Document:

Filed by Bowne Pure Compliance

Exhibit 10.1

EXECUTION COPY

FIRST AMENDMENT TO LOAN AGREEMENT

by and between

HRHH DEVELOPMENT TRANSFEREE, LLC,

as Borrower

and

COLUMN FINANCIAL, INC.,

as Lender

Dated: As of November 10, 2008

 

 

 

FIRST AMENDMENT TO LOAN AGREEMENT

THIS FIRST AMENDMENT TO LOAN AGREEMENT, dated as of November 10, 2008 (this “Amendment”), made
by and between COLUMN FINANCIAL, INC., a Delaware corporation, having an address at 11 Madison
Avenue, New York, New York 10010 (together with its successors and assigns, “Lender”), and HRHH
DEVELOPMENT TRANSFEREE, LLC, a Delaware limited liability company, having its principal place of
business c/o Morgans Hotel Group Co., 475 Tenth Avenue, New York, New York 10018, Attention: Marc
Gordon, Chief Investment Officer (“Borrower”).

W I T N E S S E T H:

WHEREAS, pursuant to that certain Loan Agreement (the “Loan Agreement”), dated as of August 1,
2008, by and between Borrower and Lender, Borrower obtained a loan from Lender in the original
principal amount of Fifty Million and 00/100 Dollars ($50,000,000.00) (the “Loan”), which Loan is
evidenced by that certain Promissory Note (the “Note”), dated as of August 1, 2008, made by
Borrower in the original principal amount of Fifty Million and 00/100 Dollars ($50,000,000.00) and
payable to Lender, which Note is secured by, among other things, that certain Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Financing Statement (Fixture Filing) (the
“Mortgage”) dated as of August 1, 2008, executed by Borrower for the benefit of Lender and recorded
in the Official Records of Clark County, Nevada (the “Official Records”) (the Loan Agreement, the
Note and the Mortgage, together with all of the other “Loan Documents” (as such term is defined in
the Loan Agreement), are collectively referred to herein as the “Loan Documents”);

WHEREAS, capitalized terms used but not defined herein shall have the meanings assigned to
such terms in the Loan Agreement; and

WHEREAS, the parties hereto now desire to amend and modify the Loan Agreement as hereinafter
set forth;

NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated into the
operative provisions of this Amendment by this reference, and for other good and valuable
consideration, the receipt and legal sufficiency of which are hereby acknowledged by the parties
hereto, Borrower and Lender hereby agree as follows:

1. Reaffirmation of Loan Documents. Borrower reaffirms all of its obligations under
the Loan Agreement as modified herein and the other Loan Documents and Borrower acknowledges that,
as of the date hereof, it has no claims, counterclaims, offsets, rights of setoff or defenses
whatsoever with respect to the payment of sums now or hereafter payable or the performance of any
other obligations under the Loan Agreement, as amended herein, or any of the other Loan Documents.

 

 

 

2. Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows:

(a) The following new definitions are hereby added to Section 1.1 of the Loan
Agreement:

“A Piece Percentage” shall mean (a) prior to any Assumption, (i) in
connection with any prepayment of the Loan other than from the proceeds of
the Five Acre Release Price, forty percent (40%), and (ii) in connection
with any prepayment of the Loan from the proceeds of the Five Acre Release
Price, one hundred percent (100%); and (b) in connection with any prepayment
of the Loan after any Assumption and payment in full of the Five Acre
Release Price, zero percent (0%).

“A Piece Prepayment Premium” shall mean, with respect to any prepayment of
the Loan prior to the Initial Maturity Date (including from the proceeds of
the Five Acre Release Price):

(a) if the applicable prepayment shall occur on or before November 30,
2008, an amount equal to (i) the Spread Maintenance on the A Piece
Percentage of such prepayment, divided by (ii) two (2),
less (iii) $100,000.00;

(b) if the applicable prepayment shall occur after November 30, 2008
but on or before December 31, 2008, an amount equal to (i) the Spread
Maintenance on the A Piece Percentage of such prepayment, divided
by (ii) two (2); and/or

(c) if the applicable prepayment shall occur after December 31, 2008
but prior to the Initial Maturity Date, an amount equal to the Spread
Maintenance on the A Piece Percentage of such prepayment.

