Document:

Exhibit 4.2

 

CLASSMATES
MEDIA CORPORATION

and

AMERICAN STOCK TRANSFER & TRUST COMPANY,

Rights Agent

Rights Agreement

Dated as of                                      ,
2007

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section
  1.

  	
  Certain Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section
  2.

  	
  Appointment of Rights Agent

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section
  3.

  	
  Issuance of Rights Certificates

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section
  4.

  	
  Form of Rights Certificates

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section
  5.

  	
  Countersignature and
  Registration

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section
  6.

  	
  Transfer, Split-Up, Combination
  and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen
  Rights Certificates

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section
  7.

  	
  Exercise of Rights; Purchase
  Price; Expiration Date of Rights

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section
  8.

  	
  Cancellation and Destruction of
  Rights Certificates

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section
  9.

  	
  Reservation and Availability of
  Capital Stock

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section
  10.

  	
  Preferred Stock Record Date

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section
  11.

  	
  Adjustment of Purchase Price,
  Number and Kind of Shares or Number of Rights

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section
  12.

  	
  Certificate of Adjusted
  Purchase Price or Number of Shares

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section
  13.

  	
  Consolidation, Merger or Sale
  or Transfer of Assets, Cash Flow or Earning Power

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section
  14.

  	
  Fractional Rights and
  Fractional Shares

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section
  15.

  	
  Rights of Action

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section
  16.

  	
  Agreement of Rights Holders

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section
  17.

  	
  Rights Certificate Holder Not
  Deemed a Stockholder

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section
  18.

  	
  Concerning the Rights Agent

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section
  19.

  	
  Merger or Consolidation or
  Change of Name of Rights Agent

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section
  20.

  	
  Duties of Rights Agent

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section
  21.

  	
  Change of Rights Agent

  	
  30

  

 

i

 

	
   

  	
   

  	
   

  
	
  Section
  22.

  	
  Issuance of New Rights
  Certificates

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section
  23.

  	
  Redemption and Termination

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section
  24.

  	
  Exchange

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section
  25.

  	
  Notice of Certain Events

  	
  33

  
	
   

  	
   

  	
   

  
	
  Section
  26.

  	
  Notices

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section
  27.

  	
  Supplements and Amendments

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section
  28.

  	
  Successors

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section
  29.

  	
  Determinations and Actions by
  the Board of Directors, etc.

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section
  30.

  	
  Benefits of this Agreement

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section
  31.

  	
  Severability

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section
  32.

  	
  Governing Law

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section
  33.

  	
  Counterparts

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section
  34.

  	
  Descriptive Headings

  	
  36

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit
  A:

  	
  Form of Certificate of
  Designation, Preferences and Rights

  	
   

  
	
  Exhibit
  B-1:

  	
  Form of Class A Right
  Certificate

  	
   

  
	
  Exhibit
  B-2:

  	
  Form of Class B Right
  Certificate

  	
   

  
	
  Exhibit
  C:

  	
  Form of Summary of Rights

  	
   

  
				

 

ii

 

RIGHTS AGREEMENT

 

RIGHTS
AGREEMENT, dated as of                                      ,
2007 (the “Agreement”),
between Classmates Media Corporation, a Delaware corporation (the “Company”),
and American Stock Transfer & Trust Company, a New York corporation (the “Rights Agent”).

 

W  I  T  N
E  S  S  E  T  H:

 

WHEREAS, on
                                     ,
2007 (the “Rights
Dividend Declaration Date”), the Board of Directors of the Company
(the “Board of Directors”) authorized and
declared a dividend distribution of (i) one preferred stock purchase right (a “Class A Right”) for each share of Class A common stock, par
value $0.0001 per share, of the Company (the “Class A
Common Stock”)
and (ii) one preferred stock purchase right (a “Class B
Right”) for each share of Class B common stock, par value $0.0001
per share, of the Company (the “Class B  Common Stock”),
outstanding at the close of business on
                                   ,
2007 (the “Record
Date”) (the Class A Rights and Class B Rights together, the “Rights”), and has authorized the issuance of one Class A
Right with respect to each share of Class A Common Stock and one Class B Right
with respect to each share of Class B Common Stock (as such number may
hereinafter be adjusted pursuant to the provisions of Section 11(p) hereof)
issued between the Record Date (whether originally issued or delivered from the
Company’s treasury) and the Distribution Date (as hereinafter defined), each
Right initially representing the right to purchase one one-thousandth of a
share of Series A Junior Participating Preferred Stock of the Company (the “Preferred Stock”)
having the rights, powers and preferences set forth in the form of Certificate
of Designation, Preferences and Rights attached hereto as Exhibit A, upon the
terms and subject to the conditions hereinafter set forth;

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein
set forth, the parties hereby agree as follows:

 

Section 1.               Certain Definitions.  For
purposes of this Agreement, the following terms have the meanings indicated,
applicable both to the singular and the plural forms of the terms described:

 

(a)           “Acquiring Person”
shall mean any Person who or which, together with all Affiliates and Associates
of such Person, shall be the Beneficial Owner of 15% or more of the shares of
Class A Common Stock then outstanding, 15% or more of the shares of Class B
Common Stock then outstanding or any combination of shares of Class A Common
Stock and shares of Class B Common Stock representing 15% or more of the shares
of Common Stock then outstanding, but shall not include (i) the Company, (ii)
any Subsidiary of the Company, (iii) any employee benefit plan of the Company,
or of any Subsidiary of the Company, or any Person or entity organized,
appointed or established by the Company for or pursuant to the terms of any
such plan, (iv) United Online or any Affiliate of United Online, (iv) any
Person who becomes the Beneficial Owner of 15% or more of the shares of Class A
Common Stock then outstanding, 15% or more of the shares of Class B Common
Stock then outstanding or any combination of 

 

1

 

shares of Class A Common Stock and shares of Class
B Common Stock representing 15% or more of the shares of Common Stock then
outstanding as a result of a reduction in the number of shares of Common Stock
outstanding due to the repurchase of shares of Common Stock by the Company (or
any Subsidiary of the Company, any employee benefit plan of the Company or of
any Subsidiary of the Company, or any Person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan)
unless and until such Person, after becoming aware that such Person has become
the Beneficial Owner of 15% or more of the then outstanding shares of Class A
Common Stock, 15% or more of the shares of Class B Common Stock then outstanding
or any combination of shares of Class A Common Stock and shares of Class B
Common Stock representing 15% or more of the shares of Common Stock then
outstanding, acquires beneficial ownership of additional shares of Common Stock
or (v) any such Person who has reported or is required to report such ownership
(but less than 20%) on Schedule 13G under the Exchange Act (or any comparable
or successor report) or on Schedule 13D under the Exchange Act (or any
comparable or successor report) which Schedule 13D does not state any intention
to or reserve the right to control or influence the management or policies of
the Company or engage in any of the actions specified in Item 4 of such
schedule (other than the disposition of the Common Stock) and, within 10
Business Days of being requested by the Company to advise it regarding the
same, certifies to the Company that such Person acquired shares of Common Stock
in excess of 14.9% inadvertently or without knowledge of the terms of the
Rights and who or which, together with all Affiliates and Associates,
thereafter as promptly as practicable divests shares of Common Stock
beneficially owned by such Person until such Person is no longer the Beneficial
Owner of 15% or more of the then outstanding shares of Class A Common Stock,
15% or more of the shares of Class B Common Stock then outstanding or any
combination of shares of Class A Common Stock and shares of Class B Common
Stock representing 15% or more of the shares of Common Stock then outstanding; provided,
however, that if the Person requested to so certify fails to do so
within 10 Business Days (unless extended by the Board of Directors), then such
Person shall become an Acquiring Person immediately after such 10-Business-Day
period, as it may be extended.

 

(b)           “Act”
shall mean the Securities Act of 1933, as amended.

 

(c)           “Affiliate”
and “Associate” shall have the
respective meanings ascribed to such terms in Rule 12b-2 of the General Rules
and Regulations under the Exchange Act.

 

(d)           A Person shall be deemed the “Beneficial Owner” of, and shall be deemed
to “beneficially own,” any securities:

 

(i)    which such Person or any of such Person’s
Affiliates or Associates, directly or indirectly, has the right to acquire
(whether such right is exercisable immediately or only after the passage of
time) pursuant to any agreement, arrangement or understanding (whether or not
in writing) or upon the exercise of conversion rights, exchange rights, other
rights, warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial
Owner” of, or to “beneficially own,” (A) securities tendered
pursuant to a tender or exchange offer made by such Person or any of such
Person’s Affiliates or Associates until such tendered securities are accepted
for purchase or exchange, 

 

2

 

(B) securities issuable upon exercise of Rights at
any time prior to the occurrence of a Triggering Event (as hereinafter
defined), or (C) securities issuable upon exercise of Rights from and after the
occurrence of a Triggering Event which Rights were acquired by such Person or
any of such Person’s Affiliates or Associates prior to the Distribution Date
(as hereinafter defined) or pursuant to Section 3(a) or Section 22 hereof (the “Original Rights”) or pursuant to Section
11(i) hereof in connection with an adjustment made with respect to any Original
Rights;

 

(ii)   which such Person or any of such Person’s
Affiliates or Associates, directly or indirectly, has the right to vote or dispose
of or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of
the General Rules and Regulations under the Exchange Act), including pursuant
to any agreement, arrangement or understanding, whether or not in writing; provided,
however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially
own,” any security under this subparagraph (ii) as a result of an agreement,
arrangement or understanding to vote such security if such agreement,
arrangement or understanding:  (A) arises
solely from a revocable proxy given in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable
provisions of the General Rules and Regulations under the Exchange Act, and (B)
is not reportable by such Person on Schedule 13D under the Exchange Act (or any
comparable or successor report); or

 

(iii)  which are beneficially owned, directly or
indirectly, by any other Person (or any Affiliate or Associate thereof) with
which such Person (or any of such Person’s Affiliates or Associates) has any
agreement, arrangement or understanding (whether or not in writing), for the
purpose of acquiring, holding, voting (except pursuant to a revocable proxy as
described in the proviso to subparagraph (ii) of this paragraph (d)) or
disposing of any voting securities of the Company; provided, however,
that nothing in this paragraph (d) shall cause a Person engaged in
business as an underwriter of securities to be the “Beneficial Owner” of, or to “beneficially own,” any securities
acquired through such Person’s participation in good faith in a firm commitment
underwriting until the expiration of forty days after the date of such
acquisition, and then only if such securities continue to be owned by such
Person at such expiration of forty days; provided further
that any stockholder of the Company, with affiliate(s), associate(s) or other
person(s) who may be deemed representatives of such stockholder serving as
director(s) of the Company, shall not be deemed to beneficially own securities
held by other Persons as a result of (i) persons affiliated or otherwise
associated with such stockholder serving as directors or taking any action in
connection therewith, (ii) discussing the status of its shares with the Company
or other stockholders of the Company similarly situated or (iii) voting or
acting in a manner similar to other stockholders similarly situated, absent a
specific finding by the Board of Directors of an express agreement among such
stockholders to act in concert with one another as stockholders so as to cause,
in the good faith judgment of the Board of Directors, 

 

3

 

each such stockholder to be the Beneficial Owner of
the shares held by the other stockholder(s).

 

(e)           “Board of
Directors” shall have the meaning set forth in the preamble of this
Agreement.

 

(f)            “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which banking
institutions in the State of New York are authorized or obligated by law or
executive order to close.

 

(g)           “Class A Common
Stock” shall mean the Class A common stock, par value $0.0001 per
share, of the Company.

 

(h)           “Class A Right”
shall have the meaning set forth in the preamble of this Agreement.

 

(i)            “Class A Rights
Certificates” shall have the meaning set forth in Section 3(a)
hereof.

 

(j)            “Class B Common
Stock” shall mean the Class B common stock, par value $0.0001 per
share, of the Company.

 

(k)           “Class B Right”
shall have the meaning set forth in the preamble of this Agreement.

 

(l)            “Class B Rights
Certificates” shall have the meaning set forth in Section 3(a)
hereof.

 

(m)          “Close of
business” on any given date shall mean 5:00 p.m., New York City
time, on such date; provided, however, that if such date is not a
Business Day, it shall mean 5:00 p.m., New York City time, on the next
succeeding Business Day.

 

(n)           “Common Stock”
shall mean the Class A Common Stock and the Class B Common Stock, except that “Common Stock” when used with reference to
any Person other than the Company shall mean the capital stock of such Person
with the greatest voting power, or the equity securities or other equity
interest having power to control or direct the management, of such Person.

 

(o)           “Common Stock
Equivalents” shall have the meaning set forth in Section 11(a)(iii)
hereof.

 

(p)           “Current Market
Price” shall have the meaning set forth in Section 11(d)(i) hereof.

 

(q)           “Current Value”
shall have the meaning set forth in Section 11(a)(iii) hereof.

 

4

 

(r)            “Distribution
Date” shall have the meaning set forth in Section 3(a) hereof.

 

(s)           “Equivalent
Preferred Stock” shall have the meaning set forth in Section 11(b)
hereof.

 

(t)            “Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

(u)           “Exchange Ratio”
shall have the meaning set forth in Section 24 hereof.

 

(v)           “Expiration Date”
shall have the meaning set forth in Section 7(a) hereof.

 

(w)          “Final Expiration
Date” shall have the meaning set forth in Section 7(a) hereof.

 

(x)            “Person”
shall mean any individual, firm, corporation, partnership or other entity.

 

(y)           “Preferred Stock”
shall mean shares of Series A Junior Participating Preferred Stock, par value
$0.00001 per share, of the Company, and, to the extent that there are not a sufficient
number of shares of Series A Junior Participating Preferred Stock authorized to
permit the full exercise of the Rights, any other series of preferred stock of
the Company designated for such purpose containing terms substantially similar
to the terms of the Series A Junior Participating Preferred Stock.

 

(z)            “Principal Party”
shall have the meaning set forth in Section 13(b) hereof.

 

(aa)         “Purchase Price”
shall have the meaning set forth in Section 4(a)(ii) hereof.

 

(bb)         “Record Date”
shall have the meaning set forth in the preamble of this Agreement.

 

(cc)         “Rights”
shall have the meaning set forth in the preamble of this Agreement.

 

(dd)         “Rights Agent”
shall have the meaning set forth in the preamble of this Agreement.

 

(ee)         “Rights
Certificate” shall have the meaning set forth in Section 3(a)
hereof.

 

(ff)           “Rights Dividend
Declaration Date” shall have the meaning set forth in the preamble
of this Agreement.

 

5

 

(gg)         “Section
11(a)(ii) Event” shall mean any event described in
Section 11(a)(ii) hereof.

 

(hh)         “Section 13 Event”
shall mean any event described in clauses (x), (y) or (z) of Section 13(a)
hereof.

 

(ii)           “Spread”
shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(jj)           “Stock Acquisition
Date” shall mean the first date of public announcement (which, for
purposes of this definition, shall include, without limitation, a report filed
or amended pursuant to Section 13(d) under the Exchange Act) by the Company or
an Acquiring Person that an Acquiring Person has become such.

 

(kk)         “Subsidiary”
shall mean, with reference to any Person, any corporation of which an amount of
voting securities sufficient to elect at least a majority of the directors of
such corporation is beneficially owned, directly or indirectly, by such Person,
or otherwise controlled by such Person.

 

(ll)           “Substitution
Period” shall have the meaning set forth in Section 11(a)(iii)
hereof.

 

(mm)       “Summary of
Rights” shall have the meaning set forth in Section 3(b)
hereof.

 

(nn)         “Trading Day”
shall have the meaning set forth in Section 11(d)(i) hereof.

 

(oo)         “Triggering Event”
shall mean any Section 11(a)(ii) Event or any Section 13 Event.

 

(pp)         “United Online”
means United Online, Inc., a Delaware corporation, and all successors to United
Online, Inc. by way of merger, consolidation or sale of substantially all of
its assets.

 

Section 2.               Appointment of Rights Agent.  The
Company hereby appoints the Rights Agent to act as agent for the Company and
the holders of the Rights (who, in accordance with Section 3 hereof, shall
prior to the Distribution Date also be the holders of the Common Stock) in
accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment.  The Company
may from time to time appoint such co-rights agents as it may deem necessary or
desirable.

 

Section 3.               Issuance of Rights Certificates.

 

(a)           Until the earlier of (i) the close of business on
the tenth Business Day after the Stock Acquisition Date (or, if the tenth
Business Day after the Stock Acquisition Date occurs before the Record Date,
the close of business on the Record Date), or (ii) the close of business on the
tenth Business Day (or such later date as the Board of Directors shall 

 

6

 

determine) after the date that a tender or exchange
offer by any Person (other than the Company, any Subsidiary of the Company, any
employee benefit plan of the Company or of any Subsidiary of the Company, or
any Person or entity organized, appointed or established by the Company for or
pursuant to the terms of any such plan) is first published or sent or given
within the meaning of Rule 14d-2(a) of the General Rules and Regulations under
the Exchange Act, if upon consummation thereof, such Person would become an
Acquiring Person (the earlier of (i) and (ii) being herein referred to as the “Distribution Date”), (x) the Class A Rights
and the Class B Rights, respectively, will be evidenced (subject to the
provisions of paragraph (b) of this Section 3) by the certificates for the
Class A Common Stock and the Class B Common Stock, respectively, registered in
the names of the holders of such Common Stock (which certificates for such
Common Stock shall be deemed also to be certificates for such Rights) and not
by separate certificates, and (y) the Rights will be transferable only in
connection with the transfer of the underlying shares of Common Stock
(including a transfer to the Company). 
As soon as practicable after the Distribution Date, the Rights Agent
will send by first-class, insured, postage-prepaid mail, to each record holder
of the Common Stock as of the close of business on the Distribution Date, at
the address of such holder shown on the records of the Company, one or more
Class A Right Certificates, in substantially the form of Exhibit B-1 hereto
(the “Class A Rights Certificates”),
evidencing one Class A Right for each share of Class A Common Stock so held,
and one or more Class B Right Certificates, in substantially the form of
Exhibit B-2 hereto (the “Class B Rights
Certificates” and, together with the Class A Rights Certificates,
the “Rights Certificates”),
evidencing one Class B Right for each share of Class B Common Stock so held, in
each case subject to adjustment as provided herein.  In the event that an adjustment in the number
of Rights per share of Common Stock has been made pursuant to Section 11(p)
hereof, at the time of distribution of the Rights Certificates, the Company
shall make the necessary and appropriate rounding adjustments (in accordance
with Section 14(a) hereof) so that Rights Certificates representing only whole
numbers of Rights are distributed and cash is paid in lieu of any fractional
Rights.  As of and after the Distribution
Date, the Rights will be evidenced solely by such Rights Certificates.

 

(b)           The Company will make available, as promptly as
practicable following the Record Date, a copy of a Summary of Rights, in
substantially the form attached hereto as Exhibit C (the “Summary of Rights”) to any holder of Rights
who may so request from time to time prior to the Expiration Date.  With respect to certificates for the Common
Stock outstanding as of the Record Date, or issued subsequent to the Record
Date, unless and until the Distribution Date shall occur, the Class A Rights
and the Class B Rights will be evidenced by certificates for the Class A Common
Stock and the Class B Common Stock, respectively, and the registered holders of
the Common Stock shall also be the registered holders of the associated Rights.  Until the earlier of the Distribution Date or
the Expiration Date (as such term is defined in Section 7(a) hereof), the
transfer of any certificates representing shares of Common Stock in respect of
which Rights have been issued shall also constitute the transfer of the Rights
associated with such shares of Common Stock.

 

(c)           Rights shall be issued in respect of all shares of
Common Stock which are issued (whether originally issued or from the Company’s
treasury) on or after the Record Date but prior to the earlier of the
Distribution Date or the Expiration Date.

 

7

 

(i)    Certificates representing shares of Class A Common
Stock shall also be deemed to be certificates for Class A Rights and shall bear
the following legend:

 

This
certificate also evidences and entitles the holder hereof to certain rights as
set forth in the Rights Agreement between Classmates Media Corporation (the
“Corporation”) and the Rights Agent thereunder (the “Rights Agent”) dated as of
                                   ,
2007 (the “Rights Agreement”), the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal offices of
the Rights Agent.  Under certain
circumstances, as set forth in the Rights Agreement, such Class A Rights (as
defined in the Rights Agreement) will be evidenced by separate certificates and
will no longer be evidenced by this certificate.  The Rights Agent will mail to the holder of
this certificate a copy of the Rights Agreement, as in effect on the date of
mailing, without charge, promptly after receipt of a written request
therefor.  Under certain circumstances
set forth in the Rights Agreement, Class A Rights issued to, or held by, any
Person who is, was or becomes an Acquiring Person or any Affiliate or Associate
thereof (as such terms are defined in the Rights Agreement), whether currently
held by or on behalf of such Person or by any subsequent holder, may become
null and void.

 

(ii)   Certificates representing shares of Class B Common
Stock shall also be deemed to be certificates for Class B Rights and shall bear
the following legend:

 

This
certificate also evidences and entitles the holder hereof to certain rights as
set forth in the Rights Agreement between Classmates Media Corporation (the
“Corporation”) and the Rights Agent thereunder (the “Rights Agent”) dated as of
                                   ,
2007 (the “Rights Agreement”), the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal offices of
the Rights Agent.  Under certain
circumstances, as set forth in the Rights Agreement, such Class B Rights (as
defined in the Rights Agreement) will be evidenced by separate certificates and
will no longer be evidenced by this certificate.  The Rights Agent will mail to the holder of
this certificate a copy of the Rights Agreement, as in effect on the date of
mailing, without charge, promptly after receipt of a written request therefor.  Under certain circumstances set forth in the
Rights Agreement, Class B Rights issued to, or held by, any Person who is, was
or becomes an Acquiring Person or any Affiliate or Associate thereof (as such
terms are defined in the Rights Agreement), whether currently held by or on
behalf of such Person or by any subsequent holder, may become null and void.

 

With respect to such certificates containing either
of the foregoing legends, until the earlier of (i) the Distribution Date or
(ii) the Expiration Date, the Rights associated with the Common Stock
represented by such certificates shall be evidenced by such certificates alone
and registered holders of Common Stock shall also be the registered holders of
the associated Rights, and the 

 

8

 

transfer of any of such certificates shall also
constitute the transfer of the Rights associated with the Common Stock
represented by such certificates.

 

Section 4.               Form of Rights Certificates.

 

(a)           The Class A Rights Certificates (and the forms of
election to purchase and of assignment to be printed on the reverse thereof)
shall each be substantially in the form set forth in Exhibit B-1 hereto and the
Class B Rights Certificates shall each be substantially in the form set forth
in Exhibit B-2 hereto, and may have such marks of identification or designation
and such legends, summaries or endorsements printed thereon as the Company may
deem appropriate and as are not inconsistent with the provisions of this
Agreement, or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed, or to
conform to usage.  Subject to the
provisions of Section 11 and Section 22 hereof, the Rights Certificates,
whenever distributed, shall be dated as of the Record Date and on their face
shall entitle the holders thereof to purchase such number of one
one-thousandths of a share of Preferred Stock as shall be set forth therein at
the price set forth therein (such exercise price per one one-thousandth of a
share, the “Purchase Price”), but
the amount and type of securities purchasable upon the exercise of each Right
and the Purchase Price thereof shall be subject to adjustment as provided herein.

 

(b)           Any Rights Certificate issued pursuant to Section
3(a), Section 11(i) or Section 22 hereof that represents Rights beneficially
owned by:  (i) an Acquiring Person or any
Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring
Person (or of any such Associate or Affiliate) who becomes a transferee after
the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person
(or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights
pursuant to either (A) a transfer (whether or not for consideration) from the
Acquiring Person to holders of equity interests in such Acquiring Person or to
any Person with whom such Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (B) a transfer
which the Board of Directors has determined is part of a plan, arrangement or
understanding which has as a primary purpose or effect the avoidance of Section
7(e) hereof shall contain (to the extent feasible) the legend set forth in
clause (i) or clause (ii) below, as applicable.

 

(i)    Any Class A Rights Certificate issued pursuant to
Section 6 or Section 11 hereof upon transfer, exchange, replacement or
adjustment of any other Class A Rights Certificate referred to in this
sentence, shall contain (to the extent feasible) the following legend:

 

The Class A Rights represented by this Class A
Rights Certificate are or were beneficially owned by a Person who was or became
an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as
such terms are defined in the Rights Agreement).  Accordingly, this Class A Rights Certificate
and the Class A Rights represented hereby may become null and void in the
circumstances specified in Section 7(e) of the Rights Agreement.

 

9

 

 

(ii)   Any Class B Rights Certificate issued
pursuant to Section 6 or Section 11 hereof upon transfer, exchange,
replacement or adjustment of any other Class B Rights Certificate referred
to in this sentence, shall contain (to the extent feasible) the following
legend:

 

The
Class B Rights represented by this Class B Rights Certificate are or
were beneficially owned by a Person who was or became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person (as such terms are defined in the
Rights Agreement). Accordingly, this Class B Rights Certificate and the Class B
Rights represented hereby may become null and void in the circumstances
specified in Section 7(e) of the Rights Agreement.

 

Section
5.               Countersignature and Registration.

 

(a)           The Rights Certificates shall be executed on behalf of the Company by
its Chairman of the Board of Directors, its President or any Vice President,
either manually or by facsimile signature, and shall have affixed thereto the
Company’s seal or a facsimile thereof which shall be attested by the Secretary
or an Assistant Secretary of the Company, either manually or by facsimile
signature. The Rights Certificates shall be countersigned by the Rights Agent,
either manually or by facsimile signature and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company who shall
have signed any of the Rights Certificates shall cease to be such officer of
the Company before countersignature by the Rights Agent and issuance and
delivery by the Company, such Rights Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with
the same force and effect as though the person who signed such Rights
Certificates had not ceased to be such officer of the Company; and any Rights
Certificates may be signed on behalf of the Company by any person who, at
the actual date of the execution of such Rights Certificate, shall be a proper
officer of the Company to sign such Rights Certificate, although at the date of
the execution of this Rights Agreement any such person was not such an officer.

 

(b)           Following the Distribution Date, the Rights Agent will keep, or cause
to be kept, at its principal office or offices designated as the appropriate
place for surrender of Rights Certificates upon exercise or transfer, books for
registration and transfer of the Rights Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the
Rights Certificates, the number of Rights evidenced on its face by each of the
Rights Certificates and the date of each of the Rights Certificates.

 

Section
6.               Transfer, Split-Up, Combination and Exchange
of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights
Certificates.

 

(a)           Subject to the provisions of Section 4(b), Section 7(e) and
Section 14 hereof, at any time after the close of business on the
Distribution Date, and at or prior to the close of business on the Expiration
Date, any Class A or Class B Rights Certificate or Certificates
(other than Rights Certificates representing Rights that may have been
exchanged pursuant to Section 24 hereof) may be transferred, split
up, combined or exchanged for another Class A or Class B Rights
Certificate or Certificates, as the case may be, entitling the registered
holder to purchase a like number of one one-thousandths of a share of Preferred
Stock (or,

 

10

 

following a Triggering
Event, Class A Common Stock, Class B Common Stock, other securities,
cash or other assets, as the case may be) as the Rights Certificate or
Certificates surrendered then entitles such holder (or former holder in the
case of a transfer) to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Rights Certificate or Certificates shall make
such request in writing delivered to the Rights Agent, and shall surrender the
Rights Certificate or Certificates to be transferred, split up, combined or
exchanged at the principal office or offices of the Rights Agent designated for
such purpose. Neither the Rights Agent nor the Company shall be obligated to
take any action whatsoever with respect to the transfer of any such surrendered
Rights Certificate until the registered holder shall have completed and signed
the certificate contained in the form of assignment on the reverse side of
such Rights Certificate and shall have provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company shall reasonably request. Thereupon the
Rights Agent shall, subject to Section 4(b), Section 7(e), Section 14
hereof and Section 24 hereof, countersign and deliver to the Person
entitled thereto a Rights Certificate or Rights Certificates, as the case may be,
as so requested. The Company 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.

 

(b)           Upon receipt by the Company and the Rights Agent of evidence reasonably
satisfactory to them of the loss, theft, destruction or mutilation of a Rights
Certificate, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them, and reimbursement to the Company and
the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Rights Certificate, if
mutilated, the Company will execute and deliver a new Rights Certificate of
like tenor to the Rights Agent for countersignature and delivery to the
registered owner in lieu of the Rights Certificate so lost, stolen, destroyed
or mutilated.

 

Section
7.               Exercise of Rights; Purchase Price;
Expiration Date of Rights.

 

(a)           Subject to Section 7(e) hereof, at any time after the
Distribution Date the registered holder of any Rights Certificate may exercise
the Rights evidenced thereby (except as otherwise provided herein including,
without limitation, the restrictions on exercisability set forth in Section 9(c),
Section 11(a)(iii) and Section 23(a) hereof) in whole or in
part upon surrender of the Rights Certificate, with the form of
election to purchase and the certificate on the reverse side thereof duly
executed, to the Rights Agent at the principal office or offices of the Rights
Agent designated for such purpose, together with payment of the aggregate
Purchase Price with respect to the total number of one one-thousandths of a
share (or other securities, cash or other assets, as the case may be) as
to which such surrendered Rights are then exercisable, at or prior to the
earlier of (i) 5:00 p.m., New York City time, on
                                   ,
2017, or such later date as may be established by the Board of Directors
prior to the expiration of the Rights (such date, as it may be extended by
the Board of Directors, the (“Final
Expiration Date”), or (ii) the time at which the Rights are
redeemed or exchanged as provided in Section 23 and Section 24 hereof
(the earlier of (i) and (ii) being herein referred to as the “Expiration Date”).

 

11

 

(b)           The Purchase Price for each one one-thousandth of a share of Preferred
Stock pursuant to the exercise of a Right initially shall be
$          ,(1) shall be
subject to adjustment from time to time as provided in Section 11 and Section 13(a) hereof
and shall be payable in accordance with paragraph (c) below.

 

(1)      The initial exercise price
should be a price which the Company and its investment bankers can support as
representing the potential long-term value of the Common Stock of the Company.

 

(c)           Upon receipt of a Rights Certificate representing exercisable Rights,
with the form of election to purchase and the certificate duly executed,
accompanied by payment, with respect to each Right so exercised, of the
Purchase Price per one one-thousandth of a share of Preferred Stock (or other
shares, securities, cash or other assets, as the case may be) to be
purchased as set forth below and an amount equal to any applicable transfer
tax, the Rights Agent shall, subject to Section 20(k) hereof, thereupon
promptly (i) (A) requisition from any transfer agent of the shares of
Preferred Stock (or make available, if the Rights Agent is the transfer agent
for such shares) certificates for the total number of one one-thousandths of a
share of Preferred Stock to be purchased and the Company hereby irrevocably
authorizes its transfer agent to comply with all such requests, or (B) if
the Company shall have elected to deposit the total number of shares of
Preferred Stock issuable upon exercise of the Rights hereunder with a depositary
agent, requisition from the depositary agent depositary receipts representing
such number of one one-thousandths of a share of Preferred Stock as are to be
purchased (in which case certificates for the shares of Preferred Stock
represented by such receipts shall be deposited by the transfer agent with the
depositary agent) and the Company will direct the depositary agent to comply
with such request, (ii) requisition from the Company the amount of cash,
if any, to be paid in lieu of fractional shares in accordance with Section 14
hereof, (iii) after receipt of such certificates or depositary receipts,
cause the same to be delivered to or, upon the order of the registered holder
of such Rights Certificate, registered in such name or names as may be
designated by such holder, and (iv) after receipt thereof, deliver such
cash, if any, to or upon the order of the registered holder of such Rights
Certificate. The payment of the Purchase Price (as such amount may be
reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash
or by certified bank check or bank draft payable to the order of the Company.
In the event that the Company is obligated to issue other securities (including
Common Stock) of the Company, pay cash and/or distribute other property pursuant
to Section 11(a) hereof, the Company will make all arrangements
necessary so that such other securities, cash and/or other property are
available for distribution by the Rights Agent, if and when appropriate. The
Company reserves the right to require prior to the occurrence of a Triggering
Event that, upon any exercise of Rights, a number of Rights be exercised so
that only whole shares of Preferred Stock would be issued.

 

(d)           In case the registered holder of any Rights Certificate shall exercise
less than all the Rights evidenced thereby, a new Rights Certificate evidencing
the Rights remaining unexercised shall be issued by the Rights Agent and
delivered to, or upon the order of, the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such
holder, subject to the provisions of Section 14 hereof.

 

(e)           Notwithstanding anything in this Agreement to the contrary, from and
after the first occurrence of a Section 11(a)(ii) Event, any Rights
beneficially owned by 

 

 

12

 

(i) an Acquiring Person
or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of
an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee after the Acquiring Person becomes such, or (iii) a transferee
of an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee prior to or concurrently with the Acquiring Person becoming such and
receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person to holders of equity interests in such
Acquiring Person or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement or understanding regarding the transferred Rights
or (B) a transfer which the Board of Directors has determined is part of
a plan, arrangement or understanding which has as a primary purpose or effect
the avoidance of this Section 7(e), shall become null and void without any
further action and no holder of such Rights shall have any rights whatsoever
with respect to such Rights, whether under any provision of this Agreement or
otherwise. The Company shall use all reasonable efforts to insure that the
provisions of this Section 7(e) and Section 4(b) hereof are
complied with, but shall have no liability to any holder of Rights Certificates
or any other Person as a result of its failure to make any determinations with
respect to an Acquiring Person or any of its Affiliates, Associates or
transferees hereunder.

