-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HqKZ5f3xt1oW8YN/0dBzaqmJ+xg9R9RtjlKz1ZBZ79jS3CxGUs9YwMWi4UV4sizt ki1xyUb6t7+L1Aba0Ulumw== 0000912057-02-029997.txt : 20020806 0000912057-02-029997.hdr.sgml : 20020806 20020806120225 ACCESSION NUMBER: 0000912057-02-029997 CONFORMED SUBMISSION TYPE: 8-A12B PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20020806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EARTHLINK INC CENTRAL INDEX KEY: 0001102541 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 582511877 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-A12B SEC ACT: 1934 Act SEC FILE NUMBER: 001-15605 FILM NUMBER: 02720368 BUSINESS ADDRESS: STREET 1: 1375 PEACHTREE STREET STREET 2: SUITE 400 CITY: ATLANTA STATE: GA ZIP: 30309 BUSINESS PHONE: 4048150770 MAIL ADDRESS: STREET 1: 1375 PEACHTREE STREET CITY: ATLANTA STATE: GA ZIP: 30309 FORMER COMPANY: FORMER CONFORMED NAME: WWW HOLDINGS INC DATE OF NAME CHANGE: 20000104 8-A12B 1 a2084610z8-a12b.htm 8-A12B
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549

FORM 8-A

FOR REGISTRATION OF CERTAIN CLASSES OF SECURITIES PURSUANT TO
SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

EARTHLINK, INC.
(Exact Name of Registrant as Specified in its Charter)

Delaware
(State of Incorporation or Organization)
  58-2511877
(I.R.S. Employer Identification No.)

1375 Peachtree St., Atlanta, GA
(Address of Principal Executive Offices)

 

30309
(Zip Code)

Securities to be registered pursuant to Section 12(b) of the Act:

Title of Each Class
to be so Registered

  Name of Each Exchange on Which
Each Class is to be Registered

Rights to Purchase Series D Junior Preferred Stock (pursuant to Rights Agreement dated as of August 6, 2002)   Nasdaq-National Market

If this form relates to the registration of a class of securities pursuant to Section 12(b) of the Exchange Act and is effective pursuant to General Instruction A(c), please check the following box ý

If this form relates to the registration of a class of securities pursuant to Section 12(g) of the Exchange Act and is effective pursuant to General Instruction A(d), please check the following box. o

Securities Act registration statement file number to which this form relates:            N/A    

Securities to be registered pursuant to Section 12(g) of the Act:        None

N/A
(Title of Class)





Item 1. Description of Registrant's Securities to be Registered

Introduction

        On August 6, 2002, the Board of Directors (the "Board") of EarthLink, Inc. ("EarthLink") adopted a Shareholder Rights Plan (the "Rights Plan") which is embodied in the Rights Agreement (as amended from time to time, the "Rights Agreement") entered into between EarthLink and American Stock Transfer and Trust Co. (the "Rights Agent"), which is the agent that will administer the Rights Plan. On August 6, 2002, in connection with the Rights Plan, the Board also declared a dividend of one "Right" for each outstanding share of EarthLink's Common Stock, par value $.01 per share (the "Common Stock"), for stockholders of record at the close of business on August 5, 2002.

        Each Right generally the entitles the holder to purchase one one-thousandth (1/1,000) of a share (a "Unit") of EarthLink's newly created Series D Junior Preferred Stock at a price of $60.00 per Unit upon certain events. Generally, in the event a person or entity acquires, or initiates a tender offer to acquire, at least 15% of EarthLink's then outstanding Common Stock, the Rights will become exercisable for Common Stock having a value equal to two times the exercise price of the Right, or effectively at one-half of EarthLink's then-current stock price. The Rights are redeemable under certain circumstances at $0.01 per Right and will expire, unless earlier redeemed, on August 6, 2012.

        The complete description and terms of the Rights Plan are set forth in the Rights Agreement, which was filed as an exhibit to an 8-K Current Report filed by EarthLink with the Securities and Exchange Commission and which is incorporated herein by reference.

Description of Rights; Purchase Price

        Each Right entitles the registered holder to purchase from EarthLink, under certain circumstances, a unit consisting of one one-thousandth (1/1,000) of a share of EarthLink's Series D Junior Preferred Stock, par value $.01 per share (the "Preferred Stock"), at a Purchase Price of $60.00 per Unit. The purchase price is subject to appropriate adjustment for stock splits and other similar events.

