Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.31    
    

CERTIFICATE OF AMENDMENT

OF THE

SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF

HELIO, INC.,

a Delaware corporation  

        Pursuant to Section 242 of the General Corporation Law of the State of Delaware, the undersigned, Wonhee Sull, Chief Executive Officer of
Helio, Inc. (the "Corporation"), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware (the "DGCL"), DOES HEREBY
CERTIFY, 

        FIRST:
The Second Amended and Restated Certificate of Incorporation of the Corporation is hereby amended as follows: 

        1.     Article 5.1
shall hereby be renamed "Conversion of Class B Common Stock and Preferred Stock." 

        2.     Article 5.1.1
shall hereby be renamed "Voluntary Conversion of Class B Common Stock." 

        3.     Article 5.1.2
shall hereby be deleted in its entirety and replaced as follows: 

        5.1.2    Involuntary Conversion of Class B Common Stock.    Upon a Triggering Event,
the Class B Common Stock of the Triggering Party shall be automatically converted to Class A Common Stock as provided in  Article 5.12. In addition, upon a Type C Triggering Event,
all outstanding shares of Class B Common Stock shall be automatically
converted to Class A Common Stock at the Class B Conversion Rate then in effect and following the procedures set forth in  Articles 5.1.1 and 5.6. 

        4.     Appropriate
changes to Article 4.5(i) shall be made to provide for an additional subsection following Article 4.5(i). Moreover, the following shall be added
to the end of Article 4.5: 

        (j)    any
Preferred Stock issued must contain a conversion feature whereby upon a Type C Triggering Event, all Preferred Stock will be automatically converted into
Class A Common Stock at a designated conversion rate. 

        5.     The
following shall be added as Article 5.1.3: 

        5.1.3    Conversion of Preferred Stock.    Upon a Type C Triggering Event, any and all
series of Preferred Stock shall be automatically converted to Class A Common Stock as provided in Article 4.5(j) above. 

        5.     Article 5.15
shall hereby be deleted in its entirety and replaced as follows: 

        5.15    Merger and Consolidation.    In the event that the Management Company, with the
approval of the Board in accordance with Article 6.2, enters into any consolidation, merger, combination or other transactions in which shares of
Common Stock are exchanged for or converted into other stock or securities, cash or other property, then the shares of each class of Common Stock shall be exchanged for or converted into the same
amount of stock, securities, cash or other property, as the case may be, for which each share of any other class of Common Stock is exchanged or converted (and after giving effect to any automatic
conversion of certain classes of Common Stock as set forth herein triggered by such event). Further, the Management Company shall not enter into a consolidation, merger, combination or other
transaction, unless the acquiring Entity agrees to preserve all rights of the holders of Membership Units set forth in the Operating Agreement. 

        6.     Article 5.16
shall hereby be deleted in its entirety and replaced as follows: 

        5.16    Effect of Reclassification or Similar Transaction.    In the event of a
reclassification or other similar transaction approved in accordance with Articles 5.14 and 5.15
as a result of which 

 

the
shares of Class A Common Stock are converted into another security, and the Class B Common Stock has not automatically converted and will not do so pursuant to any other provision of
this Article 5.1, then a holder of Class B Common Stock shall be entitled to upon conversion (in accordance with the Class B
Conversion Rate then in effect) the amount of such security that such holder would have received if such conversion into another security had occurred immediately prior to the record date of such
reclassification or other similar transaction. 

        7.     The
definitions of the following terms provided in Article 10 shall be deleted in their entirety and replaced with the following: 

        "Change of Control" shall mean (i) a Management Company Change in Control or (ii) an Operating Company Change in Control. 

        "Control" (and "Controlling" and  "Controlled"), as used with respect to any Entity, shall mean possession, directly or
indirectly, of the power to direct or cause the direction of
management policies of such Entity through the ownership of Voting Securities or by contract. 

        "Initial Member" shall mean and refer to SKT Holdings, EarthLink and the Management Company and any of their permitted successors or
assigns. 

        "Person" means any human being, firm, corporation, partnership, or other entity. "Person" also includes any human being, firm,
corporation, partnership, or other entity as defined in sections 13(d)(3) and 14(d)(2) of the Exchange Act. For purpose of the definition of Change of Control and the defined terms referenced
therein, the term "Person" does not include the Management Company, the Operating Company or any of their Affiliates, and the term Person does not include any employee-benefit plan maintained by the
Management Company, the Operating Company or any of their Affiliates, or any person or entity organized, appointed, or established by the Management Company, the Operating Company or any of their
Affiliates for or pursuant to the terms of any such employee-benefit plan, unless the Board determines that such an employee-benefit plan or such person or entity is a "Person". 