 

(f)            Notwithstanding anything in this Agreement to
the contrary, neither the Rights Agent nor the Company shall be obligated to
undertake any action with respect to a registered holder upon the occurrence of
any purported exercise as set forth in this Section 7 unless such
registered holder shall have (i) completed and signed the certificate
contained in the form of election to purchase set forth on the reverse
side of the Rights Certificate surrendered for such exercise, and (ii) provided
such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall
reasonably request.

 

Section
8.               Cancellation and Destruction of Rights
Certificates.

 

All
Rights Certificates surrendered for the purpose of exercise, transfer,
split-up, combination or exchange shall, if surrendered to the Company or any
of its agents, be delivered to the Rights Agent for cancellation or in
cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by
it, and no Rights Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement. The Company
shall deliver to the Rights Agent for cancellation and retirement, and the
Rights Agent shall so cancel and retire, any other Rights Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. The Rights
Agent shall deliver all cancelled Rights Certificates to the Company, or shall,
at the written request of the Company, destroy such cancelled Rights
Certificates, and in such case shall deliver a certificate of destruction
thereof to the Company.

 

Section
9.               Reservation and Availability of Capital Stock.

 

(a)           The Company covenants and agrees that it will cause to be reserved and
kept available out of its authorized and unissued shares of Preferred Stock
(and, following the occurrence of a Triggering Event, out of its authorized and
unissued shares of Class A Common Stock, Class B Common Stock and/or
other securities or out of its authorized and issued shares held in its
treasury), the number of shares of Preferred Stock (and, following the
occurrence of a Triggering Event, Class A Common Stock, Class B
Common Stock and/or other 

 

13

 

securities) that, as
provided in this Agreement including Section 11(a)(iii) hereof, will
be sufficient to permit the exercise in full of all outstanding Rights.

 

(b)           So long as the shares of Preferred Stock (and, following the occurrence
of a Triggering Event, Class A Common Stock, Class B Common Stock
and/or other securities) issuable and deliverable upon the exercise of the
Rights may be listed on any national securities exchange, the Company
shall use its best efforts to cause, from and after such time as the Rights
become exercisable, all shares reserved for such issuance to be listed on such
exchange upon official notice of issuance upon such exercise.

 

(c)           The Company shall use its best efforts to (i) file, as soon as
practicable following the earliest date after the first occurrence of a Section 11(a)(ii) Event
on which the consideration to be delivered by the Company upon exercise of the
Rights has been determined in accordance with Section 11(a)(iii) hereof,
a registration statement under the Act, with respect to the securities
purchasable upon exercise of the Rights on an appropriate form, (ii) cause
such registration statement to become effective as soon as practicable after
such filing, and (iii) cause such registration statement to remain
effective (with a prospectus at all times meeting the requirements of the Act)
until the earlier of (A) the date as of which the Rights are no longer
exercisable for such securities, and (B) the date of the expiration of the
Rights. The Company will also take such action as may be appropriate
under, or to ensure compliance with, the securities or “blue sky” laws of the
various states in connection with the exercisability of the Rights. The Company
may temporarily suspend, for a period of time not to exceed ninety (90)
days after the date set forth in clause (i) of the first sentence of this Section 9(c),
the exercisability of the Rights in order to prepare and file such registration
statement and permit it to become effective. Upon any such suspension, the
Company shall issue a public announcement stating that the exercisability of
the Rights has been temporarily suspended, as well as a public announcement at
such time as the suspension has been rescinded. In addition, if the Company
shall determine that a registration statement is required following the
Distribution Date, the Company may temporarily suspend the exercisability
of the Rights until such time as a registration statement has been declared
effective. Notwithstanding any provision of this Agreement to the contrary, the
Rights shall not be exercisable in any jurisdiction if the requisite
qualification in such jurisdiction shall not have been obtained, the exercise
thereof shall not be permitted under applicable law, or a registration statement
shall not have been declared effective.

 

(d)           The Company covenants and agrees that it will take all such action as may be
necessary to ensure that all one one-thousandths of a share of Preferred Stock
(and, following the occurrence of a Triggering Event, Class A Common
Stock, Class B Common Stock and/or other securities) delivered upon
exercise of Rights shall, at the time of delivery of the certificates for such
shares (subject to payment of the Purchase Price), be duly and validly
authorized and issued and fully paid and nonassessable.

 

(e)           The Company further covenants and agrees that it will pay when due and
payable any and all federal and state transfer taxes and charges which may be
payable in respect of the issuance or delivery of the Rights Certificates and
of any certificates for a number of one one-thousandths of a share of Preferred
Stock (or Class A Common Stock, Class B Common Stock and/or other
securities, as the case may be) upon the exercise of Rights. The Company
shall not, however, be required to pay any transfer tax which may be
payable in respect of any 

 

14

 

transfer or delivery of
Rights Certificates to a Person other than, or the issuance or delivery of a
number of one one-thousandths of a share of Preferred Stock (or Class A
Common Stock, Class B Common Stock and/or other securities, as the case may be)
in respect of a name other than that of the registered holder of the Rights
Certificates evidencing Rights surrendered for exercise or to issue or deliver
any certificates for a number of one one-thousandths of a share of Preferred
Stock (or Class A Common Stock, Class B Common Stock and/or other
securities, as the case may be) in a name other than that of the
registered holder upon the exercise of any Rights until such tax shall have
been paid (any such tax being payable by the holder of such Rights Certificates
at the time of surrender) or until it has been established to the Company’s
satisfaction that no such tax is due.

 

Section
10.             Preferred Stock Record Date. Each person in whose name any certificate
for a number of one one-thousandths of a share of Preferred Stock (or Class A
Common Stock, Class B Common Stock and/or other securities, as the case may be)
is issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of such fractional shares of Preferred Stock (or Class A
Common Stock, Class B Common Stock and/or other securities, as the case may be)
represented thereby on, and such certificate shall be dated, the date upon
which the Rights Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and all applicable transfer taxes) was made; provided,
however, that if the date of such surrender and payment is a date upon
which the Preferred Stock (or Class A Common Stock, Class B Common
Stock and/or other securities, as the case may be) transfer books of the
Company are closed, such Person shall be deemed to have become the record
holder of such shares (fractional or otherwise) on, and such certificate shall
be dated, the next succeeding Business Day on which the Preferred Stock (or Class A
Common Stock, Class B Common Stock and/or other securities, as the case may be)
transfer books of the Company are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Rights Certificate shall not be entitled to
any rights of a stockholder of the Company with respect to shares for which the
Rights shall be exercisable, including, without limitation, the right to vote,
to receive dividends or other distributions or to exercise any preemptive
rights, and shall not be entitled to receive any notice of any proceedings of
the Company, except as provided herein.

 

Section
11.             Adjustment of Purchase Price, Number and Kind
of Shares or Number of Rights.
The Purchase Price, the number and kind of shares covered by each Right and the
number of Rights outstanding are subject to adjustment from time to time as
provided in this Section 11.

 

(a)           (i)  In the event the Company shall at any time after the date of
this Agreement (A) declare a dividend on the Preferred Stock payable in
shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine
the outstanding Preferred Stock into a smaller number of shares, or (D) issue
any shares of its capital stock in a reclassification of the Preferred Stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), except
as otherwise provided in this Section 11(a) and Section 7(e) hereof,
the Purchase Price in effect at the time of the record date for such dividend
or of the effective date of such subdivision, combination or reclassification,
and the number and kind of shares of Preferred Stock or capital stock, as the
case may be, issuable on such date, shall be proportionately adjusted so
that the holder of any Right exercised after such time shall be entitled to
receive, upon payment of the Purchase Price 

 

15

 

then in effect, the
aggregate number and kind of shares of Preferred Stock or capital stock, as the
case may be, which, if such Right had been exercised immediately prior to
such date and at a time when the Preferred Stock transfer books of the Company
were open, such holder would have owned upon such exercise and been entitled to
receive by virtue of such dividend, subdivision, combination or
reclassification. If an event occurs which would require an adjustment under both
this Section 11(a)(i) and Section 11(a)(ii) hereof, the
adjustment provided for in this Section 11(a)(i) shall be in addition
to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof.

 

(ii)   In the event any Person becomes an Acquiring
Person, then, promptly following the occurrence, each holder of a Class A
Right and each holder of a Class B Right (except as provided below and in Section 7(e) hereof)
shall thereafter have the right to receive, upon exercise thereof at the then
current Purchase Price in accordance with the terms of this Agreement, in lieu
of a number of one one-thousandths of a share of Preferred Stock, such number
of shares of Class A Common Stock or Class B Common Stock,
respectively, as shall equal the result obtained by (x) multiplying the
then current Purchase Price by the then number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to
the first occurrence of a Section 11(a)(ii) Event, and (y) dividing
that product (which, following such first occurrence, shall thereafter be
referred to as the “Purchase Price”
for each Right and for all purposes of this Agreement) by 50% of the Current
Market Price (determined pursuant to Section 11(d) hereof) per share
of Class A Common Stock or Class B Common Stock, as the case may be,
on the date of such first occurrence (such number of shares, the “Adjustment Shares”).

 

(iii)  In the event that the number of shares of
Common Stock (either or both of Class A Common Stock or Class B
Common Stock) which are authorized by the Company’s Amended and Restated
Certificate of Incorporation, but not outstanding or reserved for issuance for
purposes other than upon exercise of the Rights, is not sufficient to permit
the exercise in full of the Rights in accordance with the foregoing
subparagraph (ii) of this Section 11(a), the Company shall (A) determine
the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”), and (B) with respect
to each Right (subject to Section 7(e) hereof), make adequate
provision to substitute for the Adjustment Shares, upon the exercise of a Right
and payment of the applicable Purchase Price, (1) cash, (2) a
reduction in the Purchase Price, (3) such class of Common Stock for
which a Right is exercisable or other equity securities of the Company
(including, without limitation, shares, or units of shares, of preferred stock,
such as the Preferred Stock, which the Board of Directors has deemed to have
essentially the same value or economic rights as shares of such class of
Common Stock for which a Right is exercisable (such shares of preferred stock
being referred to as “Common Stock
Equivalents”)), (4) debt securities of the Company, (5) other
assets, or (6) any combination of the foregoing, having an aggregate value
equal to the Current Value (less the amount of any reduction in the Purchase
Price), where such aggregate value has been determined by the Board of
Directors based upon the advice of a nationally recognized investment 

 

16

 

banking
firm selected by the Board of Directors; provided, however, that
if the Company shall not have made adequate provision to deliver value pursuant
to clause (B) above within thirty (30) days following the later of (x) the
first occurrence of a Section 11(a)(ii) Event and (y) the date on
which the Company’s right of redemption pursuant to Section 23(a) expires
(the later of (x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger Date”),
then the Company shall be obligated to deliver, upon the surrender for exercise
of a Right and without requiring payment of the Purchase Price, shares of such class of
Common Stock for which a Right is exercisable (to the extent available) and
then, if necessary, cash, which shares and/or cash have an aggregate value
equal to the Spread. For purposes of the preceding sentence, the term “Spread” shall mean the excess of (i) the
Current Value over (ii) the Purchase Price. If the Board of Directors
determines in good faith that it is likely that sufficient additional shares of
Class A Common Stock and/or Class B Common Stock, as the case may be,
could be authorized for issuance upon exercise in full of the Rights, the
thirty (30) day period set forth above may be extended to the extent
necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger
Date, in order that the Company may seek shareholder approval for the
authorization of such additional shares (such thirty (30) day period, as it may be
extended, is herein called the “Substitution
Period”). To the extent that the Company determines that action
should be taken pursuant to the first and/or third sentences of this Section 11(a)(iii),
the Company (1) shall provide, subject to Section 7(e) hereof,
that such action shall apply uniformly to all outstanding Rights, and (2) may suspend
the exercisability of the Rights until the expiration of the Substitution
Period in order to seek such shareholder approval for such authorization of
additional shares and/or to decide the appropriate form of distribution to
be made pursuant to such first sentence and to determine the value thereof. In
the event of any such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended,
as well as a public announcement at such time as the suspension is no longer in
effect. For purposes of this Section 11(a)(iii), the value of each
Adjustment Share shall be the Current Market Price per share of such class of
Common Stock for which a Right is exercisable on the Section 11(a)(ii) Trigger
Date and the per share or per unit value of any Common Stock Equivalent shall
be deemed to equal the Current Market Price per share of such class of
Common Stock on such date.

 

(b)           In case the Company shall fix a record date for the issuance of rights,
options or warrants to all holders of Preferred Stock entitling them to
subscribe for or purchase (for a period expiring within  forty-five (45) calendar days after such
record date) Preferred Stock (or shares having the same rights, privileges and
preferences as the shares of Preferred Stock (“Equivalent Preferred Stock”)) or securities convertible into
Preferred Stock or Equivalent Preferred Stock at a price per share of Preferred
Stock or per share of Equivalent Preferred Stock (or having a conversion price
per share, if a security convertible into Preferred Stock or Equivalent
Preferred Stock) less than the current market price (as determined pursuant to Section 11(d) hereof)
per share of Preferred Stock on such record date, the Purchase Price to be in
effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the numerator
of which shall be the number 

 

17

 

of shares of Preferred Stock
outstanding on such record date, plus the number of shares of Preferred Stock
which the aggregate offering price of the total number of shares of Preferred
Stock and/or Equivalent Preferred Stock so to be offered (and/or the aggregate
initial conversion price of the convertible securities so to be offered) would
purchase at such current market price, and the denominator of which shall be
the number of shares of Preferred Stock outstanding on such record date, plus
the number of additional shares of Preferred Stock and/or Equivalent Preferred
Stock to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible). In case such
subscription price may be paid by delivery of consideration, part or
all of which may be in a form other than cash, the value of such
consideration shall be as determined in good faith by the Board of Directors,
whose determination shall be described in a statement filed with the Rights
Agent and shall be binding on the Rights Agent and the holders of the Rights.
Shares of Preferred Stock owned by or held for the account of the Company shall
not be deemed outstanding for the purpose of any such computation. Such
adjustment shall be made successively whenever such a record date is fixed, and
in the event that such rights or warrants are not so issued, the Purchase Price
shall be adjusted to be the Purchase Price which would then be in effect if
such record date had not been fixed.

 

(c)           In case the Company shall fix a record date for a distribution to all
holders of Preferred Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing
corporation), cash (other than a regular quarterly cash dividend out of the
earnings or retained earnings of the Company), assets (other than a dividend
payable in Preferred Stock, but including any dividend payable in stock other
than Preferred Stock) or evidences of indebtedness, or of subscription rights
or warrants (excluding those referred to in Section 11(b) hereof),
the Purchase Price to be in effect after such record date shall be determined
by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the current market price
(as determined pursuant to Section 11(d) hereof) per share of
Preferred Stock on such record date, less the fair market value (as determined
in good faith by the Board of Directors, whose determination shall be described
in a statement filed with the Rights Agent) of the portion of the cash, assets
or evidences of indebtedness so to be distributed or of such subscription rights
or warrants applicable to a share of Preferred Stock, and the denominator of
which shall be such current market price (as determined pursuant to Section 11(d) hereof)
per share of Preferred Stock. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such distribution
is not so made, the Purchase Price shall be adjusted to be the Purchase Price
which would have been in effect if such record date had not been fixed.

 

(d)           (i)  For the purpose of any computation hereunder, other than
computations made pursuant to Section 11(a)(iii) hereof, the “Current Market Price” per share of any class of
Common Stock on any date shall be deemed to be the average of the daily closing
prices per share of such class of Common Stock for the thirty (30)
consecutive Trading Days immediately prior to such date, and for purposes of
computations made pursuant to Section 11(a)(iii) hereof, the Current
Market Price per share of any class of Common Stock on any date shall be
deemed to be the average of the daily closing prices per share of such class of
Common Stock for the ten (10) consecutive Trading Days immediately
following such date; provided, however, that in the event that
the Current Market Price per share of any class of Common Stock is
determined during a period following the announcement by the issuer of such class of

 

18

 

Common Stock of (A) a
dividend or distribution on such class of Common Stock payable in shares
of such class of Common Stock or securities convertible into shares of
such class of Common Stock (other than the Rights), or (B) any
subdivision, combination or reclassification of such class of Common
Stock, and the ex-dividend date for such dividend or distribution, or the
record date for such subdivision, combination or reclassification shall not
have occurred prior to the commencement of the requisite thirty (30) Trading
Day or ten (10) Trading Day period, as set forth above, then, and in each
such case, the Current Market Price shall be properly adjusted to take into
account ex-dividend trading. The closing price for each day shall be the last
sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the shares of such class of Common Stock are not listed or
admitted to trading on the New York Stock Exchange, as reported in the
principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the shares of
such class of Common Stock are listed or admitted to trading or, if the
shares of such class of Common Stock are not listed or admitted to trading
on any national securities exchange, the last quoted price or, if not so
quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by the National Association of Securities
Dealers Automated Quotation System (“Nasdaq”)
or such other system then in use, or, if on any such date the shares of such class of
Common Stock are not quoted by any such organization, the average of the
closing bid and asked prices as furnished by a professional market maker making
a market in the class of Common Stock selected by the Board of Directors.
If on any such date no market maker is making a market in that class of
Common Stock, the fair value of such shares on such date as determined in good
faith by the Board of Directors shall be used. The term “Trading Day” shall mean a day on which the
principal national securities exchange on which the shares of any class of
Common Stock are listed or admitted to trading is open for the transaction of
business or, if the shares of any class of Common Stock are not listed or
admitted to trading on any national securities exchange, a Business Day. If the
class of Common Stock for which a Right is exercisable is not publicly
held or not so listed or traded, Current Market Price per share shall mean the
fair value per share as determined in good faith by the Board of Directors,
whose determination shall be described in a statement filed with the Rights
Agent and shall be conclusive for all purposes. Notwithstanding anything in
this Agreement to the contrary, the Current Market Price per share of Class B
Common Stock shall not be lower than the Current Market Price per share of Class A
Common Stock.

 

(ii)   For the purpose of any computation hereunder,
the current market price per share of any series or class of
Preferred Stock shall be determined in the same manner as set forth above for
the Common Stock in clause (i) of this Section 11(d) (other than
the last two sentence thereof). If the current market price per share of any series or
class of Preferred Stock cannot be determined in the manner provided above
or if such class or series of Preferred Stock is not publicly held or
listed or traded in a manner described in clause (i) of this Section 11(d),
the current market price per share of such class or series of
Preferred Stock shall be conclusively deemed to be an amount equal to 1,000 (as
such number may be appropriately adjusted for such events as stock splits,
stock dividends and recapitalizations with respect to the Common Stock
occurring after the date of this Agreement) multiplied by the Current Market
Price per share of 

 

19

 

the
Class A Common Stock. If neither the Class A Common Stock nor the
Preferred Stock is publicly held or so listed or traded, current market price
per share of any series or class of the Preferred Stock shall mean
the fair value per share as determined in good faith by the Board of Directors,
whose determination shall be described in a statement filed with the Rights
Agent and shall be conclusive for all purposes.

 

(e)           Anything herein to the contrary notwithstanding, no adjustment in the
Purchase Price shall be required unless such adjustment would require an
increase or decrease of at least one percent (1%) in the Purchase Price; provided,
however, that any adjustments which by reason of this Section 11(e) are
not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 11 shall be
made to the nearest cent or to the nearest ten-thousandth of a share of Common
Stock or other share or one-millionth of a share of Preferred Stock, as the case
may be. Notwithstanding the first sentence of this Section 11(e), any
adjustment required by this Section 11 shall be made no later than the
earlier of (i) three (3) years from the date of the transaction which
mandates such adjustment, or (ii) the Expiration Date.

 

(f)            If as a result of an adjustment made pursuant
to Section 11(a)(ii) or Section 13(a) hereof, the holder of
any Right thereafter exercised shall become entitled to receive any shares of
capital stock other than Preferred Stock, thereafter the number of such other
shares so receivable upon exercise of any Right and the Purchase Price thereof
shall be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Preferred
Stock contained in Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k) and
(m), and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to
the Preferred Stock shall apply on like terms to any such other shares.

 

(g)           All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-thousandths of
a share of Preferred Stock purchasable from time to time hereunder upon
exercise of the Rights, all subject to further adjustment as provided herein.

 

(h)           Unless the Company shall have exercised its election as provided in Section 11(i),
upon each adjustment of the Purchase Price as a result of the calculations made
in Sections 11(b) and (c), each Right outstanding immediately prior to the
making of such adjustment shall thereafter evidence the right to purchase, at
the adjusted Purchase Price, that number of one one-thousandths of a share of
Preferred Stock (calculated to the nearest one-millionth) obtained by (i) multiplying
(x) the number of one one-thousandths of a share covered by a Right immediately
prior to this adjustment, by (y) the Purchase Price in effect immediately prior
to such adjustment of the Purchase Price, and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment of
the Purchase Price.

 

(i)            The Company may elect on or after the
date of any adjustment of the Purchase Price to adjust the number of Rights, in
lieu of any adjustment in the number of one one-thousandths of a share of
Preferred Stock purchasable upon the exercise of a Right. Each of the Rights
outstanding after the adjustment in the number of Rights shall be exercisable
for the 

 

20

 

number of one
one-thousandths of a share of Preferred Stock for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after adjustment of the Purchase
Price. The Company shall make a public announcement of its election to adjust
the number of Rights, indicating the record date for the adjustment, and, if
known at the time, the amount of the adjustment to be made. This record date may be
the date on which the Purchase Price is adjusted or any day thereafter, but, if
the Rights Certificates have been issued, shall be at least ten (10) days
later than the date of the public announcement. If Rights Certificates have
been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i),
the Company shall, as promptly as practicable, cause to be distributed to
holders of record of Rights Certificates on such record date Rights
Certificates evidencing, subject to Section 14 hereof, the additional
Rights to which such holders shall be entitled as a result of such adjustment,
or, at the option of the Company, shall cause to be distributed to such holders
of record in substitution and replacement for the Rights Certificates held by
such holders prior to the date of adjustment, and upon surrender thereof, if
required by the Company, new Rights Certificates evidencing all the Rights to
which such holders shall be entitled after such adjustment. Rights Certificates
so to be distributed shall be issued, executed and countersigned in the manner
provided for herein (and may bear, at the option of the Company, the
adjusted Purchase Price) and shall be registered in the names of the holders of
record of Rights Certificates on the record date specified in the public
announcement.

 

(j)            Irrespective of any adjustment or change in
the Purchase Price or the number of one one-thousandths of a share of Preferred
Stock issuable upon the exercise of the Rights, the Rights Certificates
theretofore and thereafter issued may continue to express the Purchase
Price per one one-thousandth of a share and the number of one one-thousandth of
a share which were expressed in the initial Rights Certificates issued
hereunder.

 

(k)           Before taking any action that would cause an adjustment reducing the
Purchase Price below the then stated value, if any, of the number of one
one-thousandths of a share of Preferred Stock issuable upon exercise of the
Rights, the Company shall take any corporate action which may, in the opinion
of its counsel, be necessary in order that the Company may validly and
legally issue fully paid and nonassessable such number of one one-thousandths
of a share of Preferred Stock at such adjusted Purchase Price.

 

(l)            In any case in which this Section 11
shall require that an adjustment in the Purchase Price be made effective as of
a record date for a specified event, the Company may elect to defer until
the occurrence of such event the issuance to the holder of any Right exercised
after such record date the number of one one-thousandths of a share of
Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon such exercise over and above the number of one one-thousandths of
a share of Preferred Stock and other capital stock or securities of the
Company, if any, issuable upon such exercise on the basis of the Purchase Price
in effect prior to such adjustment; provided, however, that the
Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional shares (fractional or
otherwise) or securities upon the occurrence of the event requiring such
adjustment.

 

21

 

(m)          Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as
and to the extent that in their good faith judgment the Board of Directors
shall determine to be advisable in order that any (i) consolidation or
subdivision of the Preferred Stock, (ii) issuance wholly for cash of any
shares of Preferred Stock at less than the current market price, (iii) issuance
wholly for cash of shares of Preferred Stock or securities which by their terms
are convertible into or exchangeable for shares of Preferred Stock, (iv) stock
dividends or (v) issuance of rights, options or warrants referred to in
this Section 11, hereafter made by the Company to holders of its Preferred
Stock shall not be taxable to such stockholders.

 

(n)           The Company covenants and agrees that it shall not, at any time after
the Distribution Date, (i) consolidate with any other Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o)
hereof), (ii) merge with or into any other Person (other than a Subsidiary
of the Company in a transaction which complies with Section 11(o) hereof),
or (iii) sell or transfer (or permit any Subsidiary to sell or transfer),
in one transaction, or a series of related transactions, assets, cash flow
or earning power aggregating more than 50% of the assets or earning power of
the Company and its Subsidiaries (taken as a whole) to any other Person or
Persons (other than the Company and/or any of its Subsidiaries in one or more
transactions each of which complies with Section 11(o) hereof), if (x) at
the time of or immediately after such consolidation, merger or sale there are
any rights, warrants or other instruments or securities outstanding or agreements
in effect which would substantially diminish or otherwise eliminate the
benefits intended to be afforded by the Rights or (y) prior to, simultaneously
with or immediately after such consolidation, merger or sale, the shareholders
of the Person who constitutes, or would constitute, the “Principal Party” for purposes of Section 13(a) hereof
shall have received a distribution of Rights previously owned by such Person or
any of its Affiliates and Associates.

 

(o)           The Company covenants and agrees that, after the Distribution Date, it
will not, except as permitted by Section 23, Section 24 or Section 27
hereof, take (or permit any Subsidiary to take) any action if at the time such
action is taken it is reasonably foreseeable that such action will diminish
substantially or otherwise eliminate the benefits intended to be afforded by
the Rights.

 

(p)           Anything in this Agreement to the contrary notwithstanding, in the
event that the Company shall at any time after the Rights Dividend Declaration
Date and prior to the Distribution Date (i) declare a dividend on the
outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivide
the outstanding shares of Common Stock, or (iii) combine the outstanding
shares of Common Stock into a smaller number of shares, the number of Rights
associated with each share of Common Stock then outstanding, or issued or
delivered thereafter but prior to the Distribution Date, shall be
proportionately adjusted so that the number of Rights thereafter associated with
each share of Common Stock following any such event shall equal the result
obtained by multiplying the number of Rights associated with each share of
Common Stock immediately prior to such event by a fraction the numerator which
shall be the total number of shares of Common Stock outstanding immediately
prior to the occurrence of the event and the denominator of which shall be the
total number of shares of Common Stock outstanding immediately following the
occurrence of such event.

 

22

 

Section 12.             Certificate of
Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made
as provided in Section 11 and Section 13 hereof, the Company shall (a) promptly
prepare a certificate setting forth such adjustment and a brief statement of
the facts accounting for such adjustment, (b) promptly file with the Rights
Agent, and with each transfer agent for the Preferred Stock and the Common
Stock, a copy of such certificate and (c) if a Distribution Date has occurred,
mail a brief summary thereof to each holder of a Rights Certificate in
accordance with Section 25 hereof. The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained.

 

Section 13.             Consolidation,
Merger or Sale or Transfer of Assets, Cash Flow or Earning Power.

 

(a)           In the event that, following the Stock Acquisition
Date, directly or indirectly, (x) the Company shall consolidate with, or merge
with and into, any other Person (other than a Subsidiary of the Company in a
transaction which complies with Section 11(o) hereof), and the Company shall
not be the continuing or surviving corporation of such consolidation or merger,
(y) any Person (other than a Subsidiary of the Company in a transaction which
complies with Section 11(o) hereof) shall consolidate with, or merge with or
into, the Company, and the Company shall be the continuing or surviving
corporation of such consolidation or merger and, in connection with such
consolidation or merger, all or part of the outstanding shares of Common Stock
shall be changed into or exchanged for stock or other securities of any other
Person or cash or any other property, or (z) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one transaction or a series of related transactions, assets, cash
flow or earning power aggregating more than 50% of the assets, cash flow or
earning power of the Company and its Subsidiaries (taken as a whole) to any
Person or Persons (other than the Company or any Subsidiary of the Company in
one or more transactions each of which complies with Section 11(o) hereof),
then, and in each such case, proper provision shall be made so that: (i) each
holder of a Right, except as provided in Section 7(e) hereof, shall thereafter
have the right to receive, upon the exercise thereof at the then current
Purchase Price in accordance with the terms of this Agreement, such number of
validly authorized and issued, fully paid, non-assessable and freely tradeable shares
of Common Stock of the Principal Party (as such term is hereinafter defined),
not subject to any liens, encumbrances, rights of first refusal or other
adverse claims, as shall be equal to the result obtained by (1) multiplying the
then current Purchase Price by the number of one one-thousandths of a share of
Preferred Stock for which a Right is exercisable immediately prior to the first
occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred
prior to the first occurrence of a Section 13 Event, multiplying the number of
such one one-thousandths of a share for which a Right was exercisable
immediately prior to the first occurrence of a Section 11(a)(ii) Event by the
Purchase Price in effect immediately prior to such first occurrence of a
Section 11(a)(ii) Event), and (2) dividing that product (which, following the
first occurrence of a Section 13 Event, shall be referred to as the “Purchase Price”
for each Right and for all purposes of this Agreement) by 50% of the Current
Market Price (determined pursuant to Section 11(d)(i) hereof) per share of the
Common Stock of such Principal Party on the date of consummation of such
Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and
shall assume, by virtue of such Section 13 Event, all the obligations and
duties of the Company pursuant to this Agreement; (iii) the term “Company”
shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 

 

23

 

hereof shall apply only to such Principal
Party following the first occurrence of a Section 13 Event; (iv) such Principal
Party shall take such steps (including, but not limited to, the reservation of
a sufficient number of shares of its Common Stock) in connection with the
consummation of any such transaction as may be necessary to assure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may
be, in relation to its shares of Common Stock thereafter deliverable upon the
exercise of the Rights; and (v) the provisions of Section 11(a)(ii) hereof
shall be of no effect following the first occurrence of any Section 13 Event.

 

(b)           “Principal Party” shall mean:

 

(i)    in the case of any transaction described in clause (x)
or (y) of the first sentence of Section 13(a), the Person that is the issuer of
any securities into which shares of Common Stock of the Company are converted
in such merger or consolidation, and if no securities are so issued, the Person
that is the other party to such merger or consolidation; and

 

(ii)   in the case of any transaction described in clause (z)
of the first sentence of Section 13(a), the Person that is the party receiving
the greatest portion of the assets, cash flow or earning power transferred
pursuant to such transaction or transactions;

 

provided, however,
that in any such case, (1) if the Common Stock of such Person is not at such
time and has not been continuously over the preceding twelve (12) month period
registered under Section 12 of the Exchange Act, and such Person is a direct or
indirect Subsidiary of another Person the Common Stock of which is and has been
so registered, “Principal
Party” shall refer to such other Person; and (2) in case such Person
is a Subsidiary, directly or indirectly, of more than one Person, the Common
Stock of two or more of which are and have been so registered, “Principal Party”
shall refer to whichever of such Persons is the issuer of the Common Stock
having the greatest aggregate market value.

 

(c)           The Company shall not consummate any such
consolidation, merger, sale or transfer unless the Principal Party shall have a
sufficient number of authorized shares of its Common Stock which have not been
issued or reserved for issuance to permit the exercise in full of the Rights in
accordance with this Section 13 and unless prior thereto the Company and such
Principal Party shall have executed and delivered to the Rights Agent a
supplemental agreement providing for the terms set forth in paragraphs (a) and
(b) of this Section 13 and further providing that, as soon as practicable after
the date of any consolidation, merger or sale of assets mentioned in paragraph
(a) of this Section 13, the Principal Party will

 

(i)    prepare and file a registration statement under the
Act, with respect to the Rights and the securities purchasable upon exercise of
the Rights on an appropriate form, and will use its best efforts to cause such
registration statement to (A) become effective as soon as practicable after
such filing and (B) remain effective (with a prospectus at all times meeting
the requirements of the Act) until the Expiration Date; and

 

24

 

(ii)   take all such other action as may be necessary to enable
the Principal Party to issue the securities purchasable upon exercise of the
Rights, including but not limited to the registration or qualification of such
securities under all requisite securities laws of jurisdictions of the various
states and the listing of such securities on such exchanges and trading markets
as may be necessary or appropriate; and

 

(iii)  will deliver to holders of the Rights historical
financial statements for the Principal Party and each of its Affiliates which
comply in all respects with the requirements for registration on Form 10 under
the Exchange Act.