“A Piece Prime Rate Spread” shall mean the difference (expressed as the
number of basis points) between (i) LIBOR plus 1100 basis points on the date
LIBOR was last applicable to the Loan and (ii) the Prime Rate on the date
that LIBOR was last applicable to the Loan; provided,
however, in no event shall such difference be a negative number.

“Applicable B Interest Rate” shall mean (a) a per annum interest rate equal
to LIBOR plus 2250 basis points for a LIBOR Loan or (b) the Prime Rate plus
the B Piece Prime Rate Spread for a Prime Rate Loan if the Loan is converted
to a Prime Rate Loan pursuant to the provisions of Section 2.2.3(c)
or (f) hereof, subject in both of the foregoing circumstances to the
terms of Section 5.2.11(b)(ii) hereof.

“B Piece Percentage” shall mean (a) prior to any Assumption, (i) in
connection with any prepayment of the Loan other than from the proceeds of
the Five Acre Release Price, sixty percent (60%), and (ii) in connection
with any prepayment of the Loan from the proceeds of the Five Acre Release
Price, zero percent (0%); and (b) in connection with any
prepayment of the Loan after any Assumption and payment in full of the Five
Acre Release Price, one hundred percent (100%).

 

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“B Piece Prepayment Premium” shall mean, with respect to any prepayment of
the Loan prior to the Initial Maturity Date, an amount equal to the product
of (a) the B Piece Percentage of such prepayment, (b) the Applicable B
Interest Rate on the date of prepayment, and (c) a fraction, the numerator
of which shall equal the actual number of days from the date of such
prepayment through the Initial Maturity Date and the denominator of which is
360.

“B Piece Prime Rate Spread” shall mean the difference (expressed as the
number of basis points) between (i) LIBOR plus 2250 basis points on the date
LIBOR was last applicable to the Loan and (ii) the Prime Rate on the date
that LIBOR was last applicable to the Loan; provided,
however, in no event shall such difference be a negative number.

“Spread Maintenance” shall mean, with respect to any prepayment of the Loan
prior to the Initial Maturity Date, an amount equal to the product of (a)
the A Piece Percentage of such prepayment, (b) 1100 basis points, and (c) a
fraction, the numerator of which shall equal the actual number of days from
the date of such prepayment through the Initial Maturity Date and the
denominator of which is 360.

(b) The definition of “Applicable A Interest Rate” set forth in Section 1.1 of the
Loan Agreement (and in the definition of “Spread” in said Section 1.1 of the Loan Agreement) is
hereby deleted therefrom in its entirety and replaced with the following:

“Applicable A Interest Rate” shall mean (a) a per annum interest rate equal to LIBOR
plus 1100 basis points for a LIBOR Loan or (b) the Prime Rate plus the A Piece Prime
Rate Spread for a Prime Rate Loan if the Loan is converted to a Prime Rate Loan
pursuant to the provisions of Section 2.2.3(c) or (f) hereof.

(c) The definition of “Prepayment Premium” set forth in Section 1.1 of the Loan
Agreement is hereby deleted therefrom in its entirety and replaced with the following:

“Prepayment Premium” shall mean, with respect to any prepayment of the Loan
prior to the Initial Maturity Date, (a) the A Piece Prepayment Premium, and
(b) the B Piece Prepayment Premium, to the extent each of the foregoing is
applicable to such prepayment.

(d) The definition of “Spread” set forth in Section 1.1 of the Loan Agreement is hereby
deleted therefrom in its entirety and replaced with the following:

“Spread” shall mean, subject to application of the Default Rate, 17.9%, it
being acknowledged and agreed that the Spread represents the blend of an
11.00% spread over LIBOR on the A Piece Percentage of the Loan based
on the Outstanding Principal Balance as of the date hereof and a 22.50%
spread over LIBOR on the B Piece Percentage of the Loan based on the
Outstanding Principal Balance as of the date hereof.

 

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(e) Section 2.5.1(iii) of the Loan Agreement is hereby deleted therefrom in its entirety and
replaced with the following:

(iii) If the closing of such Five Acre Release shall occur prior to the
Initial Maturity Date, Borrower shall have paid or shall have arranged to be
paid contemporaneously with the closing of such Five Acre Release the A
Piece Prepayment Premium with respect to the Five Acre Release Price.