        10.   The
following definitions are hereby added to Article 10: 

        "Change of Control Date" means the date on which a Change of Control occurs. If any such change in control occurs on account of a series
of transactions, the "Change of Control Date" is the date of the last of such transactions. 

        "Continuing Director" means any member of the Board whose nomination for or election to the Board was recommended or approved by the
Initial Members or a majority of the Continuing Directors. 

        "Management Company Acquiring Person" means that a Person, considered alone or as part of a "group" within the meaning of
Section 13(d)(3) of the Exchange Act, as amended, other than an Initial Member (as identified in the definition of Member) or any Affiliate, is or becomes directly or indirectly the beneficial
owner (as defined in Rule 13d-3 under the Exchange Act) of securities representing more than fifty percent (50%) of the Management Company's then outstanding securities entitled to
vote generally in the election of the Board. 

        "Management Company Change in Control" means (i) a Person, other than an Initial Member, is or becomes a Management Company
Acquiring Person; (ii) holders of the securities of the Management Company entitled to vote thereon approve any agreement with a Person, other than an Initial Member or any Affiliate, (or, if
such approval is not required by applicable law and is not solicited by the Management Company, the closing of such an agreement) that involves the transfer of all or substantially all of the
Management Company's assets on a consolidated basis; (iii) holders of the securities of the Management Company entitled to vote thereon approve a transaction (or, if such approval is not
required by applicable law and is not solicited by the 

2

 

Management
Company, the closing of such a transaction) pursuant to which the Management Company will undergo a merger, consolidation, statutory share exchange or similar event with a Person, other
than an Initial Member of any Affiliate, regardless of whether the Management Company is intended to be the surviving or resulting entity after the merger, consolidation, statutory share exchange or
similar event, other than a transaction that results in the voting securities of the Management Company carrying the right to vote in elections of persons to the Board outstanding immediately prior to
the closing of the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% (fifty percent) of the
Management Company's voting securities carrying the right to vote in elections of persons to the Management Company's Board, or voting securities of such surviving entity carrying the right to vote in
elections of persons to the Board of Directors or similar authority of such surviving entity, outstanding immediately after the closing of such transaction; (iv) the Continuing Directors cease
for any reason to constitute at least half of the number of members of the Board; (v) holders of the securities of the Management Company entitled to vote thereon approve a plan of complete
liquidation of the Management Company or an agreement for the liquidation by the Management Company of all or substantially all of the Management Company's assets (or, if such approval is not required
by applicable law and is not solicited by the Management Company, the commencement of actions constituting such a plan or the closing of such an agreement); or (vi) the Board adopts a
resolution to the effect that, in its judgment, as a consequence of any one or more transactions or events or series of transactions or events, a change in control of the Management Company has
effectively occurred. Notwithstanding the foregoing, no event resulting from an initial public offering of securities of the Management Company shall constitute a Management Company Change in Control.
The Board shall be entitled to exercise its sole and absolute discretion in exercising its judgment and in the adoption of such resolution, whether or not any such transaction(s) or event(s) might be
deemed, individually or collectively, to satisfy any of the criteria set forth in subparagraphs (i) through (v) above. 

        "Operating Company Acquiring Person" means that a Person, considered alone or as part of a "group" within the meaning of
Section 13(d)(3) of the Exchange Act, as amended, other than an Initial Member or any Affiliate, is or becomes directly or indirectly the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act) of securities representing more than fifty percent (50%) of the Operating Company's then outstanding Membership Units. 