 

The provisions of this Section 13 shall
similarly apply to successive mergers or consolidations or sales or other
transfers. In the event that a Section 13 Event shall occur at any time after
the occurrence of a Section 11(a)(ii) Event, the Rights which have not
theretofore been exercised shall thereafter become exercisable in the manner
described in Section 13(a).

 

Section 14.             Fractional Rights
and Fractional Shares.

 

(a)           The Company shall not be required to issue fractions
of Rights, except prior to the Distribution Date as provided in Section 11(p)
hereof, or to distribute Rights Certificates which evidence fractional Rights. In
lieu of such fractional Rights, the Company shall pay to the registered holders
of the Class A Rights Certificates or the Class B Rights Certificates with
regard to which such fractional Rights would otherwise be issuable, an amount
in cash equal to the same fraction of the current market value of a whole Class
A Right or Class B Right, as the case may be. For purposes of this Section
14(a), the current market value of a whole Right shall be the closing price of
the Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. The closing price of the
Class A Rights or the Class B Rights for any day shall be the last sale price,
regular way, or, in case no such sale takes place on such day, the average of
the closing bid and asked prices, regular way, in either case as reported in
the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on the New York Stock Exchange or, if such
Rights are not listed or admitted to trading on the New York Stock Exchange, as
reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal national securities exchange on
which such Rights are listed or admitted to trading, or if such Rights are not
listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by Nasdaq or such other
system then in use or, if on any such date such Rights are not quoted by any
such organization, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in such Rights, selected by the
Board of Directors. If on any such date no such market maker is making a market
in such Rights, the fair value of the Rights on such date as determined in good
faith by the Board of Directors shall be used. Notwithstanding anything in this
Agreement to the contrary, the current market price of a Class B Right shall
not be lower than the current market price of a Class A Right.

 

25

 

(b)           The Company shall not be required to issue fractions
of shares of Preferred Stock (other than fractions which are integral multiples
of one one-thousandth of a share of Preferred Stock) upon exercise of the
Rights or to distribute certificates which evidence fractional shares of
Preferred Stock (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock). In lieu of fractional shares of
Preferred Stock that are not integral multiples of one one-thousandth of a
share of Preferred Stock, the Company may pay to the registered holders of
Rights Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of one
one-thousandth of a share of Preferred Stock. For purposes of this Section
14(b), the current market value of one one-thousandth of a share of Preferred
Stock shall be one one-thousandth of the closing price of a share of Preferred
Stock (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day
immediately prior to the date of such exercise.

 

(c)           Following the occurrence of a Triggering Event, the
Company shall not be required to issue fractions of shares of Common Stock upon
exercise of the Rights or to distribute certificates which evidence fractional
shares of Common Stock. In lieu of fractional shares of Common Stock, the
Company may pay to the registered holders of Rights Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the
same fraction of the current market value of one (1) share of Common Stock for
which a Right is exercisable. For purposes of this Section 14(c), the current market
value of one share of Common Stock for which a Right is exercisable shall be
the closing price per share of such class of Common Stock (as determined
pursuant to Section 11(d)(i) hereof) on the Trading Day immediately prior to
the date of such exercise.

 

(d)           The holder of a Right by the acceptance of the Rights
expressly waives such holder’s right to receive any fractional Rights or any
fractional shares upon exercise of a Right, except as permitted by this Section
14.

 

Section 15.             Rights of Action.
All rights of action in respect of this Agreement are vested in the respective
registered holders of the Rights Certificates (and, prior to the Distribution
Date, the registered holders of the Common Stock); and any registered holder of
any Rights Certificate (or, prior to the Distribution Date, of the Common
Stock), without the consent of the Rights Agent or of the holder of any other
Rights Certificate (or, prior to the Distribution Date, of the Common Stock),
may, in such holder’s own behalf and for his own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, his right to exercise the Rights
evidenced by such Rights Certificate in the manner provided in such Rights
Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and shall be entitled to specific performance of the
obligations hereunder and injunctive relief against actual or threatened
violations of the obligations hereunder of any Person subject to this
Agreement.

 

Section 16.             Agreement of
Rights Holders. Every holder of a Right by accepting the same consents and
agrees with the Company and the Rights Agent and with every other holder of a
Right that:

 

26

 

(a)           prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of Common Stock;

 

(b)           after the Distribution Date, the Rights Certificates
are transferable only on the registry books of the Rights Agent if surrendered
at the principal office or offices of the Rights Agent designated for such
purposes, duly endorsed or accompanied by a proper instrument of transfer and
with the appropriate forms and certificates fully executed;

 

(c)           subject to Section 6(a) and Section 7(f) hereof, the
Company and the Rights Agent may deem and treat the person in whose name a
Rights Certificate (or, prior to the Distribution Date, the associated Common
Stock certificate) is registered as the absolute owner thereof and of the
Rights evidenced thereby (notwithstanding any notations of ownership or writing
on the Rights Certificates or the associated Common Stock certificate made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent, subject to the last sentence of
Section 7(e) hereof, shall be required to be affected by any notice to the
contrary; and

 

(d)           notwithstanding anything in this Agreement to the
contrary, neither the Company nor the Rights Agent shall have any liability to
any holder of a Right or other Person as a result of its inability to perform
any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, decree or ruling issued by a court of
competent jurisdiction or by a governmental, regulatory or administrative
agency or commission, or any statute, rule, regulation or executive order
promulgated or enacted by any governmental authority, prohibiting or otherwise
restraining performance of such obligation; provided, however,
the Company must use its best efforts to have any such order, decree or ruling
lifted or otherwise overturned as soon as possible.

 

Section 17.             Rights Certificate
Holder Not Deemed a Stockholder. No holder, as such, of any Rights
Certificate shall be entitled to vote, receive dividends or be deemed for any
purpose the holder of the number of one one-thousandths of a share of Preferred
Stock or any other securities of the Company which may at any time be issuable
on the exercise of the Rights represented thereby, nor shall anything contained
herein or in any Rights Certificate be construed to confer upon the holder of
any Rights Certificate, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as provided in Section 25 hereof), or to
receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by such Rights Certificate shall have been exercised in
accordance with the provisions hereof.

 

Section 18.             Concerning the
Rights Agent.

 

(a)           The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
disbursements and other reasonable disbursements incurred in the administration
and execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights 

 

27

 

Agent for, and to hold it harmless against,
any loss, liability, or expense, incurred without gross negligence, bad faith
or willful misconduct on the part of the Rights Agent, for anything done or
omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of defending
against any claim of liability in the premises.

 

(b)           The Rights Agent shall be protected and
shall incur no liability for or in respect of any action taken, suffered or
omitted by it in connection with its administration of this Agreement in reliance
upon any Rights Certificate or certificate for Common Stock or for other
securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement, or other paper or document believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper Person or Persons.

 

Section 19.             Merger or
Consolidation or Change of Name of Rights Agent.

 

(a)           Any corporation into which the Rights Agent or any
successor Rights Agent may be merged or with which it may be consolidated, or
any corporation resulting from any merger or consolidation to which the Rights
Agent or any successor Rights Agent shall be a party, or any corporation
succeeding to the corporate trust, stock transfer or other shareholder services
business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties
hereto; but only if such corporation would be eligible for appointment as a
successor Rights Agent under the provisions of Section 21 hereof. In case at
the time such successor Rights Agent shall succeed to the agency created by
this Agreement, any of the Rights Certificates shall have been countersigned
but not delivered, any such successor Rights Agent may adopt the
countersignature of a predecessor Rights Agent and deliver such Rights
Certificates so countersigned; and in case at that time any of the Rights
Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Rights Certificates either in the name of the predecessor or
in the name of the successor Rights Agent; and in all such cases such Rights
Certificates shall have the full force provided in the Rights Certificates and
in this Agreement.

 

(b)           In case at any time the name of the Rights Agent shall
be changed and at such time any of the Rights Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Rights Certificates so
countersigned; and in case at that time any of the Rights Certificates shall
not have been countersigned, the Rights Agent may countersign such Rights
Certificates either in its prior name or in its changed name; and in all such
cases such Rights Certificates shall have the full force provided in the Rights
Certificates and in this Agreement.

 

Section 20.             Duties of Rights
Agent. The Rights Agent undertakes the duties and obligations imposed by
this Agreement upon the following terms and conditions, by all of which the
Company and the holders of Rights Certificates, by their acceptance thereof,
shall be bound:

 

(a)           The Rights Agent may consult with legal counsel (who
may be legal counsel for the Company), and the opinion of such counsel shall be
full and complete 

 

28

 

authorization and protection to the Rights
Agent as to any action taken or omitted by it in good faith and in accordance
with such opinion.

 

(b)           Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact
or matter (including, without limitation, the identity of any Acquiring Person
and the determination of the current market price of the Rights or any series
or class of Preferred Stock or the Current Market Price per share of any class
of Common Stock) be proved or established by the Company prior to taking or
suffering any action hereunder, such fact or matter (unless other evidence in
respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by the Chairman of
the Board of Directors, the President, any Vice President, the Treasurer, any
Assistant Treasurer, the Secretary or any Assistant Secretary of the Company
and delivered to the Rights Agent; and such certificate shall be full
authorization to the Rights Agent for any action taken or suffered in good
faith by it under the provisions of this Agreement in reliance upon such
certificate.

 

(c)           The Rights Agent shall be liable hereunder only for
its own  negligence, bad faith or willful
misconduct.

 

(d)           The Rights Agent shall not be liable for or by reason
of any of the statements of fact or recitals contained in this Agreement or in
the Rights Certificates or be required to verify the same (except as to its
countersignature on such Rights Certificates), but all such statements and
recitals are and shall be deemed to have been made by the Company only.

 

(e)           The Rights Agent shall not be under any responsibility
in respect of the validity of this Agreement or the execution and delivery
hereof (except the due execution hereof by the Rights Agent) or in respect of
the validity or execution of any Rights Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in any
Rights Certificate; nor shall it be responsible for any adjustment required
under the provisions of Section 11, Section 13 or Section 24 hereof or
responsible for the manner, method or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment
(except with respect to the exercise of Rights evidenced by Rights Certificates
after actual notice of any such adjustment); nor shall it by any act hereunder
be deemed to make any representation or warranty as to the authorization or
reservation of any shares of Common Stock or Preferred Stock to be issued
pursuant to this Agreement or any Rights Certificate or as to whether any
shares of Common Stock or Preferred Stock will, when so issued, be validly
authorized and issued, fully paid and nonassessable.

 

(f)            The Company agrees that it will perform, execute,
acknowledge and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and assurances as may
reasonably be required by the Rights Agent for the carrying out or performing
by the Rights Agent of the provisions of this Agreement.

 

(g)           The Rights Agent is hereby authorized and directed to
accept instructions with respect to the performance of its duties hereunder
from the Chairman of the Board of Directors, the President, any Vice President,
the Secretary, any Assistant Secretary, the 

 

29

 

Treasurer or any Assistant Treasurer of the
Company, and to apply to such officers for advice or instructions in connection
with its duties, and it shall not be liable for any action taken or suffered to
be taken by it in good faith in accordance with instructions of any such
officer.

 

(h)           The Rights Agent and any stockholder, director,
officer or employee of the Rights Agent may buy, sell or deal in any of the
Rights or other securities of the Company or become pecuniarily interested in
any transaction in which the Company may be interested, or contract with or
lend money to the Company or otherwise act as fully and freely as though it
were not Rights Agent under this Agreement. Nothing herein shall preclude the
Rights Agent from acting in any other capacity for the Company or for any other
legal entity.

 

(i)            The Rights Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorneys or agents, and the Rights Agent shall not
be answerable or accountable for any act, default, neglect or misconduct of any
such attorneys or agents or for any loss to the Company resulting from any such
act, default, neglect or misconduct; provided, however,
reasonable care was exercised in the selection and continued employment
thereof.

 

(j)            No provision of this Agreement shall require the
Rights Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise
of its rights if there shall be reasonable grounds for believing that repayment
of such funds or adequate indemnification against such risk or liability is not
reasonably assured to it.

 

(k)           If, with respect to any Rights Certificate surrendered
to the Rights Agent for exercise or transfer, the certificate attached to the
form of assignment or form of election to purchase, as the case may be, has
either not been completed or indicates an affirmative response to clause 1
and/or 2 thereof, the Rights Agent shall not take any further action with
respect to such requested exercise or transfer without first consulting with
the Company.

 

Section 21.             Change of Rights
Agent. The Rights Agent or any successor Rights Agent may resign and be
discharged from its duties under this Agreement upon thirty (30) days’ notice
in writing mailed to the Company, and to each transfer agent of the Common
Stock and Preferred Stock, by registered or certified mail, and, if such
resignation occurs after the Distribution Date, to the registered holders of
the Rights Certificates by first-class mail. The Company may remove the Rights
Agent or any successor Rights Agent upon thirty (30) days’ notice in writing,
mailed to the Rights Agent or successor Rights Agent, as the case may be, and
to each transfer agent of the Common Stock and Preferred Stock, by registered
or certified mail, and, if such removal occurs after the Distribution Date, to
the holders of the Rights Certificates by first-class mail. If the Rights Agent
shall resign or be removed or shall otherwise become incapable of acting, the
Company shall appoint a successor to the Rights Agent. If the Company shall
fail to make such appointment within a period of thirty (30) days after giving
notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by
the holder of a Rights Certificate (who shall, with such notice, submit his
Rights Certificate for inspection by the Company), then any registered holder
of any Rights Certificate may apply to any court of competent jurisdiction for
the appointment of 

 

30

 

a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such
a court, shall be (a) a legal business entity organized and doing business
under the laws of the United States or of the State of New York or of any other
state of the United States, in good standing, having an  office in the State of New York, which is
authorized under such laws to exercise corporate trust, stock transfer or shareholder
services powers and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least $50,000,000 or (b) an affiliate
of a legal business entity described in clause (a) of this sentence. After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as
Rights Agent without further act or deed; but the predecessor Rights Agent
shall deliver and transfer to the successor Rights Agent any property at the
time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment, the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Stock
and the Preferred Stock, and, if such appointment occurs after the Distribution
Date, mail a notice thereof in writing to the registered holders of the Rights
Certificates. Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of
the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be.

 

Section 22.             Issuance of New
Rights Certificates. Notwithstanding any of the provisions of this
Agreement or of the Rights to the contrary, the Company may, at its option,
issue new Rights Certificates evidencing Rights in such form as may be approved
by the Board of Directors to reflect any adjustment or change in the Purchase
Price and the number or kind or class of shares or other securities or property
purchasable under the Rights Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or
sale of shares of Common Stock following the Distribution Date and prior to the
redemption or expiration of the Rights, the Company (a) shall, with respect to
shares of Common Stock so issued or sold pursuant to the exercise of stock
options or under any employee plan or arrangement, granted or awarded as of the
Distribution Date, or upon the exercise, conversion or exchange of securities
hereinafter issued by the Company, and (b) may, in any other case, if deemed
necessary or appropriate by the Board of Directors, issue Rights Certificates
representing the appropriate number and class of Rights in connection with such
issuance or sale; provided, however, that (i) no such Rights
Certificate shall be issued if, and to the extent that, the Company shall be
advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Company or the Person to whom such
Rights Certificate would be issued, and (ii) no such Rights Certificate shall
be issued if, and to the extent that, appropriate adjustment shall otherwise
have been made in lieu of the issuance thereof.

 

Section 23.             Redemption and
Termination.

 

(a)           The Board of Directors may, at its option, at any time
prior to the earlier of (i) the close of business on the tenth Business Day
following the Stock Acquisition Date (or, if the Stock Acquisition Date shall
have occurred prior to the Record Date, the close of business on the tenth
Business Day following the Record Date), or (ii) the Final Expiration Date,
redeem all but not less than all of the then outstanding Rights at a redemption
price of $0.01 per Right, as such amount may be appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after
the date hereof (such redemption price being hereinafter 

 

31

 

referred to as the “Redemption Price”). Notwithstanding
anything contained in this Agreement to the contrary, the Rights shall not be exercisable
after the first occurrence of a Section 11(a)(ii) Event until such time as the
Company’s right of redemption hereunder has expired. The Company may, at its
option, pay the Redemption Price in cash, shares of the class of Common Stock
for which a Right is exercisable (based on the Current Market Price, as defined
in Section 11(d)(i) hereof, of the relevant Common Stock at the time of
redemption) or any other form of consideration deemed appropriate by the Board
of Directors, including shares of the other class of Common Stock; provided,
however, that the Redemption Price shall first be paid in shares of the class
of Common Stock for which a Right is exercisable to the extent of the
authorized shares of that class (excluding all such shares that are outstanding
or reserved for issuance for purposes other than the exercise of the Rights).

 

(b)           Immediately upon the action of the Board of Directors
ordering the redemption of the Rights, evidence of which shall have been filed
with the Rights Agent and without any further action and without any notice,
the right to exercise the Rights will terminate and the only right thereafter
of the holders of Rights shall be to receive the Redemption Price for each
Right so held. Promptly after the action of the Board of Directors ordering the
redemption of the Rights, the Company shall give notice of such redemption to
the Rights Agent and the holders of the then outstanding Rights by mailing such
notice to all such holders at each holder’s last address as it appears upon the
registry books of the Rights Agent or, prior to the Distribution Date, on the
registry books of the transfer agent for the Common Stock. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of redemption will state the
method by which the payment of the Redemption Price will be made.

 

Section 24.             Exchange.

 

(a)           The Board of Directors may, at its option, at any time
after any Person becomes an Acquiring Person, exchange all or part of the then
outstanding and exercisable Class A Rights and Class B Rights (which shall not
include Rights that have become void pursuant to the provisions of Section 7(e)
hereof) for Class A Common Stock and Class B Common Stock, respectively, at an
exchange ratio of one share of Class A Common Stock and one share of Class
B Common Stock per Class A Right and Class B Right, respectively, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction occurring
after the date hereof (such exchange ratio being hereinafter referred to as the
“Exchange Ratio”).
Notwithstanding the foregoing, the Board of Directors shall not be empowered to
effect such exchange at any time after any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or any such
Subsidiary, or any entity holding Common Stock for or pursuant to the terms of
any such plan), together with all Affiliates and Associates of such Person,
becomes the Beneficial Owner of 50% or more of the Common Stock then
outstanding.

 

(b)           Immediately upon the action of the Board of Directors
ordering the exchange of any Rights pursuant to subsection (a) of this Section
24 and without any further action and without any notice, the right to exercise
such Rights shall terminate and the only right thereafter of a holder of such
Rights shall be to receive that number of shares of Class A Common Stock or
Class B Common Stock equal to the number of such Class A Rights or Class B

 

32

 

Rights, respectively, held by such holder
multiplied by the Exchange Ratio. The Company shall promptly give public notice
of any such exchange; provided, however, that the failure to
give, or any defect in, such notice shall not affect the validity of such
exchange. The Company promptly shall mail a notice of any such exchange to all
of the holders of such Rights at their last addresses as they appear upon the
registry books of the Rights Agent. Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of exchange will state the method by which the
exchange of the Common Stock for Rights will be effected and, in the event of
any partial exchange, the number of Class A Rights or Class B Rights which will
be exchanged. Any partial exchange shall be effected pro rata based on the
number of Rights (other than Rights which have become void pursuant to the
provisions of Section 7(e) hereof) held by each holder of Class A Rights or
Class B Rights.

 

(c)           In any exchange pursuant to this Section 24, the
Company, at its option, may substitute Preferred Stock (or Equivalent Preferred
Stock, as such term is defined in paragraph (b) of Section 11 hereof) for
Common Stock exchangeable for Rights, at the initial rate of one one-thousandth
of a share of Preferred Stock (or Equivalent Preferred Stock) for each share of
Common Stock, as appropriately adjusted to reflect stock splits, stock dividends
and other similar transactions after the date hereof.

 

(d)           In the event that there shall not be sufficient shares
of Common Stock issued but not outstanding or authorized but unissued to permit
any exchange of Rights as contemplated in accordance with this Section 24, the
Company shall take all such action as may be necessary to authorize additional
shares of Common Stock for issuance upon exchange of the Rights.

 

(e)           The Company shall not be required to issue fractions
of shares of Common Stock or to distribute certificates which evidence
fractional shares of Common Stock. In lieu of such fractional shares of Common
Stock, there shall be paid to the registered holders of the Rights Certificates
with regard to which such fractional shares of Common Stock would otherwise be
issuable, an amount in cash equal to the same fraction of the current market
value of a whole share of Class A Common Stock or Class B Common Stock, as the
case may be. For the purposes of this subsection (e), the current market value
of a whole share of Common Stock shall be the closing price of such share of
Common Stock (as determined pursuant to the second sentence of Section 11(d)(i)
hereof) for the Trading Day immediately prior to the date of exchange pursuant
to this Section 24.

 

Section 25.             Notice of Certain
Events.

 

(a)           In case the Company shall propose, at any time after
the Distribution Date, (i) to pay any dividend payable in stock of any class to
the holders of Preferred Stock or to make any other distribution to the holders
of Preferred Stock (other than a regular quarterly cash dividend out of
earnings or retained earnings of the Company), or (ii) to offer to the holders
of Preferred Stock rights or warrants to subscribe for or to purchase any
additional shares of Preferred Stock or shares of stock of any class or any
other securities, rights or options, or (iii) to effect any reclassification of
its Preferred Stock (other than a reclassification involving only the
subdivision of outstanding shares of Preferred Stock), or (iv) to effect any
consolidation or 

 

33

 

merger into or with any other Person (other
than a Subsidiary of the Company in a transaction which complies with Section
11(o) hereof), or to effect any sale or other transfer (or to permit one or
more of its Subsidiaries to effect any sale or other transfer), in one
transaction or a series of related transactions, of more than 50% of the
assets, cash flow or earning power of the Company and its Subsidiaries (taken as
a whole) to any other Person or Persons (other than the Company and/or any of
its Subsidiaries in one or more transactions each of which complies with
Section 11(o) hereof), or (v) to effect the liquidation, dissolution or winding
up of the Company, then, in each such case, the Company shall give to each
holder of a Rights Certificate, to the extent feasible and in accordance with
Section 26 hereof, a notice of such proposed action, which shall specify the
record date for the purposes of such stock dividend, distribution of rights or
warrants, or the date on which such reclassification, consolidation, merger,
sale, transfer, liquidation, dissolution, or winding up is to take place and
the date of participation therein by the holders of the shares of Preferred
Stock, if any such date is to be fixed, and such notice shall be so given in
the case of any action covered by clause (i) or (ii) above at least twenty (20)
days prior to the record date for determining holders of the shares of
Preferred Stock for purposes of such action, and in the case of any such other
action, at least twenty (20) days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of the
shares of Preferred Stock, whichever shall be the earlier.

 

(b)           In case any of the events set forth in Section
11(a)(ii) hereof shall occur, then, in any such case, (i) the Company shall as
soon as practicable thereafter give to each holder of a Rights Certificate, to
the extent feasible and in accordance with Section 26 hereof, a notice of the
occurrence of such event, which shall specify the event and the consequences of
the event to holders of Rights under Section 11(a)(ii) hereof, and (ii) all
references in the preceding paragraph to Preferred Stock shall be deemed
thereafter to refer to Common Stock and/or, if appropriate, other securities.

 

Section 26.             Notices. Notices
or demands authorized by this Agreement to be given or made by the Rights Agent
or by the holder of any Rights Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing by the Rights Agent with
the Company) as follows:

 

Classmates Media Corporation

21301 Burbank Boulevard

Woodland Hills, California  91367

Attention:  General Counsel

 

Subject to the provisions of Section 21, any
notice or demand authorized by this Agreement to be given or made by the
Company or by the holder of any Rights Certificate to or on the Rights Agent
shall be sufficiently given or made if sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing by the Rights
Agent with the Company) as follows:

 

American Stock Transfer & Trust Company

59 Maiden Lane

New York, New York  10038

Attention:  General Counsel

 

34

 

Notices or demands authorized by this
Agreement to be given or made by the Company or the Rights Agent to the holder
of any Rights Certificate (or, if prior to the Distribution Date, to the holder
of certificates representing shares of Common Stock) shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed to such
holder at the address of such holder as shown on the registry books of the Company.

 

Section 27.             Supplements and
Amendments. Prior to the Distribution Date, the Company and the Rights
Agent shall, if the Company so directs, supplement or amend any provision of
this Agreement without the approval of any holders of certificates representing
shares of Common Stock. From and after the Distribution Date, the Company and
the Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Rights Certificates in order
(i) to cure any ambiguity, (ii) to correct or supplement any provision
contained herein which may be defective or inconsistent with any other
provisions herein, (iii) to shorten or lengthen any time period hereunder or
(iv) to change or supplement the provisions hereunder in any manner which the
Company may deem necessary or desirable and which shall not adversely affect
the interests of the holders of Rights Certificates. Upon the delivery of a
certificate from an appropriate officer of the Company which states that the proposed
supplement or amendment is in compliance with the terms of this Section 27, the
Rights Agent shall execute such supplement or amendment. Notwithstanding
anything herein to the contrary, this Agreement may not be amended (other than
pursuant to clauses (i) or (ii) of the next preceding sentence) at a time when the
Rights are not redeemable.

 

Section 28.             Successors. All
the covenants and provisions of this Agreement by or for the benefit of the
Company or the Rights Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder.

 

Section 29.             Determinations and
Actions by the Board of Directors, etc. For all purposes of this Agreement,
any calculation of the number of shares of Common Stock or any other class of
capital stock outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding shares of Common
Stock of which any Person is the Beneficial Owner, shall be made in accordance
with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and
Regulations under the Exchange Act. The Board of Directors shall have the
exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors or to the
Company, or as may be necessary or advisable in the administration of this
Agreement, including, without limitation, the right and power to (i) interpret
the provisions of this Agreement, and (ii) make all determinations deemed
necessary or advisable for the administration of this Agreement (including a
determination to redeem or not redeem the Rights or to amend the Agreement). All
such actions, calculations, interpretations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing)
which are done or made by the Board of Directors in good faith, shall (x) be
final, conclusive and binding on the Company, the Rights Agent, the holders of
the Rights and all other parties, and (y) not subject the Board of Directors,
or any of the directors on the Board of Directors to any liability to the
holders of the Rights.

 

Section 30.             Benefits of this
Agreement. Nothing in this Agreement shall be construed to give to any
Person other than the Company, the Rights Agent and the registered holders of
the Rights Certificates (and, prior to the Distribution Date, registered
holders of the Common Stock) 

 

35

 

any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall
be for the sole and exclusive benefit of the Company, the Rights Agent and the
registered holders of the Rights Certificates (and, prior to the Distribution
Date, registered holders of the Common Stock).

 

Section 31.             Severability. If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated; provided, however,
that notwithstanding anything in this Agreement to the contrary, if any such
term, provision, covenant or restriction is held by such court or authority to
be invalid, void or unenforceable and the Board of Directors determines in its
good faith judgment that severing the invalid language from this Agreement
would adversely affect the purpose or effect of this Agreement, the right of
redemption set forth in Section 23 hereof shall be reinstated and shall not
expire until the close of business on the tenth Business Day following the date
of such determination by the Board of Directors. Without limiting the
foregoing, if any provision requiring a specific group of directors to act is
held to by any court of competent jurisdiction or other authority to be
invalid, void or unenforceable, such determination shall then be made by the
Board of Directors in accordance with applicable law and the Company’s Amended
and Restated Certificate of Incorporation and Bylaws.

 

Section 32.             Governing Law.
This Agreement, each Right and each Rights Certificate issued hereunder shall
be deemed to be a contract made under the laws of the State of Delaware and for
all purposes shall be governed by and construed in accordance with the laws of
such State applicable to contracts made and to be performed entirely within
such State.

 

Section 33.             Counterparts. This
Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

 

Section 34.             Descriptive
Headings. Descriptive headings of the several sections of this Agreement are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

 

36

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed all as of the day and year first
above written.

 

 

	
   

  	
  CLASSMATES
  MEDIA CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  AMERICAN
  STOCK TRANSFER & TRUST

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

37

 

EXHIBIT A

 

FORM OF

 

CERTIFICATE
OF DESIGNATION, PREFERENCES AND

 

RIGHTS OF
SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

 

of

 

CLASSMATES
MEDIA CORPORATION

 

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

 

We, the undersigned officers of Classmates
Media Corporation, a corporation organized and existing under the General
Corporation Law of the State of Delaware, in accordance with the provisions of
Section 103 thereof, DO HEREBY CERTIFY:

 

That pursuant to the authority conferred upon
the Board of Directors by the Amended and Restated Certificate of Incorporation
of the said Corporation, the said Board of Directors on                                    ,
2007, adopted the following resolution creating a series of
                   
shares of Preferred Stock designated as Series A Junior Participating Preferred
Stock:

 

RESOLVED, that pursuant to the authority
vested in the Board of Directors in accordance with the provisions of its
Amended and Restated Certificate of Incorporation, a series of Preferred Stock
of the Corporation be and it hereby is created, 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 follows:

 

Section 1. Designation and Amount. The
shares of such series shall be designated as “Series A Junior Participating Preferred
Stock” and the number of shares constituting such series shall be               .

 

Section 2. Dividends and Distributions.

 

(A) 
Subject to the prior and superior rights of the holders of any shares of
any series of Preferred Stock ranking prior and superior to the shares of
Series A Junior Participating Preferred Stock with respect to dividends, the
holders of shares of Series A Junior Participating Preferred Stock shall be
entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, quarterly dividends payable in cash on
the last day of March, June, September and December in each year (each such
date being referred to herein as a “Quarterly Dividend Payment Date”),
commencing on the first Quarterly Dividend Payment Date after the first
issuance of a share or fraction of a share of Series A Junior Participating
Preferred Stock, in an amount per share (rounded to the nearest cent) equal to
the greater of (a) $1.00 or (b) subject to the provision for adjustment
hereinafter set forth, 1,000 

 

38

 

times the
aggregate per share amount of all cash dividends, and 1,000 times the aggregate
per share amount (payable in kind) of all non-cash dividends or other
distributions other than a dividend payable in shares of Class A Common Stock,
par value $0.0001 per share (the “Class A  Common Stock”),
or Class B Common Stock, par value $0.0001 per share (the “Class B
Common Stock”
and, together with the Class A Common Stock, the “Common Stock”), or a subdivision
of the outstanding shares of Common Stock (by reclassification or otherwise),
declared on the Common Stock since the immediately preceding Quarterly Dividend
Payment Date, or, with respect to the first Quarterly Dividend Payment Date,
since the first issuance of any share or fraction of a share of Series A Junior
Participating Preferred Stock. In the event the Corporation shall at any time
after                                    ,
2007 (the “Rights
Declaration Date”) (i) declare any dividend on Common Stock payable
in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or
(iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the amount to which holders of shares of Series A Junior
Participating Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by multiplying
such amount 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.

 

(B) 
The Corporation shall declare a dividend or distribution on the Series A
Junior Participating Preferred Stock as provided in Paragraph (A) above
immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of either class of Common Stock); provided
that in the event no dividend or distribution shall have been declared on the
Common Stock during the period between any Quarterly Dividend Payment Date and
the next subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per
share on the Series A Junior Participating Preferred Stock shall nevertheless
be payable on such subsequent Quarterly Dividend Payment Date.

 

(C) 
Dividends shall begin to accrue and be cumulative on outstanding shares
of Series A Junior Participating Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series A Junior
Participating Preferred Stock, unless the date of issue of such shares is prior
to the record date for the first Quarterly Dividend Payment Date, in which case
dividends on such shares shall begin to accrue from the date of issue of such shares,
or unless the date of issue is a Quarterly Dividend Payment Date or is a date
after the record date for the determination of holders of shares of Series A
Junior Participating Preferred Stock entitled to receive a quarterly dividend
and before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends
paid on the shares of Series A Junior Participating Preferred Stock in an
amount less than the total amount of such dividends at the time accrued and
payable on such shares shall be allocated pro rata on a share-by-share basis
among all such shares at the time outstanding. The Board of Directors may fix a
record date for the determination of holders of shares of Series A Junior
Participating Preferred Stock entitled to receive payment of a dividend or
distribution declared thereon, which record date shall be no more than 30 days
prior to the date fixed for the payment thereof.

 

39

 

Section 3. Voting Rights. The holders
of shares of Series A Junior Participating Preferred Stock shall have the
following voting rights:

 

(A) 
Subject to the provision for adjustment hereinafter set forth, each
share of Series A Junior Participating Preferred Stock shall entitle the holder
thereof to 1,000 votes on all matters submitted to a vote of the stockholders
of the Corporation. In the event the Corporation shall at any time after the
Rights Declaration Date (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii)
combine the outstanding Common Stock into a smaller number of shares, then in each
such case the number of votes per share to which holders of shares of Series A
Junior Participating Preferred Stock were entitled immediately prior to such
event shall be adjusted 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.

 

(B) 
Except as otherwise provided herein or by law, the holders of shares of
Series A Junior Participating Preferred Stock and the holders of shares of
Common Stock shall vote together as one class on all matters submitted to a
vote of stockholders of the Corporation.

