Document:

Exhibit 10.5

 

CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

 

                CONFIDENTIALITY
AND NON-COMPETITION AGREEMENT (the “Agreement”) dated as of April 30, 2008
between Florists’ Transworld Delivery Inc. (the “Company”) and Michael J.
Soenen (the “Executive”) and effective upon consummation of the Merger as
hereinafter described.

 

                In
consideration of the obligations of the Executive’s continued employment with
the Company and of the Executive’s receipt of a transaction bonus in connection
with the consummation of the Agreement and Plan of Merger dated April 30,
2008, by and among United Online, Inc. (“United Online”), UNOLA Corp., an
indirect wholly-owned subsidiary of United Online (“Merger Sub”), and FTD Group, Inc.,
the ultimate parent of the Company (“FTD”), whereby Merger Sub will merge with
and into FTD (the “Merger”), the Company and the Executive agree as follows:

 

                Section 1.               Secrecy, Non-Competition, No
Interference and Non-Solicitation.

 

                                (a)           No Competing Employment.  The Executive acknowledges that (i) the
agreements and covenants contained in this Section 1 are essential to
protect the value of the Company’s business and assets and (ii) by virtue
of his employment with the Company, the Executive will obtain such knowledge,
know-how, training and experience of such a character that there is a
substantial probability that such knowledge, know-how, training and experience
could be used to the substantial advantage of a competitor of the Company and
to the Company’s substantial detriment. 
Therefore, the Executive agrees that, for the period (the “Restricted
Period”) commencing on the date of this Agreement and ending on the date that
is eighteen (18) months after the date on which the Executive ceases to receive
compensation (including salary, bonus or consulting payments) from the Company
or any of its affiliates, or any of its successors or their subsidiaries or
affiliated companies, the Executive shall not participate, operate, manage,
consult, join, control or engage, directly or indirectly, for himself or on
behalf of or in conjunction with any person, partnership, corporation or other
entity, whether as an employee, consultant, agent, officer, stockholder,
member, investor, agent or otherwise, in any business activity if such activity
constitutes the sale or provision of floral products or services that are
similar to, or competitive with, floral products or services then being sold or
provided by the Company or any of its subsidiaries or affiliated companies,
including, without limitation, retail florists’ business services, floral order
transmission and related network services, development and distribution of
branded floral products on the Internet or other consumer direct segment of the
floral industry (including, without limitation, Interflora, Inc.,
Teleflora LLC., 1-800-FLOWERS.COM, Inc., Proflowers.com, Floral Source, (a
“Competitive Activity”), in any of:  the
City of Downers Grove, Illinois, the County of DuPage, Illinois or any other
city or county in the State of Illinois; the District of Columbia or any other
state, territory, district or commonwealth of the United States or any county,
parish, city or similar political subdivision in any other state, territory,
district or commonwealth of the United States; any other country or territory
anywhere in the world or in any city, canton, county, district, parish,
province or any other political subdivision in any such country or territory;
or anywhere in the world (each city, canton, commonwealth, county, district,
parish, province, state, country, territory or other political subdivision or
other location in the world shall be referred to as a “Non-competition Area”).  The parties to this Agreement intend that the
covenant contained in the preceding 

 

 

sentence of this Section 1(a) shall
be construed as a series of separate covenants, one for each city, canton,
commonwealth, county, district, parish, state, province, country, territory, or
other political subdivision or other area of the world specified.  Except for geographic coverage, each separate
covenant shall be considered identical in terms to the covenant contained in
the preceding sentence.  The parties
further acknowledge the breadth of the covenants, but agree that such broad
covenants are necessary and appropriate in the light of the global nature of
the Competitive Activity.  If, in any
judicial or other proceeding, a court or other body declines to enforce any of
the separate covenants included in this Section 1(a), the unenforceable
covenant shall be considered eliminated from these provisions for the purpose
of those proceedings to the extent necessary to permit the remaining separate
covenants to be enforced. 
Notwithstanding the foregoing, the Executive may maintain or undertake
purely passive investments on behalf of himself, his immediate family or any
trust on behalf of himself or his immediate family in companies engaged in a
Competitive Activity so long as the aggregate interest represented by such
investments does not exceed 1% of any class of the outstanding publicly traded
debt or equity securities of any company engaged in a Competitive Activity.

 

                                (b)           Nondisclosure of Confidential
Information.  The Executive, except
in connection with his employment hereunder, shall not disclose to any person
or entity or use, either during his employment with the Company or at any time
thereafter, any information not in the public domain, in any form, acquired by
the Executive while employed by the Company or, if acquired following his
employment with the Company, such information that, to the Executive’s
knowledge, has been acquired, directly or indirectly, from any person or entity
owing a duty of confidentiality to the Company or any of its affiliates,
relating to the Company, FTD, Inc., a Delaware corporation and the direct
parent corporation of the Company collectively referred to as (“FTDI”), or any
of its successors or their subsidiaries or affiliated companies, including but
not limited to trade secrets, technical information, systems, procedures, test
data, price lists, financial or other data (including the revenues, costs or
profits associated with any of the Company’s products), business and product
plans, code books, invoices and other financial statements, computer programs,
discs and printouts, customer and supplier lists or names, personnel files,
sales and advertising material, telephone numbers, names, addresses or any
other compilation of information, written or unwritten, that is or was used in
the business of the Company, FTDI, any predecessor of the Company, FTDI or any
of the Company’s, or FTDI’s subsidiaries or successors.  The Executive agrees and acknowledges that
all of such information, in any form, and copies and extracts thereof are and
shall remain the sole and exclusive property of the Company, and upon
termination of his employment with the Company, the Executive shall return to
the Company the originals and all copies (and shall delete all such items in
electronic format) of any such information provided to or acquired by the
Executive in connection with the performance of his duties for the Company, and
shall return to the Company all files, correspondence, computer equipment and
disks or other communications (including any such materials in electronic
format) received, maintained or originated by the Executive during the course
of his employment.

 

                                (c)           No Interference and
Non-Solicitation.  During the
Restricted Period, the Executive shall not, whether for his own account or for
the account of any other individual, partnership, firm, corporation or other
business organization (other than the Company), solicit, endeavor to entice
away from the Company, FTDI, or any of the Company’s or FTDI’s subsidiaries or
affiliated companies, or otherwise interfere with the relationship of the
Company 

 

 

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or any of its
subsidiaries or affiliated companies with, any person who, to the knowledge of
the Executive, is (or has at any time within the preceding three months been)
employed by or otherwise engaged to perform services for the Company, FTDI or
any of the Company’s or FTDI’s subsidiaries or affiliated companies (including,
but not limited to, any independent sales representatives or organizations) or
any entity who is, or was within the then most recent 12-month period, a customer
or client of the Company, FTDI, any predecessor of the Company or FTDI or any
of the Company’s or FTDI’s subsidiaries or affiliated companies (a “Customer”)
or a supplier or vendor of the Company or FTDI or any of the Company’s or FTDI’s
subsidiaries or affiliated companies (a “Supplier”); provided, however,
that this Section 1(c) shall not prohibit the Executive from
employing, for his own account, following a termination of the employment of
the Executive, any person employed by a Customer or Supplier, if such
employment is not in connection with a Competitive Activity.

 

                Section 2.               Calculation of Time Period.  The Executive agrees that if the Executive
violates the provisions of Section 1(a) of this Agreement, the
running of the Restricted Period shall be tolled for the period in which the
Executive is in violation of such non-competition provisions.  The Executive understands that the foregoing
restrictions may limit the Executive’s ability to earn a livelihood in a
business engaged in a Competitive Activity, but the Executive nevertheless
believes that the Executive has received and will receive sufficient
consideration and other benefits as an employee of the Company and as otherwise
provided in connection with the Merger to clearly justify restrictions that, in
any event, given his education, skills and ability, the Executive does not
believe would prevent the Executive from earning a living.

 

                Section 3.               Irreparable Injury.  It is further expressly agreed that the
Company will or would suffer irreparable injury if the Executive were to
compete with the Company, FTDI or any of its or their subsidiaries or
affiliated companies in violation of this Agreement and that the Company would
by reason of such competition be entitled to injunctive relief in a court of
appropriate jurisdiction, and the Executive further consents and stipulates to
the entry of such injunctive relief in such a court prohibiting the Executive
from competing with the Company or  FTDI
its successors or any of its or their subsidiaries or affiliated companies in
violation of this Agreement.  Executive
further agrees to pay FTDI’s attorneys’ fees for obtaining any and all relief
including an injunction if he is found by the Court to be in violation of this
Agreement.