        "Operating Company Change in Control" means (i) a Person, other than an Initial Member, is or becomes an Operating Company
Acquiring Person; (ii) holders of the Membership Units of the Operating Company entitled to vote thereon approve any agreement with a Person, other than an Initial Member or any Affiliate (or,
if such approval is not required by applicable law and is not solicited by the Operating Company, the closing of such an agreement) that involves the transfer of all or substantially all of the
Operating Company's assets on a consolidated basis; (iii) holders of the Membership Units of the Operating Company entitled to vote thereon approve a transaction (or, if such approval is not
required by applicable law and is not solicited by the Operating Company, the closing of such a transaction) pursuant to which the Operating Company will undergo a merger, consolidation, statutory
share exchange or similar event with a Person, other than an Initial Member or any Affiliate, regardless of whether the Operating Company is intended to be the surviving or resulting entity after the
merger, consolidation, statutory share exchange or similar event, other than a transaction that results in the Membership Units of the Operating Company outstanding immediately prior to the closing of
the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% (fifty percent) of the Operating Company's
Membership Units, or voting securities of such surviving entity carrying the right to vote in elections of persons to the Board of Directors or similar authority of such surviving entity, outstanding
immediately after the closing of such transaction; (iv) holders of the Membership Units of the Operating Company approve a plan 

3

 

of
complete liquidation of the Operating Company or an agreement for the liquidation by the Operating Company of all or substantially all of the Operating Company's assets (or, if such approval is not
required by applicable law and is not solicited by the Operating Company, the commencement of actions constituting such a plan or the closing of such an agreement). Notwithstanding the foregoing, no
event resulting from an initial public offering of securities of the Company shall constitute an Operating Company Change in Control. The Board shall be entitled to exercise its sole and absolute
discretion in exercising its judgment and in the adoption of such resolution, whether or not any such transaction(s) or event(s) might be deemed, individually or collectively, to satisfy any of the
criteria set forth in subparagraphs (i) through (iv) above. 

        "Type C Triggering Event" shall mean the occurrence of: (i) a Change of Control (as defined in Article 10), or
(ii) an event causing dissolution under Article 7.1. 

        SECOND:
The amendment to the Second Amended and Restated Certificate of Incorporation of the Corporation set forth in this Certificate of Amendment has been duly adopted in accordance
with the provisions of Section 242 of the DGCL by (a) the Board of Directors of the Corporation having duly adopted a resolution setting forth such amendment and declaring its
advisability and submitting it to the stockholders of the Corporation for their approval, and (b) the stockholders of the Corporation having duly adopted such amendment by vote of
(i) the holders of a majority of the outstanding Class A
Common Stock and Class B Common Stock entitled to vote thereon voting together as a single class and (ii) holders of all of the outstanding Class B Common Stock, at a special
meeting of stockholders called and held upon notice in accordance with Section 222 of the DGCL. 

        IN
WITNESS WHEREOF this Certificate of Amendment of the Second Amended and Restated Certificate of Incorporation has been executed by the Chief Executive Officer of the Corporation on
this 28th day of February 2008. 

	

 	
 	

By:	

    

	 	 	Name:	Wonhee Sull
	 	 	Title:	Chief Executive Officer

4

QuickLinks

Exhibit 10.31QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.49    
    

 
  EARTHLINK, INC.    
    
    2008 INCENTIVE BONUS PLAN    
    

1.     STATEMENT OF PURPOSE  

        1.1    Statement of Purpose.    The purpose of the EarthLink, Inc. 2008 Incentive Bonus Plan (the "Plan") is to
encourage the creation of shareholder value by establishing a direct link between Revenue (as defined below) and Free Cash Flow (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 facility exit and restructuring costs, equity method loss of affiliates, and gain (loss) on
investments in other companies. 

        "Bonus Award" means the sum of the Participant's Performance Bonus and Supplemental Bonus. 

        "Bonus Period(s)" means (i) for Management Participants, the 2008 calendar year and (ii) for all other Participants, the period beginning
January 1, 2008 and ending June 30, 2008 and the period beginning July 1, 2008 and ending December 31, 2008, in respect of which the Corporate Performance Objectives and the Individual 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 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 Revenue, Free Cash Flow, EBITDA and/or Adjusted EBITDA 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 the impairment of any tangible or intangible assets, litigation or claim judgments or settlements, changes in tax law, accounting principles or other such laws or
provisions affecting reported results, business combinations, reorganizations and/or restructuring programs, reductions in force and early retirement incentives and any other extraordinary, unusual,
infrequent or non-reoccurring items separately 

2

 

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 Awards, 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. 

        "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 cash or the grant of Restricted Stock Units under the Plan. 

        "Distribution Date" means the date on which the Distribution occurs. 

        "EBITDA" means earnings before interest, taxes, depreciation and amortization. 

        "Effective Date" means January 1, 2008. 

        "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. 

        "Free Cash Flow" means Adjusted EBITDA less capital expenditures and cash used to purchase customer bases. 

        "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. 