 

(C) (i) 
If at any time dividends on any Series A Junior Participating Preferred
Stock shall be in arrears in an amount equal to six (6) quarterly dividends
thereon, the occurrence of such contingency shall mark the beginning of a
period (herein called a “default
period”) which shall extend until such time when all accrued
and unpaid dividends for all previous quarterly dividend periods and for the
current quarterly dividend period on all shares of Series A Junior
Participating Preferred Stock then outstanding shall have been declared and
paid or set apart for payment. During each default period, all holders of
Preferred Stock (including holders of the Series A Junior Participating
Preferred Stock) with dividends in arrears in an amount equal to six (6)
quarterly dividends thereon, voting as a class, irrespective of series, shall
have the right to elect two (2) directors.

 

(ii)  During any default period,
such voting right of the holders of Series A Junior Participating Preferred
Stock may be exercised initially at a special meeting called pursuant to subparagraph
(iii) of this Section 3(C) or at any annual meeting of stockholders, and
thereafter at annual meetings of stockholders, provided that such voting right
shall not be exercised unless the holders of ten percent (10%) in number of
shares of Preferred Stock outstanding shall be present in person or by proxy. The
absence of a quorum of the holders of Common Stock shall not affect the
exercise by the holders of Preferred Stock of such voting right. At any meeting
at which the holders of Preferred Stock shall exercise such voting right
initially during an existing default period, they shall have the right, voting
as a class, to elect directors to fill such vacancies, if any, in the Board of
Directors as may then exist up to two (2) directors or, if such right is
exercised at an annual meeting, to elect two (2) directors. If the number which
may be so elected at any special meeting does not amount to the required
number, the holders of the Preferred Stock shall have the right to make such
increase in the number of directors as shall be necessary to permit the
election by them of the required number. After the holders of the Preferred
Stock shall have exercised their right 

 

40

 

to elect directors in any default period and
during the continuance of such period, the number of directors shall not be
increased or decreased except by vote of the holders of Preferred Stock as
herein provided or pursuant to the rights of any equity securities ranking
senior to or pari passu with the Series A Junior
Participating Preferred Stock.

 

(iii)  Unless the holders of
Preferred Stock shall, during an existing default period, have previously
exercised their right to elect directors, the Board of Directors may order, or
any stockholder or stockholders owning in the aggregate not less than ten
percent (10%) of the total number of shares of Preferred Stock outstanding,
irrespective of series, may request, the calling of a special meeting of the
holders of Preferred Stock, which meeting shall thereupon be called by the Chairman
of the Board of Directors, the President, a Vice-President or the Secretary of
the Corporation. Notice of such meeting and of any annual meeting at which
holders of Preferred Stock are entitled to vote pursuant to this paragraph
(C)(iii) shall be given to each holder of record of Preferred Stock by mailing
a copy of such notice to him at his last address as the same appears on the
books of the Corporation. Such meeting shall be called for a time not earlier
than 20 days and not later than 60 days after such order or request or in
default of the calling of such meeting within 60 days after such order or
request, such meeting may be called on similar notice by any stockholder or
stockholders owning in the aggregate not less than ten percent (10%) of the
total number of shares of Preferred Stock outstanding. Notwithstanding the
provisions of this Paragraph (C)(iii), no such special meeting shall be called
during the period within 60 days immediately preceding the date fixed for the
next annual meeting of the stockholders.

 

(iv)  In any default period, the
holders of Common Stock, and other classes of stock of the Corporation if
applicable, shall continue to be entitled to elect the whole number of
directors until the holders of Preferred Stock shall have exercised their right
to elect two (2) directors voting as a class, after the exercise of which right
(x) the directors so elected by the holders of Preferred Stock shall continue
in office until their successors shall have been elected by such holders or
until the expiration of the default period, and (y) any vacancy in the Board of
Directors may (except as provided in paragraph (C)(ii) of this Section 3) be
filled by vote of a majority of the remaining directors theretofore elected by
the holders of the class of stock which elected the director whose office shall
have become vacant. References in this Paragraph (C) to directors elected by
the holders of a particular class of stock shall include directors elected by
such directors to fill vacancies as provided in clause (y) of the foregoing
sentence.

 

(v)  Immediately upon the
expiration of a default period, (x) the right of the holders of Preferred Stock
as a class to elect directors shall cease, (y) the term of any directors
elected by the holders of Preferred Stock as a class shall terminate, and (z)
the number of directors shall be such number as may be provided for in the Amended
and Restated Certificate of Incorporation or Bylaws irrespective of any
increase made pursuant to the provisions of paragraph (C)(ii) 

 

41

 

of this Section 3 (such number being subject,
however, to change thereafter in any manner provided by law or in the Amended
and Restated Certificate of Incorporation or Bylaws). Any vacancies in the
Board of Directors effected by the provisions of clauses (y) and (z) in the
preceding sentence may be filled by a majority of the remaining directors.

 

(D) 
Except as set forth herein, holders of Series A Junior Participating
Preferred Stock shall have no special voting rights and their consent shall not
be required (except to the extent they are entitled to vote with holders of
Common Stock as set forth herein) for taking any corporate action.

 

Section 4. Certain Restrictions.

 

(A) 
Whenever quarterly dividends or other dividends or distributions payable
on the Series A Junior Participating Preferred Stock as provided in Section 2
are in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series A Junior
Participating Preferred Stock outstanding shall have been paid in full, the
Corporation shall not

 

(i)  declare or pay dividends on,
make any other distributions on, or redeem or purchase or otherwise acquire for
consideration any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series A Junior Participating
Preferred Stock;

 

(ii)  declare or pay dividends on
or make any other distributions on any shares of stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with
the Series A Junior Participating Preferred Stock, except dividends paid
ratably on the Series A Junior Participating Preferred Stock and all such
parity stock on which dividends are payable or in arrears in proportion to the
total amounts to which the holders of all such shares are then entitled;

 

(iii)  redeem or purchase or
otherwise acquire for consideration shares of any stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with
the Series A Junior Participating Preferred Stock, provided that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any
such parity stock in exchange for shares of any stock of the Corporation
ranking junior (either as to dividends or upon dissolution, liquidation or
winding up) to the Series A Junior Participating Preferred Stock; or

 

(iv)  purchase or otherwise
acquire for consideration any shares of Series A Junior Participating Preferred
Stock, except in accordance with a purchase offer made in writing or by
publication (as determined by the Board of Directors) to all holders of such
shares upon such terms as the Board of Directors, after consideration of the
respective annual dividend rates and other relative rights and preferences of
the respective series and classes, shall determine in good faith will result in
fair and equitable treatment among the respective series or classes.

 

42

 

(B) 
The Corporation shall not permit any subsidiary of the Corporation to
purchase or otherwise acquire for consideration any shares of stock of the
Corporation unless the Corporation could, under Paragraph (A) of this Section
4, purchase or otherwise acquire such shares at such time and in such manner.

 

Section 5. Reacquired Shares. Any
shares of Series A Junior Participating 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, subject to the conditions
and restrictions on issuance set forth herein.

 

Section 6. Liquidation, Dissolution or
Winding Up. (A)  Upon any liquidation
(voluntary or otherwise), dissolution or winding up of the Corporation, no
distribution shall be made to the holders of shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the
Series A Junior Participating Preferred Stock unless, prior thereto, the
holders of shares of Series A Junior Participating Preferred Stock shall have
received an amount equal to $1,000 per share of Series A Participating
Preferred Stock, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment
(the “Series A
Liquidation Preference”). Following the payment of the full amount
of the Series A Liquidation Preference, no additional distributions shall be
made to the holders of shares of Series A Junior Participating Preferred Stock
unless, prior thereto, the holders of shares of Common Stock shall have
received an amount per share (the “Common Adjustment”) equal to the quotient obtained by
dividing (i) the Series A Liquidation Preference by (ii) 1,000 (as appropriately
adjusted as set forth in subparagraph (C) below to reflect such events as stock
splits, stock dividends and recapitalizations with respect to the Common Stock)
(such number in clause (ii), the “Adjustment Number”). Following the payment of the full
amount of the Series A Liquidation Preference and the Common Adjustment in
respect of all outstanding shares of Series A Junior Participating Preferred
Stock and Common Stock, respectively, holders of Series A Junior Participating
Preferred Stock and holders of shares of Common Stock shall receive their
ratable and proportionate share of the remaining assets to be distributed in
the ratio of the Adjustment Number to 1 with respect to such Preferred Stock
and Common Stock, on a per share basis, respectively.

 

(B)  In
the event, however, that there are not sufficient assets available to permit
payment in full of the Series A Liquidation Preference and the liquidation
preferences of all other series of Preferred Stock, if any, which rank on a
parity with the Series A Junior Participating Preferred Stock, then such
remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences. In the event,
however, that there are not sufficient assets available to permit payment in
full of the Common Adjustment, then such remaining assets shall be distributed
ratably to the holders of Common Stock.

 

(C)  In
the event the Corporation shall at any time after the Rights Declaration Date
(i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding
Common Stock into a smaller number of shares, then in each such case the
Adjustment Number in effect immediately 

 

43

 

prior to such
event shall be adjusted by multiplying such Adjustment 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.

 

Section 7. Consolidation, Merger, etc.
In case the Corporation shall enter into any consolidation, merger, combination
or other transaction in which the shares of Common Stock are exchanged for or
changed into other stock or securities, cash and/or any other property, then in
any such case the shares of Series A Junior Participating Preferred Stock shall
at the same time be similarly exchanged or changed in an amount per share
(subject to the provision for adjustment hereinafter set forth) equal to 1,000
times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of
Common Stock is changed or exchanged. In the event the Corporation shall at any
time after the Rights Declaration Date (i) declare any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock,
or (iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the amount set forth in the preceding sentence with
respect to the exchange or change of shares of Series A Junior Participating
Preferred Stock shall be adjusted by multiplying such amount 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.

 

Section 8. No Redemption. The shares
of Series A Junior Participating Preferred Stock shall not be redeemable.

 

Section 9. Ranking. The Series A
Junior Participating Preferred Stock shall rank junior to all other series of
the Corporation’s Preferred Stock as to the payment of dividends and the
distribution of assets, unless the terms of any such series shall provide
otherwise.

 

Section 10. Amendment. At any time
when any shares of Series A Junior Participating Preferred Stock are outstanding,
neither the Amended and Restated Certificate of Incorporation of the
Corporation nor this Certificate of Designation shall be amended in any manner
which would materially alter or change the powers, preferences or special
rights of the Series A Junior Participating Preferred Stock so as to affect
them adversely without the affirmative vote of the holders of a majority or
more of the outstanding shares of Series A Junior Participating Preferred
Stock, voting separately as a class.

 

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

 

44

 

IN WITNESS WHEREOF, we have executed and
subscribed this Certificate and do affirm the foregoing as true under the
penalties of perjury this       day of              ,
2007.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Chairman of the Board of Directors

  	
   

  
	
   

  
	
  Attest:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Secretary

  
				

 

45

 

EXHIBIT
B-1

 

Form of Class
A Rights Certificate

 

	
  Certificate No. R-

  	
                      Class
  A Rights

  

 

NOT
EXERCISABLE AFTER                                    ,
2017 UNLESS EXTENDED PRIOR THERETO BY THE BOARD OF DIRECTORS OR EARLIER IF
REDEEMED OR EXCHANGED BY THE COMPANY. THE CLASS A RIGHTS ARE SUBJECT TO
REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.01 PER RIGHT ON THE TERMS SET
FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, CLASS A RIGHTS
BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS SUCH TERM IS DEFINED IN THE
RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH CLASS A RIGHTS MAY BECOME
NULL AND VOID. [THE CLASS A RIGHTS REPRESENTED BY THIS CLASS A RIGHTS
CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN
ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH
TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS CLASS A RIGHTS
CERTIFICATE AND THE CLASS A RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID
IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT.](2)

 

(2)   The
Portion of the legend in brackets shall be inserted only if applicable and
shall replace the preceding sentence.

 

Class A Rights
Certificate

 

CLASSMATES
MEDIA CORPORATION

 

This certifies that                                    ,
or registered assigns, is the registered owner of the number of Class A Rights
set forth above, each of which entitles the owner thereof, subject to the
terms, provisions and conditions of the Rights Agreement, dated as of                                    ,
2007 (the “Rights
Agreement”), between Classmates Media Corporation, a Delaware
corporation (the “Company”),
and American Stock Transfer & Trust Company, a New York corporation (the “Rights Agent”),
to purchase from the Company at any time prior to 5:00 p.m. (New York City time)
on                                    ,
2017 (unless such date is extended prior thereto by the Board of Directors) at
the office or offices of the Rights Agent designated for such purpose, or its
successors as Rights Agent, one one-thousandth of a fully paid, non-assessable
share of Series A Junior Participating Preferred Stock (the “Preferred Stock”)
of the Company, at a purchase price of $         
per one one-thousandth of a share (the “Purchase Price”), upon
presentation and surrender of this Class A Rights Certificate with the Form of
Election to Purchase and related Certificate duly executed. The number of Class
A Rights evidenced by this Class A Rights Certificate (and the number of shares
which may be purchased upon exercise thereof) set forth above, and the Purchase
Price per share set forth above, are the number and Purchase Price as of                                    ,
2007, based on the Preferred Stock as constituted at such date. The Company
reserves the right to require prior to 

 

 

46

 

the occurrence
of a Triggering Event (as such term is defined in the Rights Agreement) that a
number of Class A Rights be exercised so that only whole shares of Preferred
Stock will be issued.

 

Upon the occurrence of a Section 11(a)(ii)
Event (as such term is defined in the Rights Agreement), if the Class A Rights
evidenced by this Class A Rights Certificate are beneficially owned by (i) an
Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as
such terms are defined in the Rights Agreement), (ii) a transferee of any such
Acquiring Person, Associate or Affiliate, or (iii) under certain circumstances
specified in the Rights Agreement, a transferee of a person who, after such
transfer, became an Acquiring Person, or an Affiliate or Associate of an
Acquiring Person, such Class A Rights shall become null and void and no holder
hereof shall have any right with respect to such Class A Rights from and after
the occurrence of such Section 11(a)(ii) Event.

 

As provided in the Rights Agreement, the
Purchase Price and the number and kind of shares of Preferred Stock or other
securities, which may be purchased upon the exercise of the Class A Rights
evidenced by this Class A Rights Certificate are subject to modification and
adjustment upon the happening of certain events, including Triggering Events.

 

This Class A Rights Certificate is subject to
all of the terms, provisions and conditions of the Rights Agreement, which
terms, provisions and conditions are hereby incorporated herein by reference
and made a part hereof and to which Rights Agreement reference is hereby made
for a full description of the rights, limitations of rights, obligations,
duties and immunities hereunder of the Rights Agent, the Company, the holders
of the Class A Rights Certificates and the holders of the Class B Rights
Certificates (as such term is defined in the Rights Agreement), which
limitations of rights include the temporary suspension of the exercisability of
such Class A Rights under the specific circumstances set forth in the Rights
Agreement. Copies of the Rights Agreement are on file at the above-mentioned
office of the Rights Agent and are also available upon written request to the
Rights Agent.

 

This Class A Rights Certificate, with or
without other Class A Rights Certificates, upon surrender at the principal
office or offices of the Rights Agent designated for such purpose, may be
exchanged for another Class A Rights Certificate or Class A Rights Certificates
of like tenor and date evidencing Class A Rights entitling the holder to
purchase a like aggregate number of one one-thousandths of a share of Preferred
Stock as the Class A Rights evidenced by the Class A Rights Certificate or
Class A Rights Certificates surrendered shall have entitled such holder to
purchase. If this Class A Rights Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Class A
Rights Certificate or Class A Rights Certificates for the number of whole Class
A Rights not exercised.

 

Subject to the provisions of the Rights
Agreement, the Class A Rights evidenced by this Class A Rights Certificate may
be redeemed by the Company at its option at a redemption price of $0.01 per Class
A Right at any time prior to the earlier of the close of business on (i) the
tenth Business Day following the Stock Acquisition Date (as such time period
may be extended pursuant to the Rights Agreement), and (ii) the Final
Expiration Date. In addition, under certain circumstances following the Stock
Acquisition Date, the Class A Rights may be exchanged, in whole or in part, for
shares of Class A Common Stock, or shares of 

 

47

 

preferred
stock of the Company having essentially the same value or economic rights as
such shares. Immediately upon the action of the Board of Directors of the
Company authorizing any such exchange, and without any further action or any
notice, the Class A Rights (other than Class A Rights which are not subject to
such exchange) will terminate and the Class A Rights will only enable holders
to receive the shares issuable upon such exchange.

 

No fractional shares of Preferred Stock will
be issued upon the exercise of any Class A Right or Class A Rights evidenced
hereby (other than fractions which are integral multiples of one one-thousandth
of a share of Preferred Stock, which may, at the election of the Company, be
evidenced by depositary receipts), but in lieu thereof a cash payment will be
made, as provided in the Rights Agreement. The Company, at its election, may
require that a number of Class A Rights be exercised so that only whole shares
of Preferred Stock would be issued.

 

No holder of this Class A Rights Certificate
shall be entitled to vote or receive dividends or be deemed for any purpose the
holder of shares of Preferred Stock or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything
contained in the Rights Agreement or herein be construed to confer upon the
holder hereof, as such, any of the rights of a stockholder of the Company or
any right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give consent to or withhold consent
from any corporate action, or, to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to
receive dividends or subscription rights, or otherwise, until the Class A Right
or Class A Rights evidenced by this Class A Rights Certificate shall have been
exercised as provided in the Rights Agreement.

 

This Class A Rights Certificate shall not be
valid or obligatory for any purpose until it shall have been countersigned by
the Rights Agent.

 

48

 

WITNESS the
facsimile signature of the proper officers of the Company and its corporate
seal.

 

Dated as of ___________________

 

 

	
  ATTEST:

  	
   

  	
  CLASSMATES MEDIA CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Countersigned:

   

  AMERICAN STOCK TRANSFER & TRUST

  COMPANY

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signature

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

49

 

FORM OF
ASSIGNMENT

 

(To be
executed by the registered holder if such

holder desires to transfer the Class A Rights Certificate.)

 

	
   

  	
  FOR VALUE RECEIVED

  	
   

  

 

	
  hereby sells, assigns and transfers unto

  	
   

  

(Please print name and address of transferee)

 

	
   

  	
   

  

 

this Class A
Rights Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint                                     
Attorney, to transfer the within Class A Rights Certificate on the books of the
within named Company, with full power of substitution.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)
  must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such

  other “signature guarantee program” as may

  be determined by the Note Registrar in

  addition to, or in substitution for, STAMP,

  all in accordance with the Securities

  Exchange Act of 1934, as amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  

 

50

 

CERTIFICATE

 

The undersigned hereby certifies by checking
the appropriate boxes that:

 

(1) 
this Class A Rights Certificate [ 
  ] is [    ] is
not being sold, assigned and transferred by or on behalf of a Person who is or
was an Acquiring Person or an Affiliate or Associate of any such Acquiring
Person (as such terms are defined pursuant to the Rights Agreement);

 

(2) 
after due inquiry and to the best knowledge of the undersigned, it [    ] did
[    ] did not acquire the Class A Rights evidenced
by this Class A Rights Certificate from any Person who is, was or subsequently
became an Acquiring Person or an Affiliate or Associate of an Acquiring Person.

 

 

	
  Dated: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)
  must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such

  other “signature guarantee program” as may

  be determined by the Note Registrar in

  addition to, or in substitution for, STAMP,

  all in accordance with the Securities

  Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature
  Guarantee

  
							

 

51

 

NOTICE

 

The signature to the foregoing Assignment and
Certificate must correspond to the name as written upon the face of this Class
A Rights Certificate in every particular, without alteration or enlargement or
any change whatsoever.

 

52

 

FORM OF
ELECTION TO PURCHASE

 

To: 
CLASSMATES MEDIA CORPORATION:

 

The undersigned hereby irrevocably elects to
exercise                     
Class A Rights represented by this Class A Rights Certificate to purchase the
shares of Preferred Stock issuable upon the exercise of the Class A Rights (or
such other securities of the Company or of any other person which may be
issuable upon the exercise of the Class A Rights) and requests that
certificates for such shares be issued in the name of and delivered to:

 

Please insert social security

or other identifying number

 

	
   

  	
   

  
	
  (Please print name and address)

  
	
   

  	
   

  
	
   

  	
   

  

 

 

If such number of Class A Rights shall not be
all the Class A Rights evidenced by this Class A Rights Certificate, a new
Class A Rights Certificate for the balance of such Class A Rights shall be
registered in the name of and delivered to:

 

Please insert social security

or other identifying number

 

 

	
   

  	
   

  
	
  (Please print name and address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

 

	
  Dated: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  

 

53

 

	
   

  	
  Signature(s)
  must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such

  other “signature guarantee program” as may

  be determined by the Note Registrar in

  addition to, or in substitution for, STAMP,

  all in accordance with the Securities

  Exchange Act of 1934, as amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  

 

54

 

CERTIFICATE

 

The undersigned hereby certifies by checking
the appropriate boxes that:

 

(1) 
the Class A Rights evidenced by this Class A Rights Certificate [    ] are
[    ] are not being exercised by or on behalf of a
Person who is or was an Acquiring Person or an Affiliate or Associate of any
such Acquiring Person (as such terms are defined pursuant to the Rights
Agreement);

 

(2) 
after due inquiry and to the best knowledge of the undersigned, it [    ] did
[    ] did not acquire the Class A Rights
evidenced by this Class A Rights Certificate from any Person who is, was or
became an Acquiring Person or an Affiliate or Associate of an Acquiring Person.

 

 

	
  Dated: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)
  must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such other

  “signature guarantee program” as may be

  determined by the Note Registrar in addition

  to, or in substitution for, STAMP, all in

  accordance with the Securities Exchange Act

  of 1934, as amended.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature
  Guarantee

  
						

 

55

 

NOTICE

 

The signature to the foregoing Election to
Purchase and Certificate must correspond to the name as written upon the face
of this Class A Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

 

56

 

EXHIBIT
B-2

 

Form of Class
B Rights Certificate

 

	
  Certificate No. R-

  	
                              Class
  B Rights

  

 

NOT
EXERCISABLE AFTER                                    ,
2017 UNLESS EXTENDED PRIOR THERETO BY THE BOARD OF DIRECTORS OR EARLIER IF
REDEEMED OR EXCHANGED BY THE COMPANY. 
THE CLASS B RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE
COMPANY, AT $0.01 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES,
CLASS B RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS SUCH TERM IS
DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH CLASS B
RIGHTS MAY BECOME NULL AND VOID.  [THE
CLASS B RIGHTS REPRESENTED BY THIS CLASS B RIGHTS CERTIFICATE ARE OR WERE
BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT).  ACCORDINGLY, THIS CLASS
B RIGHTS CERTIFICATE AND THE CLASS B RIGHTS REPRESENTED HEREBY MAY BECOME NULL
AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS
AGREEMENT.](3)

 

Class B Rights
Certificate

 

CLASSMATES
MEDIA CORPORATION

 

This certifies that                                    ,
or registered assigns, is the registered owner of the number of Class B Rights
set forth above, each of which entitles the owner thereof, subject to the
terms, provisions and conditions of the Rights Agreement, dated as of                                    ,
2007 (the “Rights
Agreement”), between Classmates Media Corporation, a Delaware
corporation (the “Company”),
and American Stock Transfer & Trust Company, a New York corporation (the “Rights Agent”),
to purchase from the Company at any time prior to 5:00 p.m. (New York City
time) on                                    ,
2017 (unless such date is extended prior thereto by the Board of Directors) at
the office or offices of the Rights Agent designated for such purpose, or its successors
as Rights Agent, one one-thousandth of a fully paid, non-assessable share of
Series A Junior Participating Preferred Stock (the “Preferred Stock”) of the
Company, at a purchase price of $         
per one one-thousandth of a share (the “Purchase Price”), upon
presentation and surrender of this Class B Rights Certificate with the Form of
Election to Purchase and related Certificate duly executed.  The number of Class B Rights evidenced by
this Class B Rights Certificate (and the number of shares which may be
purchased upon exercise thereof) set forth above, and the Purchase Price per
share set forth above, are the number and Purchase Price as of                                    ,
2007, based on the Preferred Stock as constituted at such date.  The Company reserves the right to require
prior to 

 

(3)           The portion of the legend in brackets shall
be inserted only if applicable and shall replace the preceding sentence.

 

57

 

the occurrence of a Triggering Event (as such
term is defined in the Rights Agreement) that a number of Class B Rights be
exercised so that only whole shares of Preferred Stock will be issued.

 

Upon the occurrence of a Section 11(a)(ii)
Event (as such term is defined in the Rights Agreement), if the Class B Rights
evidenced by this Class B Rights Certificate are beneficially owned by (i) an
Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as
such terms are defined in the Rights Agreement), (ii) a transferee of any such
Acquiring Person, Associate or Affiliate, or (iii) under certain circumstances
specified in the Rights Agreement, a transferee of a person who, after such
transfer, became an Acquiring Person, or an Affiliate or Associate of an
Acquiring Person, such Class B Rights shall become null and void and no holder
hereof shall have any right with respect to such Class B Rights from and after
the occurrence of such Section 11(a)(ii) Event.

 

As provided in the Rights Agreement, the
Purchase Price and the number and kind of shares of Preferred Stock or other
securities, which may be purchased upon the exercise of the Class B Rights
evidenced by this Class B Rights Certificate are subject to modification and
adjustment upon the happening of certain events, including Triggering Events.

 

This Class B Rights Certificate is subject to
all of the terms, provisions and conditions of the Rights Agreement, which
terms, provisions and conditions are hereby incorporated herein by reference
and made a part hereof and to which Rights Agreement reference is hereby made
for a full description of the rights, limitations of rights, obligations,
duties and immunities hereunder of the Rights Agent, the Company, the holders
of the Class B Rights Certificates and the holders of the Class A Rights
Certificates (as such term is defined in the Rights Agreement), which
limitations of rights include the temporary suspension of the exercisability of
such Class B Rights under the specific circumstances set forth in the Rights
Agreement.  Copies of the Rights
Agreement are on file at the above-mentioned office of the Rights Agent and are
also available upon written request to the Rights Agent.

 

This Class B Rights Certificate, with or
without other Class B Rights Certificates, upon surrender at the principal
office or offices of the Rights Agent designated for such purpose, may be
exchanged for another Class B Rights Certificate or Class B Rights Certificates
of like tenor and date evidencing Class B Rights entitling the holder to
purchase a like aggregate number of one one-thousandths of a share of Preferred
Stock as the Class B Rights evidenced by the Class B Rights Certificate or
Class B Rights Certificates surrendered shall have entitled such holder to
purchase.  If this Class B Rights Certificate
shall be exercised in part, the holder shall be entitled to receive upon
surrender hereof another Class B Rights Certificate or Class B Rights
Certificates for the number of whole Class B Rights not exercised.

 

Subject to the provisions of the Rights
Agreement, the Class B Rights evidenced by this Class B Rights Certificate may
be redeemed by the Company at its option at a redemption price of $0.01 per
Class B Right at any time prior to the earlier of the close of business on (i)
the tenth Business Day following the Stock Acquisition Date (as such time
period may be extended pursuant to the Rights Agreement), and (ii) the Final
Expiration Date.  In addition, under
certain circumstances following the Stock Acquisition Date, the Class B Rights
may be exchanged, in whole or in part, for shares of Class B Common Stock, or
shares of preferred stock of the 

 

58

 

Company having essentially the same value or
economic rights as such shares. 
Immediately upon the action of the Board of Directors of the Company
authorizing any such exchange, and without any further action or any notice,
the Class B Rights (other than Class B Rights which are not subject to such
exchange) will terminate and the Class B Rights will only enable holders to
receive the shares issuable upon such exchange.

 

No fractional shares of Preferred Stock will
be issued upon the exercise of any Class B Right or Class B Rights evidenced
hereby (other than fractions which are integral multiples of one one-thousandth
of a share of Preferred Stock, which may, at the election of the Company, be
evidenced by depositary receipts), but in lieu thereof a cash payment will be
made, as provided in the Rights Agreement. 
The Company, at its election, may require that a number of Class B
Rights be exercised so that only whole shares of Preferred Stock would be
issued.

 

No holder of this Class B Rights Certificate
shall be entitled to vote or receive dividends or be deemed for any purpose the
holder of shares of Preferred Stock or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything
contained in the Rights Agreement or herein be construed to confer upon the
holder hereof, as such, any of the rights of a stockholder of the Company or
any right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give consent to or withhold consent
from any corporate action, or, to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to
receive dividends or subscription rights, or otherwise, until the Class B Right
or Class B Rights evidenced by this Class B Rights Certificate shall have been
exercised as provided in the Rights Agreement.

 

This Class B Rights Certificate shall not be
valid or obligatory for any purpose until it shall have been countersigned by
the Rights Agent.

 

59

 

 

WITNESS the facsimile signature of the proper
officers of the Company and its corporate seal.

 

 

	
  Dated as of

  	
   

  	
   

  

 

 

	
  ATTEST:

  	
   

  	
  CLASSMATES MEDIA CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Countersigned:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AMERICAN STOCK TRANSFER & TRUST

  COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  	
   

  
						

 

60

 

FORM OF
ASSIGNMENT

 

(To be
executed by the registered holder if such

holder desires to transfer the Class B Rights Certificate.)

 

	
   

  	
  FOR VALUE RECEIVED

  	
   

  

 

	
  hereby sells, assigns and transfers unto

  	
   

  

(Please print name and address of transferee)

	
   

  	
   

  

 

 

this Class B
Rights Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint                        
Attorney, to transfer the within Class B Rights Certificate on the books of the
within named Company, with full power of substitution.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such

  other “signature guarantee program” as may

  be determined by the Note Registrar in

  addition to, or in substitution for, STAMP,

  all in accordance with the Securities

  Exchange Act of 1934, as amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee

  

 

61

 

CERTIFICATE

 

The undersigned hereby certifies by checking
the appropriate boxes that:

 

(1) 
this Class B Rights Certificate [      ]
is [      ] is not being sold, assigned and
transferred by or on behalf of a Person who is or was an Acquiring Person or an
Affiliate or Associate of any such Acquiring Person (as such terms are defined
pursuant to the Rights Agreement);

 

(2) 
after due inquiry and to the best knowledge of the undersigned, it
[    ] did [    ] did not acquire the Class B Rights
evidenced by this Class B Rights Certificate from any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of an
Acquiring Person.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such

  other “signature guarantee program” as may

  be determined by the Note Registrar in

  addition to, or in substitution for, STAMP,

  all in accordance with the Securities

  Exchange Act of 1934, as amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee

  

 

62

 

NOTICE

 

The signature to the foregoing Assignment and
Certificate must correspond to the name as written upon the face of this Class
B Rights Certificate in every particular, without alteration or enlargement or
any change whatsoever.

 

63

 

FORM OF
ELECTION TO PURCHASE

 

To: 
CLASSMATES MEDIA CORPORATION:

 

The undersigned hereby irrevocably elects to
exercise                      Class
B Rights represented by this Class B Rights Certificate to purchase the shares
of Preferred Stock issuable upon the exercise of the Class B Rights (or such
other securities of the Company or of any other person which may be issuable
upon the exercise of the Class B Rights) and requests that certificates for
such shares be issued in the name of and delivered to:

 

Please insert social security

or other identifying number

 

	
   

  	
   

  
	
  (Please print name and address)

  
	
   

  	
   

  

 

 

 

 

If such number of Class B Rights shall not be
all the Class B Rights evidenced by this Class B Rights Certificate, a new
Class B Rights Certificate for the balance of such Class B Rights shall be
registered in the name of and delivered to:

 

Please insert social security

or other identifying number

 

 

	
   

  	
   

  
	
  (Please print name and address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  

 

64

 

	
   

  	
  Signature(s) must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such

  other “signature guarantee program” as may

  be determined by the Note Registrar in

  addition to, or in substitution for, STAMP,

  all in accordance with the Securities

  Exchange Act of 1934, as amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee

  

 

65

 

CERTIFICATE

 

The undersigned hereby certifies by checking
the appropriate boxes that:

 

(1) 
the Class B Rights evidenced by this Class B Rights Certificate [    ] are [   
] are not being exercised by or on behalf of a Person who is or was an
Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as
such terms are defined pursuant to the Rights Agreement);

 

(2) 
after due inquiry and to the best knowledge of the undersigned, it
[    ] did [    ] did not acquire the Class B Rights
evidenced by this Class B Rights Certificate from any Person who is, was or
became an Acquiring Person or an Affiliate or Associate of an Acquiring Person.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be guaranteed by an

  “eligible guarantor institution” meeting the

  requirements of the Note Registrar, which

  requirements include membership or

  participation in the Security Transfer Agent

  Medallion Program (“STAMP”) or such other

  “signature guarantee program” as may be

  determined by the Note Registrar in addition

  to, or in substitution for, STAMP, all in

  accordance with the Securities Exchange Act

  of 1934, as amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee

  

 

66

 

NOTICE

 

The signature to the foregoing Election to
Purchase and Certificate must correspond to the name as written upon the face
of this Class B Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

 

67

 

EXHIBIT C

 

SUMMARY OF
RIGHTS TO PURCHASE

 

PREFERRED
STOCK

 

On
                                   ,
2007, the Board of Directors of Classmates Media Corporation (the “Company”)
declared a dividend distribution of one Class A Right for each outstanding
share of Class A Common Stock and one Class B Right for each outstanding share
of Class B Common Stock to stockholders of record at the close of business on
                                   ,
2007 (the “Record
Date”) and authorized the issuance of one Class A Right and one
Class B Right (the Class A Rights and the Class B Rights, together, the “Rights”)
for each share of Class A Common Stock and Class B Common Stock (the Class A
Common Stock and the Class B Common Stock, together, the “Common Stock”),
respectively, issued after the Record Date. 
Each Right entitles the registered holder to purchase from the Company a
unit consisting of one one-thousandth of a share (a “Unit”) of Series A Junior
Participating Preferred Stock, par value $0.00001 per share (the “Series A Preferred
Stock”) at a Purchase Price of
$       per Unit, subject to
adjustment.  The description and terms of
the Rights are set forth in a Rights Agreement (the “Rights Agreement”) between the
Company and American Stock Transfer & Trust Company, as Rights Agent.

