in certain cases, Net Sent to
Billing in such amounts as the Committee shall determine in its sole discretion
for each Bonus Period that must be achieved for the Participant’s Performance
Bonus Multiplier for the Bonus Period to be greater than zero (0). The
Committee shall adjust the Corporate Performance Objectives as the Committee in
its sole discretion may determine is appropriate in the event of unanticipated
circumstances, unbudgeted acquisitions or divestitures, or other unexpected
changes to fairly and equitably determine the Bonus Awards and to prevent any
inappropriate enlargement or dilution of the Bonus Awards.  In that respect, the Corporate Performance
Objectives may be adjusted to reflect, by way of example and not of limitation,
(i) the impairment of any tangible or intangible assets,
(ii) litigation or claim judgments or settlements, (iii) changes in
tax law, accounting principles or other such laws or provisions affecting
reported results, (iv) mergers, acquisitions, business combinations, reorganizations
and/or restructuring programs, (v) reductions in force and early
retirement incentives, (vi) a Change in Control and (vii) any other
extraordinary, unusual, infrequent or non-reoccurring items separately
identified in the financial statements and/or notes thereto in accordance with
generally accepted accounting principles. 
To the extent any such adjustments affect any Bonus Award, the intent is
that the adjustments shall be in a form that allows the Bonus Award to continue
to meet the requirements of Section 162(m) of the Code for
deductibility to the extent intended.

 

“Disability” means
where the Participant is “disabled” or has incurred a “disability” in
accordance with the policies of the Employer that employs the Employee in
effect at the applicable time.

 

“Distribution” means
the payment of the Bonus Award under the Plan.

 

“Distribution Date”
means the date on which the Distribution occurs.

 

“EBITDA” means income
(loss) from continuing operations before interest income (expense) and other,
net, income, taxes, depreciation and amortization.

 

3

 

“Effective Date”
means January 1, 2010.

 

“Employee” means a
full-time common law employee of an Employer. 
A full-time common law employee of an Employer only includes an
individual who renders personal services to the Employer and who, in accordance
with the established payroll, accounting and personnel policies of the
Employer, is characterized by the Employer as a full-time, common law employee.  An Employee does not include any person whom
the Employer has identified on its payroll, personnel or tax records as an
independent contractor or a person who has acknowledged in writing to the
Employer that such person is an independent contractor, whether or not a court,
the Internal Revenue Service or any other authority ultimately determines such
classification to be correct or incorrect as a matter of law.

 

“Employer” means
EarthLink, Inc. (also referred to as the “Company”) and any other 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 Code, except that, in making any such determination, fifty
percent (50%) shall be substituted for eighty percent (80%) each place therein.

 

“Incumbent Board”
means a Board of Directors of the Company at least a majority of whom consist
of individuals who either are (a) members of the Company’s Board of
Directors as of the Effective Date of the adoption of this Plan or
(b) members who become members of the Company’s Board of Directors
subsequent to the date of the adoption of this Plan whose election, or
nomination for election by the Company’s shareholders, was approved by a vote
of at least sixty percent (60%) of the directors then comprising the Incumbent
Board (either by specific vote or by approval of a proxy statement of the
Company in which that person is named as a nominee for director, without
objection to that nomination), but excluding, for that purpose, any individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest  (within the meaning of
Rule 14a-11 of the Securities Exchange act of 1934, as amended) with
respect to the election or removal of directors or other action or threatened
solicitation of proxies or consents by or on behalf of a person other than
the  Board of Directors of the Company.

 

“Management” means
the executive officers of EarthLink, Inc., individually or as a group,
whose positions are in the Red Zone of the Career Band System.

 

“Maximum Bonus Award”
means the maximum bonus award, denoted as a dollar amount, that can be earned
and paid to the Participant for the Bonus Period as established by the
Committee.

 

“Net Sent to Billing”
means “Gross Sent to Billing” minus “Churn” where (i) Gross Sent to
Billing means incremental recurring revenue initiated by the delivery of new or
upgraded products or services and (ii) Churn means the loss of recurring
revenue driven by the cancellation or downgrade of products or services.  For network products/services, sent to
billing status is triggered by meeting predefined customer acceptance criteria
and is determined by the project managers on the provisioning team.  For all other products, sent to billing
status is triggered by the delivery and installation of the equipment and is
determined by the service activation group.

 

4

 

“Participant” means
an Employee of an Employer who is selected to participate in the Plan.