 

                Section 4.               Representation and Warranties
of the Executive.  The Executive
represents and warrants that the execution of this Agreement and subsequent
employment with the Company does not and will not conflict with any obligations
that the Executive has to any former employers or any other entity.  The Executive further represents and warrants
that he has not brought to the Company, and will not at any time bring to the
Company, any materials, documents or other property of any nature of a former
employer.

 

                Section 5.               Miscellaneous.

 

                                (a)           Jurisdiction, Choice of Law and
Venue.  The validity and construction
of this Agreement shall be governed by the internal laws of the State of
Illinois, excluding the conflicts-of-laws principles thereof.  Each party hereto consents to the
jurisdiction of, and venue in, any federal or state court of competent
jurisdiction located in the County of DuPage in the State of Illinois.

 

 

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                                (b)           Entire Agreement.  This Agreement and any other agreement or
document delivered in connection with this Agreement, including the letter
agreement dated as of the date hereof, between the Company and the Executive,
state the entire agreement and understanding of the parties on the subject
matter of this Agreement, and supersede all previous agreements, arrangements,
communications and understandings relating to that subject matter.

 

                                (c)           Counterparts.  This Agreement may be signed in two or more
counterparts, each of which shall be deemed an original, with the same effect
as if all signatures were on the same document.

 

                                (d)           Amendment; Waiver; etc.  This Agreement, and each other agreement or
document delivered in connection with this Agreement, may be amended, modified,
superseded or canceled, and any of the terms thereof may be waived, only by a
written document signed by each party to this Agreement or, in the case of
waiver, by the party or parties waiving compliance.  The delay or failure of any party at any time
or times to exercise any right or require the performance of any duty under
this Agreement or any other agreement or document delivered in connection with
this Agreement shall in no way affect the right of that party at a later time
to exercise that right or enforce that duty or any other right or duty.  No waiver by any party of any condition or of
any breach of this Agreement, whether by conduct or otherwise, in any one or
more instances, shall be deemed or construed to be a further or continuing
waiver of any such condition or breach or of the breach of any other term of
this Agreement.  A single or partial
exercise of any right shall not preclude any other or further exercise of the
same right or of any other right.  The
rights and remedies provided by this Agreement shall be cumulative and not
exclusive of each other or of any other rights or remedies provided by law.

 

                                (e)           Severability.  If any provision of this Agreement or any
other agreement or document delivered in connection with this Agreement, if
any, is partially or completely invalid or unenforceable in any jurisdiction,
then that provision shall be ineffective in that jurisdiction to the extent of
its invalidity or unenforceability, but the invalidity or unenforceability of
that provision shall not affect the validity or enforceability of any other
provision of this Agreement, all of which shall be construed and enforced as if
that invalid or unenforceable provision were omitted, nor shall the invalidity
or unenforceability of that provision in one jurisdiction affect its validity or
enforceability in any other jurisdiction. 
The Company and the Executive agree that the period of time and the
geographical area described in Section 1 are reasonable in view of the
nature of the business in which the Company is engaged and proposes to be engaged,
and the Executive’s understanding of his prospective future employment
opportunities.  However, if the time
period or the geographical area, or both, described in Section 1 should be
judged unreasonable in any judicial proceeding, then the period of time shall
be reduced by that number of months and the geographical area shall be reduced
by elimination of that portion, or both, as are deemed unreasonable, so that
the restriction covenant of Section 1 may be enforced during the longest
period of time and in the fullest geographical area as is adjudged to be
reasonable.

 

                                (f)            Employment “At-Will”

 

                Both the Executive and FTDI acknowledge that nothing
in this Agreement creates a contract for employment for any specific
duration.  The Executive’s employment
shall be “at-

 

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will”, meaning both FTDI
and the Executive can terminate the relationship at any time, with or without
reason or notice.

 

                                (g)           Breach of the Agreement

 

                Notwithstanding the clause (f) above,
the Executive acknowledges and understands that the provisions of this
Agreement are of a special and unique nature, the loss of which cannot be
accurately compensated for in damages by an action at law, and that the breach
or threatened breach of the provisions of this Agreement would cause the
Company irreparable harm.  In the event
of a breach or threatened breach by the Executive of the provisions of Section 1,
the Company shall be entitled to seek to obtain a court-ordered injunction
restraining the Executive from the breach or threatened breach upon the terms
and conditions as the court ordering the injunction may impose.

 

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

 

	
   

  	
  Florists’ Transworld
  Delivery Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ BECKY A. SHEEHAN

  	
   

  
	
   

  	
   

  	
  Becky A. Sheehan

  
	
   

  	
   

  	
  Executive Vice
  President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /S/ MICHAEL J. SOENEN

  	
   

  
	
   

  	
  Michael J. Soenen

  
					

 

 

5Exhibit 10.2

 

CONFIDENTIAL

 

April 30, 2008

 

United Online, Inc.

21301 Burbank Boulevard

Woodland Hills, California  91367

 

Attention:
Mark Goldston

 

Re:          Acquisition of FTD
Group, Inc.

 

Ladies and
Gentlemen:

 

You have
advised us that United Online, Inc. (“Online”) intends, through a
newly created wholly-owned subsidiary (the “Acquisition Sub”), to
acquire all of the outstanding shares (the “Acquisition”) of FTD Group, Inc.
(the “Company”) pursuant to the Merger Agreement dated as of April 30,
2008 (the “Merger Agreement”) among Online, the Company and Acquisition
Sub.  You have also advised us that in
connection with such transaction, the Company’s existing senior secured credit
facility and 7.75% senior subordinated notes will be refinanced as described
herein (the “Refinancing”) and related fees and expenses (the “Fee
and Expense Payments”) will be paid. 
The Acquisition, Refinancing, Fee and Expense Payments and other related
transactions are collectively referred to herein as the “Transaction”.  The approximate amounts to be expended in
connection with the Transaction are set forth in the Sources and Uses Table
attached as Schedule I to the Summary of Terms and Conditions attached hereto
as Annex A (the “Summary of Terms” and, together with this letter
and the other annexes and schedules attached hereto, the “Commitment Letter”).  The term “Credit Parties” as used
herein refers collectively to Intermediate Co (as such term is defined in the
Summary of Terms), the Company, the Acquisition Sub and all subsidiaries of
such companies after giving effect to the consummation of the Transaction.  The Refinancing will be effectuated through (i) the
repayment of the Company’s existing senior secured credit facility and (ii) the
acquisition by the Company of its 7.75% senior subordinated notes pursuant to a
tender offer and consent solicitation and the covenant defeasance of any such
notes not so acquired in such tender offer.

 

We understand
that the total cash proceeds required to consummate the Transaction will be either
approximately (a) $804.4 million if Online, in accordance with the Merger
Agreement, elects to issue the Online Debt (as defined below) or (b) $789.0
million if, in accordance with the Merger Agreement, Online does not issue the Online
Debt and, instead, issues alternative debt of Online in substitution therefor
(the “Alternative Online Debt”), in each case without giving effect to
any reduction in Cash Merger Consideration as a result of any Dissenting Common
Stock (as defined in the Merger Agreement). 
The proceeds used to consummate the Transaction will be provided as
follows:  (i) the $450 million
Senior Secured Credit Facilities described in the Summary of Terms (the “Senior
Credit Facilities”), (ii) the issuance, in accordance with the Merger
Agreement, of approximately 12.35 million shares of Online’s common stock to
shareholders of the Company (the “Online Equity Issuance”), and (iii) 

 

 

(A) in the circumstances
described in clause (a) of the preceding sentence, (x) cash equity
contributions by Online to the Acquisition Sub through Intermediate Co financed
with cash on hand of Online of approximately $197.5 million and (y) the
issuance to shareholders of the Company of $100.0 million of senior secured
notes of Online (the “Online Debt”) except to the extent the Online Debt
is reduced in connection with an initial public offering of Classmates Media
Corporation as described in the Merger Agreement (collectively, “Financing
Scenario 1”) or (B) in the circumstances described in clause (b) of
the preceding sentence, cash equity contributions by Online to the Acquisition
Sub through Intermediate Co financed with cash on hand of Online and cash
proceeds of the Alternative Online Debt in an aggregate amount equal to the
difference between (x) approximately $789.0 million and (y) the sum
of clauses (i) and (ii) above (with clause (ii) being equal to
approximately $131.8 million)1 (collectively, “Financing
Scenario 2”).  The Revolving Credit
Facility (as such term is defined in the Summary of Terms) will be unfunded on
the Closing Date (as such term is defined in the Summary of Terms) other than
up to approximately $6.4 million in outstanding letters of credit.

