Document:

Exhibit 10.8

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

 

This Amended and Restated Employment
Agreement (the "Agreement") is made and entered into effective as of
the 1st day of October 2003, by and between United Online, Inc., a Delaware
corporation (the "Company"), with principal corporate offices 2555
Townsgate Road, Westlake Village, California 91361, and Charles S. Hilliard,
whose address is 2112 Marsh Brook Road, Lake Sherwood, California 91361
("Employee").

 

WHEREAS, the Employee had previously entered
into an employment agreement (the "Prior Agreement") effective April
17, 1999, with NetZero, Inc., a wholly-owned subsidiary of the Company; and

 

WHEREAS, the Prior Agreement was amended
effective February 9, 2001 and that, effective as of the date hereof, the
Employee and the Company desire to further amend the Prior Agreement.

 

NOW THEREFORE, the Employee and the Company
hereby amend and restate the Prior Agreement as follows.

 

1.             Employment.

 

1.1           The
Company hereby agrees to employ Employee, and Employee hereby accepts such
employment, on the terms and conditions set forth herein, commencing the date
hereof, and continuing through February 9, 2005 (the "Term"), unless
such employment is terminated earlier as provided in Section 4 below.

 

2.             Duties
of Employee.

 

2.1           Employee
shall serve as Executive Vice President, Finance and Chief Financial Officer of
the Company.  In this capacity, Employee
shall perform such customary, appropriate and reasonable executive duties as
are usually performed by the Chief Financial Officer, including such duties as
are delegated to him from time to time by the Board of Directors of the Company
or a committee thereof (the "Board").  Employee shall report directly to the Company’s Chief Executive
Officer.

 

2.2           Employee
agrees to devote Employee’s full time, attention, skill and efforts to the
performance of his duties for the Company during the Term.

 

 

3.             Compensation
and Other Benefits.

 

3.1           Base
Salary.  During the Term, the
Company shall pay to Employee a base per fiscal year equal to Employee’s
current base salary (the "Base Salary"), with payments to be made in
accordance with the Company’s standard payment policy and subject to such
withholding as may be required by law. 
Employee’s Base Salary shall be increased to include any increases in
Employee’s base salary as approved by the Board.

 

3.2           Bonus.  During the Term, the Employee shall also be
eligible to receive an annual cash bonus of up to 100% of Employee’s base
salary for each fiscal year (the "Annual Bonus"), less withholding
required by law, based on performance criteria established by the Board.  Employee’s Annual Bonus shall be increased
to include any increases in Employee’s annual bonus as approved by the Board.  Employee shall not be eligible to receive
any unpaid Annual Bonus if his employment hereunder is terminated pursuant to
either Section 4.1, or if Employee voluntarily resigns.

 

3.3           Vacation.  Employee shall be entitled to four (4) weeks
paid vacation in accordance with the Company’s standard vacation policies.

 

3.4           Other Benefits.  Employee shall be eligible to participate,
as of the date of Employee’s employment, in all group life, health, medical,
dental or disability insurance or other employee, health and welfare benefits
made available generally to other executives of the Company.  If Employee elects to participate in any of
such plans, Employee’s portion of the premium(s) will be deducted from
Employee’s paycheck.

 

3.5           Business Expenses.  The Company shall promptly reimburse
Employee for all reasonable and necessary business expenses incurred by
Employee in connection with the business of the Company and the performance of
his duties under this Agreement, subject to Employee providing the Company with
reasonable documentation thereof.

 

4.             Termination.

 

4.1           Termination for
Cause.

 

(a)           Termination
"for cause" is defined as follows: the Company terminates Employee’s
employment with the Company (1) if Employee is convicted of a felony or
commits an act of moral turpitude, in either case which adversely impacts the
Company, (2) if Employee materially breaches the Company’s Confidentiality
and Proprietary Agreement, or (3) if Employee fails, after receipt of detailed
written notice and after receiving a period of at least thirty (30) days
following such notice to cure such failure, 
to use his reasonable good faith efforts to follow the direction of the
Company’s Board of Directors and to perform his

 

2

 

obligations hereunder.