        "Individual Performance Objectives" means the individual performance objectives as the Committee or Management shall determine in its sole
discretion for each Bonus Period that must be achieved for the Participant's Supplemental Bonus Multiplier for the Bonus Period to be greater than zero (0). 

        "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, number of Restricted Stock Units or combination thereof,
that can be earned and paid to the Participant for the Bonus Period as established by the Committee. 

3

 

        "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, except that, for a Management Participant, the portion of the Participant's Performance Bonus that
exceeds the Participant's Target Performance Bonus for the Bonus Period means the dollar amount, the number of Restricted Stock Units or combination thereof that the Management Participant is entitled
to receive for the Bonus Period for that portion of the Participant's Performance Bonus that exceeds the Participant's Target Performance Bonus. 

        "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. 2008 Incentive Bonus Plan, in its current form and as it may be hereafter amended. 

        "Restricted Stock Units" mean an award, stated with respect to a specified number of shares of Common Stock, that entitles the Participant
to receive one share of Common Stock with respect to each Restricted Stock Unit that becomes payable under the terms and conditions of the award. 

        "Revenues" means revenues as reported on the Company's financial statements filed with the Securities and Exchange Commission. 

        "Supplemental Bonus" means the dollar amount which results from multiplying the Participant's Compensation for the Bonus Period by the
product of the Participant's Supplemental Bonus Percent and the Participant's Supplemental Bonus Multiplier. 

        "Supplemental Bonus Multiplier" means either (i) zero (0) or (ii) the percentage from fifty percent (50%) to one hundred fifty percent
(150%) that applies to determine the Participant's Supplemental Bonus for the Bonus Period. The Committee shall establish the Supplemental Bonus Multipliers that relate to the levels of Individual
Performance Objectives that must be achieved during the Bonus Period to calculate the Participant's Supplemental Bonus. Regardless of the level of Individual Performance Objectives that are achieved
during the Bonus Period, the Participant's Supplemental Bonus Multiplier for the Bonus Period may not in any event exceed the Participant's Performance Bonus Multiplier for the same Bonus Period. 

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

        "Target Aggregate Bonus" means the Bonus Award that would be earned if the Participant's Performance Bonus Multiplier and Supplemental
Bonus Multiplier were both one hundred percent (100%). 

        "Target Performance Bonus" means the dollar amount which results from multiplying the Participant's Target Bonus Percent for the Bonus
Period by the Participant's Compensation for the Bonus Period. 

        "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. 

4

 

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.     AMOUNT OF BONUS AWARDS  

        5.1    Establishment of Bonuses.    

        (a)   Initial Determinations.    For each Bonus Period, the Committee shall establish generally for each Participant
(i) 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 and (ii) the Supplemental
Bonus Percent and the Supplemental Bonus Multiplier that will apply with respect to the designated levels of achievement of the Individual Performance Objectives by the Participant. The Supplemental
Bonus hereunder is a one-time special bonus for the Bonus Periods occurring in 2008. No Participant shall have any right to any Supplemental Bonus in any future year. 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 and, for each Management Participant, the Individual Performance Objectives that must be achieved to determine each Participant's Performance Bonus Multiplier and Supplemental Bonus
Multiplier for the Bonus Period. Management "subject to the approval of the Committee" shall establish the Individual Performance Objectives for Participants other than Management Participants. To the
extent the Corporate Performance Objectives and/or the Individual Performance Objectives are not achieved, the Performance Bonus Multiplier and/or the Supplemental Bonus Multiplier shall be zero (0).
The Supplemental Bonus Multiplier shall be zero (0), regardless of the achievement of the Individual Performance Objectives, if the Corporate Performance Objectives for the Bonus Period are not
achieved resulting in a Performance Bonus Multiplier of 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 

5

 

a
business unit's Revenue, Free Cash Flow, EBITDA, Adjusted EBITDA 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). 