 

Wells Fargo
Bank, National Association (“Wells Fargo”) is pleased to inform you that
it hereby commits to provide the entire principal amount of the Senior Credit
Facilities and to act as the sole and exclusive administrative agent (“Administrative
Agent”) for the Senior Credit Facilities and the sole and exclusive lead
arranger and book manager (the “Lead Arranger”) for the Senior Credit
Facilities.  Wells Fargo reserves the
right to arrange for a syndicate of financial institutions and institutional
investors (including Wells Fargo) (each such financial institution and institutional
investor being a “Lender” and, collectively, the “Lenders”) to
participate in the Senior Credit Facilities. 
Our fees for such services are set forth in the accompanying
confidential fee letter (the “Fee Letter”).

 

The foregoing
commitment is expressly subject to (i) from June 30, 2007 through the
date hereof, there having not been any Company Effects (as defined in the
Merger Agreement) that constitute a Company Material Adverse Effect (as defined
in the Merger Agreement), (ii) no material disruption or material adverse
change occurring after the date of this Commitment Letter in the financial or
capital markets generally or in the market for syndicated credit facilities
generally that in the reasonable judgment of the Lead Arranger would materially
adversely affect the Successful Syndication (as defined in the Fee Letter) of
the Senior Credit Facilities, as contemplated by this Commitment Letter,
including after giving maximum effect to all of the changes to the Senior
Credit Facilities permitted pursuant to the Fee Letter, (iii) the
satisfaction of the terms and conditions set forth in this paragraph and Annex
B attached hereto and the execution by Acquisition Sub on the Closing Date
of the agreement contemplated by the Fee Letter pursuant to which all remaining
obligations under the Fee Letter are assumed by Acquisition Sub, and (v) the
absence of any competing offering, placement or arrangement for any debt
security or bank financing (other than (A) the Online Debt, (B) the
Alternative Online Debt, provided that you use commercially reasonable
efforts to coordinate with Wells Fargo in offering, placing or arranging for
the Alternative Online Debt or (C) senior debt of Online in an amount not
to exceed $60 million, provided that you use commercially reasonable
efforts to coordinate with Wells Fargo in offering, placing or arranging for
such debt) by or on behalf of you, Intermediate Co or any of the Credit
Parties.  If requested by the Lead
Arranger, the 

 

1 Assumes
12.35 million shares (based upon a fixed exchange ratio of 0.4087 Online shares
per Company share) issued at $10.68 per share. 
Actual market price to be determined at the time of issuance.

 

2

 

Company shall use commercially
reasonable efforts to obtain, at least 30 days prior to the Closing Date, an LT
issuer rating from Moody’s Investors Service, Inc. and an issuer credit
rating from Standard & Poor’s Ratings Service, in each case, giving
pro forma effect to the consummation of the Transaction.

 

Notwithstanding
anything in this Commitment Letter or the Fee Letter to the contrary, (a) the
only representations the accuracy of which shall be a condition to the
availability of the Senior Credit Facilities on the Closing Date shall be (i) such
representations made by the Company in the Merger Agreement as are material to
the interests of the Lenders in their capacity as Lenders, taken as a whole
(but only to the extent that a breach of such representations in the Merger
Agreement would constitute the failure of a condition precedent to the
obligations of Acquisition Sub and Online to close the Acquisition on the
Closing Date in accordance with the terms of the Merger Agreement), and (ii) the
Specified Representations (as defined below), and (b) the terms of the
documentation for the Senior Credit Facilities shall be such that they do not
impair the availability of the Senior Credit Facilities on the closing date of
the Acquisition if the conditions set forth in the preceding paragraph are
satisfied (it being understood that to the extent any security interest in the
intended collateral (other than any collateral the security interest in which
may be perfected by the filing of a UCC financing statement or the delivery of
stock certificates which have been provided to Online) is not provided on the
closing date of the Acquisition after your use of commercially reasonable
efforts to do so, the provision of such perfected security interest(s) shall
not constitute a condition precedent to the availability of the Senior Credit
Facilities on such closing date but shall be required to be delivered after the
Closing Date pursuant to arrangements to be mutually agreed by the Lead
Arranger and the Company).   As used
herein, “Specified Representations” means representations relating to
organizational power and authority to enter into the documentation relating to
the Senior Credit Facilities, due execution, delivery and enforceability of
such documentation, Federal Reserve margin regulations and the Investment
Company Act, the representations and warranties set forth in this Commitment
Letter relating to Information and Projections and perfection of and priority
of security interests (other than to the extent any security interest in the
intended collateral is not required to be provided on the Closing Date in
accordance with this paragraph) and the accuracy of the Closing Date
Certificate to be delivered pursuant to the terms of Annex B attached
hereto.

 

The Lead
Arranger will manage, in consultation with you, all aspects of the syndication,
including decisions as to the selection of institutions to be approached and
when they will be approached, when their commitments will be accepted, which
institutions will participate, the allocations of the commitments among
potential Lenders, any titles offered to potential Lenders and the amount and
distribution of fees among the Lenders and will use commercially reasonable
efforts to select potential Lenders under the Revolving Credit Facility
reasonably acceptable to you.  You agree
that no other agents, co-agents or arrangers will be appointed, no other titles
will be awarded and no compensation other than as expressly set forth in the
Summary of Terms and the Fee Letter will be paid in connection with the Senior
Credit Facilities unless you and we shall so agree.  You agree actively to assist the Lead
Arranger in completing a Successful Syndication.  Without limiting your obligations to assist
with syndication efforts as set forth herein, the Lead Arranger agrees that
neither the completion of syndication nor a Successful Syndication is a
condition to its commitments hereunder or the funding of the Senior Credit
Facilities.  Such assistance shall
include (i) your using commercially 

 

3

 

reasonable efforts to ensure
that the syndication efforts benefit from your lending and investment banking
relationships as well as those of the Credit Parties, (ii) your using
reasonable efforts to make certain members of your management available during
regular business hours (upon reasonable advance notice) to answer questions
regarding the Senior Credit Facilities, (iii) your using reasonable
efforts to make certain members of the management of the Company and its
Subsidiaries as well as your consultants and advisors available during regular
business hours (upon reasonable advance notice) to answer questions regarding
the Senior Credit Facilities, (iv) your using reasonable efforts to
provide or cause to be provided to us information reasonably deemed necessary
by us to complete the syndication and you assisting (and using commercially
reasonable efforts to cause the Credit Parties to assist) in the preparation of
a Confidential Informational Memorandum to be used in connection with the
syndication, and (v) the hosting by you and the Company of one or more
meetings with prospective Lenders.  You
further agree to use reasonable efforts to ensure that there is a period of not
less than 30 days following the completion of the Confidential Information
Memorandum for the syndication of the Senior Credit Facilities.  In addition, you agree to continue to assist
the Lead Arranger after the Closing Date in completing a syndication
satisfactory to it until the earlier of (i) 90 days following the Closing
Date or (ii) the completion of a Successful Syndication.

 

You
acknowledge that (i) the Lead Arranger on your behalf will make available
certain information on IntraLinks or another similar electronic system and (ii) certain
prospective Lenders may have personnel that do not wish to receive Private
Lender Information (referred to below). 
You agree, at the request of the Lead Arranger, to assist in the
preparation of a version of the Confidential Information Memorandum and other
marketing materials and presentations to be used in connection with the
syndication of the Senior Credit Facilities, consisting exclusively of
information and documentation that is either (a) publicly available or (b) not
material with respect to Online, the Company or their respective subsidiaries
or any of their respective securities for purposes of foreign, United States
Federal and state securities laws (all such information and documentation being
“Public
Lender Information”).  Any
information and documentation that is not Public Lender Information is referred
to herein as “Private Lender Information”. 
You further agree that, until the earlier of (i) 90 days following
the Closing Date and (ii) the completion of a Successful Syndication, each
document to be disseminated by Wells Fargo to any Lender in connection with the
Senior Credit Facilities will, at the request of Wells Fargo, be identified by
you as either (x) containing Private Lender Information or (y) containing
solely Public Lender Information.  You
acknowledge that, unless you notify Wells Fargo otherwise, the following
documents contain solely Public Lender Information (unless you notify us
promptly that any such document contains Private Lender Information): (1) drafts
and final definitive documentation with respect to the Senior Credit Facilities
(other than the separate disclosure schedules referred to therein); (2) administrative
materials prepared by Wells Fargo for prospective Lenders (such as a lender
meeting invitation, bank allocation, if any, and funding and closing
memoranda); and (3) notification of changes in the terms of the Senior
Credit Facilities.