 

(b)           The
Company may terminate this Agreement for any of the reasons stated in
Section 4.1(a) by giving written notice to Employee without prejudice to
any other remedy to which the Company may be entitled.  The notice of termination shall specify the
grounds for termination.  If Employee’s
employment hereunder is terminated "for cause" pursuant to this
Section 4.1, Employee shall be entitled to receive hereunder his accrued but
unpaid Base Salary and vacation pay through the date of termination, and
reimbursement for any expenses as set forth in Section 3.5, through the date of
termination, but shall not be entitled to receive any unpaid portion of the
Annual Bonus or any other amount.

 

4.2           Termination
Without Cause.  If Employee’s
employment is terminated without "cause" as defined in
Section 4.1(a), or if Employee is Involuntarily Terminated (as defined
below), the Company (or its successor, as the case may be) shall pay to
Employee (i) any accrued but unpaid Base Salary and vacation through the date
of termination, (ii) reimbursement for any expenses as set forth in Section
3.5, through the date of termination and (iii) 
a severance payment in an amount equal to (A) three times Employee’s
Base Salary and Annual Bonus in the event of an Involuntary Termination or (B)
four times Employee’s Base Salary and Annual Bonus in the event Employee’s
employment is terminated without cause, payable in one lump sum on the date of
termination, subject to withholding as may be required by law.  For the purposes of Section 4.2(iii)(A)
above, Annual Bonus shall mean the greater of 75% of Employee’s then current
Base Salary or the Annual Bonus paid to Employee for the preceding fiscal
year.  For the purposes of Section
4.2(iii)(B) above, Annual Bonus shall mean 75% of Employee’s then current Base
Salary.  In addition, if Employee’s
employment is terminated without cause (other than if Employee is Involuntarily
Terminated) or if Employee’s employment is terminated due to death or permanent
disability, Employee will be credited with an additional twelve (12) months of
service toward vesting in all stock options and restricted stock awards then
held by Employee (the "Option Shares") in addition to the service he
has accrued toward vesting through the date of termination.    If Employee is Involuntarily Terminated,
vesting of all Option Shares will be accelerated in full and all such options
shall remain in effect for a one (1) year period following the date of
termination.

 

As used in
this Section 4.2, Employee shall be deemed "Involuntarily Terminated"
if (i) the Company or any successor to the Company terminates Employee’s
employment without cause in connection with or following a Corporate
Transaction or Change of Control (as defined in the Company’s 1999 Stock
Incentive Plan); or (ii) in connection with or following a Corporate
Transaction or Change of Control there is (a) a decrease in Employee’s title or
responsibilities (it being deemed to be a

 

3

 

decrease in
title and/or responsibilities if Employee is not offered the position of
Executive Vice President, Finance and Chief Financial Officer of the Company or
its successor as well as the acquiring and ultimate parent entity, if any,
following the Corporate Transaction or Change of Control), (b) a decrease in
pay and/or benefits from those provided by the Company immediately prior to the
Corporate Transaction or (c) a requirement that Employee re-locate out of the
greater Los Angeles metropolitan area.

 

5.             Noncompetition.  For the eighteen (18) month period following
the termination of Employee’s employment with the Company (but only if Employee
has received the severance payments specified in Section 4.2 above) (the
"Noncompetition Period"), Employee shall not directly engage in, or
manage or direct persons engaged in, a Competitive Business Activity (as
defined below) anywhere in the Restricted Territory (as defined below);
provided, that the Noncompetition Period shall terminate if the Company
terminates operations or if the Company no longer engages in any Competitive
Business Activity.  The term
"Competitive Business Activity" shall mean the business of providing
consumers with dial-up Internet access services (free or pay).  The term "Restricted Territory"
shall mean each and every county, city or other political subdivision of the
United States in which the Company is engaged in business or providing its
services.  The Company agrees that
providing services to a company or entity that is involved in a Competitive Business
Activity but which services are unrelated to the Competitive Business Activity
shall not be deemed a violation of this Agreement.  For the purposes of damages to the Company with respect to any
breach of this Section 5, the value of Employee’s obligations to the Company
under this Section 5 equals 37.5% of the cash severance payment in Section
4.2(iii) above.