 

“Performance Bonus”
means the dollar amount which results from multiplying the Participant’s
Compensation for the Bonus Period by the product of the Participant’s Target
Bonus Percent and the Participant’s Performance Bonus Multiplier.

 

“Performance Bonus Multiplier”
means either (i) zero (0) or (ii) the percentage from fifty percent
(50%) to two hundred percent (200%) that applies to determine the Participant’s
Performance Bonus for the Bonus Period. 
The Committee shall establish the Performance Bonus Multipliers that
relate to the levels of Corporation Performance Objectives that must be
achieved during the Bonus Period to calculate the Participant’s Performance
Bonus.

 

“Plan” means this
EarthLink, Inc. 2010 Short-Term Incentive Bonus Plan, in its current form
and as it may be hereafter amended.

 

“Target Aggregate Bonus”
means the Bonus Award that would be earned if the Participant’s Performance
Bonus Multiplier were one hundred percent (100%).

 

“Target Bonus Percent”
means the percent of the Participant’s Compensation that will be earned as a
Performance Bonus where the Corporate Performance Objectives that are achieved
for the Bonus Period result in a Performance Bonus Multiplier of one hundred
percent (100%).  The Target Bonus Percent
for each Participant’s position shall be established by the Committee.

 

3.            ADMINISTRATION OF THE PLAN

 

3.1           Administration of the Plan.  The Committee shall be the sole administrator
of the Plan and shall have full authority to formulate adjustments and make
interpretations under the Plan as it deems appropriate. The Committee shall
also be empowered to make any and all of the determinations not herein
specifically authorized which may be necessary or desirable for the effective
administration of the Plan. Any decision or interpretation of any provision of
this Plan adopted by the Committee shall be final and conclusive. Benefits
under this Plan shall be paid only if the Committee determines, in its sole
discretion, that the Participant or Beneficiary is entitled to them. None of the
members of the Committee shall be liable for any act done or not done in good
faith with respect to this Plan. The Company shall bear all expenses of
administering this Plan.

 

4.            ELIGIBILITY

 

4.1           Establishing Participation.  The Committee shall select each Employee who
shall participate in the Plan for each Bonus Period by name, position or zone
within the Career Band System.  The
Committee shall retain the discretion to name as a Participant any Employee
hired or promoted after the commencement of the Bonus Period.

 

5

 

5.            AMOUNT OF BONUS AWARDS

 

5.1           Establishment of Bonuses.

 

(a)           Initial Determinations.  For each Bonus Period, the Committee shall
establish generally for each Participant the Target Bonus Percent and the
Performance Bonus Multiplier that will apply with respect to the designated
levels of achievement of the Corporate Performance Objectives.  The Performance Bonus Multiplier for each
Participant will be based on the achievement of such Corporate Performance
Objectives as the Committee shall designate, which may include the achievement
of one or more Corporate Performance Objectives or any combination of Corporate
Performance Objectives as the Committee may select.

 

(b)           Performance Objectives.  For each Bonus Period, the Committee shall
establish the Corporate Performance Objectives that must be achieved to
determine each Participant’s Performance Bonus Multiplier for the Bonus Period.
To the extent the Corporate Performance Objectives are not achieved, the
Performance Bonus Multiplier shall be zero (0). 
The Corporate Performance Objectives to be achieved must take into
account and be calculated with respect to the full accrual and payment of the
Bonus Awards under the Plan.

 

The Corporate Performance
Objectives must be established in writing no later than the earlier of
(i) ninety (90) days after the beginning the period of service to which
they relate and (ii) before the lapse of twenty-five percent (25%) of the
period of service to which they relate; they must be uncertain of achievement
at the time they are established; and the achievement of the Corporate
Performance Objectives must be determinable by a third party with knowledge of
the relevant facts.  The Corporate
Performance Objectives may be stated with respect to the Company’s, an
Affiliate’s, a product’s, and/or a business unit’s Adjusted EBITDA or Net Sent
to Billing and/or any combination of the foregoing as the Committee may
designate.  The Corporate Performance
Conditions may, but need not, be based upon an increase or positive result
under the aforementioned business criteria and could include, for example and
not by way of limitation, maintaining the status quo or limiting the economic
losses (measured, in each case, by reference to the specific business
criteria).

 

5.2           Calculation of Bonus Awards.

 

(a)           Timing of the Calculation.  The calculations necessary to determine the
Bonus Awards for the Bonus Period most recently ended shall be made no later
than the fifteenth day of the third month following the end of the Bonus Period
for which the Bonus Awards are to be calculated. Such calculation shall be
carried out in accordance with this Section 5.2.