        Voting.    Each Unit shall entitle the holder thereof to one vote on all matters submitted to a vote of EarthLink's stockholders, voting together with holders of Common Stock as one class on all such matters. Holders of Units shall not have the right to cumulate their votes in the election EarthLink's directors, and will have the same voting rights and limitations applicable to holders of Common Stock as set forth in EarthLink's Amended and Restated Certificate of Incorporation.

        Dividends.    Each Unit shall entitle the holder thereof to a right to receive dividends, when, as and if declared by the Board out of funds legally available therefor and only after payment of, or provision for, full dividends on all outstanding shares of any senior series of preferred stock and after EarthLink has made provision for any required sinking or purchase funds for any series of preferred stock, on a pari passu basis with dividend rights of the Common Stock.

        Liquidation.    In the event of EarthLink's voluntary or involuntary liquidation, dissolution or winding up, holders of the Units shall be entitled to share equally and ratably in all of the assets remaining, if any, after satisfaction of (i) all EarthLink's debts and liabilities, and (ii) the preferential rights of any senior series of preferred stock, but before any such liquidation distributions are paid in respect of Common Stock.

        Mergers.    In the event of any merger, consolidation or other transaction in which Common Stock is changed or exchanged, the holder of each Unit will be entitled to receive the same consideration received per share of Common Stock. These rights are protected by customary antidilution provisions (see Adjustments below). Although the Rights are redeemable, Units of Preferred Stock purchasable upon exercise of the Rights will not be redeemable.

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        Because a Unit is equal to one one-thousandth (1/1,000) of a share of Preferred Stock, a holder of one full share of Preferred Stock generally would be entitled to dividend, liquidation and voting rights equal to one thousand (1,000) times the dividend, liquidation and voting rights of one share of Common Stock. Because of the nature of the Units' dividend, liquidation and voting rights, the value of one one-thousandth (1/1,000) of a share of Preferred Stock purchasable upon exercise of each Right should approximate the value of one share of Common Stock.

Exercisability of Rights; Expiration Date

        The Rights are not exercisable until occurrence of certain triggering events, referred to as Distribution Dates (as defined below), and will expire at the close of business on August 6, 2012 (the "Final Expiration Date"), unless the Rights are earlier redeemed or exchanged by EarthLink, all as described below.

Triggering Events; Distribution Date

        The Rights will be exercisable only upon the earlier of: (i) 10 business days following a public announcement (the "Stock Acquisition Date") that a person or group of affiliated or associated persons (an "Acquiring Person") had acquired, or obtained the right to acquire, beneficial ownership of 15% or more of EarthLink's outstanding Common Stock, and (ii) 10 business days following the commencement of a tender offer or exchange offer that would result in an Acquiring Person beneficially owning 15% or more of such outstanding shares of Common Stock (each, a "Flip-In Triggering Event"). However, Sprint Corporation and its affiliates ("Sprint") generally are exempted from such triggering thresholds based on Sprint's current ownership of EarthLink stock and Sprint's rights to purchase additional shares, as provided in EarthLink's existing contractual arrangements with Sprint.

Flip-In Rights

        In the event of a Flip-In Triggering Event, each Right will automatically convert into a Right to buy Common Stock rather than Preferred Stock. As such, each holder of a Right will thereafter have the right to purchase EarthLink's Common Stock (or, in certain circumstances, cash, property or other securities of EarthLink) having a value equal to two times the exercise price of the Right, or in other words, effectively at one-half of EarthLink's then-current stock price. However, any Rights associated with Common Stock acquired by an Acquiring Person will be void, and such Acquiring Person will not be able to exercise the Rights to purchase additional Common Stock. Rights are not exercisable following the occurrence of a Flip-In Event until such time as the Rights are no longer redeemable by EarthLink, described below.

        Following is an example of how exercise of the Rights would work, assuming an exercise price of $60.00 per Right and a then-current market price for EarthLink's Common Stock of $10.

Example:    At an exercise price of $60 per Right, each Right (excluding those owned by an Acquiring Person) would be multiplied by the number of Units of Preferred Stock into which the Right was exercisable—1. That number ($60 × 1 = $60) is then divided by 50% of the then-current market price of EarthLink's stock (50% of $10 = $5)—thus, $60 divided by 5 equals 12, which is the number of shares of EarthLink Common Stock received for each Right. Thus, for each $60 purchase price, each holder would receive 12 shares of EarthLink Common Stock, which would have an aggregate worth of $120—twice the $60 purchase price.