 

6.             Gross-Up
Payment.  If the aggregate of all
payments or benefits made or provided to the Employee under this Agreement and
under all other plans and programs of the Company (the "Aggregate
Payment") is determined to constitute a "parachute payment," as
such term is defined in Section 280G(b)(2) of the Internal Revenue Code of
1986, as amended (the "Code"), the Company shall pay to the Employee,
prior to or coincident with the time any excise tax imposed by Section 4999 of
the Code (the "Excise Tax") is payable with respect to such Aggregate
Payment, an additional amount that, after the imposition of all penalties,
income, excise and other federal, state and local taxes thereon, is equal to
the sum of the Excise Tax on the Aggregate Payment and interest and penalties
imposed with respect to the Excise Tax and such additional amount (the
"Gross-Up Payment").  For
example, if the Excise Tax imposed with respect to the Aggregate Payment equals
$1,000,000 and all penalties, income, excise and other federal, state and local
taxes on the Gross-Up Payment equal $2,333,333, the Gross-Up Payment will be
$3,333,333.  The determination of
whether the Aggregate Payment constitutes a parachute payment and, if so, the
amount to be paid to the Employee and the time of payment pursuant to this
Section 6 shall be made by an independent auditor (the "Auditor")
selected and paid by the Company and reasonably acceptable to the Employee.  The Auditor shall be a nationally recognized
United States public accounting firm. 
For purposes of

 

4

 

determining
the amount of the Gross-Up Payment, the Employee shall be deemed to pay income
tax at the highest marginal rates of federal, state and local income taxation
in the calendar year in which the Gross-Up Payment is to be made, net of the
maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes.

 

In the event
that the Excise Tax is finally determined to be less than the amount taken into
account hereunder in calculating the Gross-Up Payment, the Employee shall repay
to the Company, within five (5) business days following the time that the
amount of such reduction in the Excise Tax is finally determined, the portion
of the Gross-Up Payment attributable to such reduction plus that portion of the
Gross-Up Payment attributable to the Excise Tax and federal, state and local
income and employment taxes imposed on the Gross-Up Payment being repaid by the
Employee, to the extent that such repayment results in a reduction in the
Excise Tax and a dollar-for-dollar reduction in the Employee’s taxable income
and wages for purposes of federal, state and local income and employment taxes,
plus interest on the amount of such repayment at 120% of the rate provided in
section 1274(b)(2)(B) of the Code.  In
the event that the Excise Tax is determined to exceed the amount taken into
account hereunder in calculating the Gross-Up Payment (including by reason of
any payment the existence or amount of which cannot be determined at the time
of the payment of the Gross-Up Payment), the Company shall make an additional
Gross-Up Payment in respect of such excess (plus any interest, penalties or additions
payable by the Employee with respect to such excess) within five (5) business
days following the time that the amount of such excess is finally
determined.  The Employee and the
Company shall cooperate with each other in connection with any proceeding or
claim relating to the existence or amount of liability for Excise Tax, and all
expenses incurred by the Employee in connection therewith shall be paid by the
Company promptly upon notice of demand from the Employee.

 

7.             Assignment.  Neither the Company nor Employee may assign
this Agreement or any rights or obligations hereunder.   This Agreement will be binding upon the
Company and its successors and assigns. 
In the event of a Corporate Transaction or Change of Control, the
Company shall cause this Agreement to be assumed by the Company’s successor as
well as any acquiring or ultimate parent entity, if any, following any
Corporate Transaction or Change of Control.