 

(b)           Calculation. 
Following the end of each Bonus Period, each Participant’s Performance
Bonus shall be calculated, and the Participant’s Bonus Award shall be either
the Participant’s Performance Bonus or such lesser amount as the Committee in
its sole discretion may determine as set forth in Section 5.2(d).  Notwithstanding any other provision of the
Plan, the Participant’s Bonus Award may not exceed the Maximum Bonus Award.

 

(c)           Written Determination. 
For the Performance Bonus, which is based on the achievement of
Corporate Performance Objectives, the Committee shall certify in writing whether

 

6

 

such Corporate Performance
Objectives have been achieved.  The Bonus
Awards payable under this Plan are intended to constitute Awards (as defined
therein) under the Company’s 2006 Equity and Cash Incentive Plan to the maximum
extent possible.  Accordingly, the Bonus
Awards hereunder also will be subject to the terms of the 2006 Equity and Cash
Incentive Plan to the extent applicable. 
Any Bonus Awards or portions thereof that do not constitute Awards (as
defined therein) under such 2006 Equity and Cash Incentive Plan shall be deemed
separate Bonus Awards that are granted under this Plan but outside of the 2006
Equity and Cash Incentive Plan.

 

(d)           Negative Discretion.  Notwithstanding any other provision of the
Plan, the Participant’s Performance Bonus may be reduced, but not below zero
(0), if the Participant’s individual performance for the Bonus Period falls
below that expected of such Participant. Management “subject to the approval of
the Committee” may determine if any Participant’s Performance Bonus should be
reduced to determine the Participant’s Bonus Award as a result of the
Participant’s failure to achieve required individual performance levels during
the Bonus Period. The Committee shall determine in its discretion whether any
Performance Bonuses for Management Participants should be reduced to determine
the Participant’s Bonus Award for failure to achieve the desired individual
performance levels during the Bonus Period. Any reduction of a Participant’s
Performance Bonus shall be at the sole and absolute discretion of the
Committee.

 

6.            PAYMENT OF AWARDS

 

6.1           Eligibility for Payment.  Except as otherwise set forth in Sections 7.1
and 8.1 of this Plan or under any other agreement between the Employer and the
Participant or any other benefit plan of the Employer, Bonus Awards shall not
be paid to any Participant who is not employed by an Employer on the date the
Distribution is to be made, and a Participant who terminates employment with
all Employers shall not be eligible to receive any Distribution for
(i) the Bonus Period that includes such termination of employment,
(ii) any prior Bonus Period to the extent not paid before such termination
of employment nor (iii) any future Bonus Periods.

 

6.2           Timing of Payment.  Any Distribution to be paid for a Bonus
Period shall be paid no later than the 15th day of the third month following
the end of the Bonus Period, except that (i) the amount of any Bonus Award
payable to a Participant for the Bonus Period beginning January 1, 2010
and ending June 30, 2010 that exceeds the Participant’s Target Aggregate
Bonus for such Bonus Period shall be paid at the time Distributions are to be
made for the Bonus Period beginning July 1, 2010 and ending
December 31, 2010 (subject to the provisions of Section 6.1 above).

 

6.3           Payment of Award.  The amount of the Bonus Award to be paid
pursuant to this Section 6 to a Participant who is employed by the Company
shall be paid in one lump sum cash payment by the Company except that the
Company, in its sole discretion, may elect to pay part or all of the amount of
any Bonus Award payable to such Participant for the Bonus Period that exceeds
the Participant’s Target Aggregate Bonus for such Bonus Period in shares of
Common Stock in lieu of cash.  The amount
of the Bonus Award to be paid pursuant to this Section 6 to a Participant
who is employed by an Affiliate shall be paid in one lump sum cash payment by
the Affiliate that employs the Participant except that the Affiliate, in its
sole discretion, may elect to pay part or all of the amount of the Bonus Award
payable to such Participant in shares of Common  

 

7

 

Stock in lieu of cash.  In the event part or all of any Bonus Award
is to be paid in shares of Common Stock, the number of shares to be delivered
shall be equal to the dollar amount of the Bonus Award otherwise payable
divided by the closing price of a share of Common Stock on the last trading day
immediately before the date of the Distribution.  Shares of Common Stock to be delivered under
this Plan may be paid under the 2006 Equity and Cash Incentive Plan or under
any other plan under which shares of Common Stock are otherwise available.