 

Initially, the Rights will be attached to all
Common Stock certificates representing shares then outstanding, and no separate
Class A Rights Certificates or Class B Rights Certificates (the Class A Rights
Certificates and the Class B Rights Certificates, together, the “Rights Certificates”)
will be distributed.  Subject to certain
exceptions specified in the Rights Agreement, the Rights will separate from the
Common Stock and a Distribution Date will occur upon the earlier of (i) 10
business days following a public announcement that a person or group of
affiliated or associated persons (an “Acquiring Person”) (but
excluding United Online, Inc. and its affiliates) has acquired beneficial
ownership of 15% or more of the shares of Class A Common Stock then
outstanding, 15% or more of the shares of Class B Common Stock then outstanding
or any combination of shares of Class A Common Stock and shares of Class B
Common Stock representing 15% or more of the shares of Common Stock then
outstanding (the “Stock
Acquisition Date”), other than as a result of repurchases of stock
by the Company or certain inadvertent actions by institutional or certain other
stockholders or (ii) 10 business days (or such later date as the Board of
Directors shall determine) following the commencement of a tender offer or
exchange offer that would result in a person or group becoming an Acquiring
Person.  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 the Record Date will contain a 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
certificates.  Pursuant to the Rights
Agreement, the Company reserves the right to require prior to the occurrence of
a Triggering Event (as defined below) that, upon any exercise of Rights, a
number of Rights be exercised so that only whole shares of Preferred Stock will
be issued.

 

68

 

The Rights are not exercisable until the
Distribution Date and will expire at 5:00 p.m. (New York City time) on
                                   ,  2017, unless such date is extended or the
Rights are earlier redeemed or exchanged by the Company as described below.

 

As soon as practicable after the Distribution
Date, Class A Rights Certificates will be mailed to holders of record of the
Class A Common Stock and Class B Rights Certificates will be mailed to holders
of record of the Class B Common Stock, in each case, as of the close of
business on the Distribution Date and, thereafter, the separate Class A Rights
Certificates and Class B Rights Certificates alone will represent the Class A
Rights and Class B Rights, respectively. 
Except as otherwise determined by the Board of Directors, only shares of
Common Stock issued prior to the Distribution Date will be issued with Rights.

 

In the event that a Person becomes an
Acquiring Person, each holder of a Class A Right and a Class B Right,
respectively, will thereafter have the right to receive, upon exercise, Class A
Common Stock and Class B Common Stock, respectively (or, in certain
circumstances, cash, property or other securities of the Company) having a
value equal to two times the exercise price of the Right.  Notwithstanding any of the foregoing,
following the occurrence of the event set forth in this paragraph, all Rights that
are, or (under certain circumstances specified in the Rights Agreement) were,
beneficially owned by any Acquiring Person will be null and void.  However, Rights are not exercisable following
the occurrence of the event set forth above until such time as the Rights are
no longer redeemable by the Company as set forth below.

 

For example, at an exercise price of $100 per
Right, each Class A Right not owned by an Acquiring Person (or by certain
related parties) following an event set forth in the preceding paragraph would
entitle its holder to purchase $200 worth of Class A Common Stock (or other
consideration, as noted above) for $100. 
Assuming that the Class A Common Stock had a per share value of $50 at
such time, the holder of each valid Class A Right would be entitled to purchase
four (4) shares of Class A Common Stock for $100.  A similar example would apply with respect to
Class B Rights.

 

In the event that, at any time following the
Stock Acquisition Date, (i) the Company engages in a merger or other business
combination transaction in which the Company is not the surviving corporation,
(ii) the Company engages in a merger or other business combination transaction
in which the Company is the surviving corporation and the Common Stock of the
Company is changed or exchanged, or (iii) 50% or more of the Company’s assets,
cash flow or earning power is sold or transferred, each holder of a Right
(except Rights which have previously been voided as set forth above) shall
thereafter have the right to receive, upon exercise, common stock of the acquiring
company having a value equal to two times the exercise price of the Right.  The events set forth in this paragraph and in
the second preceding paragraph are referred to as the “Triggering Events.”

 

At any time after a person becomes an
Acquiring Person and prior to the acquisition by such person or group of fifty
percent (50%) or more of the outstanding Common Stock, the Board of Directors
may exchange the Rights (other than Rights owned by such person or group which
have become void), in whole or in part, at an exchange ratio of one share of
Common Stock, or one one-thousandth of a share of Preferred Stock (or of a
share of a class or

 

69

 

series of the Company’s preferred stock
having equivalent rights, preferences and privileges), per Right (subject to
adjustment).

 

The Purchase Price payable, and the number of
Units of Preferred Stock 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 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.

 

At any time until ten business days following
the Stock Acquisition Date, the Company may redeem the Rights in whole, but not
in part, at a price of $0.01 per Right (payable in cash, the class of Common
Stock for which a Right is exercisable or other consideration deemed
appropriate by the Board of Directors). 
Immediately upon the action of the Board of Directors ordering
redemption of the Rights, the Rights will terminate and the only right of the
holders of Rights will be to receive the $0.01 redemption price.

 

Until a Right is exercised, the holder
thereof, as such, will have no rights as a stockholder of the Company,
including, without limitation, the right to vote or to receive dividends.  While the distribution of the Rights should
not be taxable to stockholders or to the Company, stockholders may, depending
upon the circumstances, recognize taxable income in the event that the Rights
become exercisable for Common Stock (or other consideration) of the Company or
for common stock of the acquiring company or in the event of the redemption of
the Rights as set forth above.

 

Any of the provisions of the Rights Agreement
may be amended by the Board of Directors prior to the Distribution Date.  After the Distribution Date, the provisions
of the Rights Agreement may be amended by the Board of Directors in order to
cure any ambiguity, to make changes which do not adversely affect the interests
of holders of Rights, or to shorten or lengthen any time period under the
Rights Agreement.  The foregoing
notwithstanding, no amendment may be made at such time as the Rights are not
redeemable.

 

A copy of the Rights Agreement has been filed
with the Securities and Exchange Commission as Exhibit 4.2 to the Company’s
Registration Statement on Form S-1 (File No. 333-145397).  A copy of the Rights Agreement is available
free of charge from the Rights Agent. 
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.

 

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Exhibit 10.1    
    

 
 

MASTER TRANSACTION AGREEMENT    
    

dated
as of                        , 2007 

between 

UNITED
ONLINE, INC. 

and 

CLASSMATES
MEDIA CORPORATION 

 
TABLE OF CONTENTS  

	 
	 	 
	 	PAGE

	ARTICLE I DOCUMENTS AND ITEMS TO BE DELIVERED ON OR PRIOR TO THE IPO CLOSING DATE	 	1
	 	Section 1.1	 	Documents to be Delivered by UOL	 	1
	 	Section 1.2	 	Documents to be Delivered by CMC	 	2
	

ARTICLE II THE IPO AND ACTIONS PENDING THE IPO; DISTRIBUTION	
 	

2
	 	Section 2.1	 	Transactions Prior to the IPO	 	2
	 	Section 2.2	 	Cooperation	 	2
	 	Section 2.3	 	Conditions Precedent to Consummation of the IPO	 	3
	 	Section 2.4	 	Distribution	 	3
	

ARTICLE III COVENANTS AND OTHER MATTERS	
 	

4
	 	Section 3.1	 	Other Agreements	 	4
	 	Section 3.2	 	Inter-Company Debt	 	4
	 	Section 3.3	 	Further Instruments	 	4
	 	Section 3.4	 	Treatment of Shared Contracts	 	5
	 	Section 3.5	 	Agreement for Exchange of Information.	 	5
	 	Section 3.6	 	Auditors and Audits; Financial Statements; Accounting Matters	 	7
	 	Section 3.7	 	Confidentiality	 	10
	 	Section 3.8	 	Privileged Matters	 	12
	 	Section 3.9	 	Future Litigation and Other Proceedings	 	13
	 	Section 3.10	 	Mail and Other Communications	 	13
	 	Section 3.11	 	Payment of Expenses	 	13
	 	Section 3.12	 	Dispute Resolution	 	14
	 	Section 3.13	 	Governmental Approvals	 	15
	 	Section 3.14	 	No Representation or Warranty	 	15
	

ARTICLE IV REGISTRATION RIGHTS	
 	

16
	 	Section 4.1	 	Demand Registration	 	16
	 	Section 4.2	 	Piggyback Registration	 	16
	 	Section 4.3	 	Expenses	 	18
	 	Section 4.4	 	Blackout Period	 	18
	 	Section 4.5	 	Selection of Underwriters	 	18
	 	Section 4.6	 	Obligations of CMC	 	19
	 	Section 4.7	 	Obligations of Holders	 	20
	 	Section 4.8	 	Underwriting; Due Diligence	 	20
	 	Section 4.9	 	Indemnification and Contribution	 	21
	 	Section 4.10	 	Rule 144 and Form S-3	 	23
	 	Section 4.11	 	Holdback Agreement	 	23
	 	Section 4.12	 	Limitation on Future Registration Rights	 	24
	

ARTICLE V MUTUAL RELEASE	
 	

24
	 	Section 5.1	 	Release of Pre-IPO Closing Date Claims	 	24
	

ARTICLE VI INDEMNIFICATION AND LIMITATION OF LIABILITY	
 	

25
	 	Section 6.1	 	Indemnification by CMC	 	25
	 	Section 6.2	 	Indemnification by UOL	 	26
	 	Section 6.3	 	Contribution	 	26
	 	Section 6.4	 	Ancillary Agreement Liabilities	 	27
	 	Section 6.5	 	Limitation of Liability	 	27
	 	 	 	 	 

i

 

	 	Section 6.6	 	Other Agreements Evidencing Indemnification Obligations	 	27
	 	Section 6.7	 	Reductions for Insurance Proceeds and Other Recoveries	 	27
	 	Section 6.8	 	Procedures for Defense, Settlement and Indemnification of the Third Party Claims	 	29
	 	Section 6.9	 	Additional Matters	 	29
	 	Section 6.10	 	Survival of Indemnities	 	30
	

ARTICLE VII EQUITY PURCHASE RIGHT	
 	

30
	 	Section 7.1	 	Equity Purchase Right	 	30
	 	Section 7.2	 	Notice	 	31
	 	Section 7.3	 	Exercise and Payment	 	31
	 	Section 7.4	 	Effect of Failure to Exercise	 	31
	 	Section 7.5	 	Termination of Equity Purchase Right	 	31
	

ARTICLE VIII MISCELLANEOUS	
 	

32
	 	Section 8.1	 	Entire Agreement	 	32
	 	Section 8.2	 	Governing Law and Jurisdiction	 	32
	 	Section 8.3	 	Termination; Amendment	 	32
	 	Section 8.4	 	Notices	 	32
	 	Section 8.5	 	Counterparts	 	33
	 	Section 8.6	 	Binding Effect; Assignment	 	33
	 	Section 8.7	 	Severability	 	33
	 	Section 8.8	 	Failure or Indulgence Not Waiver; Remedies Cumulative	 	33
	 	Section 8.9	 	Authority	 	33
	 	Section 8.10	 	Interpretation	 	34
	 	Section 8.11	 	Conflicting Agreements	 	34
	 	Section 8.12	 	Third Party Beneficiaries	 	34
	

ARTICLE IX DEFINITIONS	
 	

34
	 	Section 9.1	 	Defined Terms	 	34

ii

MASTER TRANSACTION AGREEMENT  

        This Master Transaction Agreement is dated as of            , 2007 by and between United Online, Inc., a Delaware
corporation
("UOL"), and Classmates Media Corporation, a Delaware corporation ("CMC"). UOL and CMC are sometimes
referred to herein separately as a "Party" and together as the "Parties". Capitalized terms used herein
shall have the meanings ascribed to them in ARTICLE IX hereof. 

RECITALS  

        WHEREAS, UOL is the owner of all the issued and outstanding common stock of CMC; 

        WHEREAS,
the Parties currently contemplate that CMC will make an initial public offering ("IPO") of its Class A Common Stock (as
defined below) pursuant to a Registration Statement on Form S-1 (File No. 333-145397) under the Securities Act of 1933, as amended (the
"IPO Registration Statement"); and 

        WHEREAS,
the Parties intend in this Agreement to set forth the principal arrangements between UOL and CMC regarding the relationship of the Parties from and after the IPO. 

        NOW,
THEREFORE, in consideration of the foregoing and the terms, conditions, covenants and provisions of this Agreement, UOL and CMC mutually covenant and agree as follows: 

ARTICLE I

DOCUMENTS AND ITEMS TO BE

DELIVERED ON OR PRIOR TO THE IPO CLOSING DATE  

        Section 1.1    Documents to be Delivered by UOL.    On or prior to the closing of the IPO (the
"IPO Closing Date"), UOL will deliver, or will cause its appropriate Subsidiaries to deliver, to CMC all of the following items and agreements: 

        (a)   A
duly executed Administrative Services Agreement, substantially in the form attached to the IPO Registration Statement as Exhibit 10.2 (the
"Administrative Services Agreement"); 

        (b)   A
duly executed Tax Sharing Agreement substantially in the form attached to the IPO Registration Statement as Exhibit 10.3 (the "Tax
Sharing Agreement"); 

        (c)   A
duly executed Employee Matters Agreement, substantially in the form attached to the IPO Registration Statement as Exhibit 10.4 (the
"Employee Matters Agreement"); 

        (d)   A
duly executed Advertising Sales Representation Agreement, substantially in the form attached to the IPO Registration Statement as Exhibit 10.5 (the
"Advertising Sales Representation Agreement"); 

        (e)   A
duly executed Technology Services Agreement, substantially in the form attached to the IPO Registration Statement as Exhibit 10.6 (the
"Technology Services Agreement"); 

        (f)    A
duly executed Real Estate Agreement (Woodland Hills, California), substantially in the form attached to the IPO Registration Statement as Exhibit 10.7 (the
"Real Estate Agreement (Woodland Hills)"); 

        (g)   A
duly executed Real Estate Agreement (Renton, Washington), substantially in the form attached to the IPO Registration Statement as Exhibit 10.8 (the
"Real Estate Agreement (Renton)"); 

        (h)   A
duly executed Real Estate Agreement (San Francisco, California), substantially in the form attached to the IPO Registration Statement as Exhibit 10.9 (the
"Real Estate Agreement (San Francisco)"); and 

        (i)    Such
other agreements, documents or instruments as the Parties may agree are necessary or desirable in order to achieve the purposes hereof. 

 

        Section 1.2    Documents to be Delivered by CMC.    On or prior to the IPO Closing Date, CMC will deliver, or
will cause its appropriate Subsidiaries to deliver, to UOL all of the following items and agreements: 

        (a)   In
each case where CMC is a party to any agreement or instrument referred to in Section 1.1, a duly executed counterpart of such agreement or instrument; and 

        (b)   Such
other agreements, documents or instruments as the Parties may agree are necessary or desirable in order to achieve the purposes hereof. 

ARTICLE II

THE IPO AND ACTIONS PENDING THE IPO; DISTRIBUTION  

        Section 2.1    Transactions Prior to the IPO.    Subject to the occurrence of the events described in this
ARTICLE II, UOL and CMC intend to consummate the IPO and to take, or cause to be taken, the actions specified in this Section 2.1. 

        (a)    Registration Statement.    CMC has filed the IPO Registration Statement with the Commission, and intends to
file such amendments or supplements thereto as may be necessary in order to cause the same to become and remain effective as required by law or by the underwriters for the IPO (the
"Underwriters"), including, without limitation, filing such amendments or supplements to the IPO Registration Statement as may be required by the
underwriting agreement to be entered into by and among CMC, UOL and the Underwriters (the "Underwriting Agreement"), by the Commission or by federal,
state or foreign securities laws. UOL and CMC also intend to cooperate in preparing, filing with the Commission and causing to become effective a registration statement registering the Class A
Common Stock under the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), and any registration statements or amendments thereof which
are required to reflect the establishment of, or amendments to, any employee benefit and other plans necessary or appropriate in connection with the IPO or the other transactions contemplated by this
Agreement. 

        (b)    Amended and Restated Certificate of Incorporation and Bylaws.    Prior to the consummation of the IPO, UOL and
CMC shall take all necessary actions that may be required to provide for the adoption by CMC of the Amended and Restated Certificate of Incorporation of CMC, substantially in the form attached to the
IPO Registration Statement as Exhibit 3.1, and the Amended and Restated Bylaws of CMC, substantially in the form attached to the IPO Registration Statement as Exhibit 3.2. 

        (c)    Underwriting Agreement.    UOL and CMC shall enter into the Underwriting Agreement, in form and substance
reasonably satisfactory to UOL and CMC, as determined by the board of directors of each Party or its authorized designees, as appropriate, and each of UOL and CMC shall comply with its obligations
thereunder. 

        (d)    Nasdaq Listing.    CMC shall prepare, file and use its reasonable best efforts to make effective an application
for listing of the Class A Common Stock to be issued in the IPO on the Nasdaq Global Market ("Nasdaq"), subject to official notice of issuance. 

        Section 2.2    Cooperation.    CMC shall consult with, and cooperate in all respects with, UOL in connection
with the pricing and marketing, including any roadshow presentations, of the Class A Common Stock to be offered in the IPO and shall, at UOL's direction, promptly take any and
all actions necessary or desirable to consummate the IPO as contemplated by the IPO Registration Statement and the Underwriting Agreement. 

2

 

        Section 2.3    Conditions Precedent to Consummation of the IPO.    The obligations of the Parties to consummate
the IPO shall be conditioned on the satisfaction of the following conditions (collectively, the "IPO Conditions"): 

        (a)    Registration Statement.    The IPO Registration Statement shall have been declared effective by the Commission,
and there shall be no stop-order in effect with respect thereto; 

        (b)    Blue Sky.    The actions and filings with regard to applicable securities and blue sky laws of any state (and
any comparable laws under any foreign jurisdictions) shall have been taken and, where applicable, have become effective or been accepted; 

        (c)    Nasdaq Listing.    The Class A Common Stock to be issued in the IPO shall have been accepted for listing
on Nasdaq, subject only to official notice of issuance; 

        (d)    Underwriting Agreement.    UOL and CMC shall have entered into the Underwriting Agreement and all conditions to
the obligations of UOL, CMC and the Underwriters shall have been satisfied or waived by the party that is entitled to the benefit thereof; 

        (e)    Stock Ownership.    UOL shall be satisfied, in its sole discretion, that it will own at least 80.1% of the
total voting power of the Voting Stock, and that CMC will have no class of CMC Capital Stock other than the Common Stock outstanding immediately following the IPO; 

        (f)    No Legal Restraints.    No order, injunction or decree issued by any court or agency of competent jurisdiction
or other legal restraint or prohibition preventing the consummation of the IPO or any of the other transactions contemplated by this Agreement or any Inter-Company Agreement shall be in effect; 

        (g)    Deliveries.    Each Party shall have made the deliveries required pursuant to Section 1.1 and
Section 1.2, respectively; and 

        (h)    Other Actions.    Such other actions as the Parties hereto may, based upon the advice of counsel, reasonably
request to be taken prior to the IPO in order to assure the successful completion of the IPO, shall have been taken. 

        CMC
shall use its reasonable best efforts to satisfy, or cause to be satisfied, the IPO Conditions, it being understood and acknowledged by the Parties that UOL shall have absolute
discretion to proceed with or abandon the IPO. 

        Section 2.4    Distribution.    

        (a)    Distribution Generally.    At any time after the IPO Closing Date, if UOL, in its sole and absolute discretion,
advises CMC that UOL intends to pursue a Distribution, CMC agrees to take all action reasonably requested by UOL to facilitate the Distribution. 

        (b)    UOL's Sole Discretion.    UOL shall, in its sole and absolute discretion, determine whether to
proceed with all or part of a Distribution, the date of the consummation of the Distribution and all terms of the Distribution, including, without limitation, the form, structure and terms of any
transaction(s) and/or offering(s) to effect the Distribution and the timing of and conditions to the consummation of the Distribution. In addition, UOL may at any time and from time to time until the
completion of the Distribution, modify or change the terms of the Distribution, including, without limitation, by accelerating or delaying the timing of the consummation of all or part of the
Distribution. CMC shall cooperate with UOL in all respects to accomplish the Distribution and shall, at UOL's direction, promptly take any and all actions that UOL deems reasonably
necessary or desirable to effect the Distribution. Without limiting the generality of the foregoing, CMC shall, at UOL's direction, cooperate with UOL, and execute and deliver, or use
its reasonable best efforts to cause to have executed and delivered, all instruments, including instruments of conveyance, assignment and transfer, and make all filings with, and obtain 

3

 

all
consents, approvals or authorizations of, any domestic or foreign governmental or regulatory authority requested by UOL in order to consummate and make effective the Distribution. If, in
connection with any Distribution, UOL makes a request for a Demand Registration, the terms and the conditions set forth in ARTICLE IV hereof shall govern. 

ARTICLE III

COVENANTS AND OTHER MATTERS  

        Section 3.1    Other Agreements.    UOL and CMC agree to execute or cause to be executed by the appropriate
parties and deliver, as appropriate, such other agreements, instruments and other documents as may be necessary or desirable in order to effect the purposes of this Agreement and the Inter-Company
Agreements. 

        Section 3.2    Inter-Company Debt.    CMC shall repay certain notes payable to UOL representing a principal
amount of $50.0 million (the "Promissory Notes"), including accrued interest, as described under the caption "Use of Proceeds" in the IPO
Registration Statement. 

        Section 3.3    Further Instruments.    At the request of CMC and without further consideration, UOL will
execute and deliver, and will cause its applicable Subsidiaries to execute and deliver, to CMC such instruments of transfer, conveyance, assignment, substitution and confirmation and take such action
as CMC may reasonably deem necessary or desirable in order to transfer, convey and assign to CMC and confirm CMC's title to any assets, rights and other things of value used in the operation of the
CMC Business on or prior to the IPO Closing Date and to be transferred or licensed to CMC pursuant to this Agreement, the Inter-Company Agreements or any document referred to therein, to put CMC in
actual possession and operating control thereof and to permit CMC to exercise all rights with respect thereto (including, without limitation, rights under contracts and other arrangements as to which
the consent of any third party to the transfer thereof shall not have previously been obtained). Any such assets, rights or other things of value not reflected on the CMC Balance Sheet (other than all
assets, rights and other things of value used in the operation of the CMC Business on or prior to the IPO Closing Date that (i) were acquired after the date of the CMC Balance Sheet and that
would be reflected in a CMC balance sheet as of the date of such acquisition, if such balance sheet was prepared using the same principles and accounting policies under which the CMC Balance Sheet was
prepared or (ii) should have been reflected in the CMC Balance Sheet but are not reflected in the CMC Balance Sheet due to mistake or unintentional omission, which assets, rights and other
things of value will be transferred, conveyed and assigned to CMC, at no charge to CMC, in accordance with the preceding sentence) shall only be transferred against payment by CMC to UOL or its
applicable Subsidiary of an amount equal to the book value thereof. Except as otherwise required by the Inter-Company Agreements, UOL shall not be under any obligation to transfer any assets, rights
or other things of value used in the operation of the CMC Business and not on the CMC Balance Sheet that are also used in the operation of the UOL Business;  provided that the respective rights of the
Parties with respect to any assets, rights or things of value that are addressed by the Inter-Company
Agreements shall be as set forth in the Inter-Company Agreements. At the request of UOL and without further consideration, CMC will execute and deliver, and will cause its applicable Subsidiaries to
execute and deliver, to UOL such instruments, assumptions, novations, undertakings, substitutions or other documents and take such other action as UOL may reasonably deem necessary or desirable in
order to have CMC fully and unconditionally assume and discharge the CMC Liabilities. Nothing in this Section 3.3 shall be deemed a conveyance or transfer of intellectual property rights, and
no license under any UOL patent or other intellectual property right is granted or conveyed hereby. Except as hereinabove provided, neither UOL nor CMC shall be obligated, in connection with the
foregoing, to expend money other than reasonable out-of-pocket expenses, attorneys' fees and recording or similar fees, unless reimbursed by the other Party. Furthermore, each
Party, at the request of the other Party hereto, shall execute and deliver such other instruments and do and perform such other acts and things 

4

 

as
may be necessary or desirable for effecting completely the consummation of the transactions contemplated hereby. 

        Section 3.4    Treatment of Shared Contracts.    Unless the Parties otherwise agree, any contract that is
(a) part of the CMC Business but inures in whole or in part to the benefit or burden of any member of the UOL Group, or (b) part of the UOL Business but inures in whole or in part to the
benefit or burden of any member of the CMC Group (each, a "Shared Contract"), shall be assigned or sublicensed in whole or in part to the applicable
member(s) of the applicable Group, if so assignable or sublicensable, or appropriately amended prior to, on or after the date hereof, so that each Party or the members of their respective Groups shall
be entitled to the rights and benefits, and shall assume the related portion of any Liabilities, inuring to their respective businesses; provided that
(x) in no event shall any member of
any Group be required to assign or sublicense (or amend) any Shared Contract in its entirety or to assign or sublicense a portion of any Shared Contract which is not assignable or sublicensable (or
cannot be amended) by its terms (including any terms imposing consents or conditions on an assignment or sublicense where such consents or conditions have not been obtained or fulfilled) and
(y) if any Shared Contract cannot be so partially assigned or sublicensed by its terms or otherwise, or cannot be amended or if such assignment, sublicense or amendment would impair the benefit
the parties thereto derive from such Shared Contract, the Parties shall, and shall cause each of their respective Subsidiaries to, take such other reasonable and permissible actions to cause CMC or
UOL, as the case may be, to receive the benefit of that portion of each Shared Contract that is part of the CMC Business or the UOL Business, as the case may be (in each case, to the extent so
related), as if such Shared Contract had been assigned or sublicensed to (or amended to allow) such member of the applicable Group pursuant to this Section 3.4 and to bear the burden of the
corresponding Liabilities (including any Liabilities that may arise by reason of such arrangement) as if such Liabilities had been assumed by a member of the applicable Group pursuant to this
Section 3.4. Nothing in this Section 3.4 shall require any member of either the CMC Group or the UOL Group to make any material payment (except to the extent advanced, assumed or agreed
in advance to be reimbursed by any member of the other Group), incur any material obligation or grant any material concession for the benefit of any member of the other Group to effect any transaction
contemplated by this Section 3.4. 

        Section 3.5    Agreement for Exchange of Information.    

        (a)    Generally.    During the period from the IPO Closing Date until the UOL Group is no longer required to account
for its investment in CMC on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), and
thereafter to the extent reasonably required, each of UOL and CMC agrees to provide, or cause to be provided, to the other, as soon as reasonably practicable after written request therefor, all
reports and other Information regularly provided by one Party to the other prior to the IPO Closing Date and any Information in the possession or under the control of such Party that the requesting
Party reasonably needs, (i) to comply with reporting, disclosure, filing or other requirements imposed on the requesting Party (including under applicable securities laws) by a Governmental
Authority having jurisdiction over the requesting Party, (ii) for use in any other judicial, regulatory, administrative or other proceeding or in order to satisfy audit, accounting, claims,
regulatory, litigation or other similar requirements, (iii) to comply with its obligations under this Agreement or any Inter-Company Agreement, (iv) for the preparation of financial
statements or completing a financial statement audit or (v) as reasonably necessary to conduct the ongoing businesses of UOL or CMC, as the case may be;  provided that in the event that any Party
determines that any such provision of Information could be commercially detrimental, violate any law or
agreement or waive any Privilege, the Parties shall take all reasonable measures to permit the compliance with such obligations in a manner that avoids any such harm or consequence. Each of UOL and
CMC agree to make their respective personnel available to discuss the Information exchanged pursuant to this Section 3.5. 

5

 

        (b)    Accounting and Finance Services.    Except as otherwise provided in the Administrative Services Agreement,
following the IPO Closing Date, each Party shall maintain in effect at its own cost and
expense adequate systems and controls for its business to the extent necessary to enable the other Party to satisfy its reporting, tax return, accounting, audit and other obligations. After the
expiration of UOL's obligations to provide accounting and finance services pursuant to the Administrative Services Agreement, CMC shall be solely responsible for its obligations under
this Section 3.5(b). 

        (c)    Ownership of Information.    Except as otherwise required by the Inter-Company Agreements, any Information
owned by a Party that is provided to a requesting Party pursuant to this Section 3.5 shall be deemed to remain the property of the providing Party. Unless specifically set forth herein, nothing
contained in this Agreement shall be construed as granting or conferring rights of license or otherwise in any such Information. 

        (d)    Record Retention.    To facilitate the possible exchange of Information pursuant to this Section 3.5 and
other provisions of this Agreement and the Inter-Company Agreements, after the IPO Closing Date, each Party agrees to use its reasonable best efforts to retain all Information in its respective
possession or control substantially in accordance with its respective record retention policies and/or practices as in effect on the IPO Closing Date. However, except as set forth in the Tax Sharing
Agreement, at any time after the IPO Closing Date, each Party may amend its respective record retention policies at such Party's discretion; provided
that if a Party desires to effect the amendment within three (3) years after the UOL Group is no longer required to account for its investment in CMC on a consolidated basis or under the equity
method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), the amending Party must give thirty (30) days prior written notice of such
change in the policy to the other Party to this Agreement. No Party will destroy, or permit any of its Subsidiaries to destroy, any Information which the other Party may have the right to obtain
pursuant to this Agreement (other than Information that is permitted to be destroyed under the respective record retention policies of each Party) prior to the seventh anniversary of the date hereof
without first notifying the other Party of the proposed destruction and giving the other Party the opportunity to take possession or make copies of such Information prior to such destruction. No Party
shall have any liability to any other Party if any Information is destroyed or lost after the relevant Party has complied with the provisions of this Section 3.5(d). 

        (e)    Accuracy of Information.    Each Party will use its reasonable best efforts to ensure that Information provided
to the other Party hereunder is accurate and complete. 

        (f)    Other Agreements Providing For Exchange of Information.    The rights and obligations granted under this
Section 3.5 are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange or confidential treatment of Information set forth in this Agreement and
any Inter-Company Agreement. 

        (g)    Production of Witnesses; Records; Cooperation.    Except in the case of a legal or other proceeding by one
Party against the other Party, each Party hereto shall use its reasonable best efforts to make available to each other Party, upon written request, the former, current and future directors, officers,
employees, other personnel and agents of such Party as witnesses and any books, records or other documents within its control or which it otherwise has the ability to make available, to the extent
that any such person (giving consideration to business demands of such directors, officers, employees, other
personnel and agents) or books, records or other documents may reasonably be required in connection with any legal, administrative or other proceeding in which the requesting Party may from time to
time be involved, regardless of whether such legal, administrative or other proceeding is a matter with respect to which indemnification may be sought hereunder. The requesting Party shall bear all
costs and expenses in connection therewith. 

6

   
        Section 3.6    Auditors and Audits; Financial Statements; Accounting Matters.    Each Party agrees that:

        (a)    Selection of Auditors.    

          (i)  Until
the first UOL fiscal year end occurring after the UOL Group is no longer required to account for its investment in CMC on a consolidated basis or under the equity
method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), CMC shall use its reasonable best efforts to select the independent certified
public accountants used by UOL ("UOL Auditors" and, for the avoidance of doubt, should UOL at any time change the accounting firm serving as its
independent certified public accountants, "UOL Auditors" shall thereafter mean the new firm serving as UOL's independent certified public accountants) to serve as the independent
certified public accountants for CMC and its Subsidiaries ("CMC Auditors") for purposes of providing an opinion on CMC's consolidated financial
statements; provided that CMC Auditors may be different from UOL Auditors if necessary to comply with applicable laws regarding auditor independence and
qualifications; provided further that CMC shall not take any actions, and shall use its reasonable best efforts to cause its directors, officers and
employees not to take any actions, that could reasonably be expected to require CMC to engage auditors other than UOL Auditors. The foregoing shall not be construed after CMC conducts an IPO so as to
unlawfully limit any responsibility of the audit committee of CMC's board of directors, pursuant to Rule 10A-3(b)(2) of the Exchange Act, to appoint, compensate, retain and oversee
the work of CMC Auditors. 