 

You hereby
represent that to your knowledge, (i) all written information, other than
the Projections (as defined below), forward looking information and information
of a general economic or industry nature, which has been or is hereafter made
available to us or the other Lenders by you or any of your representatives in
connection with the transactions contemplated hereby (the “Information”)
is or will be, in the case of Information made available 

 

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after the date hereof, when
taken as a whole, complete and correct in all material respects and does not or
will not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements contained therein not materially
misleading in light of the circumstances under which such statements were or
are made, and (ii) all financial projections concerning the Company and
its subsidiaries that have been or are hereafter made available to us or the
other Lenders by you or any of your representatives in connection with the
transactions contemplated hereby (the “Projections”) have been or will
be, in the case of Projections made available after the date hereof, prepared
in good faith based upon assumptions that are believed by the preparer thereof
to be reasonable at the time made, it being understood and agreed that the
financial projections are not a guarantee of financial performance and actual
results may differ from the Projections and such differences may be
material.  You agree to supplement the
Information and the Projections from time to time, until the earlier of (i) 90
days following the Closing Date and (ii) the completion of a Successful
Syndication, so that the representation in the preceding sentence is
correct.  In arranging and syndicating
the Senior Credit Facilities, the Lead Arranger will be using and relying on
the Information and the Projections without independent verification thereof.

 

You hereby
agree to pay our reasonable documented costs and expenses (including the
reasonable documented fees and expenses of outside counsel, reasonable
professional fees of consultants and other experts hired upon the request of
any prospective Lender and reasonable out-of-pocket expenses, including without
limitation syndication expenses and Intralinks expenses) incurred before or
after the date of this Commitment Letter arising in connection with this
Commitment Letter, the Definitive Senior Financing Documents (as defined in the
Summary of Terms), the syndication of the Senior Credit Facilities and the
other transactions contemplated hereby; provided, however, that in the event
the Senior Credit Facilities are not funded, you shall not be required to pay any
such costs and expenses in excess of $200,000. 
You hereby further agree to indemnify and hold harmless Administrative
Agent, the Lead Arranger and each Lender (including Wells Fargo) and their
respective affiliates and each director, officer, employee, agent, attorney and
affiliate thereof (each such person, an “indemnified person”) from and
against any claims, damages payable to third parties, liabilities or other
expenses to which an indemnified person may become subject, insofar as such
claims, damages payable to third parties, liabilities (or actions or other
proceedings commenced or threatened in respect thereof) or other expenses arise
out of or in any way relate to or result from the Transaction and the other
transactions contemplated by this Commitment Letter, the Fee Letter, the
extension of the financing contemplated hereby, the Senior Credit Facilities or
any use or intended use of the proceeds of any of the loans and other
extensions of credit contemplated hereby, and to reimburse each indemnified
person for any reasonable documented legal or other expenses incurred in
connection with investigating, defending or participating in any such
investigation, litigation or other proceeding (whether or not any such
investigation, litigation or other proceeding involves claims made between you,
any of Intermediate Co, its subsidiaries or any third party and any such
indemnified person, and whether or not any such indemnified person is a party
to any investigation, litigation or proceeding out of which any such expenses
arise); provided, however, that the indemnity and reimbursement
obligations contained herein shall not apply to the extent that it is
determined in a final judgment by a court of competent jurisdiction that such
claims, damages payable to third parties, liabilities or other expenses result
from the gross negligence, or willful misconduct of, or breach of this
Commitment Letter, Fee Letter or the nondisclosure agreement previously entered
into by you and us relating to the 

 

5

 

Acquisition (the “Confidentiality
Agreement”) by, such indemnified person or any of their directors,
officers, employees, agents, attorneys or affiliates.  No indemnified person shall be liable for any
damages arising from the use by others of Information or other materials
obtained through internet, Intralinks or similar information transmission
systems in connection with the Senior Credit Facilities, except to the extent
such damages arise from such indemnified person’s or any of their directors,
officers, employees, agents, attorneys’ or affiliates’ gross negligence,
willful misconduct or breach of this Commitment Letter, Fee Letter or
Confidentiality Agreement.  No
indemnified person shall be responsible or liable to any other party or any
other person for any indirect, consequential or special damages.  The foregoing provisions of this paragraph
shall be in addition to any rights that any indemnified person may have at
common law or otherwise.

 

As you know,
Wells Fargo or its affiliates may from time to time effect transactions, for
its own account or for the accounts of customers, and may hold positions in
loans, options on loans, securities and options on securities, of companies
that may be the subject of the transactions contemplated by this Commitment
Letter or otherwise relate to the Company or any of its subsidiaries.

 

Notwithstanding
anything to the contrary contained herein, until the earliest of  (i) the termination or expiration of
this Commitment Letter, (ii) the termination of the Merger Agreement
(other than a termination of the Merger Agreement resulting from the Company’s
board of directors determining that the Company has received a Superior
Proposal (as defined in the Merger Agreement)), and (iii) your notifying
Wells Fargo in writing that you are not proceeding with the Acquisition, Wells
Fargo and its affiliates may not, directly or indirectly, provide, commit to
provide or underwrite (or offer or agree to do so) any financing to any person
other than Online for the purpose of providing all or a portion of the
financing for the acquisition of the Company or any material portion of the
Company’s assets.   The provisions of
this paragraph shall survive termination of this Commitment Letter.

 

You
acknowledge and agree that in connection with all elements of each transaction
contemplated under this Commitment Letter and the Fee Letter (i) neither
Wells Fargo nor any of its affiliates has assumed any advisory responsibility
or any other obligation in favor of you or any of the Credit Parties except the
obligations expressly provided for under this Commitment Letter and the Fee
Letter and (ii) Wells Fargo and its affiliates, on the one hand, and you
and the Credit Parties, on the other hand, have an arms-length business
relationship that does not directly or indirectly give rise to, nor do you or
any of the Credit Parties rely on, any fiduciary duty on the part of Wells
Fargo or any of its affiliates.

 

This
Commitment Letter and the Fee Letter are intended solely for your benefit and
nothing in this Commitment Letter or the Fee Letter, express or implied, shall
give any person other than the parties hereto, any beneficial or legal right,
remedy or claim hereunder.  Neither this Commitment
Letter nor the Fee Letter is assignable by you, and neither may be relied upon
by any other person or entity. 
Notwithstanding Wells Fargo’s right to syndicate the Senior Credit
Facilities and receive commitments with respect thereto, it is understood that
no syndication or assignment of Wells Fargo’s commitment prior to the Closing
Date shall reduce Wells Fargo’s obligation to (i) fund the entire
principal amount of the Senior Credit Facilities required to be funded on the
Closing Date in the event any person or entity shall fail to fund on 

 

6

 

the Closing Date all or any
portion of the commitment assigned or syndicated to it or (ii) cause
Lenders to commit to provide the entire Revolving Credit Facility under the
Definitive Senior Financing Documents. 
Each of this Commitment Letter and the Fee Letter is confidential and
shall not be disclosed by any of the parties hereto to any person other than
such party’s accountants, attorneys and other advisors, and, in the case of
Wells Fargo and the Lead Arranger, their affiliates and prospective Lenders,
purchasers and assignees, and then only on a confidential basis and in
connection with the Transaction and the related transactions contemplated
herein.  Any disclosure to an advisor may
be made for the sole purpose of evaluating and advising on the offer of
financing made in this Commitment Letter. 
Additionally, any of the parties hereto may make such disclosures of
this Commitment Letter and the Fee Letter as are required by regulatory
authority, law (including the disclosure rules of the Securities and
Exchange Commission) or judicial process or as may be required or appropriate
in response to any summons or subpoena or in connection with any litigation; provided
that such party will use its commercially reasonable efforts to notify the
other parties hereto of any such disclosure prior to making such
disclosure.  Wells Fargo will use all
confidential information provided to it or its affiliates by or on behalf of
you or the Company hereunder solely for the purpose of providing the services
which are the subject of this Commitment Letter and shall treat confidentially
all such information; provided
that nothing herein shall prevent Wells Fargo or its affiliates from disclosing
any such information as required or requested by regulatory authority, law or
judicial process or as may be required or appropriate in response to any
summons or subpoena or in connection with any litigation or to prospective
lenders in connection with the syndication of the Senior Credit Facilities; provided
that Wells Fargo will use its commercially reasonable efforts to notify you of
any such disclosure prior to making such disclosure.  Wells Fargo hereby notifies you that pursuant
to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed
into law October 26, 2001) (the “Act”), Wells Fargo may be required
to obtain, verify and record information that identifies you, which information
would include your name and address and other information that would allow
Wells Fargo to identify you in accordance with the Act.  Anything to the contrary contained herein
notwithstanding, we hereby consent to your disclosure of a copy of this
Commitment Letter and a copy of the Fee Letter (with fee amounts redacted) on a
confidential basis to the Company and its financial and legal advisors for its
use in connection with the evaluation of your proposal for the Transaction.

 

You hereby
agree that upon consummation of the Transaction, Wells Fargo or any of its
affiliates may place customary “tombstone” advertisements (which may include
any of your trade names or corporate logos) in publications of its choice
(including without limitation “e-tombstones” published or otherwise circulated
in electronic form and related hyperlinks to your corporate website) at its own
expense, subject to your consent, not to be unreasonably withheld.  In addition, you agree that Wells Fargo or
any of its affiliates may disclose information about the transaction to market
data collectors and similar service providers to the financing community.