(f) The definition of “Five Acre Prepayment Premium” set forth in Section 1.1 of the Loan
Agreement is hereby deleted therefrom in its entirety.

(g) Section 6.1(vi) of the Loan Agreement is hereby deleted therefrom in its entirety and
replaced with the following:

(vi) environmental coverage, including site clean up and pollution
legal liability, with a minimum combined limit of Ten Million Dollars
($10,000,000) per occurrence and in the aggregate, with a deductible/self
insured retention not to exceed Five Hundred Thousand Dollars ($500,000),
which coverage may be provided under a blanket policy together with coverage
for the Hotel/Casino Property and other property owned by one or more
Affiliates of Borrower;

(h) Section 10.24 of the Loan Agreement is hereby deleted therefrom in its entirety and
replaced with the following:

Section 10.24 Note Register Lender (as agent for Borrower) shall
maintain a register (the “Register”) for the recordation of the names and
addresses of Lender and any successors and assigns and the Applicable
Interest Rate and the principal amount of the Loan owing to Lender from time
to time. The entries in the Register shall be conclusive, in the absence of
manifest error, and Borrower and Lender shall treat each Person whose name
is recorded in the Register as the owner of the Loan or other obligation
hereunder for all purposes of this Agreement, notwithstanding any notice to
the contrary. Any assignment of any obligation hereunder shall be effective
only upon appropriate entries with respect thereto being made in the
Register. The Register shall be available for inspection by Borrower or
Lender at any reasonable time and from time to time upon reasonable prior
notice. The foregoing language is intended to cause the Loan to be in
“registered form” as defined in Treasury Regulations Sections 5f.103-1(c)
and 1.871-14(c) and shall be interpreted and applied consistently therewith.

 

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3. Conforming Changes. Each reference in the Loan Agreement to “this Agreement”
shall, effective upon the date upon which the execution of this Amendment and the satisfaction of
the conditions precedent set forth herein shall have occurred, be deemed a reference to the Loan
Agreement as amended by this Amendment and shall include this Amendment. This Amendment shall form
a part of the Loan Agreement and shall always be construed as amending the Loan Agreement.

4. Conditions Precedent. Before this Amendment becomes effective, all of the
following conditions shall have been satisfied at Borrower’s sole cost and expense, subject to
Section 9.1(b) of the Loan Agreement, in a manner acceptable to Lender in its reasonable judgment:

(a) Borrower shall have deposited with Lender $758,333.00, which shall be deposited by Lender
into the Interest Reserve Account and shall thereafter constitute a portion of the Interest Reserve
Fund for all purposes under the Loan Agreement and the other Loan Documents.

(b) Lender shall have received a “date-down” title endorsement to be attached to the Title
Insurance Policy, in form and substance reasonably satisfactory to Lender, insuring that the terms
and provisions of this Amendment shall not affect the priority of the Mortgage (the “Title
Endorsement”).

(c) No Default or Event of Default shall have occurred and be continuing.

(d) Each Guarantor shall have executed and delivered to Lender the Consent and Reaffirmation
of Guarantor attached hereto as Exhibit A.

(e) Each of the DLJMB Parties and DLJ Guarantor shall have executed and delivered to Lender
the Consent and Reaffirmation of DLJMB Parties and DLJ Guarantor attached hereto as Exhibit
B.

(f) HRHH Development shall have executed and delivered to Lender the Consent and Reaffirmation
of HRHH Development attached hereto as Exhibit C.

(g) Lender shall have received reimbursement, in immediately available funds, for all costs
and expenses incurred by Lender (and Lender’s participants) in connection with this Amendment,
including, without limitation, charges for the Title Endorsement and legal fees and expenses of
counsel to each of Lender and Lender’s participant, NRFC UL Holdings, LLC.

5. Borrower’s Representations and Warranties. Borrower represents and warrants to
Lender as follows as of the date hereof:

(a) All of the representations and warranties made and given by Borrower in the Loan Documents
are true, accurate and correct.

(b) No Default or Event of Default has occurred and is continuing.

 

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(c) The execution and delivery of this Amendment and the performance of Borrower’s obligations
under the Loan Agreement as modified herein and the other Loan Documents have been duly authorized
by all requisite action by or on behalf of Borrower. The Loan Agreement as modified herein and the
other Loan Documents are the legal, valid and binding obligations of Borrower, enforceable against
Borrower in accordance with their respective terms, subject to principles of equity and bankruptcy,
insolvency and other laws generally affecting creditors’ rights and the enforcement of debtors’
obligations.