 

8.             Miscellaneous.

 

8.1           This Agreement
supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to the employment of Employee by the Company, other
than the Confidentiality and Proprietary Agreement, and constitutes the entire
agreement between the Company and the Employee with respect to its subject
matter.

 

8.2           This Agreement may not
be amended, supplemented, modified or extended, except by written agreement
which expressly refers to this Agreement, which is signed by each of the
parties hereto and which is

 

5

 

authorized by the Company’s
Board.

 

8.3           This Agreement is made
in and shall be governed by the laws of California, without giving effect to
its conflicts-of-law principles.

 

8.4           If any provision of
this Agreement is held by an arbitrator or a court of competent jurisdiction to
conflict with any federal, state or local law, or to be otherwise invalid or
unenforceable, such provision shall be construed in a manner so as to maximize
its enforceability while giving the greatest effect as possible to the parties’
intent.   To the extent any provision
cannot be construed to be enforceable, such provision shall be deemed to be
eliminated from this Agreement and of no force or effect and the remainder of this
Agreement shall otherwise remain in full force and effect and be construed as
if such portion had not been included in this Agreement.

 

8.5           Employee represents and
warrants to the Company that there is no restriction or limitation, by reason
of any agreement or otherwise, upon Employee’s right or ability to enter into
this Agreement and fulfill his obligations under this Agreement.

 

8.6           All notices and other
communications required or permitted hereunder shall be in writing and shall be
mailed by first-class mail, postage prepaid, registered or certified, or
delivered either by hand, by messenger or by overnight courier service, and
addressed to the receiving party at the respective address set forth in the
heading of this Agreement, or at such other address as such party shall have
furnished to the other party in accordance with this Section 8.6 prior to
the giving of such notice or other communication.

 

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the first date
written above.

 

	
   

  	
  UNITED
  ONLINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Mark Goldston

  	
   

  
	
   

  	
   

  	
  Mark
  Goldston, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Charles S. Hilliard

  	
   

  
	
   

  	
   

  	
  Charles S.
  Hilliard

  

 

6Exhibit 10.9

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

 

This Amended and Restated Employment
Agreement (the “Agreement”) is made and entered into effective as of the 1st
day of October 2003, by and between United Online, Inc., a Delaware corporation
(the “Company”), with principal corporate offices 2555 Townsgate Road, Westlake
Village, California 91361, and Frederic A. Randall, Jr., whose address is 432
Isabella Terrace, Corona del Mar, California 92625 (“Employee”).

 

WHEREAS, the Employee had previously entered
into an employment agreement (the “Prior Agreement”) effective March 20, 1999,
with NetZero, Inc., a wholly-owned subsidiary of the Company; and

 

WHEREAS, the Prior Agreement was amended
effective February 9, 2001 and that, effective as of the date hereof, the
Employee and the Company desire to further amend the Prior Agreement.

 

NOW THEREFORE, the Employee and the Company
hereby amend and restate the Prior Agreement as follows.

 

1.             Employment.

 

1.1           The
Company hereby agrees to employ Employee, and Employee hereby accepts such
employment, on the terms and conditions set forth herein, commencing the date
hereof, and continuing through February 9, 2005 (the “Term”), unless such
employment is terminated earlier as provided in Section 4 below.

 

2.             Duties
of Employee.

 

2.1           Employee
shall serve as Executive Vice President and General Counsel of the
Company.  In this capacity, Employee
shall perform such customary, appropriate and reasonable executive duties as
are usually performed by the General Counsel, including such duties as are
delegated to him from time to time by the Board of Directors of the Company or
a committee thereof (the “Board”). 
Employee shall report directly to the Company’s Chief Executive Officer.

 

2.2           Employee
agrees to devote Employee’s full time, attention, skill and efforts to the
performance of his duties for the Company during the Term.