 

Our offer will
terminate on May 1, 2008, unless on or before that date you sign and
return an enclosed counterpart of this Commitment Letter and the Fee Letter to
Wells Fargo Bank, National Association, Financial Sponsors Group, 333 S. Grand
Avenue, 9th Floor, Los Angeles, California 90071, attention Michael
St. Geme.  The commitment herein provided
for will also expire at the earliest of (i) the termination of the Merger
Agreement; (ii) the closing of the Transaction without the use of the
Senior Credit Facilities; or (iii) the close of business on 

 

7

 

October 30, 2008, if the
closing of the Transaction has not occurred by such time; provided, however,
that any term or provision hereof to the contrary notwithstanding all of your
obligations hereunder and under the Fee Letter in respect of indemnification,
confidentiality and fee and expense reimbursement shall survive any termination
of the commitment pursuant to this paragraph.

 

Notwithstanding
anything to the contrary contained herein, your obligations (including the
obligation to indemnify each indemnified person and to pay legal fees and other
expenses) and the representations and covenants under this Commitment Letter
shall remain effective until the execution of the Definitive Senior Financing
Documents and thereafter such obligations, representations and covenants shall
be superseded by those contained in the Definitive Senior Financing Documents
and you shall automatically be released from all liability under this
Commitment Letter upon the execution of the Definitive Senior Financing
Documents.  You may terminate this
Commitment Letter at any time subject to the provisions of this paragraph.

 

THIS COMMITMENT
LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS
OF THE STATE OF NEW YORK.  Each of the
undersigned parties hereby knowingly, voluntarily and intentionally waives any
rights it may have to a trial by jury in respect of any litigation based
hereon, or arising out of or in connection with, this Commitment Letter and the
Fee Letter, and any course of conduct, course of dealing, statements (whether
oral or written) or actions of any of the undersigned parties in connection herewith
or therewith.  The parties hereto submit
to the nonexclusive jurisdiction of the Federal and New York State courts
located in the City of New York in connection with any dispute related to this
Commitment Letter, the Fee Letter or any of the matters contemplated hereby or
thereby.  This Commitment Letter and the
Fee Letter constitute the entire understanding among the parties hereto with
respect to the subject matter hereof and replace and supersede all prior agreements
and understandings, both written and oral, between the parties hereto with
respect to the subject matter hereof. 
This Commitment Letter may not be amended or waived except by an
instrument in writing signed by each party hereto.  This Commitment Letter may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

 

We appreciate having been given the opportunity by you to be involved
in this transaction.

 

8

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S. Michael
  St. Geme

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  
				

 

 

Commitment Letter

 

 

	
  AGREED AND ACCEPTED as of

  
	
  the date first written above:

  
	
   

  
	
  UNITED ONLINE, INC.

  
	
   

  
	
  By:

  	
  /s/ Mark R.
  Goldston

  	
   

  
	
  Name:

  	
    Mark
  R. Goldston

  	
   

  
	
  Title:

  	
    Chairman,
  President and

    Chief Executive Officer

  	
   

  
				

 

 

Commitment Letter

 

ANNEX A

 

FTD Group, Inc.

$450,000,000 Senior Secured
Credit Facilities

Summary of Terms and Conditions

 

The following summarizes
selected terms of certain senior secured credit facilities (the “Senior
Credit Facilities”) to be utilized in connection with the proposed
acquisition of all of the outstanding shares (the “Acquisition”) of FTD
Group, Inc. (the “Company”) by United Online, Inc. (“Online”).

 

This Summary of Terms is
intended merely as an outline of certain of the material terms of the Senior
Credit Facilities.  It does not include
descriptions of all of the terms, conditions and other provisions that are to
be contained in the definitive documentation relating to the Senior Credit
Facilities and it is not intended to limit the scope of discussion and
negotiation of any matters not inconsistent with the specific matters set forth
herein.  All terms defined in the
commitment letter (the “Commitment Letter”) to which this Summary of
Terms is attached and not otherwise defined herein shall have the same meanings
when used herein.

 

	
  Borrower:

  	
  Online will form a corporation (the “Borrower”)
  that will be merged with and into the Company, with the Company being the
  surviving corporation and becoming the Borrower under the Senior Credit
  Facilities. The Borrower shall be a wholly-owned direct subsidiary of a
  newly-formed holding company (“Intermediate Co”), which will have no
  assets or business other than holding the stock of the Borrower. Intermediate
  Co will be a wholly-owned subsidiary of Online.

  
	
   

  	
   

  
	
  Guarantors:

  	
  Intermediate Co and all existing and future subsidiaries of the
  Borrower (the “Guarantors” and, together with the Borrower, the “Credit
  Parties”); provided, however, that non-U.S. subsidiaries
  shall not be required to deliver guaranties.

   

  
	
  Sole Lead Arranger, Sole Book Manager and
  Administrative Agent:

   

  	
  Wells Fargo Bank, National Association (“Wells Fargo”, or the
  “Lead Arranger” and “Administrative Agent”).

  
	
  Syndication Agent and/or Documentation Agent:

  	
  At the Lead Arranger’s option, financial institutions to be
  identified by the Lead Arranger which are acceptable to the Borrower and the
  Lead Arranger (the “Syndication Agent” and the “Documentation Agent”,
  respectively, and together with the Administrative Agent, the “Agents”).

   

  
	
  Issuing Bank:

  	
  Wells Fargo Bank, National Association, or another bank agreed to by
  the Administrative Agent and Borrower (“Issuing Bank”).

   

  
	
  Lenders:

  	
  A syndicate of financial institutions
  and institutional lenders 

  

 

 

	
   

  	
  (including Wells Fargo) acceptable to Wells Fargo
  after consultation with the Borrower.

   

  
	
  Closing Date:

   

  	
  The date the initial loans are made under the
  Senior Credit Facilities (the “Closing Date”) and not later than October 30,
  2008.

   

  
	
  Type and Amount:

  	
  The Senior Credit Facilities shall consist of the Revolving Credit
  Facility (“Revolving Credit Facility”), the Term Loan A Facility (“Term
  Loan A Facility”) and the Term Loan B Facility (“Term Loan B Facility”
  and, together with the Term Loan A Facility, the “Term Loan Facilities”).

   

  Revolving Credit Facility. The Revolving Credit Facility will mature five years after the
  Closing Date and be in an original principal amount of $75,000,000 under
  which revolving loans may be made and under which standby and commercial
  letters of credit may be issued up to a sublimit to be agreed upon. A portion
  of the Revolving Credit Facility in an amount to be agreed upon shall be made
  available for same-day advances (the “Swingline Facility”). The
  Revolving Credit Facility will be unfunded at the Closing Date (other than up
  to approximately $6,400,000 in letters of credit).

   

  Term Loan A Facility. The Term Loan A Facility will be made available in a single
  borrowing on the Closing Date. Once repaid, the term loans made under the
  Term Loan A Facility may not be reborrowed. Such term loans will have a final
  maturity date of five years after the Closing Date and be in an original
  principal amount of $175,000,000. Quarterly amortization will be required in
  aggregate annual amounts, expressed as a percentage of the original aggregate
  principal amount of the term loans made under the Term Loan A Facility, as
  follows:

  

 

	
  Year

  	
   

  	
  Aggregate Annual Amortization

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  5.0

  	
  %

  	
   

  
	
  2

  	
   

  	
  7.5

  	
  %

  	
   

  
	
  3

  	
   

  	
  10.0

  	
  %

  	
   

  
	
  4

  	
   

  	
  10.0

  	
  %

  	
   

  
	
  5

  	
   

  	
  12.5

  	
  %

  	
   

  
	
  Maturity

  	
   

  	
  55.0

  	
  %

  	
   

  
	
   

  	
   

  	
  100.0

  	
  %

  	
   

  

 

	
   

  	
  Term Loan B Facility. The Term Loan B Facility will be made available in a single
  borrowing on the Closing Date. Once repaid, the term loans made under the
  Term Loan B Facility may not be reborrowed. Such term loans will have a final
  maturity date of six years after the Closing Date and be in an original
  principal amount 

  

 

2

 

	
   

  	
  of $200,000,000. Quarterly amortization will be required in aggregate
  annual amounts, expressed as a percentage of the original aggregate principal
  amount of the term loans made under the Term Loan B Facility, as follows:

  

 

	
  Year

  	
   

  	
  Aggregate Annual Amortization

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  1

  	
  %

  	
   

  
	
  2

  	
   

  	
  1

  	
  %

  	
   

  
	
  3

  	
   

  	
  1

  	
  %

  	
   

  
	
  4

  	
   

  	
  1

  	
  %

  	
   

  
	
  5

  	
   

  	
  1

  	
  %

  	
   

  
	
  6

  	
   

  	
  95

  	
  %

  	
   

  
	
   

  	
   

  	
  100

  	
  %

  	
   

  

 

	
  Purpose:

  	
  A description of the sources and uses of the funds
  used to consummate the Transaction is set forth in the Sources and Uses Table
  attached as Schedule I hereto. In addition, the Revolving Credit
  Facility will provide for the working capital requirements and other
  corporate purposes (including permitted acquisitions) of the Credit Parties
  after the consummation of the Transaction, subject to the issuance of up to
  approximately $6,400,000 of letters of credit on the Closing Date. As used
  herein, “Transaction” shall refer to the Acquisition, the Refinancing and Fee
  and Expense Payments, each approximately as described in such Schedule I
  and to the other transactions contemplated hereby.