         (ii)  Until
the first UOL fiscal year end occurring after the UOL Group is no longer required to account for its investment in CMC on a consolidated basis or under the equity
method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), CMC shall provide UOL with as much prior notice as reasonably practical of any
change in CMC Auditors for purposes of providing an opinion on its consolidated financial statements. 

        (b)    Audit Personnel.    Until the UOL Group is no longer required to account for its investment in CMC on a
consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), and thereafter to the extent such
information and cooperation is necessary for the preparation of financial statements or completing a financial statement audit, CMC shall authorize CMC Auditors to make available to UOL Auditors both
the personnel who performed or will perform the annual audits and quarterly reviews of CMC and work papers related to the annual audits and quarterly reviews of CMC, in all cases within a reasonable
time prior to CMC Auditors' opinion date, so that UOL Auditors are able to perform the procedures they consider necessary to take responsibility for the work of CMC Auditors as it relates to
UOL's financial statements, all within sufficient time to enable UOL to meet its timetable for the printing, filing and public dissemination of UOL's annual and quarterly
statements. Similarly, UOL shall
authorize UOL Auditors to make available to CMC Auditors both the personnel who performed or will perform the annual audits and quarterly reviews of UOL and work papers related to the annual audits
and quarterly reviews of UOL, in all cases within a reasonable time prior to UOL Auditors' opinion date, so that CMC Auditors are able to perform the procedures they consider necessary to take
responsibility for the work of UOL Auditors as it relates to CMC's financial statements, all within sufficient time to enable CMC to meet its timetable for the printing, filing and public
dissemination of CMC's annual and quarterly financial statements. 

        (c)    Auditors' Opinions and Consents.    Until the first UOL fiscal year end occurring after the UOL Group is no
longer required to account for its investment in CMC on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied 

7

 

after
consultation with the Auditors), and thereafter to the extent necessary for the purpose of preparing financial statements or completing a financial statement audit, CMC shall use its reasonable
best efforts to enable CMC Auditors to complete their audit such that they will date their opinion on CMC's audited annual financial statements on the same date that UOL Auditors date their opinion on
UOL's audited annual financial statements, and to enable UOL to meet its timetable for the printing, filing and public dissemination of UOL's annual financial statements.
CMC will use its reasonable best efforts to cause CMC Auditors to consent to any reference to them as experts in any UOL public filings required under any law, rule or regulation. 

        (d)    Annual and Quarterly Financial Statements.    Until the first UOL fiscal year end occurring after the UOL Group
is no longer required to account for its investment in CMC on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation
with the Auditors), CMC shall not change its fiscal year end and, until the first UOL fiscal year end occurring after the UOL Group is no longer required to account for its investment in CMC on a
consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), and thereafter to the extent necessary for
the purpose of preparing financial statements or completing a financial statement audit, shall provide to UOL on a timely basis all Information that UOL reasonably requires to meet its schedule for
the preparation, printing, filing and public dissemination of UOL's annual, quarterly and monthly financial statements. Without limiting the generality of the foregoing, CMC will
provide all required Information with respect to CMC to CMC Auditors in a sufficient and reasonable time and in sufficient detail to permit CMC Auditors to take all steps and perform all reviews
necessary to provide sufficient assistance to UOL Auditors with respect to Information to be included or contained in UOL's annual, quarterly and monthly financial statements.
Similarly, UOL shall provide to CMC on a timely basis all Information that CMC reasonably requires to meet its schedule for the preparation, printing, filing and public dissemination of CMC's annual,
quarterly and monthly financial statements. Without limiting the generality of the foregoing, UOL will provide all required Information with respect to UOL and its Subsidiaries to CMC Auditors in a
sufficient and reasonable time and in sufficient detail to permit CMC Auditors to take all steps and perform all reviews necessary to provide sufficient assistance to CMC Auditors with respect to
Information to be included or contained in CMC's annual, quarterly and monthly financial statements. CMC will file its annual and quarterly financial statements with the Commission on the same date
that UOL files the UOL annual and quarterly financial statements with the Commission unless otherwise required by applicable law. 

        (e)    Cooperation on UOL Public Filings.    Until the UOL Group is no longer required to account for its investment
in CMC on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), unless otherwise required by
law, rule or regulation, CMC will not publicly release any financial or other information which conflicts with the information with respect to any CMC Group member or the CMC Business that is included
in any UOL public filing without UOL's prior written consent. Prior to the filing or release thereof, UOL will provide CMC with a draft of any portion of a UOL public filing containing
information relating to the CMC Group and will give CMC an opportunity to review such information and comment thereon. 

        (f)    Certifications and Attestations.    

          (i)  Until
the first UOL fiscal year end occurring after the UOL Group is no longer required to account for its investment in CMC on a consolidated basis or under the equity
method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), and thereafter to the extent necessary for the timely filing by UOL of annual and
quarterly reports under the Exchange Act or in connection with any investigations of prior periods, CMC shall cause its principal executive officer and principal financial officer to provide to UOL on
a timely basis and as reasonably requested by UOL 

8

 

(A) any
certificates requested as support for the certifications and attestations required by Sections 302, 906 and 404 of the Sarbanes-Oxley Act of 2002 to be filed with such annual and
quarterly reports, (B) any certificates or other written Information which such principal executive officer or principal financial officer received as support for the certificates provided to
UOL and (C) a reasonable opportunity to discuss with such principal financial officer and other appropriate officers and employees of CMC any issues reasonably related to the foregoing. 

         (ii)  For
so long as UOL is providing accounting and financial services pursuant to the Administrative Services Agreement, and thereafter to the extent necessary for the
timely filing by CMC of annual and quarterly reports under the Exchange Act or in connection with any investigations of prior periods, UOL shall cause its appropriate officers and employees to provide
to CMC on a timely basis and as reasonably requested by CMC (A) any certificates requested as support for the certifications and attestations required by Sections 302, 906 and 404 of the
Sarbanes-Oxley Act of 2002 to be filed with such annual and quarterly reports, (B) any certificates or other Information which such appropriate officers and employees received as support for
the certificates provided to CMC and (C) a reasonable opportunity to discuss with such appropriate officers and employees any issues reasonably related to the foregoing. 

        (g)    Press Releases and Earnings Releases.    Until the UOL Group is no longer required to account for its
investment in CMC on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), CMC and UOL will
consult with one another as to the timing of their annual and quarterly earnings releases and any content, including interim financial guidance for a current or future period, and will give each other
the opportunity to review the information therein relating to the CMC Group and to comment thereon. CMC and UOL will use reasonable efforts to issue their respective annual and quarterly earnings
releases at approximately the same time on the same date. 

        (h)    Compliance With Laws, Policies and Regulations.    Until the UOL Group is no longer required to account for its
investment in CMC on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), and unless required
otherwise by law, rule or regulation, CMC shall comply with all financial accounting and reporting rules, policies and directives of UOL, to the extent such rules, policies and directives have been
previously communicated to CMC, and fulfill all timing and reporting requirements applicable to UOL's Subsidiaries that are consolidated with UOL for financial statement purposes.
Without limiting the foregoing, CMC shall comply with all financial accounting and reporting rules and policies, and fulfill all timing and reporting requirements, under applicable federal securities
laws and Nasdaq rules. CMC shall not be deemed to be in breach of its obligations set forth in this provision to the extent that CMC is unable to comply with such obligations as a result of the
actions or inactions of UOL. 

        (i)    Access to Books and Records.    Until the UOL Group is no longer required to account for its investment in CMC
on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), and thereafter to the extent such
information and cooperation is necessary for the preparation of financial statements or completing a financial statements audit, all governmental audits are complete and the applicable statute of
limitations for tax matters has expired, CMC shall provide UOL's internal auditors, counsel and other designated representatives of UOL access during normal business hours to
(i) the premises of CMC and all Information (and duplicating rights with respect thereto) within the knowledge, possession or control of CMC and (ii) the officers and employees of CMC,
so that UOL may conduct reasonable audits relating to the financial statements provided by CMC pursuant hereto as well as to the internal accounting controls and 

9

 

operations
of CMC. Similarly, UOL shall provide CMC's internal auditors, counsel and other designated representatives of CMC access during normal business hours to (x) the premises of UOL and
its Subsidiaries and all Information (and duplicating rights with respect thereto) within the knowledge, possession or control of UOL and its Subsidiaries and (y) the officers and employees of
UOL and its Subsidiaries, so that CMC may conduct reasonable audits relating to the financial statements provided by UOL pursuant hereto as well as to the internal accounting controls and operations
of UOL and its Subsidiaries. 

        (j)    Notice of Change in Accounting Principles.    Until the UOL Group is no longer required to account for its
investment in CMC on a consolidated basis or under the equity method of accounting (determined in accordance with GAAP consistently applied after consultation with the Auditors), and thereafter if a
change in accounting principles by a Party hereto would affect the historical financial statements of the other Party, neither Party shall make or adopt any significant changes in its accounting
estimates or
accounting principles from those in effect on the IPO Closing Date without first consulting with the other Party, and if requested by the other Party, such Party's independent public accountants with
respect thereto. UOL shall give CMC as much prior notice as reasonably practical of any proposed determination of, or any significant changes in, its accounting estimates or accounting principles from
those in effect on the IPO Closing Date. UOL will consult with CMC and, if requested by CMC, UOL will consult with CMC Auditors with respect thereto. CMC shall give UOL as much prior notice as
reasonably practical of any proposed determination of, or any significant changes in, its accounting estimates or accounting principles from those in effect on the IPO Closing Date. CMC will consult
with UOL and, if requested by UOL, CMC will consult with the Auditors with respect thereto. 

        (k)    Conflict With Third Party Agreements.    Nothing in Section 3.5 or Section 3.6 shall require
either Party to violate any agreement with any third party regarding the confidentiality of confidential and proprietary information relating to that third party or its business;  provided that in the
event that a Party is required under Section 3.5 or Section 3.6 to disclose any such Information, such Party shall
use its reasonable best efforts to seek to obtain such third party's consent to the disclosure of such information. 

        Section 3.7    Confidentiality.    

        (a)   UOL
and CMC shall hold and shall cause each of their respective Subsidiaries to hold, and shall each cause their and their Subsidiaries' respective officers, employees,
agents, consultants and advisors to hold, in strict confidence and not to disclose or release without the prior written consent of the other Party, any and all Confidential Information concerning the
other Party and its respective Subsidiaries; provided that the Parties may disclose, or may permit disclosure of, Confidential Information (i) to
their respective Affiliates, auditors, attorneys, financial advisors, bankers and other appropriate consultants and advisors who have a need to know such information and, in each case, are informed of
their obligation to hold such information confidential to the same extent as is applicable to the Parties hereto and in respect of whose failure to comply with such obligations, CMC or UOL, as the
case may be, will be responsible, (ii) if the Parties or any of their respective Affiliates are compelled to disclose any such Confidential Information by judicial or administrative process or
(iii) if the Parties reasonably determine in good faith that such disclosure is required by other requirements of law. Notwithstanding the foregoing, in the event that any demand or request for
disclosure of Confidential Information is made in connection with any judicial or administrative process, or a Party determines in good faith that disclosure is otherwise required by law, UOL or CMC,
as the case may be, shall promptly notify the other Party of the existence of such request, demand or conclusion, and shall provide the other Party a reasonable opportunity to seek an appropriate
protective order or other remedy, which the notifying Party will cooperate in seeking. In the event that an appropriate protective order or other remedy is not obtained, the Party whose Confidential
Information is required to be disclosed shall or shall cause the other Party to furnish, or cause to be furnished, only that portion of the 

10

 

Confidential
Information that is required to be disclosed and shall use its reasonable best efforts to obtain reasonable assurances that confidential treatment will be accorded to such Information. 

        (b)   As
used in this Section 3.7: 

          (i)  "Confidential Information" shall mean Confidential Business Information and Confidential Operational Information
concerning one Party which, prior to, on or following the IPO Closing Date, has been disclosed by UOL or its Subsidiaries (excluding CMC and its Subsidiaries) on the one hand, or CMC or its
Subsidiaries, on the other hand, in written, oral (including by recording), electronic or visual form to, or otherwise has come into the possession of, the other, including pursuant to the access
provisions of Section 3.5 or Section 3.6 hereof or any other provision of this Agreement. Confidential Information shall not, however, include any information which (A) was
publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing Party; (B) becomes publicly known and made generally available after
disclosure by the disclosing Party to the receiving Party through no action or inaction of the receiving Party; (C) is obtained by the receiving Party from a third party without a breach of
such third party's obligations of confidentiality; or (D) is independently developed by the receiving Party without use of or reference to the disclosing Party's Confidential Information. 

         (ii)  "Confidential Operational Information" shall mean all proprietary information, data and material of the disclosing Party
including, without limitation, (a) specifications, ideas, concepts, models, and strategies for products or services, (b) quality assurance policies, procedures and specifications,
(c) Software, (d) training materials and information, and (e) all other know-how, methodology, processes, procedures, techniques and trade secrets related to design,
development and operational processes. 

        (iii)  "Confidential Business Information" shall mean all proprietary information, data or material of the disclosing Party
other than Confidential Operational Information, including, but not limited to (a) earnings reports and forecasts, (b) macro-economic reports and forecasts, (c) business plans,
(d) general market evaluations and surveys, (e) financing and credit-related information and (f) customer information. 

        (c)   Nothing
in this Agreement shall restrict the disclosing Party from using, disclosing or disseminating its own Confidential Information in any way. Moreover, nothing in
the Agreement supersedes any restriction imposed by third parties on their Confidential Information, and there is no obligation on the disclosing Party to conform third party agreements to the terms
of this Agreement except as expressly set forth therein. 

        (d)   Notwithstanding
anything to the contrary set forth herein, UOL and its Subsidiaries (excluding CMC and its Subsidiaries), on the one hand, and CMC and its Subsidiaries,
on the other hand, shall be deemed to have satisfied their obligations hereunder with respect to Confidential Information if they exercise the same degree of care (but no less than a reasonable degree
of care) as they take to preserve confidentiality for their own similar Confidential Information. 

        (e)   Confidential
Information of UOL and its Subsidiaries (excluding CMC and its Subsidiaries), on the one hand, or CMC and its Subsidiaries, on the other hand, in the
possession of and used by the other as of the IPO Closing Date may continue to be used by such Person in possession of the Confidential Information in and only in the operation of the UOL Business or
the CMC Business, as the case may be, and may be used only so long as the Confidential Information is maintained in confidence and not disclosed in violation of this Section 3.7. Such continued
right to use Confidential Information may not be transferred to any third party unless such third party purchases all or substantially all of the business and assets of a Party in one transaction or
in a series of related transactions for which or in which the relevant Confidential Information is used or employed and expressly agrees in writing to be bound by the provisions of this
Section 3.7. 

11

 

        Section 3.8    Privileged Matters.    

        (a)   UOL
and CMC agree that their respective rights and obligations to maintain, preserve, assert or waive any or all privileges belonging to the other or the other's
Subsidiaries, including but not limited to the attorney-client and work product privileges (collectively, "Privileges"), shall be governed by the
provisions of this Section 3.8. With respect to Privileged Information of UOL, UOL shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and CMC
shall take no action (nor permit any of its Subsidiaries to take action) without the prior written consent of UOL that could result in any waiver of any Privilege that could be asserted by UOL or any
of its Subsidiaries under applicable law. With respect to Privileged Information of CMC, CMC shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and
UOL shall take no action (nor permit any of its Subsidiaries to take action) without the prior written consent of CMC that could result in any waiver of any Privilege that could be asserted by CMC or
any of its Subsidiaries under applicable law. The rights and obligations created by this Section 3.8 shall apply to all Information as to which UOL or CMC or their respective Subsidiaries would
be entitled to assert or has asserted a Privilege without regard to the effect, if any, of the Distribution ("Privileged Information"). 

          (i)  "Privileged Information of UOL" includes but is not limited to (A) any and all Information regarding the UOL
Business, whether or not it is in the possession of CMC or any of its Subsidiaries (other than Information regarding the CMC Business; provided that CMC
has assumed and will be liable on or after the IPO Closing Date for any Liability arising with respect to such Information); (B) all communications subject to a Privilege between counsel for
UOL (including in-house counsel) and any person who, at the time of the communication, was an employee of UOL, regardless of whether such employee is or becomes an employee of CMC or any
of its Subsidiaries and (C) all Information that refers or relates to Privileged Information of UOL. 

         (ii)  "Privileged Information of CMC" includes but is not limited to (A) any and all Information regarding the CMC
Business, whether or not it is in the possession of UOL or any of its Subsidiaries;  provided that CMC has assumed and will be liable on or after the IPO Closing Date for any Liability arising with
respect to such Information;
(B) all communications subject to a Privilege between counsel for CMC (including in-house counsel and former in-house counsel who are or were employees of UOL) and any
person who, at the time of the communication, was an employee of CMC, regardless of whether such employee was, is or becomes an employee of UOL or any of its Subsidiaries (other than CMC and its
Subsidiaries) and (C) all Information that refers or relates to Privileged Information of CMC. 

        (b)   Upon
receipt by UOL or CMC, as the case may be, of any subpoena, discovery or other request from any third party that actually or arguably calls for the production or
disclosure of Information of the other or if UOL or CMC, as the case may be, obtains knowledge that any current or former employee of UOL or CMC, as the case may be, has received any subpoena,
discovery or other request from any third party that actually or arguably calls for the production or disclosure of Information of the other, UOL or CMC, as the case may be, shall promptly notify the
other of the existence of the request and shall provide the other a reasonable opportunity to review the Information and to assert any rights it may have under this Section 3.8 or otherwise to
prevent the production or disclosure of Privileged Information. UOL or CMC, as the case may be, will not produce or disclose to any third party any of the other's Privileged Information unless
(a) the other has provided its express written consent to such production or disclosure or (b) a court of competent jurisdiction has entered an order not subject to interlocutory appeal
or review finding that the Information is not entitled to protection from disclosure under any applicable privilege, doctrine or rule. 

12

 

        (c)   UOL's
transfer of books and records pertaining to the CMC Business and other Information to CMC, if any, and UOL's agreement to permit CMC
to obtain Information existing prior to the IPO Closing Date, CMC's transfer of books and records pertaining to the UOL Business and other Information to UOL, if any, and CMC's agreement to permit UOL
to obtain Information existing prior to the IPO Closing Date, are made in reliance on UOL's and CMC's respective agreements, as set forth in Section 3.7, to maintain the
confidentiality of such Information and to take the steps provided in this Section 3.8 for the preservation of all Privileges that may belong to or be asserted by UOL or CMC, as the case may
be. The access to Information, witnesses and individuals being granted pursuant to Section 3.5 and Section 3.6 and the disclosure to CMC and UOL of Privileged Information relating to the
CMC Business or the UOL Business pursuant to this Agreement shall not be asserted by UOL or CMC to constitute, or otherwise be deemed, a waiver of any Privilege that has been or may be asserted or
otherwise. Nothing in this Agreement shall operate to reduce, minimize or condition the rights granted to UOL and CMC in, or the obligations imposed upon UOL and CMC by, this Section 3.8. 

        Section 3.9    Future Litigation and Other Proceedings.    In the event that CMC (or any of its Subsidiaries or
any of its or their respective officers or directors) or UOL (or any of its Subsidiaries or any of its or their respective officers or directors) at any time after the date hereof initiates or becomes
subject to any litigation or other proceedings before any Governmental Authority or arbitration panel with respect to which the Parties have no prior agreements (as to indemnification or otherwise),
the Party (and its Subsidiaries and its and their respective officers and directors) that has not initiated and is not subject to such litigation or other proceedings shall comply, at the other
Party's expense, with any reasonable
requests by the other Party for assistance in connection with such litigation or other proceedings (including by way of provision of information and making available of associates or employees as
witnesses). In the event that CMC (or any of its Subsidiaries or any of its or their respective officers or directors) or UOL (or any of its Subsidiaries or any of its or their respective officers or
directors) at any time after the date hereof initiates or becomes subject to any litigation or other proceedings before any Governmental Authority or arbitration panel with respect to which the
Parties have no prior agreements (as to indemnification or otherwise), the Parties (and their officers and directors) shall, at their own expense, coordinate their strategies and actions with respect
to such litigation or other proceedings to the extent such coordination would not be detrimental to their respective interests and shall comply, at the expense of the requesting Party, with any
reasonable requests of the other Party for assistance in connection therewith (including by way of provision of information and making available of employees as witnesses). 

        Section 3.10    Mail and Other Communications.    After the IPO Closing Date, each of UOL and CMC may receive
mail, facsimiles, packages and other communications properly belonging to the other. Accordingly, at all times after the IPO Closing Date, each of UOL and CMC authorizes the other to receive and open
all mail, telegrams, packages and other communications received by it and not unambiguously intended for the other Party or any of the other Party's officers or directors, and to retain the same to
the extent that they relate to the business of the receiving Party or, to the extent that they do not relate to the business of the receiving Party, the receiving Party shall promptly deliver such
mail, telegrams, packages or other communications to the other Party as provided for in Section 8.4 hereof. The provisions of this Section 3.10 are not intended to, and shall not, be
deemed to constitute (a) an authorization by either UOL or CMC to permit the other to accept service of process on its behalf and neither Party is or shall be deemed to be the agent of the
other for service of process purposes or (b) a waiver of any Privilege with respect to Privileged Information contained in such mail, telegrams, packages or other communications. 

        Section 3.11    Payment of Expenses.    Except as otherwise provided in this Agreement, the Inter-Company
Agreements or any other agreement between the Parties relating to the IPO or the Distribution, (i) all costs and expenses of the Parties hereto in connection with the IPO (including costs 

13

 

associated
with drafting this Agreement, the Inter-Company Agreements and the documents relating to the formation of CMC) shall be paid by CMC; (ii) all costs and expenses of the Parties hereto
in connection with the Distribution shall be paid by CMC; and (iii) all costs and expenses of the Parties hereto in connection with any matter not relating to the IPO or the Distribution shall
be paid by the Party which incurs such cost or expense. Notwithstanding the foregoing, CMC and UOL shall each be responsible for their own internal fees, costs and expenses (e.g., salaries of
personnel) incurred in connection with the IPO and the Distribution. 

        Section 3.12    Dispute Resolution.    

        (a)   Any
dispute, controversy or claim arising out of or relating to this Agreement or the Inter-Company Agreements (other than the Tax Sharing Agreement) or the breach,
termination or validity thereof ("Dispute") which arises between the Parties shall first be negotiated between appropriate senior executives of each
Party who shall have the authority to resolve the matter. Such executives shall meet to attempt in good faith to negotiate a resolution of the Dispute prior to pursuing other available remedies,
within ten (10) days of receipt by a Party of notice of a Dispute, which date of receipt shall be referred to herein as the "Dispute Resolution Commencement
Date." Discussions and correspondence relating to the resolution or attempted resolution of the Dispute shall be treated as Confidential Information and Privileged Information
of each of UOL and CMC developed for the purpose of settlement and shall be exempt from discovery or production and shall not be admissible in any subsequent proceeding between the Parties. 

        (b)   If
the senior executives are unable to resolve the Dispute within sixty (60) days from the Dispute Resolution Commencement Date, then, the Dispute will be
submitted to the boards of directors of UOL and CMC. Representatives of each board of directors shall meet as soon as practicable to attempt in good faith to negotiate a resolution of the Dispute. 

        (c)   If
the representatives of the two boards of directors are unable to resolve the Dispute within one hundred twenty (120) days from the Dispute Resolution
Commencement Date, on the request of any Party, the Dispute will be mediated by a mediator appointed pursuant to the mediation rules of the American Arbitration Association. Both Parties will share
the administrative costs of the mediation and the mediator's fees and expenses equally, and each Party shall bear all of its other costs and expenses related to the mediation, including but not
limited to attorney's fees, witness fees, and travel expenses. The mediation shall take place in Los Angeles, California or in whatever alternative forum on which the Parties may agree. 

        (d)   If
the Parties cannot resolve any Dispute through mediation within forty-five (45) days of the appointment of the mediator (or the earlier withdrawal
thereof), each Party shall be entitled to seek relief in a court of competent jurisdiction. 

        Unless
otherwise agreed in writing, the Parties will continue to provide services and honor all other commitments under this Agreement and each Inter-Company Agreement during the course
of dispute resolution pursuant to the provisions of this Section 3.12 with respect to all matters not subject to such dispute, controversy or claim. 

14

   
        Section 3.13    Governmental Approvals.    To the extent that any of the transactions contemplated by this
Agreement requires any Governmental Approvals, the Parties will use their reasonable best efforts to obtain any such Governmental Approvals. 

        Section 3.14    No Representation or Warranty.    

        (a)   UOL
does not, in this Agreement or any other agreement, instrument or document contemplated by this Agreement, make any representation as to, warranty of or covenant
with respect to: 

          (i)  the
value of any asset or thing of value transferred, or to be transferred, to CMC; 

         (ii)  the
freedom from encumbrance of any asset or thing of value transferred, or to be transferred, to CMC; provided that UOL
agrees to notify CMC promptly in the event that UOL receives any notice or claim of any encumbrance on or against any asset or thing of value transferred, or to be transferred, to CMC; 

        (iii)  the
absence of defenses or freedom from counterclaims with respect to any claim transferred, or to be transferred, to CMC;  provided that neither UOL nor its Subsidiaries have any counterclaims with respect
to any claim transferred, or to be transferred, to CMC; or 

        (iv)  the
legal sufficiency of any assignment, document or instrument delivered hereunder to convey title to any asset or thing of value upon its execution, delivery and
filing. 

        Except
as may expressly be set forth herein or in any Inter-Company Agreement, all assets or things of value transferred, or to be transferred, by UOL to CMC have been or shall be, as
the case may be, transferred "AS IS, WHERE IS" and CMC shall bear the economic and legal risk that any conveyance shall prove to be insufficient to vest in CMC good and marketable title, free and
clear of any lien, claim, equity or other encumbrance; provided that UOL will execute and deliver, and will cause its Subsidiaries to execute and
deliver, to CMC such instruments, certificates and other documents and take such other action as CMC may reasonably request in order to carry out this Agreement and the transactions contemplated
hereby. 

        (b)   CMC
does not, in this Agreement or any other agreement, instrument or document contemplated by this Agreement, make any representation as to, warranty of or covenant
with respect to: 

          (i)  the
value of any asset or thing of value transferred, or to be transferred, to UOL; 

         (ii)  the
freedom from encumbrance of any asset or thing of value transferred, or to be transferred, to UOL; provided that CMC
agrees to notify UOL promptly in the event CMC receives any notice or claim of any encumbrance on or against any asset or thing of value transferred, or to be transferred, to UOL; 

        (iii)  the
absence of defenses or freedom from counterclaims with respect to any claim transferred, or to be transferred, to UOL;  provided that neither CMC nor its Subsidiaries have any counterclaims with respect
to any claim transferred, or to be transferred, to UOL; or 

        (iv)  the
legal sufficiency of any assignment, document or instrument delivered hereunder to convey title to any asset or thing of value upon its execution, delivery and
filing. 

        Except
as may expressly be set forth herein or in any Inter-Company Agreement, all assets or things of value transferred, or to be transferred, by CMC to UOL have been or shall be, as
the case may be, transferred "AS IS, WHERE IS" and UOL shall bear the economic and legal risk that any conveyance shall prove to be insufficient to vest in UOL good and marketable title, free and
clear of any lien, claim, equity or other encumbrance. 

15

 
ARTICLE IV

REGISTRATION RIGHTS  

        Section 4.1    Demand Registration.    

        (a)   The
Holders shall have the right after the IPO Closing Date to request in writing (which request shall specify the Registrable Securities intended to be disposed of by
such Holders and the intended method of distribution thereof, including in a Rule 415 Offering, if CMC is then eligible to register such Registrable Securities on Form S-3
(or a successor form) for such offering) that CMC register all or a portion of such Holders' Registrable Securities (a "Demand Registration") by filing
with the Commission, as soon as practicable thereafter, but not later than the 30th day (or the 90th day if the applicable registration form is other than Form S-3) after the
receipt of such a request by CMC, a registration statement covering such Registrable Securities. 

        (b)   CMC
shall not be required to effect a Demand Registration within 90 days after the effective date of a previous registration statement, other than pursuant to a
Rule 415 Offering, effected with respect to Registrable Securities pursuant to this Section 4.1. 

        (c)   Any
request made pursuant to this Section 4.1 shall be addressed to the attention of the corporate secretary of CMC, and shall specify (i) the number of
Registrable Securities to be registered (which shall be not less than the lesser of (x) 5% of the total number of Registrable Securities outstanding and (y) the remaining balance of the
Registrable Securities then held by the Holders); provided that CMC shall not be obligated to effect more than one (1) Demand Registration in any
twelve (12) month period. 

        (d)   CMC
may not include in a Demand Registration pursuant to Section 4.1 hereof shares of CMC Capital Stock for the account of CMC or any Subsidiary of CMC, but, if
and to the extent required by a contractual obligation, may, subject to compliance with Section 4.1(e), include shares of CMC Capital Stock for the account of any other Person who holds shares
of CMC Capital Stock entitled to be included therein. If, in connection with a registration statement pursuant to this Section 4.1, the Managing Underwriters shall inform CMC that in their
opinion there is a maximum number of shares of CMC Capital Stock that may be included therein, CMC shall include in such Demand Registration all Registrable Securities requested to be included in such
registration by the Holders together with up to such additional number of shares of CMC Capital Stock that any other Persons entitled to participate in such registration desire to include in such
registration up to the maximum number of shares of CMC Capital Stock that the Managing Underwriters have informed CMC may be included in such registration without materially and adversely affecting
the success or pricing of such offering; provided that the number of shares of CMC Capital Stock to be offered for the account of all such other Persons
participating in such registration shall be reduced in a manner determined by CMC in its sole discretion. 

        (e)   No
Holder or any other Person may participate in any Underwritten Offering under this Section 4.1 unless it completes and executes all customary questionnaires,
powers of attorney, custody agreements, underwriting agreements and other customary documents required under the customary terms of such underwriting arrangements. In connection with any Underwritten
Offering pursuant to this Section 4.1, each participating Holder and CMC and, except in the case of a Rule 415 Offering, each other Person shall be a party to the underwriting agreement
with the underwriters and may be required to make certain customary representations and warranties and provide certain customary indemnifications for the benefits of the underwriters. 

        Section 4.2    Piggyback Registration.    

        (a)   In
the event that CMC at any time after the IPO Closing Date proposes to register any of its CMC Capital Stock, any other of its equity securities or securities
convertible into or exchangeable for its equity securities (collectively, including CMC Capital Stock, "Other  

16

 

 Securities") under the Securities Act, either in connection with a primary offering for cash for the account of CMC, a secondary offering or a combined primary and secondary
offering, CMC will each time it intends to effect such a registration, give written notice (a "Company Notice") to all Holders of Registrable Securities
at least fifteen (15) business days prior to the initial filing of a registration statement with the Commission pertaining thereto, informing such Holders of its intent to file such
registration statement and of the Holders' right to request the registration of the Registrable Securities held by the Holders. Upon the written request of the Holders made within seven
(7) business days after any such Company Notice is given (which request shall specify the Registrable Securities intended to be disposed of by such Holder), CMC will use its reasonable best
efforts to effect, in connection with the registration of such Other Securities, the registration under the Securities Act of all Registrable Securities which CMC has been so requested to register by
the Holders to the extent required to permit the disposition (in accordance with the intended methods of distribution as CMC proposes to use to dispose of the Other Securities), including, if
necessary, by filing with the Commission a post-effective amendment or a supplement to the registration statement or the related prospectus or any document incorporated therein by
reference or by filing any other required document or otherwise supplementing or amending the registration statement, if required by the rules, regulations or instructions applicable to the
registration form used by CMC for such registration statement or by the Securities Act, any state securities or blue sky laws, or any rules and regulations thereunder;  provided that if, at any time
after giving written notice of its intention to register any Other Securities and prior to the Effective Date of the
registration statement filed in connection with such registration, CMC shall determine for any reason not to register or to delay such registration of the Other Securities, CMC shall give prompt
written notice of such determination to each Holder of Registrable Securities and, thereupon, (i) in the case of a determination not to register, CMC shall be relieved of its obligation to
register any Registrable Securities in connection with the registration of such Other Securities (but not from its obligation to pay the Registration Expenses incurred in connection with
Section 4.3), without prejudice, however, to the rights (if any) of any Holder immediately to request (subject to Section 4.1) that such registration be effectuated as a Demand
Registration or to include such Registrable Securities in any subsequent registration pursuant to this Section 4.2. 

        (b)   If,
in connection with a registration statement pursuant to this Section 4.2, the Managing Underwriters shall inform CMC that in their opinion there is a maximum
number of shares of CMC Capital Stock that may be included therein and if such registration statement relates to an offering initiated by CMC, CMC shall include in such registration: (i) first,
the number of shares CMC proposes to sell for its own account ("Company Securities"), (ii) second, up to the number of Registrable Securities
requested to be included in such registration statement, allocated pro rata among the Holders of Registrable Securities on the basis of the number of Registrable Securities requested to be included
therein by each Holder of Registrable Securities and (iii) third, up to the number of any Other Securities (other than Company Securities) requested to be included in such registration
statement. 