Flip-Over

        In the event that, at any time following the Flip-In Triggering Event: (i) EarthLink is acquired in a merger or other business combination transaction, or (ii) more than 50% of EarthLink's assets or

2



earning power is sold or transferred, each holder of a Right (except voided Rights held by the Acquiring Person) shall have the right to purchase common stock of the Acquiring Person having a value equal to two times the exercise price of the Right. The formula for a Flip-Over purchase is the same as used for a Flip-In Event, only utilizing the market price of the Acquiring Person's stock.

Transfer and Detachment of Rights

        Initially, the Rights will be attached to all Common Stock certificates representing Common Stock then outstanding, and no separate Rights Certificates will be distributed. The Rights will separate from the Common Stock upon a "Distribution Date", which generally is the 10th day after a triggering event. Until the Distribution Date: (i) the Rights will be evidenced by the Common Stock certificates and will be transferred with and only with such Common Stock certificates, (ii) new Common Stock certificates issued after August 6, 2002 will contain a legend and notation incorporating the Rights Agreement by reference and (iii) the surrender for transfer of any certificates for Common Stock outstanding will also constitute the transfer of the Rights associated with the Common Stock represented by such certificate. Except as otherwise determined by the Board, only shares of Common Stock issued prior to the Distribution Date will be issued with Rights.

        As soon as practicable after a Distribution Date, Rights Certificates will be mailed to holders of record of the Common Stock as of the close of business on the Distribution Date and, thereafter, the separate Rights Certificates alone will represent the Rights. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate must make such request in writing to the Rights Agent, and shall surrender the Rights Certificate to be transferred, split up, combined or exchanged at the principal office or offices of the Rights Agent. Neither the Rights Agent nor EarthLink shall be obligated to take any action whatsoever regarding the transfer of any such surrendered Rights Certificate until the registered holder has completed and signed the certificate contained in the form of assignment (on the reverse side of the Rights Certificate) and has provided such additional information about the identity of the parties involved, as EarthLink may reasonably request. Thereupon the Rights Agent shall, subject to certain restrictions contained in the Rights Agreement regarding certain entities acquiring 15% or more of EarthLink's Common Stock, countersign and deliver to the person entitled a Rights Certificate or Rights Certificates, as the case may be, as so requested. EarthLink may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates.

Adjustments

        The Purchase Price payable, and the number of Units or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Stock, (ii) if holders of the Preferred Stock are granted certain rights or warrants to subscribe for Preferred Stock, or shares having the same rights, preferences and privileges as the Preferred Stock, or convertible securities at less than the current market price of the Preferred Stock, or (iii) upon the distribution to holders of the Preferred Stock of evidences of indebtedness or assets (excluding regular quarterly cash dividends) or of subscription rights or warrants (other than those referred to above).

        With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments amount to at least 1% of the Purchase Price. No fractional Units will be issued and, in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Stock on the last trading date prior to the date of exercise.

3



Redemption

        In general, at any time prior to the earlier of (i) the close of business on the 10th business day following the Stock Acquisition Date, or (ii) the Final Expiration Date, EarthLink may redeem the Rights in whole, but not in part, at a price of $.01 per Right. Immediately upon the action of the Board ordering redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the redemption price.

Exchange

        In general, at any time after a Person becomes an Acquiring Person, and prior to the acquisition by such person or group of 50% or more of the outstanding Common Stock, the Board may exchange all or part of the then outstanding Rights (other than Rights owned by such person or group which have become void) for Common Stock at an exchange ratio of one share of Common Stock per Right (or in certain circumstances preferred stock), subject to applicable adjustments.

Rights of Holders

        Until a Right is exercised, the holder thereof will have no rights as a stockholder of EarthLink relating to the Rights, including without limitation the right to vote, receive dividends or any distributions upon liquidation.

Tax Consequences

        While the distribution of the Rights will not be taxable to stockholders or to EarthLink, stockholders may, depending upon the circumstances, recognize taxable income in the event that the Rights became exercisable for Common Stock (or other consideration) of EarthLink or for common stock of the acquiring company as set forth above.