 

6.4           Taxes; Withholding.  To the extent required by law, the Employer
shall withhold from all Distributions made hereunder any amount required to be
withheld by Federal and state or local government or other applicable laws.
Each Participant shall be responsible for satisfying in cash or cash equivalent
acceptable to the Company any income and employment tax withholdings applicable
to any Distribution to the Participant under the Plan. The Company, to the
extent applicable law permits, may permit the Participant to pay applicable tax
withholdings by withholding shares of Common Stock that the Participant
otherwise would receive upon the Distribution but only to satisfy the
Participant’s minimum required tax withholdings.

 

7.            CHANGE IN CONTROL

 

7.1           Payment After a Change in
Control.  If at any time after a Change
in Control occurs the Participant’s employment with all Employers is terminated
by an Employer for any reason other than Cause, death or Disability, then, the
Participant shall be entitled to receive for the Bonus Period that includes the
date of the Participant’s termination of employment the greater of (i) the
Participant’s Target Aggregate Bonus for the Bonus Period or (ii) the
Bonus Award that would result based on the Employer’s estimate of the Bonus
Award that is reasonably likely to be payable for the entire Bonus Period
taking into account the Corporate Performance Objectives achieved during the
Bonus Period through the time of the Participant’s termination of employment
(annualized or otherwise forecasted for the entire Bonus Period considering
progress towards goals and the portion of the Bonus Period preceding the
Participant’s termination of employment compared to the entire Bonus Period),
calculated on the same basis as other similarly-situated Participants, except
that the Bonus Award for that Bonus Period shall be based solely upon the
Participant’s Compensation for that Bonus Period through the time of
termination of employment, provided however that Participant shall only be
entitled to receive such Bonus Award for the Bonus Period that includes the
date of the Participant’s termination of employment if the Participant’s
termination of employment occurs after the first calendar quarter of the
calendar year.  The Participant also
shall be entitled to receive any Bonus Award payable for any Bonus Period that
ended before the termination of the Participant’s employment.  Such Bonus Awards shall be paid no later than
the time they would have been paid under the Plan if the Participant had remained
employed or, if earlier, no later than the time they are required to be paid
under any position elimination and severance plan maintained by the Company or
any Affiliate in which Participant participates at the time of termination of
the Participant’s employment.

 

8.            POSITION ELIMINATION

 

8.1           Payment after a Position
Elimination.  If before a Change in Control
occurs the Participant’s employment with all Employers is terminated by an
Employer as a result of a position elimination, such that the Participant is
entitled to receive benefits under any position 

 

8

 

elimination and severance
plan maintained by the Company or any Affiliate, then, the Participant shall be
entitled to receive for the Bonus Period that includes the date of the
Participant’s termination of employment as a result of a position elimination
the Bonus Award that would result based on the Employer’s estimate of the Bonus
Award that is reasonably likely to be payable for the entire Bonus Period
taking into account the Corporate Performance Objectives achieved during the
Bonus Period through the time of the Participant’s termination of employment
(annualized or otherwise forecasted for the entire Bonus Period considering
progress toward goals and the portion of the Bonus Period preceding the
Participant’s termination of employment compared to the entire Bonus Period),
calculated on the same basis as other similarly-situated Participants, except
that the Bonus Award for that Bonus Period shall be based solely upon the
Participant’s Compensation for that Bonus Period through the time of the
position elimination, provided however that Participant shall only be entitled
to receive such Bonus Award for the Bonus Period that includes the date of the
Participant’s position elimination if the Participant’s position elimination
occurs after the first calendar quarter of the calendar year.  The Participant also shall be entitled to
receive any Bonus Award payable for any Bonus Period that ended before the
termination of the Participant’s employment. 
Such Bonus Awards shall be paid under the Plan no later than the time
they would have been paid had the Participant remained employed or, if earlier,
no later than the time they are required to be paid under any position
elimination and severance plan maintained by the Company or any Affiliate in
which Participant participates at the time of termination of the Participant’s
employment.

 

9.            MISCELLANEOUS

 

9.1           Unsecured General Creditor.  Participants and their beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests, or
other claim in any property or assets of the Employer. Any and all assets shall
remain general, unpledged, unrestricted assets of the Employer. The Employer’s
obligation under the Plan shall be that of an unfunded and unsecured promise to
pay cash or shares of Common Stock in the future, and there shall be no
obligation to establish any fund, any security or any other restricted asset in
order to provide for the payment of amounts under the Plan.