6. No Prejudice; Reservation of Rights. This Amendment shall not prejudice any rights
or remedies of Lender under the Loan Documents. Lender reserves, without limitation, all rights
which it has against any indemnitor, guarantor or endorser of the Loan Documents.

7. No Impairment. Except as specifically modified by this Amendment, all terms,
covenants and provisions of the Loan Agreement and the other Loan Documents shall remain unmodified
and in full force and effect. Any property or rights to or interests in property granted as
security in the Loan Documents shall remain as security for the Loan and the obligations of
Borrower in the Loan Documents.

8. Purpose and Effect of Lender’s Approval. Lender’s approval of any matter in
connection with the Loan shall be for the sole purpose of protecting Lender’s security and rights.
No such approval shall result in a waiver of any default of Borrower, except if and to the extent
such waiver is expressly stated therein. In no event shall Lender’s approval be a representation
of any kind with respect to the matter being approved.

9. No Rights Conferred on Others. Nothing contained in this Amendment or the Loan
Documents shall be construed as giving any Person, other than the parties hereto, any right, remedy
or claim under or with respect to this Amendment or the Loan Documents.

10. Counterparts. This Amendment may be executed by one or more of the parties hereto
on any number of separate counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

11. Successors and Assigns. This Amendment shall inure to the benefit of and be
binding upon Borrower and Lender, and their respective successors and assigns.

12. Modification. This Amendment may not be modified, amended, waived, changed or
terminated orally, but only by an agreement in writing signed by the party(ies) against whom the
enforcement of the modification, amendment, waiver, change or termination is sought.

13. Governing Law. This Amendment shall be governed by the terms and provisions of
Section 10.3 of the Loan Agreement.

14. Severability. In the event any one or more of the provisions contained in this
Amendment shall be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this Amendment, and this
Amendment shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

 

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15. Integration. The Loan Documents, including this Amendment, are intended by the
parties as the final expression of the agreement with respect to the terms and conditions set forth
in those documents and as the complete and exclusive statement of the terms agreed to by the
parties. In the event of any conflict between the terms of this Amendment and the terms of the
Loan Agreement or any of the other Loan Documents, the terms of this Amendment shall govern.

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, Borrower and Lender have executed this First Amendment to Loan Agreement
as of the day and year first above written.

	 	 	 	 	 
	 	BORROWER:

HRHH DEVELOPMENT TRANSFEREE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ RICHARD SZYMANSKI
 	 
	 	 	Name:  	Richard Szymanski 	 
	 	 	Its: Vice President 	 
	 
	 	LENDER:

COLUMN FINANCIAL, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ ELIZABETH VERRI
 	 
	 	 	Name:  	Elizabeth Verri 	 
	 	 	Its:              Vice President 	 

 

 

 

	 	 	 	 	 

Exhibits OmittedFiled by Bowne Pure Compliance

	Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment
Agreement (the “Agreement”) is entered into on November 14,
2008 (the “Effective Date”) between, EasyLink Services
International Corporation (the “Company”) and Chris A. Parker
(“Parker”).

In consideration of
the mutual covenants and conditions set forth herein, the parties hereby agree
as follows:

1. Employment. The Company hereby employs Parker in
the capacity of Executive Vice President of Production Operations. Parker
accepts such employment and agrees to perform such services as are customary to
such office and as shall from time to time be assigned to him by the
Company’s Chief Executive Officer. Parker will perform his duties so as
to cause the Business of the Company to be operated in accordance with an
annual operating plan and budget developed jointly by the Board and the Company
and approved by the Board. For purposes of this Agreement, the
“Business” of the Company is to provide business-to-business supply
chain data interchange in multiple electronic formats.

2. Term.
The employment hereunder shall be for a period of one year year, commencing
on the Effective Date and ending on the first anniversary of such date (the
“Employment Period”). Unless either party elects not to extend the
term of this Agreement by so notifying the other in writing at least
30 days prior to the first anniversary of the Original Effective Date and
each anniversary thereafter, the Employment Period shall automatically extend
for an additional one year upon each such anniversary. Parker’s
employment will be on a full-time basis requiring the devotion of such amount
of his productive time as is necessary for the efficient operation of the
Business of the Company.