   

  
	
  Security:

  	
  The Senior Credit Facilities will be secured by
  first priority perfected liens on substantially all existing and
  after-acquired personal property (tangible and intangible) of the Borrower
  and the Guarantors, including without limitation all accounts receivable,
  inventory, equipment, intellectual property, other personal property, and
  owned real property with a value equal to or greater than $5,000,000, and a
  pledge of the capital stock of the Borrower and its subsidiaries owned by the
  Borrower and the Guarantors, subject in each case to such exceptions as may
  be agreed upon (the “Collateral”); provided, however,
  that no more than 66.0% of the equity interests of first-tier non-U.S.
  subsidiaries will be required to be pledged as security.

   

  Notwithstanding
  the foregoing, the following assets will be excluded from the Collateral securing the Senior Credit Facilities:
  (i) leasehold interests in real property, (ii) fee interest in real
  property valued at less than $5,000,000, (iii) those assets over which
  the granting of a security interest in such assets would be prohibited by
  contract or applicable law and (iv) other exceptions to be mutually
  agreed upon or which are usual for facilities of this type.

  

 

3

 

	
   

  	
  The Collateral shall ratably secure the Senior Credit Facilities and
  any permitted interest rate swap, currency or similar hedging arrangements
  between the Credit Parties and a Lender or its affiliates under the Senior
  Credit Facilities.

   

  Negative pledge on all assets of the Credit Parties, subject to
  customary permitted liens to be agreed upon.

   

  
	
  Interest Rates:

  	
  All amounts outstanding under the Senior Credit Facilities shall bear
  interest, at the Borrower’s option, at the Base Rate or at the reserve
  adjusted LIBOR Rate plus, in each case, an applicable margin in an amount to
  be agreed upon.

   

  
	
  Interest Payments:

  	
  Quarterly for Base Rate Loans; on the last day of selected interest
  periods (which shall be one, two, three and six months) for LIBOR Loans (and
  at the end of every three months, in the case of interest periods of longer
  than three months); and upon prepayment, in each case payable in arrears and
  computed on the basis of a 360-day year; provided that interest on
  Base Rate Loans shall be computed on the basis of a 365/366 day year for
  actual days elapsed.

   

  
	
  Interest Rate Protection:

  	
  Within 90 days
  after the Closing Date, the Borrower will obtain interest rate protection,
  pursuant to interest rate swaps, caps or other similar arrangements
  reasonably satisfactory to the Administrative Agent, against increases in
  interest rates with respect to a notional amount equal to not less than 40%
  of the term loans outstanding under the Term Loan Facilities on the Closing
  Date, such arrangements to remain in effect for a period of not less than
  three years after the Closing Date.

   

  
	
  Letter of Credit Fees:

  	
  A per annum letter of credit fee equal to the applicable margin for
  LIBOR Loans under the Revolving Credit Facility, which shall be shared by all
  Lenders with commitments under the Revolving Credit Facility, and a fronting
  fee equal to the greater of (a) 0.25% per annum and (b) $500, which
  shall be retained by the Issuing Bank, in each case based upon the applicable
  percentage multiplied by the amount available from time to time for drawing
  under such letter of credit and payable quarterly in arrears. Customary
  drawing and amendment fees will be charged by each Issuing Bank.

   

  
	
  Commitment Fees:

  	
  Commitment fees equal to a percentage per
  annum (the “commitment fee percentage”) to be agreed upon times the
  daily average unused portion of the Revolving Credit Facility shall accrue
  from the Closing Date and shall be computed on the basis

  

 

4

 

	
   

  	
  of a 360-day year and payable quarterly in
  arrears and upon the maturity or termination of the Revolving Credit
  Facility.

   

  
	
  Voluntary
  Prepayments and Commitment Reductions:

  	
  The Senior
  Credit Facilities may be prepaid in whole or in part without premium or
  penalty (LIBOR Loans prepayable only on the last days of related interest
  periods or upon payment of any breakage costs) and the Lenders’ commitments
  relative thereto reduced or terminated upon such notice and in such amounts
  as may be agreed upon. Voluntary prepayments of the Term Loan Facilities
  shall be applied among the Term Loan A Facility and the Term Loan B Facility
  as directed by the Borrower and to the remaining scheduled installments thereof
  first to any scheduled installments thereof due in the next succeeding 12
  months in order of maturity and thereafter on a pro rata basis to all
  remaining scheduled installments thereof; provided, however,
  that voluntary prepayments applied exclusively to the Term Loan A Facility or
  among the Term Loan A Facility and the Term Loan B Facility on a non pro rata
  basis shall not exceed $5,000,000 during any fiscal year (with the unused
  amount in any fiscal year being available for use in succeeding fiscal years
  in an amount not to exceed $15,000,000 in the aggregate for all such amounts
  carried forward (it being understood that if $15,000,000 were carried forward
  to any year, $20,000,000 would be available in such year)).

   

  
	
  Mandatory Prepayments and Commitment Reductions:

  	
  Subject to certain exceptions customary and appropriate for
  financings of this type (including reinvestment rights) to be agreed upon,
  the Senior Credit Facilities will be prepaid by an amount equal to: (i) 100.0%
  of the net cash proceeds of all asset dispositions by the Credit Parties; (ii) 100.0%
  of the net cash proceeds from the issuance of debt that is not permitted to
  be incurred under the Definitive Senior Financing Documents (as defined
  below) by the Credit Parties; (iii) 100.0% of net insurance/condemnation
  proceeds; (iv) 50.0% of the net cash proceeds from the issuance of
  equity by the Credit Parties (excluding equity issued to Online or its
  subsidiaries or to management, directors and employees); and (v) 75.0%
  of Excess Cash Flow (as defined below) for each fiscal year, commencing with
  the first full fiscal year following the Closing Date (and with step-downs to
  50% and 0% if the Borrower’s Leverage Ratio is less than 3.00 to 1.00 and
  2.00 to 1.00, respectively); provided that the required amount
  of such Excess Cash Flow prepayment will be reduced on a dollar for dollar
  basis by the amount of any voluntary prepayments of the Senior Credit
  Facilities (other than prepayments of the Revolving Credit Facility that do
  not result in a commitment reduction) made prior to the end of the fiscal
  year for which any excess cash flow prepayment is payable. Excess Cash Flow means Consolidated
  Adjusted EBITDA (to be defined as set 

  

 

5

 

	
   

  	
  forth on Schedule II attached hereto) less cash interest,
  scheduled amortization of the Term Loan Facilities, cash taxes, capital
  expenditures, permitted
  acquisitions and other investments, extraordinary cash losses and other cash
  expenses added in calculating Consolidated Adjusted EBITDA, and plus or minus changes in working
  capital. Working capital will be defined to exclude cash and cash equivalents
  and current debt.

   

  
	
   

  	
  All mandatory
  prepayments shall be applied first to the prepayment of the Term Loan
  Facilities and thereafter to the prepayment of the Revolving Credit Facility
  and the reduction of the commitments thereunder. All such mandatory
  prepayments of the Term Loan Facilities shall be applied ratably to the Term
  Loan A Facility and the Term Loan B Facility and to the remaining scheduled
  installments thereof on a pro rata basis. Notwithstanding the foregoing, in
  the case of any mandatory prepayment to be applied to the Term Loan B
  Facility, the holders thereof, so long as there is a principal balance
  outstanding with respect to the Term Loan A Facility, may waive the right to
  receive the amount of such mandatory prepayment and, in such event, the
  amount that would otherwise have been applied as a mandatory prepayment of
  such Term Loan B Facility shall be applied to the prepayment of the Term Loan
  A Facility.