 

9.2           Obligations to the Employer.  If a Participant becomes entitled to a
Distribution under the Plan, and, if, at the time of the Distribution, such
Participant has outstanding any debt, obligation or other liability
representing an amount owed to any Employer, then the Employer may offset such
amounts owing to it or any other Employer against the amount of any
Distribution. Such determination shall be made by the Committee. Any election
by the Committee not to reduce any Distribution payable to a Participant shall
not constitute a waiver of any claim for any outstanding debt, obligation, or
other liability representing an amount owed to the Employer.

 

9.3           Nonassignability.  Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate or convey in advance of
actual receipt the amounts, if any, payable hereunder, or any part thereof,
which are, and all rights to which are, expressly declared to be unassignable
and nontransferable. No part of a Distribution, prior to actual Distribution,
shall be subject to seizure or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, nor shall it be transferable by operation of law in the event of the  

 

9

 

Participant’s or any other
persons bankruptcy or insolvency, except as set forth in Section 9.2
above.

 

9.4           Employment or Future Pay or
Compensation Not Guaranteed.  Nothing contained in this Plan
nor any action taken hereunder shall be construed as a contract of employment
or as giving any Participant or any former Participant any right to be retained
in the employ of an Employer or receive or continue to receive any rate of pay
or other compensation, nor shall it interfere in any way with the right of an
Employer to terminate the Participant’s employment at any time without
assigning a reason therefore.

 

9.5           Gender, Singular and Plural.  All pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine, or neuter, as the identity of
the person or persons may require. As the context may require, the singular may
be read as the plural and the plural as the singular.

 

9.6           Captions.  The captions to the articles, sections, and
paragraphs of this Plan are for convenience only and shall not control or
affect the meaning or construction of any of its provisions.

 

9.7           Applicable Law.  This Plan shall be governed and construed in
accordance with the laws of the State of Georgia.

 

9.8           Validity.  In the event any provision of the Plan is
held invalid, void, or unenforceable, the same shall not affect, in any respect
whatsoever, the validity of any other provision of the Plan.

 

9.9           Notice.  Any notice or filing required or permitted to
be given to the Committee shall be sufficient if in writing and hand delivered,
or sent by registered or certified mail, to the principal office of the
Company, directed to the attention of the President and CEO of the Company.
Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for
registration or certification.

 

9.10         Compliance.  No Distribution shall be made hereunder
except in compliance with all applicable laws and regulations (including,
without limitation, withholding tax requirements), any listing agreement with
any stock exchange to which the Company is a party, and the rules of all
domestic stock exchanges on which the Company’s shares of capital stock may be
listed. The Company shall have the right to rely on an opinion of its counsel
as to such compliance. No Distribution shall be made hereunder unless the Employer has obtained
such consent or approval as the Employer may deem advisable from regulatory
bodies having jurisdiction over such matters.

 

9.11         No Duplicate Payments.  The Distributions payable under the Plan are
the maximum to which the Participant is entitled in connection with the Plan.
To the extent the Participant and the Employer are parties to any other
agreements or arrangements relating to the Participant’s employment that
provide for payments of any bonuses under this Plan on termination of
employment, this Plan shall be construed and interpreted so that the Bonus
Awards and 

 

10

 

Distributions payable under
the Plan are only paid once; it being the intent of this Plan not to provide
the Participant any duplicative payments of Bonus Awards. To the extent a
Participant is entitled to a bonus payment calculated under this Plan under any
other agreement or arrangement that would constitute a duplicative payment of
the Bonus Award or Distribution; to the extent of that duplication, no Bonus Award
or Distribution will be payable hereunder.

 

9.12         Confidentiality.  The terms and conditions of this Plan and the
Participant’s participation hereunder shall remain strictly confidential. The
Participant may not discuss or disclose any terms of this Plan or its benefits
with anyone except for Participant’s 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.

 

9.13         Temporary Leaves of Absence.  The Committee in its sole discretion may
decide to what extent leaves of absence for government or military service,
illness, temporary disability or other reasons shall, or shall not be, deemed
an interruption or termination of employment.