3. Compensation and Benefits.

3.1 Salary.
For the performance of Parker’s duties hereunder, the Company shall
pay Parker an annual base salary in the amount as provided on Exhibit A, a
copy of which is attached hereto and incorporated herein by reference, payable
in accordance with the Company’s standard payroll policies, which may be
changed from time to time (but in no case less frequently than monthly).

3.2 Annual Cash
Incentive. Parker will receive the opportunity to earn an annual cash
incentive pursuant to the terms of Exhibit A attached hereto (the
“Annual Cash Incentive”). The Company agrees to negotiate in good
faith a new Annual Cash Incentive Plan for each year of Parker’s
employment subsequent to Fiscal 2009. If the Company fails to negotiate a new
Cash Incentive Plan for any year after Fiscal 2009, then the Annual Cash
Incentive in effect for the preceding year will govern. Notwithstanding any of
the provisions of this Agreement, the Annual Cash Incentive, to the extent
payable for any fiscal year of the Company, will be paid no later than the
15th day of the
third month following the end of the fiscal year of the Company to which the
Annual Cash Incentive relates.

3.3 Benefits.
The Company shall provide to Parker the benefits as described on
Exhibit B attached hereto.

 

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3.4
Reimbursement of Expenses. Parker shall be entitled to be reimbursed for
all actual and reasonable expenses, including but not limited to, expenses for
travel, meals and entertainment, incurred by Parker in connection with and
reasonably related to the furtherance of the Company’s Business, per
Company travel guidelines in effect from time to time. Subject to the Company
travel guidelines in effect from time to time, the Company will reimburse
Parker for such actual and reasonable expenses no later than the last day of
the calendar year following the calendar year in which Parker incurs the
reimbursable expense.

3.5 Equity
Grants. The parties incorporate the terms of Exhibit A attached hereto
regarding equity grants, provided however, that upon any Change in Control of
the Company as defined in Section 4 of this Agreement or if Parker’s
employment is terminated under Sections 5.1(b), (d) or (e) of
this Agreement, any of Parker’s equity grants that have not yet vested
will vest immediately.

4. Change
of Control. For the purposes of this Agreement, the term “Change of
Control” shall mean a change in the beneficial ownership of the
Company’s voting stock pursuant to which:

(a) any “person,” including a
“syndicate” or “group” as those terms are used in
Section 13(d)(3) of the Securities Exchange Act of 1934, is or becomes the
beneficial owner, directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company’s
then outstanding “Voting Securities,” which is any security that
ordinarily possesses the power to vote in the election of the board of
directors of a corporation without the happening of any precondition or
contingency; or

(b) the Company is merged or consolidated with another
corporation and immediately after giving effect to the merger or consolidation
less than 40% of the outstanding Voting Securities of the surviving or
resulting entity are then beneficially owned in the aggregate by either the
shareholders of the Company immediately prior to such merger or consolidation,
or, if a record date has been set to determine the shareholders of the Company
entitled to vote on such merger or consolidation, the shareholders of the
Company as of such record date; or

(c) the Company transfers substantially all of its assets
to another corporation, other than a corporation of which the Company owns,
directly or indirectly, at least 40% of the combined voting power of such
corporation’s outstanding voting securities.

5. Termination.

5.1 Termination
Events. Parker’s employment hereunder will terminate upon the
occurrence of any of the following events:

(a) Death;

(b) Disability: If Parker is unable perform the duties
assigned to him hereunder for a continuous period exceeding 90 days by
reason of injury, physical or mental illness or other disability, which
condition has been certified by a physician; then, upon written notice to
Parker or his personal representative setting forth specifically the nature of
the disability and the resulting performance failures

 

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and Parker’s
failure to cure the cited performance failures within ten days of receipt of
such notice, the Company may discharge Parker;

(c) Cause: As used in this Agreement, “Cause”
shall mean:

	 	(i)	 	
Parker’s conviction of (or pleading
guilty or nolo contendere to) a felony or any misdemeanor involving dishonesty
or moral turpitude; provided, however, that prior to discharging Parker for
Cause, the Board shall give a written statement of findings to Parker setting
forth specifically the grounds on which Cause is based, and Parker shall have a
period of ten days thereafter to respond in writing to the Board’s
findings; or