        (c)   If,
in connection with a registration statement pursuant to this Section 4.2, the Managing Underwriters shall inform CMC that in their opinion there is a maximum
number of shares of CMC Capital Stock that may be included therein and if such registration statement relates to an offering initiated by any Person other than CMC (the "Other
Holders"), CMC shall include in such registration the maximum number of shares of CMC Capital Stock, allocated pro rata among the Other Holders and the Holders of Registrable
Securities on the basis of the number of securities (including Registrable Securities) requested to be included therein by each Other Holder and Holder of Registrable Securities. 

        (d)   No
Holder or any other Person may participate in any Underwritten Offering under this Section 4.2 unless it completes and executes all customary questionnaires,
powers of attorney, 

17

 

custody
agreements, underwriting agreements and other customary documents required under the customary terms of such underwriting arrangements. In connection with any Underwritten Offering pursuant to
this Section 4.2, each participating Holder and CMC and, except in the case of a Rule 415 Offering, each other Person shall be a party to the underwriting agreement with the underwriters
of such offering and may be required to make certain customary representations and warranties and provide certain customary indemnifications for the benefits of the underwriters. 

        (e)   CMC
shall not be required to effect any registration of Registrable Securities under this Section 4.2 incidental to the registration of any of its securities in
connection with CMC's issuance of registered shares of CMC Capital Stock in mergers, acquisitions, reorganizations, exchange offers, subscription offers, dividend reinvestment plans or stock option or
other executive or employee benefit or compensation plans. 

        (f)    The
registration rights granted pursuant to the provisions of this Section 4.2 shall be in addition to the registration rights granted pursuant to
Section 4.1. No registration of Registrable Securities effected under this Section 4.2 shall relieve CMC of its obligation to effect a registration of Registrable Securities pursuant to
Section 4.1. 

        Section 4.3    Expenses.    CMC shall bear all reasonable expenses incident to CMC's performance of or
compliance with this ARTICLE IV, including, without limitation, (i) all Commission registration and filing fees, (ii) all fees and expenses of complying with securities or blue sky laws
(including fees and disbursements of counsel for any underwriters in connection with blue sky qualifications of the Registrable Securities) or relating to the Financial Industry Regulatory Authority,
(iii) all printing, messenger and delivery expenses, (iv) all fees and expenses incurred in connection with listing (or authorizing for quotation) the Registrable Securities on a
securities exchange or automated inter-dealer quotation system pursuant to the requirements hereof, (v) the fees and disbursements of counsel for CMC and of its independent public accountants,
(vi) all expenses in connection with the preparation, printing and filing of the registration statement, any preliminary prospectus or final prospectus and amendments and supplements thereto
and the mailing and delivering of copies thereof to any Holders,
underwriters and dealers and all expenses incidental to delivery of the Registrable Securities, (vii) the reasonable fees and disbursements of one legal counsel selected by UOL (there being no
obligation of CMC to pay or reimburse any fees of any separate counsel for any other Holder), (viii) any fees and disbursements of underwriters customarily paid by the issuers or sellers of
securities, and the reasonable fees and expenses of any special experts retained in connection with the requested registration, but excluding underwriting discounts and commissions and transfer taxes,
if any, and (ix) the expenses incurred in connection with making "road show" presentations and holding meetings with potential investors to facilitate the distribution and sale of Registrable
Securities (collectively, the "Registration Expenses"). 

        Section 4.4    Blackout Period.    CMC shall be entitled to elect that a registration statement not be usable,
or that the filing thereof be delayed beyond the time otherwise required, for a reasonable period of time (a "Blackout Period"), if CMC reasonably
determines in good faith (i) after consultation with a nationally recognized investment banking firm, that there will be an adverse effect on a then contemplated public offering of CMC's
securities, (ii) that the disclosure that would be required to be made by CMC in connection with such registration would be materially harmful to CMC because of transactions then being
considered by, or other events then concerning, CMC, or (iii) that registration at the time would require the inclusion of pro forma or other information, which requirement CMC is reasonably
unable to comply with, and CMC promptly gives the Holders of Registrable Securities written notice of such determination. CMC shall immediately notify the Holders of Registrable Securities upon the
termination of any Blackout Period. 

        Section 4.5    Selection of Underwriters.    UOL shall have the right to select the Managing Underwriters to
administer any Underwritten Offering contemplated by Section 4.1, and CMC shall 

18

 

have
the right to select the Managing Underwriters to administer any Underwritten Offering contemplated by Section 4.2. 

        Section 4.6    Obligations of CMC.    If and whenever CMC is required to effect the registration of any
Registrable Securities under the Securities Act as provided in this ARTICLE IV, CMC shall as promptly as practicable: 

        (a)   prepare
and file with the Commission a registration statement regarding such Registrable Securities and use its reasonable best efforts to cause such registration
statement to become effective as soon as practicable thereafter; 

        (b)   except
in the case of a Rule 415 Offering, prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus
(including any issuer free writing prospectus required to be so filed) used in connection therewith as may be necessary to keep the registration statement effective and to comply with the provisions
of the Securities Act with respect to
the sale or other disposition of all Registrable Securities covered by such registration statement until the earlier of (i) such time as all of such Registrable Securities have been disposed of
in accordance with the intended methods of disposition set forth in such registration statement and (ii) the expiration of six months after such registration statement becomes effective; 

        (c)   in
the case of a Rule 415 Offering, prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus
(including any issuer free writing prospectus required to be so filed) used in connection therewith as may be necessary to keep the registration statement effective and to comply with the provisions
of the Securities Act with respect to the sale or other disposition of all Registrable Securities covered by such registration statement until the earlier of (i) the date on which registration
is not required in order for such Holder(s) to sell such Registrable Securities and (ii) the date as of which all of the Registrable Securities subject thereto have been sold pursuant to such
registration statement. 

        (d)   furnish
to Holders of Registrable Securities and to any underwriter of such Registrable Securities such number of conformed copies of such registration statement and of
each such amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus included in such registration statement (including each preliminary
prospectus, any summary prospectus and any issuer free writing prospectus), in conformity with the requirements of the Securities Act and such other documents as Holders of Registrable Securities or
such underwriter may reasonably request; 

        (e)   use
its reasonable best efforts to register or qualify all Registrable Securities covered by such registration statement under the securities or blue sky laws of such
jurisdictions as the Holders of such Registrable Securities or any underwriter of such Registrable Securities may reasonably request and do any and all other acts and things which may be reasonably
necessary or advisable to enable the Holders of Registrable Securities or any such underwriter to consummate the disposition in such jurisdictions of the Registrable Securities covered by such
registration statement; provided that CMC shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any
such jurisdiction wherein it is not so qualified or to consent to general service of process in any such jurisdiction; 

        (f)    if
requested, use its reasonable best efforts to obtain a "cold comfort" letter from CMC's independent public accountants in customary form and covering such matters of
the type customarily covered by "cold comfort" letters; 

        (g)   as
promptly as practicable, notify each Holder of Registrable Securities, at any time when a prospectus relating thereto is required to be delivered under the Securities
Act and when any issuer free writing prospectus includes information that may conflict with the information 

19

 

contained
in the Registration Statement (including any document incorporated by reference therein that has not been superseded or modified), of the happening of any event as a result of which the
prospectus included in such registration statement contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, and, at the request of any such Holder of Registrable Securities, CMC shall promptly prepare and furnish to any
such Holder a reasonable number of copies of a supplement to or an amendment of such prospectus or issuer free writing prospectus as may be necessary so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they are made, not misleading; 

        (h)   use
its reasonable best efforts to list all such Registrable Securities covered by such registration statement on each securities exchange and automated inter-dealer
quotation system on which similar securities issued by CMC are then listed; 

        (i)    to
the extent reasonably requested by the Managing Underwriters, make available members of management of CMC for assistance in the selling efforts relating to the
Registrable Securities covered by such registration statement, including participation in "road shows" presentations; 

        (j)    in
the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the use of any related
prospectus or suspending the qualification of any securities included in such registration statement for sale in any jurisdiction, use its reasonable best efforts to promptly obtain the withdrawal of
such order; and 

        (k)   use
its reasonable best efforts to take all other reasonable and customary steps typically taken by issuers to effect the registration and disposition of such
Registrable Securities as contemplated hereby. 

        Section 4.7    Obligations of Holders.    Each Holder agrees by having its securities treated as Registrable
Securities hereunder that, upon receipt of written notice from CMC specifying that the prospectus relating to a registration made pursuant to Section 4.1 or Section 4.2 contains an
untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, such Holder will forthwith discontinue disposition of Registrable Securities until such Holder is advised by CMC that the use of the prospectus may be resumed and is
furnished with a supplemented or amended prospectus as contemplated by Section 4.6(g) hereof, and, if so directed by CMC, such Holder will
deliver to CMC all copies of the prospectus covering such Registrable Securities then in such Holder's possession at the time of receipt of such notice. 

        Section 4.8    Underwriting; Due Diligence.    

        (a)   If
requested by the underwriters for any Underwritten Offering of Registrable Securities pursuant to a registration requested under this ARTICLE IV, CMC shall enter into
an underwriting agreement in a form reasonably satisfactory to CMC with such underwriters for such offering, which agreement will contain such representations and warranties by CMC and such other
terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions, including, without limitation, indemnification and contribution provisions, and
agreements as to the provision of opinions of counsel and accountants' letters to the effect and to the extent provided in Section 4.6(f). The Holders on whose behalf the Registrable Securities
are to be distributed by such underwriters shall be a party to any such underwriting 

20

 

agreement
and the representations and warranties by, and the other agreements on the part of, CMC to and for the benefit of such underwriters, shall also be made to and for the benefit of such
Holders. Such underwriting agreement shall also contain such representations and warranties by such Holders and such other terms and provisions as are customarily contained in underwriting agreements
with respect to secondary distributions, including, without limitation, indemnification and contribution provisions. 

        (b)   In
connection with the preparation and filing of each registration statement registering Registrable Securities under the Securities Act pursuant to this ARTICLE IV, CMC
shall give the Holders of such Registrable Securities and the underwriters, if any, and their respective counsel and accountants, such reasonable and customary access to its books and records and such
opportunities to discuss the business of CMC with its officers and the independent public accountants who have certified the financial statements of CMC as shall be necessary, in the opinion of such
Holders and such underwriters or their respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act; provided that
such Holders and the underwriters and their respective counsel and accountants shall use their reasonable best efforts to coordinate any such investigation of the books and records of CMC and any such
discussions with CMC's officers and accountants so that all such investigations occur at the same time and all such discussions occur at the same time. 

        Section 4.9    Indemnification and Contribution.    

        (a)   In
the case of each offering of Registrable Securities made pursuant to this ARTICLE IV, CMC agrees to indemnify and hold harmless each of the Holders, each of their
respective directors and officers, each of the underwriters, each of their respective directors and officers, and each Person, if any, who controls any such Holder or underwriter within the meaning of
the Securities Act, against any
and all losses, claims, damages, liabilities or expenses (or actions or proceedings in respect thereof, whether or not such indemnified party is a party thereto) which arise out of or are based upon
(i) any untrue statement or alleged untrue statement of a material fact contained in the related registration statement (or in any preliminary or final prospectus included therein or issuer
free writing prospectus related thereto) or in any offering memorandum or other offering document relating to the offering and sale of such Registrable Securities, or any amendment thereof or
supplement thereto, or in any document incorporated by reference therein, or (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading; provided that CMC shall not be liable to any Person in any such case to the extent that any such loss,
claim, damage, liability (or action or proceeding in respect thereof) arises out of or are based upon any untrue statement or alleged untrue statement, or any omission or alleged omission, if such
statement or omission shall have been made in reliance upon or in conformity with information furnished to CMC by or on behalf of such Holder or underwriter, as the case may be, specifically for use
in the registration statement (or in any preliminary or final prospectus included therein or issuer free writing prospectus related thereto), offering memorandum or other offering document, or any
amendment thereof or supplement thereto. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Holder or any other holder and shall survive
the transfer of such Registrable Securities by such Holder. The foregoing indemnity agreement is in addition to any liability that CMC may otherwise have to each of the Holders, each of their
respective directors and officers and each Person, if any, who controls any such Holder. 

21

  

        (b)   In
the case of each offering of Registrable Securities made pursuant to this ARTICLE IV, each Holder, by exercising its registration rights hereunder, agrees to
indemnify and hold harmless CMC, each of its directors and officers, each of the underwriters, each of their respective directors and officers, and each Person, if any, who controls CMC or any such
underwriter within the meaning of the Securities Act, against any and all losses, claims, damages, liabilities or expenses (or actions or proceedings in respect thereof) which arise out of or are
based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the related registration statement (or in any preliminary or final prospectus included therein or
issuer free writing prospectus related thereto, whether or not such indemnified party is a party thereto) or in any offering memorandum or other offering document relating to the offering and sale of
such Registrable Securities, or any amendment thereof or supplement thereto, or in any document incorporated by reference therein, or (ii) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading; but in each case only to the extent that any such loss, claim, damage, liability (or action or
proceeding in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement, or any omission or alleged omission, shall have been made in reliance upon or in
conformity with information furnished to CMC by or on behalf of such Holder or underwriter, as the case may be, specifically for use in the registration statement (or in any preliminary or final
prospectus included therein or issuer free writing prospectus related thereto), offering memorandum or other offering document or any amendment thereof or supplement thereto. The foregoing indemnity
agreement is in addition to any liability that such Holder may otherwise have to CMC, its directors and officers and each Person, if any, who controls CMC. 

        (c)   Each
party indemnified under paragraph (a) or (b) above shall, promptly after receipt of notice of a claim or action against such indemnified party in
respect of which indemnity may be sought hereunder, notify the indemnifying party in writing of the claim or action; provided that the failure to notify
the indemnifying party shall not relieve it from any liability that it may have to an indemnified party on account of the indemnity agreement contained in paragraph (a) or (b) above
except to the extent that the indemnifying party was actually prejudiced by such failure, and in no event shall such failure relieve the indemnifying party from any other liability that it may have to
such indemnified party. If any such claim or action shall be brought against an indemnified party, and it shall have notified the indemnifying party thereof, unless in such indemnified party's
reasonable judgment a conflict of interest between such indemnified party and indemnifying parties may exist in respect of such claim, the indemnifying party shall be entitled to participate therein,
and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. An
indemnifying party who is not entitled to, or elects not to, assume the defense of a claim or action shall not be obligated to pay the fees and expenses of more than one counsel (other than local
counsel) for all indemnified parties by such indemnifying party with respect to such claim or action. Any indemnifying party against whom indemnity may be sought under this Section 4.9 shall
not be liable to indemnify an indemnified party if such indemnified party settles such claim or action without the consent of the indemnifying party, which consent shall not be unreasonably withheld.
In any action hereunder as to which the indemnifying party has assumed the defense thereof with counsel satisfactory to the indemnified party, the indemnified party shall continue to be entitled to
participate in the defense thereof, with counsel of its own choice, but the indemnifying party shall not be obligated hereunder to reimburse the indemnified party for the costs thereof. 

        (d)   If
the indemnification provided for in this Section 4.9 shall for any reason be unavailable (other than in accordance with its terms) to an indemnified party in
respect of any loss, claim, damage, liability or expense (or actions or proceedings in respect thereof), then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute
to the amount paid or 

22

 

payable
by such indemnified party as a result of such loss, claim, damage, liability or expense (i) in such proportion as shall be appropriate to reflect the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other hand or (ii) if such allocation provided by clause (i) is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits but also the relative fault of the indemnifying person on the one hand and the indemnified person on the other with respect to the acts,
statements or omissions which resulted in such loss, liability, cost, claim or damage as well as any other relevant equitable considerations. The relative fault of CMC on the one hand and of each
Holder on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by CMC or by the Holders, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. CMC
and the Holders agree that it would not be just and equitable if contribution pursuant to this paragraph Section 4.9 were determined by pro rata allocation (even if the Holders were treated as
one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this paragraph. The amount paid or payable by an
indemnified party as a result of the loss, cost, claim, damage or liability, or action in respect thereof, referred to above in this paragraph (d) shall be deemed to include, for purposes of
this paragraph (d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this paragraph (d), no Holder shall be required to contribute any amount in excess of the net proceeds from the offering of Registrable Securities (before deducting expenses)
received by such Holder under such registration statement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. 

        (e)   The
obligations of the parties under this Section 4.9 shall be in addition to any liability which any party may otherwise have to any other party. 

        Section 4.10    Rule 144 and Form S-3.    CMC shall use its reasonable best efforts
to ensure that the conditions to the availability of Rule 144 set forth in paragraph (c) thereof shall be satisfied. Upon the request of any Holder of Registrable Securities, CMC will
deliver to such Holder a written statement as to whether it has complied with such requirements. CMC further agrees to use its reasonable best efforts to cause all conditions to the availability of
Form S-3 (or any successor form) under the Securities Act for the filing of registration statements under this Agreement to be met as soon as reasonably practicable after the IPO
Closing Date. 

        Section 4.11    Holdback Agreement.    

        (a)   If
so requested by the Managing Underwriters in connection with an offering of securities covered by a registration statement filed by CMC, whether or not Registrable
Securities of the Holders are included therein, each Holder shall agree not to effect any sale or distribution of the Registrable Securities, including any sale under Rule 144, without the
prior written consent of the Managing Underwriters (otherwise than through the registered public offering then being made), within seven (7) days prior to or ninety (90) days (or such
lesser period as the Managing Underwriters may permit) after the Effective Date of the registration statement (or the commencement of the offering to the public of such Registrable Securities in the
case of Rule 415 Offerings). 

        (b)   If
so requested by the Managing Underwriters in connection with an offering of any Registrable Securities, CMC shall agree not to effect any sale or distribution of CMC
Capital Stock, without the prior written consent of the Managing Underwriters (otherwise than through the registered public offering then being made or in connection with any acquisition or business 

23

 

combination
transaction and other than in connection with stock options and employee benefit plans and compensation), within seven (7) days prior to or ninety (90) days (or such lesser
period as the Managing Underwriters may permit) after the Effective Date of the registration statement (or the commencement of the offering to the public of such Registrable Securities in the case of
Rule 415 Offerings) and shall use its reasonable best efforts to obtain and enforce similar agreements from any other Persons if requested by the Managing Underwriters. 

        (c)   Notwithstanding
anything else in this Section 4.11 to the contrary, no Holder shall be precluded from distributing to any or all of its stockholders any or all of
the Registrable Securities. 

        Section 4.12    Limitation on Future Registration Rights.    From and after the date of this Agreement, CMC
shall not, without the prior written consent of UOL, enter into any agreement with any Person that grants to such Person registration rights on parity with or more favorable to such Person than those
granted hereunder. 

ARTICLE V

MUTUAL RELEASE  

        Section 5.1    Release of Pre-IPO Closing Date Claims.    

        (a)    CMC Release.    Except as provided in Section 5.1(c), as of the IPO Closing Date, CMC does hereby, for
itself and on behalf of each member of the CMC Group, remise, release and forever discharge the UOL Indemnitees from any and all Liabilities whatsoever, whether at law or in equity (including any
right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any past acts or events occurring or failing to occur or alleged to
have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the IPO Closing Date, including in connection with the transactions and all other activities
to implement the IPO (the "CMC Release"). 

        (b)    UOL Release.    Except as provided in Section 5.1(c), as of the IPO Closing Date, UOL does hereby, for
itself and on behalf of each member of the UOL Group, remise, release and forever discharge the CMC Indemnitees from any and all Liabilities whatsoever, whether at law or in equity (including any
right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any past acts or events occurring or failing to occur or alleged to
have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the IPO Closing Date, including in connection with the transactions and all other activities
to implement the IPO (the "UOL Release"). 

        (c)    Unknown Claims.    The Parties hereby acknowledge that they are familiar with the provisions of California
Civil Code §1542, which provides as follows: 

"A
general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected
his settlement with the debtor." 

In
order to provide a full and complete release, with respect to any matter whatsoever released hereby, the each Party understands and agrees that the mutual releases set forth in this ARTICLE V are
intended to include all claims, if any, which such Party may have and which such Party does not now know or suspect to exist in such Party's favor against the CMC Release set forth in
Section 5.1(a) and the UOL Release set forth in Section 5.1(b) and that the above mutual releases extinguish those claims. Each Party expressly waives all rights under California Civil
Code §1542 or any statute or common law principle of similar effect in any jurisdiction. 

        (d)    No Impairment.    Nothing contained in Section 5.1(a) or Section 5.1(b) shall limit or otherwise
affect any Party's rights or obligations pursuant to or contemplated by this Agreement, in 

24

 

each
case in accordance with its terms, including, without limitation, any obligations relating to indemnification, including indemnification pursuant to Section 6.1 and Section 6.2, and
any Insurance Proceeds under any of (i) UOL's Insurance Policies relating to the CMC Business which CMC is entitled to be paid and (ii) CMC's Insurance Policies relating
to the UOL Business which UOL is entitled to be paid. 

        (e)    No Actions as to Released Pre-IPO Closing Date Claims.    CMC agrees, for itself and on behalf of
each member of the CMC Group, not to make any claim or demand, or commence any Action asserting any claim or demand, including any claim of contribution or any indemnification, against UOL or any
member of the UOL Group, or any other Person released pursuant to Section 5.1(a), with respect to any Liabilities released pursuant to Section 5.1(a). UOL agrees, for itself and on
behalf of each member of the UOL Group, not to make any claim or demand, or commence any Action asserting any claim or demand, including any claim of contribution or any indemnification, against CMC
or any member of the CMC Group, or any other Person released pursuant to Section 5.1(b), with respect to any Liabilities released pursuant to Section 5.1(b). 

        (f)    Further Instruments.    At any time, at the request of any other Party, each Party shall cause each member of
its respective UOL Group or CMC Group, as applicable, to execute and deliver releases reflecting the provisions hereof. 

ARTICLE VI

INDEMNIFICATION AND LIMITATION OF LIABILITY  

        Section 6.1    Indemnification by CMC.    Except as otherwise provided in this Agreement, CMC shall, for itself
and on behalf of each member of the CMC Group, indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless the UOL Indemnitees from and against, and shall reimburse such UOL
Indemnitees with respect to, any and all Losses that any third party seeks to impose upon the UOL Indemnitees, or which are imposed upon the UOL Indemnitees, and that relate to, arise or result from,
whether prior to or following the IPO Closing Date, any of the following items (without duplication): 

        (a)   any
CMC Liabilities; 

        (b)   as
a result of recklessness or willful misconduct under, or breach of, this Agreement by CMC or any member of the CMC Group; and 

        (c)   any
Liabilities relating to, arising out of or resulting from any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to all information (i) contained in the IPO Registration Statement,
any issuer free writing prospectus or any preliminary, final or supplemental prospectus forming a part of the IPO Registration Statement (other than information provided by UOL or any Underwriter
specifically for inclusion in therein), (ii) contained in any public filings made by CMC with the Commission following the IPO Closing Date (other than information provided by UOL to CMC
specifically for inclusion therein) or (iii) provided by CMC to UOL specifically for inclusion in UOL's annual or quarterly reports following the IPO Closing Date to the extent
that (x) such information pertains to CMC, the CMC Group or the CMC Business or (y) UOL has provided prior written notice to CMC that such information will be included in one or more
annual or quarterly reports, specifying how such information will be presented, and the information is included in such annual or quarterly reports;  provided that this sub-clause (y) shall not
apply to the extent that any such Liability arises out of or results from, or in
connection with, any action or inaction of any member of the UOL Group, including as a result of any misstatement or omission of any information by any member of the UOL Group to CMC. 

25

 

        In
the event that any member of the CMC Group makes a payment to the UOL Indemnitees hereunder, and any of the UOL Indemnitees subsequently diminishes the Liability on account of which
such payment was made, either directly or through a third party recovery (other than a recovery indirectly from UOL), UOL will promptly repay (or will procure UOL Indemnitee to promptly repay) such
member of the CMC Group the amount by which the payment made by such member of the CMC Group exceeds the actual cost of the associated indemnified Liability. 

        Section 6.2    Indemnification by UOL.    Except as otherwise provided in this Agreement, UOL shall, for itself
and on behalf of each member of the UOL Group, indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless the CMC Indemnitees from and against, and shall reimburse such CMC
Indemnitee with respect to, any and all Losses that any third party seeks to impose upon the CMC Indemnitees, or which are imposed upon the CMC Indemnitees, and that relate to, arise or result from,
whether prior to or following the IPO Closing Date, with any of the following items (without duplication): 

        (a)   any
Liability of the UOL Group and all Liabilities arising out of the operation or conduct of the UOL Business (in each case excluding the CMC Liabilities); 

        (b)   as
a result of recklessness or willful misconduct under, or breach of, this Agreement by UOL or any member of the UOL Group; and 

        (c)   any
Liabilities relating to, arising out of or resulting from any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to all information (i) contained in the IPO Registration Statement,
any issuer free writing prospectus or any preliminary, final or supplemental prospectus forming a part of the IPO Registration Statement provided by UOL specifically for inclusion therein to the
extent such information pertains to UOL, the UOL Group or the UOL Business or (ii) provided by UOL to CMC specifically for inclusion in CMC's annual or quarterly reports following the IPO
Closing Date to the extent (x) such information pertains to UOL, the UOL Group or the UOL Business or (y) CMC has provided prior written notice to UOL that such information will be
included in one or more annual or quarterly reports, specifying how such information will be presented, and the information is included in such annual or quarterly reports  provided that this
clause (y) shall not apply to the extent that any such Liability arises out of or results from, or in connection with, any
action or inaction of any member of the CMC Group, including as a result of any misstatement or omission of any information by any member of the CMC Group to UOL. 

        In
the event that any member of the UOL Group makes a payment to the CMC Indemnitees hereunder, and any of the CMC Indemnitees subsequently diminishes the Liability on account of which
such payment was made, either directly or through a third party recovery (other than a recovery indirectly from CMC), CMC will promptly repay (or will procure a CMC Indemnitee to promptly repay) such
member of the UOL Group the amount by which the payment made by such member of the UOL Group exceeds the actual cost of the indemnified Liability. 

        Section 6.3    Contribution.    

        (a)   If
the indemnification provided for in Section 6.1(c)(i) or Section 6.2(c)(i) is unavailable to an indemnified Party in respect of any Liabilities referred
to therein, then an indemnifying Party, in lieu of indemnifying such indemnified Party, shall contribute to the amount paid or payable by such indemnified Party as a result of such Liabilities
(i) in such proportion as is appropriate to reflect the relative benefits received by indemnifying party on the one hand and the indemnified party on the other hand from the offering of the
securities covered by the IPO Registration Statement, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred 

26

 

to
in clause (i) above but also the relative fault of CMC on the one hand and UOL on the other in connection with the statements or omissions that resulted in such Liabilities, as well as any
other relevant equitable considerations. The relative benefits received by CMC on the one hand and UOL on the other shall be deemed to be in the same proportion as the total net proceeds from the IPO
(before deducting expenses) received by CMC bear to the amount received by UOL as repayment of the Promissory Notes. The relative fault of CMC on the one hand and UOL on the other hand shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by CMC on the one hand or by UOL on the other hand and the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

        (b)   CMC
and UOL agree that it would not be just and equitable if contribution pursuant to this Section 6.3 were determined by a pro rata allocation or by any other
method of allocation that does not take account of the equitable considerations referred to in paragraph (a) above. The amount paid or payable by an indemnified Party as a result of the
Liabilities referred to in paragraph (a) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified Party
in connection with investigating any claim or defending any such action. Notwithstanding the provisions of this Section 6.3, UOL shall not be required to contribute any amount in excess of the
amount of net proceeds from the IPO used to repay UOL for amounts outstanding under the Promissory Notes exceeds the amount of any damages which UOL has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

        Section 6.4    Ancillary Agreement Liabilities.    Notwithstanding any other provision in this Agreement to the
contrary, any Liability specifically assumed by, or allocated to, a Party in any of the Inter-Company Agreements shall be governed exclusively by the terms of such Inter-Company Agreement. 

        Section 6.5    Limitation of Liability.    EXCEPT FOR THIRD-PARTY CLAIMS UNDER ANY INDEMNITY PROVISION HEREIN
OR CLAIMS RELATED TO A BREACH OF CONFIDENTIALITY PURSUANT TO SECTION 3.7, IN NO EVENT SHALL UOL OR CMC BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST
PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT,
WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

        Section 6.6    Other Agreements Evidencing Indemnification Obligations.    UOL hereby agrees to execute, for
the benefit of any CMC Indemnitee, such documents as may be reasonably requested by such CMC Indemnitee, evidencing UOL's agreement that the indemnification obligations of UOL set forth
in this Agreement inure to the benefit of and are enforceable by such CMC Indemnitee. CMC hereby agrees to execute, for the benefit of any UOL Indemnitee, such documents as may be reasonably requested
by such UOL Indemnitee, evidencing CMC's agreement that the indemnification obligations of CMC set forth in this Agreement inure to the benefit of and are enforceable by such UOL Indemnitee. 

        Section 6.7    Reductions for Insurance Proceeds and Other Recoveries.    

        (a)    Insurance Proceeds.    The amount that any Indemnifying Party is or may be required to provide indemnification
to or on behalf of any Indemnitee pursuant to Section 6.1 or Section 6.2, as applicable, shall be reduced (retroactively or prospectively) by any Insurance Proceeds or other 

27

 

amounts
actually recovered from third parties by or on behalf of such Indemnitee in respect of the related Loss. The existence of a claim by an Indemnitee for monies from an insurer or against a third
party in respect of any indemnifiable Loss shall not, however, delay any payment pursuant to the indemnification provisions contained herein and otherwise determined to be due and owing by an
Indemnifying Party. Rather, the Indemnifying Party shall make payment in full of the amount determined to be due and owing by it against an assignment by the Indemnitee to the Indemnifying Party of
the entire claim of the Indemnitee for Insurance Proceeds against such third party. Notwithstanding any other provisions of this Agreement, it is the intention of the Parties that no insurer or any
other third party shall be (i) entitled to a benefit it would not be entitled to receive in the absence of the foregoing indemnification provisions, or (ii) relieved of the
responsibility to pay any claims for which it is obligated. If an Indemnitee has received the payment required by this Agreement from an Indemnifying Party in respect of any indemnifiable Loss and
later receives Insurance Proceeds or other amounts in respect of such indemnifiable Loss, then such Indemnitee shall hold such Insurance Proceeds or other amounts in trust for the benefit of the
Indemnifying Party (or Indemnifying Parties) and shall pay to the Indemnifying Party, as promptly as practicable after receipt, a sum equal to the amount of such Insurance Proceeds or other amounts
received, up to the aggregate amount of any payments received from the Indemnifying Party pursuant to this Agreement in respect of such indemnifiable Loss (or, if there is more than one Indemnifying
Party, the Indemnitee shall pay each Indemnifying Party, its proportionate share (based on payments received from the Indemnifying Parties) of such Insurance Proceeds). 

        (b)    Tax Cost/Tax Benefit.    The amount that any Indemnifying Party is or may be required to provide
indemnification to or on behalf of any Indemnitee pursuant to Section 6.1 or Section 6.2, as applicable, shall be (i) increased to take account of any net Tax cost incurred by the
Indemnitee arising from the receipt or accrual of an indemnification payment hereunder (grossed up for such increase) and
(ii) reduced to take account of any net Tax benefit realized by the Indemnitee arising from incurring or paying such loss or other liability. In computing the amount of any such Tax cost or Tax
benefit, the Indemnitee shall be deemed to recognize all other items of income, gain, loss, deduction or credit before recognizing any item arising from the receipt or accrual of any indemnification
payment hereunder or incurring or paying any indemnified Loss. Any indemnification payment hereunder shall initially be made without regard to this Section 6.7(b) and shall be increased or
reduced to reflect any such net Tax cost (including gross-up) or net Tax benefit only after the Indemnitee has actually realized such cost or benefit. For purposes of this Agreement, an
Indemnitee shall be deemed to have "actually realized" a net Tax cost or a net Tax benefit to the extent that, and at such time as, the amount of Taxes payable by such Indemnitee is increased above or
reduced below, as the case may be, the amount of Taxes that such Indemnitee would be required to pay but for the receipt or accrual of the indemnification payment or the incurrence or payment of such
Loss, as the case may be. The amount of any increase or reduction hereunder shall be adjusted to reflect any Final Determination with respect to the Indemnitee's liability for Taxes, and payments
between such indemnified parties to reflect such adjustment shall be made if necessary. Notwithstanding any other provision of this Agreement, to the extent permitted by applicable law, the Parties
hereto agree that any indemnity payment made hereunder shall be treated as a capital contribution or dividend distribution, as the case may be, immediately prior to the IPO Closing Date and,
accordingly, not includible in the taxable income of the recipient or deductible by the payor. 

28

   
        Section 6.8    Procedures for Defense, Settlement and Indemnification of the Third Party Claims.    