 

9.14         Clawback Provision.  Notwithstanding any other provision of the
Plan, the Participant shall reimburse or return to the Employer (i) the
gross aggregate amount of any cash Distribution that the Participant previously
received under the Plan, (ii) any shares of Common Stock that the
Participant previously received under the Plan, (iii) an amount equal to
any dividends the Participant previously received with respect to any shares of
Common Stock that must be returned to the Employer and (iv) any and all
other amounts the Participant received or earned that are attributable to a
Distribution under the Plan, to the extent required under applicable law or any
clawback or compensation recoupment policy that the Employer may adopt.

 

10.          AMENDMENT AND TERMINATION OF THE PLAN

 

10.1         Amendment.  Except as set forth in Section 10.3
below, the Committee in its sole discretion may at any time amend the Plan in
whole or in part.

 

10.2         Termination of the Plan.

 

(a)           Employer’s
Right to Terminate. 
Except as set forth in Section 10.3 below, the Committee may at any
time terminate the Plan, if it determines in good faith that the continuation
of the Plan is not in the best interest of the Company and its
shareholders.  No such termination of the
Plan shall reduce any Distributions already made.

 

(b)           Payments Upon Termination of the Plan.  Upon the termination of the Plan under this
Section, Awards for future Bonus Periods shall not be made.  With respect to the Bonus Period in which
such termination takes place, the Employer will pay to each Participant the
Participant’s Bonus Award, if any, for such Bonus Period, less any applicable
withholdings, only to the extent the Committee provides for any such payments
on termination of the Plan (in which case all such payments will be made no later
than the 15th day of the third month following the end of
the Bonus Period that includes the effective date of termination of the Plan).

 

11

 

10.3         Amendment or Termination
After a Change in Control.  Notwithstanding any other
provision of the Plan, the Committee may not amend or terminate the Plan in
whole or in part on or after a Change in Control to the extent any such
amendment or termination would adversely affect the Participants’ rights
hereunder or result in Bonus Awards not being paid consistent with the terms of
the Plan in effect prior to such amendment or termination

 

11.          COMPLIANCE WITH SECTION 409A

 

11.1         Tax Compliance.  This Plan is intended to be exempt from the
applicable requirements of Section 409A of the Code and shall be construed
and interpreted in accordance therewith. The Company may at any time amend,
suspend or terminate this Plan, or any payments to be made hereunder, as
necessary to be exempt from Section 409A of the Code. Notwithstanding the
preceding, neither the Company nor any Employer shall 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 Bonus Award or Distribution to be made under this Plan is subject to taxes,
penalties or interest as a result of failing to comply with Section 409A
of the Code. The Distributions under the Plan are intended to satisfy the
exemption from Section 409A of the Code for “short-term deferrals.”

 

12.          CLAIMS PROCEDURES

 

12.1         Filing of Claim.  If a Participant becomes entitled to a Bonus
Award or a Distribution has otherwise become payable, and the Participant has
not received the benefits to which the Participant believes he is entitled
under such Bonus Award or Distribution, then the Participant must submit a
written claim for such benefits to the Committee within ninety (90) days of the
date the Bonus Award would have become payable (assuming the Participant is
entitled to the Bonus Award) or the claim will be forever barred.

 

12.2         Appeal of Claim.  If a claim of a Participant is wholly or
partially denied, the Participant or his duly authorized representative may
appeal the denial of the claim to the Committee. Such appeal must be made at
any time within thirty (30) days after the Participant receives written notice
from the Committee of the denial of the claim. In connection therewith, the
Participant or his duly authorized representative may request a review of the denied
claim, may review pertinent documents and may submit issues and comments in
writing. Upon receipt of an appeal, the Committee shall make a decision with
respect to the appeal and, not later than sixty (60) days after receipt of such
request for review, shall furnish the Participant with a decision on review in
writing, including the specific reasons for the decision, as well as specific
references to the pertinent provisions of the Plan upon which the decision is
based.  Notwithstanding the foregoing, if
the Committee has not rendered a decision on appeal within sixty (60) days
after receipt of such request for review, the Participant’s appeal shall be
deemed to have been denied upon the expiration of the sixty (60)-day review
period.

 

12.3         Final Authority.  The Committee has discretionary and final
authority under the Plan to determine the validity of any claim. Accordingly,
any decision the Committee makes on the Participant’s appeal shall be final and
binding on all parties. If a Participant disagrees with the Committee’s final
decision, the Participant may bring suit, but only after the claim on appeal
has been denied or deemed denied. Any such lawsuit must be filed within ninety
(90) days of the Committee’s denial (or deemed denial) of the Participant’s
claim or the claim will be forever barred.

 

12

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