Amendments

        Other than those provisions relating to the duration of the Rights Agreement and the principal economic terms of the Rights, any of the provisions of the Rights Agreement may be amended by the Board prior to the Distribution Date. After the Distribution Date, the provisions of the Rights Agreement (other than those described in the preceding sentence) may be amended by the Board in order to cure any ambiguity, to make changes that do not adversely affect the interests of holders of Rights, or to shorten or lengthen any time period under the Rights Agreement; provided, however, that no amendment to adjust the time period governing redemption shall be made at such time as the Rights are not redeemable.

Further Information

        A copy of the Rights Agreement is being filed by EarthLink with the Securities and Exchange Commission as an Exhibit to a Current Report on Form 8-K. A copy of the Rights Agreement is also available to EarthLink stockholders free of charge from EarthLink. This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is incorporated herein by reference.

4



Item 2. Exhibits

        The following exhibits are filed as part of the Registration Statement:

3.1   Amended and Restated Certificate of Incorporation of EarthLink, Inc. (incorporated by reference to Exhibit 3.2 of EarthLink's Annual Report on Form 10-K for the fiscal year ended December 31, 1999) (File No. 001-15605).

3.2

 

Amended and Restated Certificate of Designation, Preferences and Rights of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.3 of EarthLink's Report on Form 10-K for the fiscal year ended December 31, 2000) (File No. 001-15605).

3.3

 

Amended and Restated Certificate of Designation, Preferences and Rights of Series B Convertible Preferred Stock (incorporated by reference to Exhibit 3.4 of EarthLink's Report on Form 10-K for the fiscal year ended December 31, 2000) (File No. 001-15605).

3.4

 

Certificate of Correction Filed to Correct Certain Inaccuracies in the Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock of EarthLink, Inc. (incorporated by reference to Exhibit 4.8 of EarthLink's Form S-3/A) (File No. 333-59456).

3.5

 

Certificate of Correction Filed to Correct a Certain Inaccuracy in the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock of EarthLink, Inc. (incorporated by reference to Exhibit 4.9 of EarthLink's Form S-3/A) (File No. 333-59456).

3.6

 

Bylaws of EarthLink, Inc. (incorporated by reference to Exhibit 3.3 of EarthLink's Annual Report on Form 10-K for the fiscal year ended December 31, 1999) (File No. 001-15605).

4.1

 

Rights Agreement, dated as of August 6, 2002, by and between EarthLink, Inc. and American Stock Transfer & Trust Co. (incorporated by reference to Exhibit 4.1 of EarthLink's 8-K Current Report filed on August 6, 2002) (File No. 001-15605).

4.2*

 

Certificate of Designations, Preferences and Rights for Series D Junior Preferred Stock.

*
Filed herewith.

5



SIGNATURE

        Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized.

            EARTHLINK, INC.

 

 

 

 

 

 

By:

 

/s/ CHARLES G. BETTY
               
            Name:   Charles G. Betty
               
            Title:   Chief Executive Officer
               

Dated:

 

August 6, 2002

 

 

 

 

6



EXHIBIT INDEX

        The following exhibits are filed as part of the Registration Statement:

3.1   Amended and Restated Certificate of Incorporation of EarthLink, Inc. (incorporated by reference to Exhibit 3.2 of EarthLink's Annual Report on Form 10-K for the fiscal year ended December 31, 1999) (File No. 001-15605).

3.2

 

Amended and Restated Certificate of Designation, Preferences and Rights of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.3 of EarthLink's Report on Form 10-K for the fiscal year ended December 31, 2000) (File No. 001-15605).

3.3

 

Amended and Restated Certificate of Designation, Preferences and Rights of Series B Convertible Preferred Stock (incorporated by reference to Exhibit 3.4 of EarthLink's Report on Form 10-K for the fiscal year ended December 31, 2000) (File No. 001-15605).

3.4

 

Certificate of Correction Filed to Correct Certain Inaccuracies in the Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock of EarthLink, Inc. (incorporated by reference to Exhibit 4.8 of EarthLink's Form S-3/A) (File No. 333-59456).

3.5

 

Certificate of Correction Filed to Correct a Certain Inaccuracy in the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock of EarthLink, Inc. (incorporated by reference to Exhibit 4.9 of EarthLink's Form S-3/A) (File No. 333-59456).