	 	(ii)	 	
Parker’s willful and continued failure
to substantially perform his duties with the Company (other than any failure
resulting from illness or disability) that has, or can reasonably be expected
to have, a direct and material adverse monetary effect on the Company, provided
that the Board has tendered written notice to Parker specifying the nature of
the misconduct or performance deficiency and giving Parker 20 days to cure
such deficiency. For purposes of this subsection (ii), no act or failure to act
on Parker’s part shall be considered “willful” if done, or
omitted to be done, by Parker in good faith and with reasonable belief that
Parker’s action or omission was in the best interest of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the Board or based upon the advice of counsel for the Company
shall be conclusively presumed to be done, or omitted to be done, by the
Employee in good faith and in the best interests of the Company;

(d) Without Cause: The Board may terminate Parker by
issuing at least 30 days’ advance written notice, subject to the
severance provisions set forth below;

(e) By Parker With Cause: Parker may terminate his
employment due to either (i) a material default by the Company in the
performance of any of its obligations hereunder, or (ii) an Adverse Change
in Duties (as defined below), which default or Adverse Change in Duties remains
unremedied by the Company for a period of 30 days following its receipt of
written notice thereof from Parker provided, however, that Parker must provide
written notice to the Company of the condition which would constitute cause for
terminating his employment hereunder within 90 days of the initial
existence of the condition, and, assuming such default or Adverse Change in
Duties remains unremedied by the Company after the 30-day period set forth
above, Parker then must terminate his employment within 12 months of the
initial existence of the condition; or

(f) By Parker Without Cause: Parker may terminate his
employment for any reason upon the furnishing of at least 30 days’
advance written notice to the Board.

As used herein,
“Adverse Change in Duties” means an action or series of actions
taken by the Company, without Parker’s prior written consent, that
results in:

(1) A material diminution in Parker’s authority,
duties or responsibilities;

 

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(2) A material diminution in Parker’s base
compensation;

(3) A material diminution in the authority, duties or
responsibilities of the supervisor to whom Parker is required to report;

(4) A material diminution in the budget over which Parker
retains authority; and

(5) A material change in the geographic location of the
Company, as located at the time of this Agreement, at which Parker performs his
duties.

5.2 Effects of
Termination.

(a) Upon termination of Parker’s employment
hereunder for any reason, the Company will promptly (but in no event later than
30 days after termination of engagement) pay Parker all compensation owed
to Parker and unpaid through the date of termination (including, without
limitation, salary and employee expense reimbursements).

(b) In addition, if Parker’s employment is
terminated under Sections 5.1 (a), (b), (d) or (e), the Company shall
also pay Parker a severance amount equal to the sum of (A) Parker’s
then-applicable annual base salary plus (B) the target Annual Cash
Incentive that would have accrued for the fiscal year in which the termination
occurred. Such severance amount shall be paid in a single lump sum.

(c) The Company shall have the right to offset against any
damages resulting from a breach by Parker of Section 5.3 or Section 6
of this Agreement, in which case, such offset shall be applied in full against
the payments remaining to be paid to Parker, from earliest to latest, and then
to recover any amounts previously paid.

5.3 Restrictive
Covenants. Upon termination of Parker’s employment hereunder for any
reason, Parker agrees that for the one-year period following the termination of
employment, Parker will not:

(a) directly or indirectly, within a ten-mile radius of
Parker’s office at the Company, whether for his own account or as an
individual, employee, director, consultant or advisor, or in any other capacity
whatsoever, provide services that are substantially similar to the services he
provided to the Company to any person, firm, corporation or other business
enterprise that competes with the Business of the Company, unless he obtains
the prior written consent of the Board;

(b) directly or indirectly encourage or solicit, or
attempt to encourage or solicit, on behalf of any person, firm, corporation or
other business enterprise that competes with the Business of the Company, any
individual to leave the Company’s employ for any reason or interfere in
any other manner with the employment relationships at the time existing between
the Company and its current or prospective employees; or

 

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(c) induce or attempt to induce, on behalf of any person,
firm, corporation or other business enterprise that competes with the Business
of the Company, any provider, payor, customer, supplier, distributor, licensee
or other business relation of the Company with whom Parker dealt at any time
during the two-year period preceding his termination of employment to cease
doing business with the Company or in any way interfere with the existing
business relationship between any such customer, supplier, distributor,
licensee or other business relation described above and the Company.