        (c)   Restricted Stock Units.    For each Management Participant, the Committee shall retain the discretion to
designate whether cash, Restricted Stock Units or a combination thereof will be paid to the Management Participant in the event the amount of the Participant's Performance Bonus exceeds the
Participant's Target Performance Bonus. The Committee may exercise that discretion any time before the Distribution Date for the applicable Bonus Period by either specifying the number of Restricted
Stock Units at the time the Target Bonus Percent and the Performance Bonus Multiplier for the Management Participant are determined or by converting the dollar amount of the Performance Bonus in
excess of the Management Participant's Target Performance Bonus into Restricted Stock Units. In that case, the cash portion of the Management Participant's Performance Bonus may be limited to the
Participant's Target Performance Bonus, and any Performance Bonus in excess of the Participant's Target Performance Bonus can be paid in cash, Restricted Stock Units or a combination thereof. Any cash
and/or Restricted Stock Units that are paid for the portion of the Management Participant's Performance Bonus that exceeds the Participant's Target Performance Bonus will vest and be paid only if the
Participant is employed by an Employer on the six-month anniversary of the date of Distribution for the applicable Bonus Period. Any Restricted Stock Units to be awarded to a Management Participant
under the Plan shall be awarded under the EarthLink, Inc. 2006 Equity and Cash Incentive Plan or any other plan of the Company from which Restricted Stock Units may be granted to the Management
Participant and shall be subject to the terms of the applicable plan and the agreement governing the Restricted Stock Units. 

        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 and Supplemental
Bonus shall be calculated, and the sum of the Performance Bonus and the Supplemental Bonus shall equal the Participant's Bonus Award. Notwithstanding any other provision of the Plan, the Participant's
Bonus Award may not exceed the Maximum Bonus Award. 

        (c)   Written Determination.    For any portion of a Bonus Award that is payable based on the achievement of
Corporate Performance Objectives, the Committee shall certify in writing whether 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. Accordingly, the Bonus Awards hereunder also will be subject to the terms of the 2006 Equity and Cash
Incentive Plan to the extent applicable 

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

 

        6.2    Timing of Payment.    Any Distribution to be paid for a Bonus Period shall be paid as soon as administratively
practicable after the end of the Bonus Period and 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, 2008 and ending June 30, 2008 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, 2008 and ending December 31, 2008
(subject to the provisions of Section 6.1 above) and (ii) the portion of the Management Participant's Performance Bonus that exceeds the Participant's Target Performance Bonus for the Bonus Period
shall be paid in Restricted Stock Units on the Distribution Date (which Restricted Stock Units will vest and be paid on the six-month anniversary of the Distribution Date), cash on the six-month
anniversary of the Distribution Date or a combination thereof, provided in any case that the Management Participant will receive the cash or shares of Common Stock on the six-month anniversary of the
Distribution Date only if the Participant is employed by an Employer at such time. 

        6.3    Payment of Award.    The amount of the Bonus Award to be paid to the Participant in cash pursuant to this
Section 6 shall be paid in one lump sum cash payment by the Employer that employs the Participant. The Restricted Stock Units to be awarded shall be granted by the Company. 

        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 the Federal and any state or local government or other applicable laws. Additionally, each Participant shall be responsible for satisfying in cash or
cash equivalent acceptable to the Committee any income and employment tax withholding obligations attributable to the grant, vesting and payment of Restricted Stock Units. To the extent set forth in
the agreement governing the Restricted Stock Units, the Committee, to the extent applicable law permits, may allow the Participant to pay any such amounts as set forth in the agreement governing the
Restricted Stock Units. 

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
Corporate Performance Objectives and Individual Performance Objectives achieved during the Bonus Period through the time of the Participant's termination of employment (annualized or otherwise
adjusted 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. In that event, 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. Any Restricted Stock Units to be paid under this Section 7.1 shall be vested in full on the date of payment notwithstanding any other provision of the Plan. Such Bonus Awards shall be paid
as
soon as administratively practicable after the termination of the Participant's employment but no later than the time they would have been paid if the Participant had remained employed. 

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 elimination and severance plan maintained
by the Company or any Affiliate, then, the Participant shall be entitled to receive for the 

7

 

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 Corporate Performance
Objectives and Individual Performance Objectives achieved during the Bonus Period through the time of the Participant's termination of employment (annualized or otherwise adjusted 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. In that
event, 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. Any Restricted Stock Units to
be paid under this Section 8.1 shall be vested in full on the date of payment notwithstanding any other provision of the Plan. Such Bonus Awards shall be paid as soon as administratively practicable
after the termination of the Participant's employment but no later than the time they would have been paid had the Participant remained employed.. 

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 money 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 Participant's or any
other persons bankruptcy or insolvency, except as set forth in Section 7.2 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. 

8

 

        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 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. 

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. 

9

 

        (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). 

        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. 

10

QuickLinks

Exhibit 10.49

EARTHLINK, INC. 2008 INCENTIVE BONUS PLAN

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]