Earthlink 2008 Annual Report Download - page 177

• For employees eligible and participating in the Company’s medical, dental, and vision plans, the Company will pay
to eligible employees an amount equal to the employer portion of active employees’ premiums for those plans, plus the two percent
COBRA administration fee, for four (4) months of COBRA benefits coverage. The Company will make this payment in a single lump
sum as soon as administratively practicable following termination of the employee’s employment but no later than the 15 day of the
third month of the calendar year following the calendar year in which the employee’s right to the payment vests. The Company shall
withhold or obtain payment for applicable income and employment taxes from any payments for COBRA benefits. Ex-employees may
continue COBRA for the COBRA eligibility period by paying 100 percent of the COBRA premium.
• Six (6) months of outplacement services provided by a vendor selected by the Company, with a value of up to
$4,800, beginning immediately following the termination of employee’s employment with the Company and all Affiliates. No cash
payment is available in lieu of the outplacement services.
• Employees given notice that their positions are being eliminated after the first quarter but prior to July 1 of any
calendar year will be paid the pro-rata bonus, if any, otherwise payable under the EarthLink Employee Bonus Plan based on regular
earnings and management’s estimate of the year-end bonus payout. This payment will be calculated at the time of and paid with the
lump sum severance payment described above. Employees given notice that their positions are being eliminated after July 1 of any
calendar year will be eligible for the pro-rata bonus, if any, otherwise payable under the EarthLink Employee Bonus Plan, based on
regular earnings for that year and actual business results, payable at the normal time of the bonus payout; provided, however, that such
pro-rata bonus will be paid no later than the 15 day of the third month of the calendar year following the calendar year in which the
employee’s right to such pro-rata bonus vests. Severance pay is not considered regular earnings. Employees given notice that their
positions are being eliminated during the first quarter of any calendar year will not be eligible for any bonus otherwise payable under
the EarthLink Employee Bonus Plan for that year.
II. Employees Whose Positions are at the Executive Level of the Career Band System . Eligible employees whose positions are at the
Executive Level of the Career Band System will receive, after the notice period, the following severance pay and benefits:
• Twelve (12) months base salary paid in a lump sum as soon as administratively practicable following the
termination of employee’s employment with the Company and all Affiliates but no later than the 15 day of the third month of the
calendar year following the calendar year in which the employee’s right to the payment vests. Base salary excludes overtime, incentive
compensation, bonuses, and any other forms of compensation over and above the employee’s base salary rate.
• For employees eligible and participating in the Company’s medical, dental and vision plans, the Company will pay
to the eligible employees an amount equal to the
4
th
st
th
th