        (a)    Notice of Claims.    If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person
(including any Governmental Authority) who is not a member of the UOL Group or the CMC Group of any claim or of the commencement by any such Person of any Action (collectively, a
"Third Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification, UOL and CMC (as applicable) will ensure
that such Indemnitee shall give such Indemnifying Party written notice thereof within thirty (30) days after becoming aware of such Third Party Claim. Any such notice shall describe the Third
Party Claim in reasonable detail. Notwithstanding the foregoing, the delay or failure of any Indemnitee or other Person to give notice as provided in this Section 6.8 shall not relieve the
related Indemnifying Party of its obligations under this ARTICLE VI, except to the extent that such Indemnifying Party is actually and substantially prejudiced by such delay or failure to give notice. 

        (b)    Defense by Indemnifying Party.    An Indemnifying Party shall be entitled to participate in the defense of any
Third Party Claim and, to the extent that it wishes, at its cost, risk and expense, to assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee (who shall not, without the
consent of the Indemnitee, be counsel to the Indemnifying Party). After timely notice from the Indemnifying Party to the Indemnitee of such election to so assume the defense thereof, the Indemnifying
Party shall not be liable to the Indemnitee for any legal expenses of other counsel or any other expenses subsequently incurred by Indemnitee in connection with the defense thereof. The Indemnitee
agrees to cooperate in all reasonable respects with the Indemnifying Party and its counsel in the defense against any Third Party Claim. The Indemnifying Party shall be entitled to compromise or
settle any Third Party Claim as to which it is providing indemnification, which compromise or settlement shall be made only with the written consent of the Indemnitee, such consent not to be
unreasonably withheld. 

        (c)    Defense by Indemnitee.    If an Indemnifying Party fails to assume the defense of a Third Party Claim within
thirty (30) calendar days after receipt of notice of such claim, the Indemnitee will, upon delivering notice to such effect to the Indemnifying Party, have the right to undertake the defense,
compromise or settlement of such Third Party Claim on behalf of and for the account of the Indemnifying Party subject to the limitations as set forth in this Section 6.8;  provided that such Third
Party Claim shall not be compromised or settled without the written consent of the Indemnifying Party, which consent shall not
be unreasonably withheld. If the Indemnitee assumes the defense of any Third Party Claim, it shall keep the Indemnifying Party reasonably informed of the progress of any such defense, compromise or
settlement. The Indemnifying Party shall reimburse all such costs and expenses of the Indemnitee in the event it is ultimately determined that the Indemnifying Party is obligated to indemnify the
Indemnitee with respect to such Third Party Claim. In no event shall an Indemnifying Party be liable for any settlement effected without its consent, which consent will not be unreasonably withheld. 

        Section 6.9    Additional Matters.    

        (a)    Cooperation in Defense and Settlement.    With respect to any Third Party Claim that implicates both CMC and
UOL in a material fashion due to the allocation of Liabilities, responsibilities for management of defense and related indemnities set forth in this Agreement or any of the Inter-Company Agreements,
the Parties agree to cooperate fully and maintain a joint defense (in a manner that will preserve the attorney-client privilege, joint defense or other privilege with respect thereto) so as to
minimize such Liabilities and defense costs associated therewith. The Party that is not responsible for managing the defense of such Third Party Claims shall, upon reasonable request, be consulted
with respect to significant matters relating thereto and may, if necessary or helpful, associate counsel to assist in the defense of such claims. 

29

 

        (b)    Pre-IPO Closing Date Actions.    Except with respect to matters pertaining solely to, or solely in
connection with, the CMC Business, UOL may, in its sole discretion, have primary responsibility for the investigation, prosecution, defense and appeal of all Actions pending at the IPO Closing Date
relating to or arising in connection with, in any manner, the CMC Business, the CMC assets or the CMC Liabilities if UOL or a member of the UOL Group is named as a party thereto;  provided that UOL must
obtain the written consent of CMC, such consent not to be unreasonably withheld, to settle or compromise or consent to the entry
of judgment with respect to such Action. After any such compromise, settlement, consent to entry of judgment or entry of judgment, UOL shall reasonably and fairly allocate to CMC and CMC shall be
responsible for CMC's proportionate share of any such compromise, settlement, consent or judgment attributable to the CMC Business, the CMC assets or the CMC Liabilities, including its proportionate
share of the costs and expenses associated with defending same. 

        (c)    Substitution.    In the event of an Action in which the Indemnifying Party is not a named defendant, if either
the Indemnitee or the Indemnifying Party shall so request, the Parties shall endeavor to substitute the Indemnifying Party for the named defendant. If such substitution or addition cannot be achieved
for any reason or is not requested, the rights and obligations of the Parties regarding indemnification and the management of the defense of claims as set forth in this ARTICLE VI shall not be
altered. 

        (d)    Subrogation.    In the event of payment by or on behalf of any Indemnifying Party to or on behalf of any
Indemnitee in connection with any Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee, in whole or in part based upon whether the
Indemnifying Party has paid all or only part of the Indemnitee's Liability, as to any events or circumstances in respect of which such Indemnitee may have any right, defense or claim relating to such
Third Party Claim against any claimant or plaintiff asserting such Third Party Claim or against any other person. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner,
and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim. 

        Section 6.10    Survival of Indemnities.    Subject to Section 6.6, the rights and obligations of the
members of the UOL Group and the CMC Group under this ARTICLE VI shall survive the sale or other transfer by any Party of any assets or businesses or the assignment by it of any Liabilities or the
sale by any member of the UOL Group or the CMC Group of the capital stock or other equity interests of any Subsidiary to any Person. 

ARTICLE VII

EQUITY PURCHASE RIGHT  

        Section 7.1    Equity Purchase Right.    

        (a)   Subject
to Section 7.1(b), CMC hereby grants to UOL, on the terms and conditions set forth herein, a continuing right (the "Equity
Purchase Right") to purchase from CMC, at the times set forth herein, such number of shares of Class B Common Stock as is necessary for the UOL Group to maintain its
Ownership Percentage and its Voting Percentage. The Equity Purchase Right shall be assignable, in whole or in part and from time to time, by UOL to any member of the UOL Group. 

        (b)   The
purchase price for each share of Class B Common Stock purchased pursuant to an exercise of the Equity Purchase Right shall be: (i) in the event of the
issuance by CMC of Class A Common Stock in exchange for cash consideration, the per share price paid to CMC for shares of the Class A Common Stock issued by CMC in the related Issuance
Event; and (ii) in the event of (x) the issuance by CMC of Voting Stock or the vesting of options to purchase Voting Stock pursuant to any stock option or other executive or employee
benefit or compensation plan 

30

 

maintained
by CMC, (y) the issuance by CMC of Voting Stock other than Class A Common Stock or (z) the issuance by CMC of Class A Common Stock for consideration other than
cash, the per share Current Market Price of Class A Common Stock at the Issuance Event Date for such Issuance Event. 

        (c)   The
Equity Purchase Right granted pursuant to Section 7.1(a) shall not be exercisable in connection with the (i) the issuances of Voting Stock to any
member of the UOL Group, (ii) the IPO, including the full exercise of the underwriters' option to purchase additional Class A Common Stock as set forth in the IPO Registration Statement,
and (iii) the issuance by CMC of any shares of Voting Stock pursuant
to any stock option or other executive or employee benefit or compensation plan maintained by CMC except to the extent that the issuance of such Voting Stock pursuant to this clause (iii) would
cause the UOL Group's Ownership Percentage to fall below 50.1% or the UOL Group's Voting Percentage to fall below 80.1%. 

        Section 7.2    Notice.    At least twenty (20) business days prior to the issuance of any shares of
Voting Stock or the first date on which any event could occur that, in the absence of an exercise of the Equity Purchase Right, would result in a reduction in the UOL Group's Ownership Percentage or
Voting Percentage, CMC will notify UOL in writing (an "Equity Purchase Notice") of its plans to issue any such shares, or the date on which such event
could first occur, and the purchase price therefore. Each Equity Purchase Notice must specify the date on which CMC intends to issue such shares of Voting Stock or on which such event could first
occur (such issuance or event being referred to herein as an "Issuance Event" and the date of such issuance or event as an
"Issuance Event Date"), the number of shares CMC intends to issue or may issue, the purchase price and the other terms and conditions of such Issuance
Event. 

        Section 7.3    Exercise and Payment.    The Equity Purchase Right may be exercised by UOL (or any member of the
UOL Group to which all or any part of the Equity Purchase Right has been assigned) in connection with an Issuance Event for a number of shares of Class B Common Stock equal to or less than the
number of shares that are necessary for the UOL Group to maintain, in the aggregate, its then-current Ownership Percentage and Voting Percentage. The Equity Purchase Right may be exercised
at any time after receipt of an applicable Equity Purchase Notice and up to three (3) business days prior to the applicable Issuance Event Date by the delivery to CMC of a written notice to
such effect specifying the number of shares of Class B Common Stock to be purchased by UOL or any member of the UOL Group. In the event of any such exercise of the Equity Purchase Right, CMC
will, on the applicable Issuance Event Date, deliver to UOL (or any member of the UOL Group designated by UOL), against payment therefor, certificates (issued in the name of UOL or its permitted
assignee hereunder) representing the shares of Class B Common Stock being purchased upon such exercise. Payment for such shares shall be made by wire transfer or intrabank transfer of
immediately-available funds to such account as shall be specified by CMC for the full purchase price for such shares. 

        Section 7.4    Effect of Failure to Exercise.    Except as provided in Section 7.5, any failure by UOL
to exercise the Equity Purchase Right, or any exercise for less than all shares purchasable under the Equity Purchase Right, in connection with any particular Issuance Event shall not affect
UOL's right to exercise the Equity Purchase Right in connection with any subsequent Issuance Event; provided that following such Issuance
Event in connection with which UOL so failed to exercise such Equity Purchase Right in full, the UOL Group's Ownership Percentage and Voting Percentage shall be recalculated. 

        Section 7.5    Termination of Equity Purchase Right.    The Equity Purchase Right, shall terminate upon the
earlier of (i) the Distribution Date, (ii) the first date upon which members of the UOL Group cease to own in the aggregate (y) at least a majority of the total voting power of
the Voting Stock and (z) at least 331/3% of the number of shares of Voting Stock, and (iii) in the event that the 

31

 

Equity
Purchase Right has been transferred, on such date that the Person to whom the Equity Purchase Right, or such part thereof, has been transferred, ceases to be a member of the UOL Group. 

ARTICLE VIII

MISCELLANEOUS  

        Section 8.1    Entire Agreement.    This Agreement and the Inter-Company Agreements and the Exhibits, Schedules
and Annexes referenced or attached thereto constitute the entire agreement between the Parties with respect to the subject matter hereof and thereof and shall supersede all prior agreements,
understandings and negotiations, both written and oral, between the Parties with respect to the subject matter hereof. This Agreement is not intended to confer upon any Person other than the Parties
hereto any rights or remedies hereunder. 

        Section 8.2    Governing Law and Jurisdiction.    This Agreement shall be construed in accordance with and
shall be governed by the laws of the State of California (without giving effect to the conflicts of laws provisions thereof). 

        Section 8.3    Termination; Amendment.    This Agreement may be terminated or amended at any time after the IPO
Closing Date and before the Distribution Date by mutual consent of UOL and CMC, evidenced by an instrument in writing signed on behalf of each of the Parties. In the event of termination pursuant to
this Section 8.3, no Party shall have any liability of any kind to the other Party. Except as otherwise provided herein or required by the provisions hereof, this Agreement shall terminate on
the date that is five (5) years after the first date upon which members of the UOL Group cease to own in the aggregate (x) at least a majority of the total voting power of the Voting
Stock and (y) at least 331/3% of the number of shares of Voting Stock; provided that the provisions of Section 3.5 and 3.7
of Article III, Article IV, Article V, Article VII, Article VIII and Article IX shall survive indefinitely after the termination of this Agreement. 

        Section 8.4    Notices.    Any notice, instruction, direction or demand under the terms of this Agreement
required to be in writing shall be duly given upon delivery, if delivered by hand, facsimile transmission or mail (with postage prepaid), to the following addresses: 

        (a)   If
to UOL, to: 

United
Online, Inc.

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: General Counsel

Fax: (818) 287-3010 

with
a copy to: 

United
Online, Inc.

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: Chief Financial Officer

Fax: (818) 287-3049 

        (b)   If
to CMC, to: 

Classmates
Media Corporation

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: General Counsel

Fax: (818) 287-3010 

32

 

with
a copy to: 

Classmates
Media Corporation

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: Chief Financial Officer

Fax: (818) 287-3035 

or
to such other addresses or facsimile numbers as may be specified by like notice to the other Party. Any notice involving non-performance, termination or renewal shall be sent by hand
delivery, recognized overnight courier or, within the United States, via certified mail, return receipt requested. All other notices may also be sent by facsimile, confirmed by first class mail. All
notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted by facsimile or similar electronic transmission method with confirmation of successful
transmission; one working day after it is sent, if sent by recognized overnight courier; and three (3) days after it is postmarked, if mailed first class mail or certified mail, return receipt
requested, with postage prepaid. 

        Section 8.5    Counterparts.    This Agreement may be executed in separate counterparts, each of which shall be
deemed an original and all of which, when taken together, shall constitute one and the same agreement. 

        Section 8.6    Binding Effect; Assignment.    This Agreement shall inure to the benefit of and be binding upon
the Parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of
any nature whatsoever under or by reason of this Agreement. This Agreement may be enforced separately by each member of the UOL Group and each member of the CMC Group. Except as otherwise expressly
provided in this Agreement, neither Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void;  provided that either Party may assign this Agreement to a successor entity in conjunction with such Party's reincorporation in another jurisdiction or
into another business form. 

        Section 8.7    Severability.    If any terms or other provision of this Agreement shall be determined by a
court, administrative agency or arbitrator to be invalid, illegal or unenforceable, such invalidity or unenforceability shall not render the entire Agreement invalid. Rather, this Agreement shall be
construed as if not containing the particular invalid, illegal or unenforceable provision, and all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is
invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner
to the end that the transactions contemplated hereby are fulfilled to the fullest extent permitted under applicable law. 

        Section 8.8    Failure or Indulgence Not Waiver; Remedies Cumulative.    No failure or delay on the part of
either Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement
herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement are
cumulative to, and not exclusive of, any rights or remedies otherwise available. 

        Section 8.9    Authority.    Each of the Parties represents to the other Party that (a) it has the
corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by
all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement and (d) this Agreement is its legal, valid and binding obligation, enforceable
against it in accordance 

33

 

with
its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equity principles. 

        Section 8.10    Interpretation.    The headings contained in this Agreement and in the table of contents to
this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. When a reference is made in this Agreement to an Article or a Section,
such reference shall be to an Article or Section of this Agreement unless otherwise indicated. 

        Section 8.11    Conflicting Agreements.    None of the provisions of this Agreement are intended to supersede
any provision in any Inter-Company Agreement or any other agreement with respect to the respective subject matters thereof. In the event of conflict between this Agreement and any Inter-Company
Agreement or other agreement executed in connection herewith, the provisions of such other agreement shall prevail. 

        Section 8.12    Third Party Beneficiaries.    None of the provisions of this Agreement shall be for the benefit
of or enforceable by any third party, including any creditor of any Person. No such third party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision
make any claim in respect of any Liability (or otherwise) against either Party hereto. 

ARTICLE IX

DEFINITIONS  

        Section 9.1    Defined Terms.    As used in this Agreement, the following terms shall have the meanings given
to them in this Section 9.1, applicable both to the singular and the plural forms of the terms described: 

        "Action" means any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any federal, state,
local, foreign or international governmental authority or any arbitration or mediation tribunal, other than any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation
relating to Taxes. 

        "Administrative Services Agreement" shall have the meaning set forth in Section 1.1(a) of this Agreement. 

        "Advertising Sales Representation Agreement" shall have the meaning set forth in Section 1.1(d) of this Agreement. 

        "Affiliate" of any Person means any entity that controls, is controlled by, or is under common control with such Person. As used herein,
"control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities or
other interests, by contract or otherwise. 

        "Agreement" shall mean this Master Transaction Agreement, as the same may be amended from time to time in accordance with the provisions
hereof. 

        "Auditors" shall mean both the UOL Auditors and the CMC Auditors. 

        "Blackout Period" shall have the meaning set forth in Section 4.4 of this Agreement. 

        "Class A Common Stock" shall mean the Class A common stock, par value $0.0001 per share, of CMC. 

        "Class B Applicable Stock" means at any time the (i) shares of Class B Common Stock owned by the UOL Group that are
owned on the IPO Closing Date, plus (ii) shares of Class B Common Stock purchased by the UOL Group pursuant to Article VII of this Agreement, plus (iii) shares of
Class B Common Stock that were issued to the UOL Group in respect of shares described in either clause (i) or clause (ii) in any reclassification, share combination, share
subdivision, share dividend, share exchange, merger, consolidation or similar transaction or event. 

34

   
        "Class B Common Stock" shall mean the Class B common stock, par value $0.0001 per share, of CMC. 

        "CMC" shall have the meaning set forth in the preamble to this Agreement. 

        "CMC Auditors" shall have the meaning set forth in Section 3.6(a)(i) of this Agreement. 

        "CMC Balance Sheet" shall mean CMC's unaudited consolidated balance sheet for the most recently completed fiscal quarter as of the IPO
Closing Date. 

        "CMC Business" means the business of online social networking and online loyalty marketing presently conducted by CMC through its
Subsidiaries, as more completely described in the IPO Registration Statement or, following the IPO Closing Date, such business that is then conducted by CMC and described in its periodic filings with
the Commission. 

        "CMC Capital Stock" means all classes or series of capital stock of CMC. 

        "CMC Group" means the affiliated group (within the meaning of Section 1504(a) of the Code), or similar group of entities as defined
under corresponding provisions of the laws of other jurisdictions, of which CMC will be the common parent corporation immediately after the Distribution, and any corporation or other entity which may
become a member of such group from time to time. 

        "CMC Indemnitees" means CMC, each member of the CMC Group and each of their respective directors, officers and employees. 

        "CMC Liabilities" shall mean (without duplication) the following Liabilities: 

          (i)  all
Liabilities reflected in the CMC Balance Sheet; 

         (ii)  all
Liabilities of UOL or its Subsidiaries that arise after the date of the CMC Balance Sheet that would be reflected in a CMC balance sheet as of the date of such
Liabilities, if such balance sheet was prepared using the same principles and accounting policies under which the CMC Balance Sheet was prepared; 

        (iii)  all
Liabilities that should have been reflected in the CMC Balance Sheet but are not reflected in the CMC Balance Sheet due to mistake or unintentional omission; 

        (iv)  all
Liabilities (other than Liabilities for Taxes, which are governed by the Tax Sharing Agreement), whether arising before, on or after the IPO Closing Date, that
relate to, arise or result from: 

        (A)  the
operation of the CMC Business as conducted at any time prior to, on or after the IPO Closing Date (including any Liability relating to, arising out of or resulting
from any act or failure to act by any director, officer, employee, agent or representative (whether or not such act or failure to act is or was within such Person's authority)); or 

        (B)  the
operation of any business conducted by any member of the CMC Group at any time after the IPO Closing Date (including any Liability relating to, arising out of or
resulting from any act or failure to act by any director, officer, employee, agent or representative (whether or not such act or failure to act is or was within such Person's authority)); 

         (v)  all
Liabilities that are expressly contemplated by this Agreement, or any other Inter-Company Agreement (or the Schedules hereto or thereto) as Liabilities to be assumed
by CMC or any member of the CMC Group; and 

        (vi)  Liabilities
of any member of the CMC Group under this Agreement or any of the Inter-Company Agreements. 

35

 

       (vii)  After
the IPO Closing Date, UOL and CMC may receive invoices evidencing liabilities jointly incurred by or on behalf of both of them or their respective Affiliates.
Accordingly, each of UOL and CMC agrees that such joint liabilities shall be divided among UOL, CMC and their respective Affiliates consistent with past practice and "CMC Liabilities" shall include
the portion so allocated to CMC. 

        "CMC Release" shall have the meaning set forth in Section 5.1(a) of this Agreement. 

        "Code" means the Internal Revenue Code of 1986 (or any successor statute), as amended from time to time, and the regulations promulgated
thereunder. 

        "Commission" shall have the meaning set forth in the preamble of this Agreement. 

        "Common Stock" means the Class A Common Stock and Class B Common Stock. 

        "Company Notice" shall have the meaning set forth in Section 4.2(a) of this Agreement. 

        "Company Securities" shall have the meaning set forth in Section 4.2(b) of this Agreement. 

        "Confidential Business Information" shall have the meaning set forth in Section 3.7(b)(iii) of this Agreement. 

        "Confidential Information" shall have the meaning set forth in Section 3.7(b)(i) of this Agreement. 

        "Confidential Operational Information" shall have the meaning set forth in Section 3.7(b)(ii) of this Agreement. 

        "Contract" means any contract, agreement, lease, license, sales order, purchase order, instrument or other commitment that is binding on
any Person or any part of its property under applicable law. 

        "Current Market Price" per share of Class A Common Stock on any date shall be the closing price or, in case no sale takes place on
such day, the average of the closing bid and asked prices, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to
trading on Nasdaq or, if the shares of Class A Common Stock are not listed or admitted to trading on Nasdaq, as reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the shares of Class A Common Stock are listed or admitted to trading or, if the shares of Class A Common Stock
are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter
market, as reported by Nasdaq or such other system then in use, or, if on any such date the shares of Class A Common Stock are not quoted by any such organization, the average of the closing
bid and asked prices as furnished by a professional market maker making a market in the Class A Common Stock selected by the CMC Board of Directors. If on any such date no market maker is
making a market in the Class A Common Stock, the fair value of such shares on such date as determined in good faith by the CMC Board of Directors shall be used. 

        "Demand Registration" shall have the meaning set forth in Section 4.1(a) of this Agreement. 

        "Dispute" has the meaning set forth in Section 3.12(a) of this Agreement. 

        "Dispute Resolution Commencement Date" has the meaning set forth in Section 3.12(a) of this Agreement. 

        "Distribution" means a distribution by UOL of Common Stock (and preferred stock, if any) of CMC or common stock (and preferred stock, if
any) of a Person that is a successor to CMC, which distribution is to holders of common stock of UOL and is intended to qualify as a tax-free distribution under section 355 of the
Internal Revenue Code of 1986, as amended, or any successor thereto. 

        "Distribution Date" means the date on which a Distribution occurs. 

36

 

        "Effective Date" means the date registration statement filed pursuant to ARTICLE IV hereof is declared effective by the Commission. 

        "Employee Matters Agreement" shall have the meaning set forth in Section 1.1(c) of this Agreement. 

        "Equity Purchase Right" has the meaning set forth in Section 6.1(a) of this Agreement. 

        "Equity Purchase Notice" has the set forth in Section 7.2 of this Agreement. 

        "Exchange Act" shall have the meaning set forth in Section 2.1(a) of this Agreement. 

        "Final Determination" has the meaning set forth in the Tax Sharing Agreement. 

        "GAAP" means accounting principles generally accepted in the United States of America. 

        "Governmental Approvals" means any notices, reports or other filings to be made, or any consents, registrations, approvals, permits or
authorizations to be obtained from, any Governmental Authority. 

        "Governmental Authority" shall mean any federal, state, local, foreign or international court, government, department, commission, board,
bureau, agency, official or other regulatory, administrative or governmental authority. 

        "Holders" shall mean, collectively, UOL and its Affiliates (other than CMC) who from time to time own Registrable Securities, each of such
entities separately is sometimes referred to herein as a "Holder." 

        "Indemnifying Party" means any party which may be obligated to provide indemnification to an Indemnitee pursuant to Section 6.1 or
Section 6.2 hereof or any other section of this Agreement or any Inter-Company Agreement. 

        "Indemnitee" means any party which may be entitled to indemnification from an Indemnifying Party pursuant to Section 6.1 or
Section 6.2 hereof or any other section of this Agreement or any Inter-Company Agreement. 

        "Information" means information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible
forms, stored in any medium, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications,
drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), and
other technical, financial, employee or business information or data. 

        "Insurance Policies" means insurance policies pursuant to which a Person makes a true risk transfer to an insurer. 

        "Insurance Proceeds" means those monies: (a) received by an insured from an insurance carrier; or (b) paid by an insurance
carrier on behalf of the insured; or (c) from Insurance Policies. 

        "Inter-Company Agreements" shall mean the Administrative Services Agreement, the Advertising Sales Representation Agreement, the Employee
Matters Agreement, the Real Estate Agreement (Woodland Hills), the Real Estate Agreement (Renton), the Real Estate Agreement (San Francisco), the Tax Sharing Agreement and the Technology Services
Agreement, each as may be amended from time to time, and any other documents and agreements delivered in connection with each of the foregoing. 

        "IPO" shall have the meaning set forth in the preamble of this Agreement. 

37

 

        "IPO Closing Date" shall have the meaning set forth Section 1.1 of this Agreement. 

        "IPO Conditions" shall have the meaning set forth in Section 2.3 of this Agreement. 

        "IPO Registration Statement" shall have the meaning set forth in the preamble of this Agreement. 

        "Issuance Event" has the meaning set forth in Section 7.2 of this Agreement. 

        "Issuance Event Date" has the meaning set forth in Section 7.2 of this Agreement. 

        "Liabilities" means all debts, liabilities, guarantees, assurances, commitments and obligations, whether fixed, contingent or absolute,
asserted or unasserted, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without limitation,
whether arising out of any Contract or tort based on negligence or strict liability) and whether or not the same would be required by GAAP to be reflected in financial statements or disclosed in the
notes thereto. 

        "Loss" and "Losses" mean any and all damages, losses, deficiencies, Liabilities,
obligations, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including, without limitation, the costs and expenses of any and all Actions and demands,
assessments, judgments, settlements and compromises relating thereto and the costs and expenses of attorneys', accountants', consultants' and other professionals' fees and expenses incurred in the
investigation or defense thereof or the enforcement of rights hereunder), including direct and consequential damages, but excluding punitive damages (other than punitive damages awarded to any third
party against an indemnified party). 

        "Managing Underwriters" when used in connection with an Underwritten Offering, shall mean the managing underwriter of such offering, or,
in the case of a co-managed underwriting, the managing underwriters. 

        "Nasdaq" shall have the meaning set forth in Section 2.1(d) of this Agreement. 

        "Other Holders" shall have the meaning set forth in Section 4.2(c) of this Agreement. 

        "Other Securities" shall have the meaning set forth in Section 4.2(a) of this Agreement. 

        "Ownership Percentage" means, at any time, the fraction, expressed as a percentage and rounded up to the nearest thousandth of a percent,
whose numerator is the number of shares of the Class B Applicable Stock and whose denominator is the aggregate number of outstanding shares of Voting Stock;  provided that any shares of Voting Stock
issued by CMC in violation of its obligations under Article VII of this Agreement shall not be deemed
outstanding for the purpose of determining the Ownership Percentage. 

        "Party" or "Parties" shall have the meaning set forth in the preamble of this Agreement. 

        "Person" means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 

        "Privileges" shall have the meaning set forth in Section 3.7(a) of this Agreement. 

        "Privileged Information" shall have the meaning set forth in Section 3.7(a) of this Agreement. 

        "Promissory Notes" shall have the meaning set forth in Section 3.2 of this Agreement. 

        "Real Estate Agreement (Woodland Hills)" shall have the meaning set forth in Section 1.1(f) of this Agreement. 

        "Real Estate Agreement (Renton)" shall have the meaning set forth in Section 1.1(g) of this Agreement. 

38

 

        "Real Estate Agreement (San Francisco)" shall have the meaning set forth in Section 1.1(h) of this Agreement. 

        "Registrable Securities" means (i) the Class B Common Stock held by UOL immediately following the IPO Closing Date,
(ii) any other securities issued or distributed to UOL in respect of the Class B Common Stock by way of stock dividend or stock split or in connection with a combination of shares,
recapitalization, reorganization, merger, consolidation or otherwise, (iii) any Class A Common Stock or other securities received by UOL into which or for which Class B Common
Stock are converted or exchanged or are convertible or exchangeable, (iv) any other Class A Common Stock or Class B Common Stock acquired by UOL prior to the Distribution Date,
and (v) any other successor securities received by UOL in respect of any of the forgoing (i) through (iv); provided that in the event that
any Registrable Securities (as defined without giving effect to this proviso) are being registered pursuant to Article IV, the Holder may include in such registration (subject to the
limitations of this Agreement otherwise applicable to the inclusion of Registrable Securities) any Class A Common Stock or Class B Common Stock or securities acquired in respect thereof
thereafter acquired by such Holder, which shall also be deemed to be Registrable Securities for purposes of such registration. As to any particular Registrable Securities, such Registrable Securities
shall cease to be Registrable Securities when (w) a registration statement with respect to the sale by UOL shall have been declared effective under the Securities Act and such Shares shall have
been disposed of in accordance with such registration statement, (x) they shall have been distributed to the public in accordance with Rule 144 or they may be sold or transferred by the
Holder thereof without restriction pursuant to Rule 144(k), (y) they shall have been otherwise transferred by UOL to an entity or Person that is not an Affiliate of UOL, new certificates
for them not bearing a legend restricting further transfer shall have been delivered by CMC and subsequent disposition of them shall not require registration or qualification of them under the
Securities Act or any state securities or blue sky law then in effect or (z) they shall have ceased to be outstanding. 

        "Registration Expenses" shall have the meaning set forth Section 4.3 of this Agreement. 

        "Rule 144" means Rule 144 (or any successor rule to similar effect) promulgated under the Securities Act. 

        "Rule 415 Offering" means an offering on a delayed or continuous basis pursuant to Rule 415 (or any successor rule to
similar effect) promulgated under the Securities Act. 

        "Securities Act" means the Securities Act of 1933, as amended. 

        "Shared Contract" shall have the meaning set forth in Section 3.4 of this Agreement. 

        "Software" shall mean all computer programs (whether in source code, object code, or other form), algorithms, databases, compilations and
data, and technology supporting the foregoing, and all documentation, including flowcharts and other logic and design diagrams, technical, functional and other specifications, and user and training
materials related to any of the foregoing. 

        "Subsidiary" of any Person means a corporation, limited liability company, joint venture, partnership, trust, association or other entity
in which such Person beneficially owns, either directly or indirectly, more than fifty percent (50%) of (i) the total combined voting power of all classes of voting securities of such entity,
(ii) the total combined equity interests, or (iii) the capital or profits interest, in the case of a partnership. 

        "Tax" and "Taxes" have the meaning set forth in the Tax Sharing Agreement. 

        "Tax Sharing Agreement" shall have the meaning set forth in Section 1.1(b) of this Agreement. 

        "Technology Services Agreement" shall have the meaning set forth in Section 1.1(e) of this Agreement. 

39

 

        "Third Party Claim" has the meaning set forth in Section 6.8(a) of this Agreement. 

        "Underwritten Offering" shall mean a registration in which securities of CMC are sold to one or more underwriters for reoffering to the
public. 

        "Underwriters" shall have the meaning set forth in Section 2.1(a) of this Agreement. 

        "Underwriting Agreement" shall have the meaning set forth in Section 2.1(a) of this Agreement. 

        "UOL" shall have the meaning set forth in the preamble to this Agreement. 

        "UOL Auditors" shall have the meaning set forth in Section 3.6(a)(i) of this Agreement. 

        "UOL Business" means any business that is then conducted by UOL and described in its periodic filings with the Commission, other than the
CMC Business. 

        "UOL Group" means the affiliated group (within the meaning of Section 1504(a) of the Code), or similar group of entities as defined
under corresponding provisions of the laws of other jurisdictions, of which UOL is the common parent corporation, and any corporation or other entity which may be, may have been or may become a member
of such group from time to time, but excluding any member of the CMC Group. 

        "UOL Indemnitees" means UOL, each member of the UOL Group and each of their respective directors, officers and employees. 

        "UOL Release" shall have the meaning set forth in Section 5.1(b) of this Agreement. 

        "Voting Percentage" means, at any time, the fraction, expressed as a percentage and rounded up to the nearest thousandth of a percent,
whose numerator is the aggregate number of votes entitled to be cast in the election of directors represented by the Class B Applicable Stock, and whose denominator is the aggregate number of
votes entitled to be cast in the election of directors represented by the Voting Stock; provided that any shares of Voting Stock issued by CMC in
violation of its obligations under Article VII of this Agreement shall not be deemed outstanding for the purpose of determining the Voting Percentage. 

        "Voting Stock" means all classes of the then outstanding capital stock of CMC entitled to vote generally in the election of directors. 

        "Wholly-Owned Subsidiary" means each Subsidiary in which CMC owns (directly or indirectly) all of the outstanding voting Stock, voting
power, partnership interests or similar ownership interests, except for director's qualifying shares in nominal amount. 

40

        IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representatives. 

	 	 	UNITED ONLINE, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:
	

 	
 	

CLASSMATES MEDIA CORPORATION
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:

[Master
Transaction Agreement] 

QuickLinks

Exhibit 10.1

MASTER TRANSACTION AGREEMENT

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