Earthlink 2008 Annual Report Download - page 252

EXHIBIT F
SERVICE LEVEL 3 INCENTIVE EXAMPLES
For purposes of this example, Bright House Systems and all other systems are addressed collectively as TWC Systems. The calculations
illustrated herein would be performed separately for the group of Bright House Systems and the group of all other systems.
The examples herein assume that: (i) the Incentive Benchmark in TWC Cable Systems on the Effective Date is 550,000; (ii) the Incentive
Benchmark in TWC Cable Systems on the first anniversary of the Effective Date is 500,000 (i.e., EarthLink has ceased to be eligible for the
Service Level 3 Payment incentive) and (iii) the Incentive Benchmark in TWC Cable Systems on the second anniversary of the Effective Date is
575,000 (i.e., EarthLink has again become eligible for the Service Level 3 Payment incentive).
•
From the Effective Date until the first anniversary of the Effective Date, TWC is entitled to a monthly payment of $_____ as part of the
SL3 TWC Monthly Fee for the Service Level 3 Service Subscriptions sold by EarthLink during this twelve (12) month period. Any Service
Level 3 Service Subscriptions originally sold by EarthLink that terminate during this period will result in an $___ payment reduction in the SL3
TWC Monthly Fee, as long as there are incremental $___ customers attributable to this period in the rate calculation. If there are no $___
customers attributable to this period (i.e., if the number of EarthLink-sold Service Level 3 Service Subscribers on the date of such termination is
lower than the number of EarthLink-
sold Service Level 3 Service Subscribers that existed on the Effective Date), the reduction would be $_____
(since the terminating subscriber would be deemed to be a Service Level 3 Service Subscriber existing as of the Effective Date).
•
Between the first and second anniversaries of the Effective Date, TWC is entitled to a monthly payment of $_____ as part of the SL3
TWC Monthly Fee for the Service Level 3 Service Subscriptions sold by EarthLink during this twelve (12) month period. Any Service Level 3
Service Subscriptions originally sold by EarthLink that terminate during this period will result in a $_____ payment reduction to the SL3 TWC
Monthly Fee, as long as there are incremental $_____ customers attributable to this period. If there are no $______ customers attributable to this
period (i.e., if the number of EarthLink-sold Service Level 3 Service Subscribers on the date of such termination is lower than the number of
EarthLink-sold Service Level 3 Service Subscribers that existed on the first anniversary of the Effective Date (but higher than the number that
existed on the Effective Date)), the reduction would be $_____. Moreover, if the number of EarthLink-sold Service Level 3 Service Subscribers
on the date of such termination is lower than the number of EarthLink-sold Service Level 3 Subscribers that existed on the Effective Date, the
reduction would be $_____ (since the terminating subscriber would be deemed to be a Service Level 3 Service Subscriber existing as of the
Effective Date).