Parker acknowledges
that monetary damages will not be sufficient to compensate the Company for any
economic loss that may be incurred by reason of breach of the foregoing
restrictive covenants. Accordingly, in the event of any such breach, the
Company shall, in addition to any remedies available to the Company at law, be
entitled to obtain equitable relief in the form of an injunction precluding
Parker from continuing to engage in such breach.

In the event that
any of the foregoing restrictive covenants are too broad to be enforceable, the
parties request and agree that they may be reduced to such lesser breadth as
may be necessary to make them enforceable. The covenants in this
Section 5.3 shall be construed as an agreement independent of any other
agreement between the parties. Parker agrees that the existence of any claim or
cause of action of Parker against the Company, whether predicated upon this
Agreement or otherwise, shall not constitute a defense to the enforcement by
the Company of these covenants.

6. Confidentiality and Other Agreements. Parker
will continue to be bound by the terms of any confidentiality, non-competition,
non-solicitation and assignment of intellectual property rights agreements
previously entered into between Parker and the Company.

7. General
Provisions.

7.1 Assignment.
Parker may not assign or delegate any of his rights or obligations under
this Agreement. The Company may assign its rights and obligations under this
Agreement to any successor to the Company through merger, consolidation, sale
or the like.

7.2 Entire
Agreement. This Agreement contains the entire agreement between the parties
with respect to the subject matter hereof and supersedes any and all prior
agreements between the parties relating to such subject matter.

7.3
Modifications. This Agreement may be changed or modified only by an
agreement in writing signed by the party against whom enforcement is sought.

7.4 Successors
and Assigns. The rights and duties under this Agreement shall inure to the
benefit of, and be binding upon, the parties hereto and their successors and
assigns, legal representatives, heirs, legatees, distributees, assigns and
transferees by operation of law, whether or not any such person or entity shall
have become a party to this Agreement and have agreed in writing to join and be
bound by the terms and conditions hereof.

7.5 Governing
Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Georgia.

7.6
Severability; Partial Invalidity. If any provision of this Agreement or any
instrument or document delivered in connection herewith is held to be illegal,
invalid or unenforceable under present or future laws effective during the term
of this Agreement (the “Offending Provision”), the Offending
Provision shall be fully severable; this Agreement shall be construed and
enforced as if

 

5

 

the Offending Provision had never
comprised a part of this Agreement; and the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by
the Offending Provision or by its severance from this Agreement. Furthermore,
in lieu of the Offending Provision, there shall be added automatically as a
part of this Agreement a provision as similar in terms to the Offending
Provision as may be possible and be legal, valid and enforceable.

7.7 Further
Assurances. The parties will execute such further instruments and take such
further actions as may be reasonably necessary to carry out the intent of this
Agreement.

7.8 Notices.
Any notices or other communications required or permitted hereunder shall
be in writing and shall be deemed received by the recipient when delivered
personally or, if mailed, five (5) days after the date of deposit in the
United States mail, certified or registered, postage prepaid and addressed, in
the case of the Company, to:

6025 The Corners
Parkway

Suite 100

Norcross, Georgia 30092

and, in the case of Parker, to:

c/o EasyLink Services International
Corporation

6025 The Corners Parkway

Suite 100

Norcross,
Georgia 30092

or to such other address as either
party may later specify by at least ten (10) days’ advance written
notice delivered to the other party in accordance herewith.

7.9 No Waiver.
The failure of either party to enforce any provision of this Agreement
shall not be construed as a waiver of that provision, nor prevent that party
thereafter from subsequently enforcing that provision of any other provision of
this Agreement.

7.10 Legal Fees
and Expenses. In the event of any disputes under this Agreement, each party
shall be responsible for his or its own legal fees and expenses that may be
incurred in resolving such dispute.

7.11
Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute
one and the same instrument.

7.12 Omnibus
409A Provision. This Agreement is intended to be exempt from treatment as
deferred compensation under Section 409A of the Internal Revenue Code (the
“Code”) and shall be construed and interpreted in accordance
therewith. All rights to payments under this Agreement shall be treated as
rights to receive a series of separate payments to the fullest extent permitted
by Section 409A of the Code. Notwithstanding the preceding, the Company
shall not be liable to Parker 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 payment under this Agreement is subject to
taxes, penalties or interest as a result of failing to comply with
Section 409A of the Code.