3.6

 

Bylaws of EarthLink, Inc. (incorporated by reference to Exhibit 3.3 of EarthLink's Annual Report on Form 10-K for the fiscal year ended December 31, 1999) (File No. 001-15605).

4.1

 

Rights Agreement, dated as of August 6, 2002, by and between EarthLink, Inc. and American Stock Transfer & Trust Co. (incorporated by reference to Exhibit 4.1 of EarthLink's 8-K Current Report filed on August 6, 2002) (File No. 001-15605).

4.2*

 

Certificate of Designations, Preferences and Rights for Series D Junior Preferred Stock.

*
Filed herewith.

7




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EX-4.2 3 a2084610zex-4_2.htm EXHIBIT 4.2
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Exhibit 4.2


CERTIFICATE OF DESIGNATIONS,
PREFERENCES AND RIGHTS OF SERIES D JUNIOR PREFERRED STOCK

EARTHLINK, INC.

Pursuant to Section 151 of the General Corporation Law
of the State of Delaware

        The undersigned, the Chief Executive Officer of EarthLink, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (the "Corporation"), in accordance with the provisions of Section 103 thereof, DOES HEREBY CERTIFY:

        That pursuant to the authority conferred upon the Board of Directors of the Corporation (the "Board of Directors") by the Amended and Restated Certificate of Incorporation (the "Certificate of Incorporation") of the Corporation, the Board of Directors on August 6, 2002, adopted the following resolution creating a series of preferred stock designated as Series D Junior Preferred Stock, which shall be issued only in connection with the Corporation's Rights Agreement between the Corporation and American Stock Transfer and Trust Co., dated as of August 6, 2002, as may hereafter be amended from time to time (the "Rights Agreement"):

        RESOLVED, that pursuant to the authority vested in the Board in accordance with the provisions of the Certificate of Incorporation, the Board hereby authorizes and establishes a new series of the Company's capital stock, Series D Junior Preferred Stock, with a par value of $0.01 per share, and that the designation and amount thereof and the voting powers, preferences and relative, participating, optional and other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof are as set forth in the Certificate of Designations, Preferences and Rights, which preferred stock shall be established and issued out of the Company's authorized but unissued and available preferred stock as set forth in the Certificate of Incorporation;

        The designation and amount thereof and the voting powers, preferences and relative, participating, optional and other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof are as follows:

        Section 1.    Designation and Amount.    The shares of such series of the Corporation's preferred stock shall be designated as "Series D Junior Preferred Stock" (the "Junior Preferred Stock"), having a par value per share equal to $.01, and the number of shares constituting such series of Junior Preferred Stock shall be 300,000 shares, which amount of shares shall be reserved and issued only in connection with the Rights Agreement. Such number may be increased or decreased by the Board of Directors.

        Section 2.    Dividends and Distributions.    The shares of Junior Preferred Stock are entitled to an equal and ratable right to receive dividends, when, as and if, declared by the Board of Directors out of funds legally available therefor and only after payment of, or provision for, full dividends on all outstanding shares of any senior series of preferred stock and after EarthLink has made provision for any required sinking or purchase funds for any series of preferred stock, on a pari passu basis with dividend rights of the Corporation's common stock, $.01 par value (the "Common Stock"), provided, that for purposes of dividend distributions hereunder, each one one-thousandth (1/1,000) of a share of Junior Preferred Stock shall be the equivalent of one share of Common Stock.

        Section 3.    Voting Rights.    Subject to the provision for adjustment hereinafter set forth, each one one-thousandth (1/1,000) of a share of Junior Preferred Stock shall entitle the holder thereof to one (1) vote on all matters submitted to a vote of the stockholders of the Corporation, voting together with holders of shares of Common Stock as one class on all such matters. Holders of shares of Junior Preferred Stock shall not have the right to cumulate their votes in the election of the Corporation's directors, and will have the voting rights and limitations applicable to holders of shares of Common Stock as set forth in the Certificate of Incorporation.



        Section 4.    Reacquired Shares.    Any shares of Junior Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of preferred stock and may be reissued as part of a new series of preferred stock to be created by resolution or resolutions of the Board of Directors, as set forth in the Certificate of Incorporation, subject to the conditions and restrictions on issuance set forth herein.