   

  
	
  Representations and Warranties:

  	
  Customary and
  appropriate for financings of this type (subject to exceptions to be
  determined and with qualifications and caveats customary for facilities of
  this nature), limited to the following: due organization, powers,
  qualification, good standing, business, subsidiaries, authorization,
  enforceability, no conflict, governmental consents, binding obligation,
  historical financial condition, no material adverse changes, no restricted
  junior payments, title to properties, liens, properties, intellectual
  property, litigation/adverse facts, payment of taxes, performance of
  agreements/material contracts, governmental regulation, employee benefit
  plans, certain fees, compliance with laws and regulations, environmental
  protection, employee matters, solvency, perfection and priority of liens
  securing the Senior Credit Facilities, governmental authorizations, absence
  of third-party filings, securities activities/margin regulations, information
  regarding collateral, full disclosure, subordinated indebtedness, related
  agreements, reporting to IRS, foreign asset control regulations, inactivity
  or immateriality of certain subsidiaries; provided that such representations
  and warranties shall, on the Closing Date, be limited in scope to the
  Specified Representations and the representations and warranties related to
  the Company identified in the fifth paragraph of the Commitment Letter to the
  extent permitted as a condition precedent to the availability of the Senior 

  

 

6

 

	
   

  	
  Credit
  Facilities pursuant thereto.

   

  
	
  Financial Covenants:

  	
  Financial Covenants shall be limited to the following:

   

  Leverage Ratio
  - defined as the ratio of (i) all obligations of the Borrower and its
  subsidiaries for borrowed money including but not limited to (a) senior
  bank debt, senior notes, and subordinated debt, (b) capital leases, (c) issued
  and outstanding letters of credit, (d) guarantees of borrowed money, (e) any
  obligation owed for all or any part of the deferred purchase price of
  property or services (excluding any such obligations incurred under ERISA),
  which purchase price is (1) due more than six months from the date of
  incurrence of the obligation in respect thereof or (2) evidenced by a
  note or similar written instrument, and (f) all indebtedness secured by
  any lien on any property or asset owned or held by the Borrower and its
  subsidiaries regardless of whether the indebtedness secured thereby shall
  have been assumed by the Borrower and its subsidiaries or is nonrecourse to
  the credit of the Borrower and its subsidiaries (subject to exceptions to be
  agreed upon) to (ii) Consolidated Adjusted EBITDA of the Borrower and
  its subsidiaries not in excess of the ratios set forth on Schedule III
  attached hereto. The Leverage Ratio will be tested quarterly with
  Consolidated Adjusted EBITDA being calculated on a rolling four quarter
  basis. Any of the Borrower’s 7.75% senior subordinated notes which are
  subject to covenant defeasance will not be deemed outstanding for purposes of
  the Maximum Leverage Ratio or for any other purposes of the Senior Credit
  Facilities.

   

  Fixed Charge Coverage Ratio - defined as the ratio of (i) Consolidated Adjusted EBITDA of
  the Borrower and its subsidiaries minus the sum of (a) cash taxes and (b) the
  greater of maintenance capital expenditures (excluding capital expenditures
  financed other than from internally generated cash) and $8,000,000 to (ii) cash
  interest expense plus scheduled debt payments (as such scheduled debt
  payments may be reduced from time to time by voluntary and mandatory
  prepayments) of at least the ratios
  set forth on Schedule III attached hereto. The Fixed Charge Coverage
  Ratio will be tested quarterly and calculated on a trailing four quarter
  basis.

   

  Maximum Capital Expenditures - defined as the maximum amount of allowable capital expenditures to
  be incurred by the Borrower during each fiscal year and not to exceed the
  amounts set forth on Schedule III annexed hereto (with 100% of any
  unused amounts in any fiscal year (in an amount not to exceed 50% of the
  permitted capital expenditures for such fiscal year) being available for use
  in the immediately following fiscal year with any capital 

  

 

7

 

	
   

  	
  expenditures in such following year to be applied first to such
  unused amounts); provided, however, that the foregoing
  limitations shall not restrict capital expenditures funded with the proceeds
  of equity issuances.

   

  
	
  Other Covenants:

  	
  Customary and
  appropriate affirmative and negative covenants for financings of this type
  (subject to exceptions and baskets to be mutually agreed upon and customary
  for financings of this nature), limited to the following: affirmative
  covenants regarding financial statements and other reports, existence,
  payment of taxes and claims, maintenance of properties, insurance,
  application of proceeds, inspection rights, lender meetings, compliance with
  laws, environmental matters, execution of subsidiary guaranty and personal
  property collateral documents, matters regarding additional real property,
  interest rate protection; negative covenants limiting other indebtedness,
  liens, investments, acquisitions, contingent obligations, restricted junior
  payments (dividends, redemptions and payments on subordinated debt (including
  exceptions to fund the portion of Online’s taxes related to the Borrower and
  its subsidiaries and the Borrower’s allocated portion of shared expenses to
  the extent such expenses are reflected in the calculation of Consolidated
  Adjusted EBITDA of the Borrower and its subsidiaries)), mergers and
  acquisitions, sales of assets, fundamental changes, amendments to related
  agreements, fiscal year, transactions with affiliates, conduct of business,
  sale-leasebacks, use of proceeds, ERISA liabilities and reporting
  requirements.

   

  
	
  Events of Default:

  	
  Customary and
  appropriate for financings of this type (subject to customary and appropriate
  grace periods qualifications and caveats), limited to the following: failure
  to make payments when due, defaults under indebtedness or contingent
  obligations in excess of specified amounts, noncompliance with covenants or
  any other provision of the Definitive Senior Financing Documents, breaches of
  representations and warranties, bankruptcy, dissolution, judgments in excess
  of specified amounts, attachments in excess of specified amounts, ERISA
  liability in excess of specified amounts, invalidity of loan documents,
  invalidity of guaranties, impairment of security interests in Collateral,
  repudiation of Collateral, Changes of Control (to be defined), conduct of
  business of Intermediate Co, failure of certain subsidiaries to remain
  inactive and failure to consummate the Acquisition.

   

  
	
  Conditions Precedent to Initial Funding:

  	
  The Borrower shall have satisfied the conditions set forth in Annex
  B attached to the Commitment Letter and the Specified Representations
  shall be accurate in all material respects.

  

 

8

 

	
  Conditions to Borrowings other than the Initial
  Borrowings:

   

  	
  The conditions
  precedent to borrowings made after the Closing Date will consist of delivery
  of a customary written notice of borrowing, the accuracy in all material
  respects of representations and warranties, the absence of any event of
  default or potential event of default, the initial loans shall have been
  funded on the Closing Date, and no order shall restrain Lenders from making
  the loans.

   

  
	
  Indemnification:

  	
  The Borrower shall indemnify the Lead Arranger,
  Agents, each Lender and each of their respective affiliates directors,
  officers, agents attorneys and employees from and against any losses, claims,
  damages, liabilities and other expenses in a manner customary for financings
  of this type.

   

  
	
  Assignments and Participations:

  	
  The
  Lenders may assign all or in minimum amounts of $1,000,000 any portion of
  their shares of the Senior Credit Facilities to their affiliates, to other
  Lenders, or to one or more financial institutions or institutional lenders
  that are Eligible Assignees (as defined below).  The Lenders will have the right to sell
  participations, subject to customary limitations on voting rights, in their
  shares of the Senior Credit Facilities.

   

  Eligible Assignee  shall mean (a) if the assignment includes assignment
  of a loan under the Term Loan A Facility or the Term Loan B Facility, (i) any
  Lender, (ii) an affiliate of any Lender, (iii) an Approved Fund (to
  be defined) and (iv) any other person approved by the Administrative
  Agent and (b) if the assignment includes assignment of a revolving
  commitment, (i) any Revolving Lender and (ii) any other person
  approved by the Administrative Agent, the Issuing Bank, the Swingline Lender
  and the Borrower; provided that in each case, no approval of the Borrower
  shall be required during the continuance of an event of default; provided
  further that none of the Company, any affiliate of the Company or any person
  acting at the direction of, or in concert with, any such person, shall be an
  Eligible Assignee.

   

  
	
  Waivers and Amendments:

  	
  Amendments and
  waivers will require the approval of Lenders holding in the aggregate more
  than 50% of the loans and commitments under the Senior Credit Facilities
  provided that (i) the consent of each Lender directly affected thereby
  shall be required for (a) increases in the commitment of such Lender, (b) reductions
  of principal, interest or fees, (c) extensions of final and interim
  scheduled maturities or times for payment of interest or fees, (d) releases
  of all or substantially all the Collateral and (e) releases of all or
  substantially all of the Guarantors, and (ii) the consent of the Lenders
  holding in the aggregate more than 50% of 

  

 

9

 

	
   

  	
  the loans and
  commitments of an affected class of the Lenders shall be required for changes
  in mandatory or voluntary prepayments or commitment reductions which
  disproportionately disadvantage such class.