Notwithstanding any
of the provisions of this Agreement, if Parker is a “specified
employee” (within the meaning of Section 409A of the Code), and any
payments hereunder are not otherwise exempt from Section 409A of the Code,
then, to the extent necessary to comply with Section 409A

 

6

 

of the Code, no payments may be made
hereunder before the date which is six months after the date of Parker’s
“separation from service” within the meaning of Section 409A
of the Code or, if earlier the date of Parker’s death. Because the
amounts payable hereunder will be made in all events no later than the 15th day of the third
month following the end of (i) the calendar year or (ii) the fiscal
year of the Company in which Parker terminates employment, whichever is later,
then all amounts payable hereunder should be exempt from Section 409A of
the Code as a short-term deferral. Consequently, this “specified
employee” six-month delay provision will only be applicable if it is
subsequently determined that the amounts to be paid pursuant to this Agreement
are not exempt from Section 409A of the Code. For purposes hereof,
termination of employment shall be read to mean a “separation from
service” within the meaning of Section 409A of the Code where it is
reasonably anticipated that no further services would be performed after such
date or that the level of bona fide services Parker would perform after that
date (whether as an employee or an independent contractor) would permanently
decrease to no more than 20 percent of the average level of bona fide
services performed over the immediately preceding 36-month period.

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the day and year first above
written

/ss/ Chris A.
Parker                                         

Chris A. Parker

EasyLink Services
International Corporation

By: /ss/ Thomas
J.
Stallings                           

Name:
Thomas J. Stallings

Title: CEO

 

7

 

EXHIBIT A

2009 Compensation Plan

Chris Parker, Executive Vice
President of Production Operations

SALARY 

The Company shall
pay you a salary of $200,000 annually. The Company, through the Compensation
Committee of the Board of Directors, will review your salary annually and, in
its sole discretion, may increase but not decrease your salary as appropriate,
subject to the approval of the Compensation Committee of the Board of Directors.

ANNUAL CASH INCENTIVE

You shall have the
opportunity to earn a cash incentive based on the Company’s and your
personal performance during Fiscal 2009. The Company, through the Compensation
Committee of the Board of Directors, retains the right to adjust your cash
incentive plan at any time as business circumstances or other factors
reasonably dictate.

Your targeted
annual incentive compensation (“Bonus”) for Fiscal 2009 is $40,000.
Payment of 2009 incentive compensation will be at fiscal year end (but no later
than as set forth in your Employment Agreement) and will based on a combination
of 25% payout on personal objectives and 75% payout on Company objectives as
noted below:

COMPANY OBJECTIVES To
be determined.

PERSONAL OBJECTIVES To
be determined.

LONG TERM STOCK
INCENTIVE

The Company will
grant you options for the purchase of 75,000 shares of the Company’s
class A common stock with an exercise price equal to the NASDAQ closing price
on November 14, 2008 with such options to vest in accordance with the
Company’s standard vesting schedule.

 

 

 

EXHIBIT B

Benefits

You will be
eligible to participate in benefit plans and/or programs which the Company may
offer to its employees or executives from time to time.  Your eligibility
for such plans and/or programs will be determined by the terms of such plans
and/or programs.  Among the benefits currently offered by the Company to
its employees are medical and dental insurance, a stock option plan and a 401k
plan, which are described below.  Please be advised, however, that the
Company reserves the right to amend, modify, or terminate any of its benefits
plans and/or programs at any time in its sole discretion.  You will be
eligible for three weeks vacation in accordance with the Company’s
accrual policy.

Medical
Insurance.  Currently, the Company offers its employees medical
insurance.  The Company currently contributes a portion of your premium
for employee coverage, and you will be responsible for contributing for
additional family coverage through pre-tax payroll deduction.

Dental
Insurance.  The Company presently offers its employees dental
insurance.  The Company currently contributes a portion of your premium
for employee coverage, and you will be responsible for contributing for
additional family coverage through pre-tax payroll deduction.

401k Plan.  The
Company presently offers its employees a 401k plan with a Company match to be
determined annually by the Compensation Committee of the Board of
Directors.  You may elect to contribute pre-tax deferrals through payroll
deduction pursuant to the terms of the 401k plan.

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