        Section 5.    Liquidation Rights.    In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation (a "Liquidation Event"), the Junior Preferred Stock shall be entitled to share equally and ratably in all of the assets remaining, if any, after satisfaction of (i) all debts and liabilities of the Corporation, and (ii) the preferential rights of any series of preferred stock then outstanding, and before any such Liquidation Event distributions in respect of Common Stock, provided, that for purposes of Liquidation Event distributions hereunder, each one one-thousandth (1/1,000) of a share of Junior Preferred Stock shall be the equivalent of one (1) share of Common Stock.

        Section 6.    Consolidation, Merger.    A consolidation, share exchange, combination or merger of the Corporation with or into any other entity or entities, or a sale, conveyance or disposition of all or substantially all of the assets of the Corporation, or the effectuation by the Corporation of a transaction or series of related transactions in which more than 50 percent (50%) of the outstanding voting power of the Corporation is transferred to one or more entities not previously affiliated with the Corporation (each a "Business Combination"), shall entitle the holder of each share of Junior Preferred Stock to receive the shares of stock, securities, cash, assets (or any combination thereof) or other consideration as may be issued or payable to the holders of each share of Common Stock pursuant to the terms of any Business Combination on an equal and ratable basis with the Common Stock, provided, that for purposes of this Section 6, each one one-thousandth (1/1,000) of a share of Junior Preferred Stock shall be the equivalent of one (1) share of Common Stock.

        Section 7.    Rank.    Unless provided otherwise in documents creating a series of preferred stock of the Corporation after the date hereof, the Junior Preferred Stock shall rank junior to the Corporation's Series A Convertible Preferred Stock, Series B Convertible Preferred Stock and all other series of the Corporation's preferred stock hereafter created that include rights preferential to the terms of the Junior Preferred Stock as set forth herein, and except with respect to distribution of the Corporation's assets upon a Liquidation Event as set forth in Section 5 hereof, the Junior Preferred Stock shall otherwise rank pari passu with the Common Stock in all respects including dividend rights and voting rights. Nothing herein shall preclude the Board of Directors from creating or authorizing any class or Series of preferred stock ranking on parity with, senior to or junior to the Junior Preferred Stock as to payment of dividends, distribution of assets or otherwise.

        Section 8.    No Redemption Rights.    The Junior Preferred Stock shall not be subject to redemption or similar repurchase rights, either in favor of the Corporation or holders of shares of the Junior Preferred Stock.

        Section 9.    No Conversion Rights.    The Junior Preferred Stock shall not be subject to conversion into other security of the Corporation or any other conversion rights, either by the Corporation or holders of shares of the Junior Preferred Stock.

        Section 10.    No Preemptive Rights.    The Junior Preferred Stock shall not be subject to any preemptive rights.

        Section 11.    Fractional Shares.    Junior Preferred Stock may be issued in fractions of a share that shall entitle the holder, in proportion to such holders' fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Junior Preferred Stock.

        Section 12.    Adjustment; Subdivision; Combination.    In the event that the Corporation shall at any time after the Record Date effect a subdivision or combination or consolidation of the outstanding shares of Junior Preferred Stock (by stock split, reclassification or otherwise) into a greater or lesser



number of shares of Junior Preferred Stock, then and in each such event, the aggregate amount to which the holder of each share of Junior Preferred Stock was entitled immediately prior to such event shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Junior Preferred Stock outstanding immediately after such event, and the denominator of which is the number of shares of Junior Preferred Stock that were outstanding immediately prior to such event. In the event the Corporation shall at any time after the Record Date (i) declare any dividend on Common Stock payable in shares of Common Stock, or (ii) effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by stock split, reclassification or otherwise) into a greater or lesser number of shares of Common Stock, then in each such case the rights to which each one thousandth (1/1,000) of a share of Junior Preferred Stock was entitled prior to such event in Sections 2, 3, 5 and 6 hereof shall be adjusted as applicable by multiplying such number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

[Signature Page Follows]


        IN WITNESS WHEREOF, this Certificate of Designations, Preferences and Rights of Series D Junior Preferred Stock has been executed on behalf of EarthLink, Inc. as of the 6th day of August, 2002.

    EARTHLINK, INC.

 

 

By:

 

/s/  
CHARLES G. BETTY      
    Name: Charles G. Betty
Title: Chief Executive Officer



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CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS OF SERIES D JUNIOR PREFERRED STOCK
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