 

 

3.             Compensation
and Other Benefits.

 

3.1           Base
Salary.  During the Term, the
Company shall pay to Employee a base per fiscal year equal to Employee’s
current base salary (the “Base Salary”), with payments to be made in accordance
with the Company’s standard payment policy and subject to such withholding as
may be required by law.  Employee’s Base
Salary shall be increased to include any increases in Employee’s base salary as
approved by the Board.

 

3.2           Bonus.  During the Term, the Employee shall also be
eligible to receive an annual cash bonus of up to 100% of Employee’s base
salary for each fiscal year (the “Annual Bonus”), less withholding required by
law, based on performance criteria established by the Board.  Employee’s Annual Bonus shall be increased
to include any increases in Employee’s annual bonus as approved by the Board.  Employee shall not be eligible to receive
any unpaid Annual Bonus if his employment hereunder is terminated pursuant to
either Section 4.1, or if Employee voluntarily resigns.

 

3.3           Vacation.  Employee shall be entitled to four (4) weeks
paid vacation in accordance with the Company’s standard vacation policies.

 

3.4           Other Benefits.  Employee shall be eligible to participate,
as of the date of Employee’s employment, in all group life, health, medical,
dental or disability insurance or other employee, health and welfare benefits
made available generally to other executives of the Company.  If Employee elects to participate in any of
such plans, Employee’s portion of the premium(s) will be deducted from
Employee’s paycheck.

 

3.5           Business Expenses.  The Company shall promptly reimburse
Employee for all reasonable and necessary business expenses incurred by
Employee in connection with the business of the Company and the performance of
his duties under this Agreement, subject to Employee providing the Company with
reasonable documentation thereof.

 

4.             Termination.

 

4.1           Termination for
Cause.

 

(a)           Termination
“for cause” is defined as follows: the Company terminates Employee’s employment
with the Company (1) if Employee is convicted of a felony or commits an
act of moral turpitude, in either case which adversely impacts the Company,
(2) if Employee materially breaches the Company’s Confidentiality and
Proprietary Agreement, or (3) if Employee fails, after receipt of detailed
written notice and after receiving a period of at least thirty (30) days
following such notice to cure such failure, 
to use his reasonable good faith efforts to follow the direction of the
Company’s Board of Directors and to perform his

 

2

 

obligations hereunder.

 

(b)           The
Company may terminate this Agreement for any of the reasons stated in
Section 4.1(a) by giving written notice to Employee without prejudice to
any other remedy to which the Company may be entitled.  The notice of termination shall specify the
grounds for termination.  If Employee’s
employment hereunder is terminated “for cause” pursuant to this Section 4.1,
Employee shall be entitled to receive hereunder his accrued but unpaid Base
Salary and vacation pay through the date of termination, and reimbursement for
any expenses as set forth in Section 3.5, through the date of termination, but
shall not be entitled to receive any unpaid portion of the Annual Bonus or any
other amount.

 

4.2           Termination
Without Cause.  If Employee’s
employment is terminated without “cause” as defined in Section 4.1(a), or
if Employee is Involuntarily Terminated (as defined below), the Company (or its
successor, as the case may be) shall pay to Employee (i) any accrued but unpaid
Base Salary and vacation through the date of termination, (ii) reimbursement
for any expenses as set forth in Section 3.5, through the date of termination
and (iii)  a severance payment in an
amount equal to (A) three times Employee’s Base Salary and Annual Bonus in the
event of an Involuntary Termination or (B) four times Employee’s Base Salary
and Annual Bonus in the event Employee’s employment is terminated without
cause, payable in one lump sum on the date of termination, subject to
withholding as may be required by law. 
For the purposes of Section 4.2(iii)(A) above, Annual Bonus shall mean
the greater of 75% of Employee’s then current Base Salary or the Annual Bonus
paid to Employee for the preceding fiscal year.  For the purposes of Section 4.2(iii)(B) above, Annual Bonus shall
mean 75% of Employee’s then current Base Salary.  In addition, if Employee’s employment is terminated without cause
(other than if Employee is Involuntarily Terminated) or if Employee’s
employment is terminated due to death or permanent disability, Employee will be
credited with an additional twelve (12) months of service toward vesting in all
stock options and restricted stock awards then held by Employee (the “Option
Shares”) in addition to the service he has accrued toward vesting through the
date of termination.    If Employee is
Involuntarily Terminated, vesting of all Option Shares will be accelerated in
full and all such options shall remain in effect for a one (1) year period
following the date of termination.

 

As used in
this Section 4.2, Employee shall be deemed “Involuntarily Terminated” if (i)
the Company or any successor to the Company terminates Employee’s employment
without cause in connection with or following a Corporate Transaction or Change
of Control (as defined in the Company’s 1999 Stock Incentive Plan); or (ii) in
connection with or following a Corporate Transaction or Change of Control there
is (a) a decrease in Employee’s title or responsibilities (it being deemed to
be a

 

3

 

decrease in
title and/or responsibilities if Employee is not offered the position of
Executive Vice President and General Counsel of the Company or its successor as
well as the acquiring and ultimate parent entity, if any, following the
Corporate Transaction or Change of Control), (b) a decrease in pay and/or
benefits from those provided by the Company immediately prior to the Corporate
Transaction or (c) a requirement that Employee re-locate out of the greater Los
Angeles metropolitan area.

 

5.             Noncompetition.  For the eighteen (18) month period following
the termination of Employee’s employment with the Company (but only if Employee
has received the severance payments specified in Section 4.2 above) (the
“Noncompetition Period”), Employee shall not directly engage in, or manage or
direct persons engaged in, a Competitive Business Activity (as defined below)
anywhere in the Restricted Territory (as defined below); provided, that the
Noncompetition Period shall terminate if the Company terminates operations or
if the Company no longer engages in any Competitive Business Activity.  The term “Competitive Business Activity”
shall mean the business of providing consumers with dial-up Internet access
services (free or pay).  The term
“Restricted Territory” shall mean each and every county, city or other
political subdivision of the United States in which the Company is engaged in
business or providing its services.  The
Company agrees that providing services to a company or entity that is involved
in a Competitive Business Activity but which services are unrelated to the
Competitive Business Activity shall not be deemed a violation of this
Agreement.  For the purposes of damages
to the Company with respect to any breach of this Section 5, the value of
Employee’s obligations to the Company under this Section 5 equals 37.5% of the
cash severance payment in Section 4.2(iii) above.

 

6.             Gross-Up
Payment.  If the aggregate of all
payments or benefits made or provided to the Employee under this Agreement and
under all other plans and programs of the Company (the “Aggregate Payment”) is
determined to constitute a “parachute payment,” as such term is defined in
Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the
“Code”), the Company shall pay to the Employee, prior to or coincident with the
time any excise tax imposed by Section 4999 of the Code (the “Excise Tax”) is
payable with respect to such Aggregate Payment, an additional amount that,
after the imposition of all penalties, income, excise and other federal, state
and local taxes thereon, is equal to the sum of the Excise Tax on the Aggregate
Payment and interest and penalties imposed with respect to the Excise Tax and
such additional amount (the “Gross-Up Payment”).  For example, if the Excise Tax imposed with respect to the
Aggregate Payment equals $1,000,000 and all penalties, income, excise and other
federal, state and local taxes on the Gross-Up Payment equal $2,333,333, the
Gross-Up Payment will be $3,333,333.  
The determination of whether the Aggregate Payment constitutes a
parachute payment and, if so, the amount to be paid to the Employee and the
time of payment pursuant to this Section 6 shall be made by an independent
auditor (the “Auditor”) selected and paid by the Company and reasonably
acceptable to the Employee.  The Auditor
shall be a nationally recognized United States public accounting firm.  For purposes of determining the amount of
the Gross-Up Payment, the Employee shall be deemed

 

4

 

to pay income
tax at the highest marginal rates of federal, state and local income taxation
in the calendar year in which the Gross-Up Payment is to be made, net of the
maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes.

 

In the event
that the Excise Tax is finally determined to be less than the amount taken into
account hereunder in calculating the Gross-Up Payment, the Employee shall repay
to the Company, within five (5) business days following the time that the
amount of such reduction in the Excise Tax is finally determined, the portion
of the Gross-Up Payment attributable to such reduction plus that portion of the
Gross-Up Payment attributable to the Excise Tax and federal, state and local
income and employment taxes imposed on the Gross-Up Payment being repaid by the
Employee, to the extent that such repayment results in a reduction in the
Excise Tax and a dollar-for-dollar reduction in the Employee’s taxable income
and wages for purposes of federal, state and local income and employment taxes,
plus interest on the amount of such repayment at 120% of the rate provided in
section 1274(b)(2)(B) of the Code.  In
the event that the Excise Tax is determined to exceed the amount taken into
account hereunder in calculating the Gross-Up Payment (including by reason of
any payment the existence or amount of which cannot be determined at the time
of the payment of the Gross-Up Payment), the Company shall make an additional
Gross-Up Payment in respect of such excess (plus any interest, penalties or
additions payable by the Employee with respect to such excess) within five (5)
business days following the time that the amount of such excess is finally
determined.  The Employee and the
Company shall cooperate with each other in connection with any proceeding or
claim relating to the existence or amount of liability for Excise Tax, and all
expenses incurred by the Employee in connection therewith shall be paid by the
Company promptly upon notice of demand from the Employee.

 

7.             Assignment.  Neither the Company nor Employee may assign
this Agreement or any rights or obligations hereunder.   This Agreement will be binding upon the
Company and its successors and assigns. 
In the event of a Corporate Transaction or Change of Control, the
Company shall cause this Agreement to be assumed by the Company’s successor as
well as any acquiring or ultimate parent entity, if any, following any
Corporate Transaction or Change of Control.

 

8.             Miscellaneous.

 

8.1           This Agreement
supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to the employment of Employee by the Company, other
than the Confidentiality and Proprietary Agreement, and constitutes the entire
agreement between the Company and the Employee with respect to its subject
matter.

 

8.2           This Agreement may not
be amended, supplemented, modified or extended, except by written agreement
which expressly refers to this Agreement, which is signed by each of the
parties hereto and which is authorized by the Company’s Board.

 

5

 

8.3           This Agreement is made
in and shall be governed by the laws of California, without giving effect to
its conflicts-of-law principles.

 

8.4           If any provision of
this Agreement is held by an arbitrator or a court of competent jurisdiction to
conflict with any federal, state or local law, or to be otherwise invalid or
unenforceable, such provision shall be construed in a manner so as to maximize
its enforceability while giving the greatest effect as possible to the parties’
intent.   To the extent any provision
cannot be construed to be enforceable, such provision shall be deemed to be
eliminated from this Agreement and of no force or effect and the remainder of
this Agreement shall otherwise remain in full force and effect and be construed
as if such portion had not been included in this Agreement.

 

8.5           Employee represents and
warrants to the Company that there is no restriction or limitation, by reason
of any agreement or otherwise, upon Employee’s right or ability to enter into
this Agreement and fulfill his obligations under this Agreement.

 

8.6           All notices and other
communications required or permitted hereunder shall be in writing and shall be
mailed by first-class mail, postage prepaid, registered or certified, or
delivered either by hand, by messenger or by overnight courier service, and
addressed to the receiving party at the respective address set forth in the
heading of this Agreement, or at such other address as such party shall have
furnished to the other party in accordance with this Section 8.6 prior to
the giving of such notice or other communication.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the first date written above.

 

 

	
   

  	
  UNITED
  ONLINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Mark
  Goldston

  	
   

  
	
   

  	
   

  	
  Mark
  Goldston, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Frederic A. Randall, Jr.

  	
   

  
	
   

  	
  Frederic A.
  Randall, Jr.

  

 

6

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