   

  
	
  Taxes, Reserve Requirements

  and Indemnities:

  	
  All payments are to be made free and clear of any present or future
  taxes (other than franchise taxes and taxes on overall net income), imposts,
  assessments, withholdings, or other deductions whatsoever.  Foreign Lenders shall furnish to the
  Administrative Agent (for delivery to the Borrower) appropriate certificates
  or other evidence of exemption from U.S. federal income tax withholding.

   

  The Borrower shall indemnify the Lenders against all increased costs
  of capital resulting from reserve requirements or otherwise imposed, in each
  case subject to customary increased costs, capital adequacy and similar
  provisions.

   

  
	
  Governing Law and Jurisdiction:

  	
  The Borrower will submit to the non-exclusive jurisdiction and venue
  of the federal and state courts of the State of New York and will waive any
  right to trial by jury.  New York law
  shall govern the definitive loan documents.

   

  
	
  Lead Arranger’s and Administrative Agent’s
  Counsel:

  	
  O’Melveny & Myers LLP.

  

 

10

 

SCHEDULE I

 

ESTIMATED
SOURCES AND USES

 

Financing Scenario 1 (Online issues
the Online Debt):

 

Sources

 

	
  Senior Credit Facilities

  	
   

  	
   

  	
   

  
	
  Term Loan
  Facilities

  	
   

  	
  $

  	
  375,000,000

  	
   

  
	
  Revolving Credit
  Facility1

  	
   

  	
  $

  	
  0

  	
   

  
	
  Cash
  Contribution by Online

  	
   

  	
  $

  	
  197,500,000

  	
   

  
	
  Online Equity
  Issuance

  	
   

  	
  $

  	
  131,900,000

  	
  2

  
	
  Online Debt

  	
   

  	
  $

  	
  100,000,000

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Sources

  	
   

  	
  $

  	
  804,400,000

  	
   

  

 

Uses

 

	
  Purchase Price4

  	
   

  	
  $

  	
  453,700,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Refinance
  Existing Debt

  	
   

  	
  $

  	
  281,200,000

  	
   

  
	
  Fees and
  Expenses

  	
   

  	
  $

  	
  69,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Uses

  	
   

  	
  $

  	
  804,400,000

  	
   

  

 

1 The Revolving
Credit Facility will be unfunded on the Closing Date other than up to
approximately $6,400,000 in outstanding letters of credit.

2 Assumes 12.35
million shares (based upon a fixed exchange ratio of 0.4087 Online shares per
Company share) issued at $10.68 per share. 
Actual market price to be determined at the time of issuance.

3 Except to the
extent reduced in connection with an initial public offering of Classmates
Media Corporation as described in the Merger Agreement.

4 Purchase
Price represents $15.01 per share assuming 30.2 million fully diluted shares.

 

11

 

Financing Scenario 2 (Online does
not issue the Online Debt):

 

Sources

 

	
  Senior Credit Facilities

  	
   

  	
  $

  	
  375,000,000

  	
   

  
	
  Term Loan
  Facilities

  	
   

  	
  $

  	
  0

  	
   

  
	
  Revolving Credit
  Facility5

  	
   

  	
   

  	
   

  
	
  Cash Contribution
  by Online

  	
   

  	
   

  	
   

  
	
  (including
  proceeds of Alternative Online Debt)

  	
   

  	
  $

  	
  282,200,000

  	
   

  
	
  Online Equity
  Issuance

  	
   

  	
  $

  	
  131,800,000

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Sources

  	
   

  	
  $

  	
  789,000,000

  	
   

  

 

Uses

 

	
  Purchase Price7

  	
   

  	
  $

  	
  438,300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Refinance
  Existing Debt

  	
   

  	
  $

  	
  281,200,000

  	
   

  
	
  Fees and
  Expenses

  	
   

  	
  $

  	
  69,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Uses

  	
   

  	
  $

  	
  789,000,000

  	
   

  

 

5 The Revolving
Credit Facility will be unfunded on the Closing Date other than up to
approximately $6,400,000 in outstanding letters of credit.

6 Assumes 12.35
million shares (based upon a fixed exchange ratio of 0.4087 Online shares per
Company share) issued at $10.68 per share. 
Actual market price to be determined at the time of issuance.

7 Purchase Price represents $14.51 per
share assuming 30.2 million fully diluted shares.

 

12

 

SCHEDULE II

 

CERTAIN
DEFINITIONS

 

“Consolidated Adjusted EBITDA”
means, for any period, the sum, without duplication, of the amounts for such
period of (i) Consolidated Net Income (as defined below), (ii) Consolidated
Interest Expense (as defined below), (iii) provisions for taxes based on
income, (including provisions recorded to the extent necessary to permit any
corporate parent (or any affiliate of such corporate parent) to discharge the
consolidated, combined or other group tax liabilities of such corporate parent
and its subsidiaries), (iv) total depreciation expense, (v) total
amortization expense, (vi) Transaction Costs (as defined below), (vii) management
or employee retention or incentive expenses under the Company’s cliff bonus
plan or any other bonus or incentive plan, (viii) any foreign currency
translation or transaction gains or losses (including gains or losses related
to currency remeasurements of indebtedness), (ix) all extraordinary,
unusual or non-recurring losses, charges or expenses (minus any extraordinary,
unusual or non-recurring gains) (it being understood and agreed that Item 10(e) of
Regulation S-K under the Securities Act of 1933 (“Regulation S-K”) shall
not constitute a limitation on any such determination and unusual or
non-recurring losses, charges, expenses or gains shall be determined by Company
in good faith), (x) all other non-cash items, including, without
limitation, non-cash stock compensation expenses for officers, directors, employees
and consultants (other than any such non-cash item to the extent it represents
an accrual of or reserve for cash expenditures in any future period), (xi) all
expenses incurred in connection with the prepayment, amendment or refinancing
of indebtedness, and (xii) (A) any impairment charge or asset write-off or
write-down, in each case relating to an intangible asset, pursuant to Financial
Accounting Standards Board Statements No. 142 and No. 144, (B) the
amortization of intangible assets arising pursuant to Financial Accounting
Standards Board Statement No. 141, (C) the amortization or write-off
deferred financing fees and (D) the amortization of other intangible
assets, but only, in the case of clauses (ii)-(xii), to the extent deducted in
the calculation of Consolidated Net Income, less non-cash items added in
the calculation of Consolidated Net Income (other than any such non-cash items
to the extent expected to result in the receipt of cash payments in any future
period), and all of the foregoing as determined on a consolidated basis for
Company and its subsidiaries in conformity with GAAP (as in effect on the
Closing Date).

 

The
foregoing notwithstanding, for purposes of determining Consolidated Adjusted
EBITDA for any period that includes any of the months ended March 31,
2007, April 30, 2007, May 31, 2007, June 30, 2007, July 31,
2007, August 31, 2007, September 30, 2007, October 31, 2007, November 30,
2007, December 31, 2007, January 31, 2008 and February 29, 2008,
Consolidated Adjusted EBITDA for such periods shall be deemed to be
$11,300,000, $6,800,000, $14,500,000, $6,900,000, $6,500,000, $6,700,000,
$8,200,000, $7,600,000, $6,500,000, $11,100,000, $4,700,000 and $11,300,000, respectively.

 

Other
than for purposes of calculating excess cash flow, Consolidated Adjusted EBITDA
shall be calculated on a pro forma basis to give effect to any permitted 

 

13

 

acquisition,
investment and asset sale (other than sales of assets in the ordinary course of
business) consummated at any time on or after the first day of the test period
and prior to the date of determination as if each such permitted acquisition
and investment had been effected on the first day of such period and as if each
such permitted asset sale had been consummated on the day prior to the first
day of such period.

 

“Closing Date Consolidated Adjusted EBITDA”
means Consolidated Adjusted EBITDA; provided, however, that (i) the
elements thereof shall be determined in conformity with GAAP as in effect on
the date of this Commitment Letter, (ii) the amount of Transaction Costs
to be included shall not exceed $10,000,000 in the aggregate, and (iii) the
amount of (a) extraordinary losses, charges and expenses and (b) unusual
or non-recurring losses, charges and expenses that would not be classified as
unusual or non-recurring under Item 10(e) of Regulation S-K to be included
shall not exceed $10,000,000 in the aggregate.

 

“Consolidated Interest Expense”
means, for any period, total interest expense (including that portion
attributable to capital leases in accordance with GAAP and capitalized
interest) of Company and its subsidiaries on a consolidated basis with respect
to all outstanding indebtedness of Company and its subsidiaries, including all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing, net costs under Interest Rate
Agreements (as defined below) and fees payable to Administrative Agent and
Lenders that are considered interest expense in accordance with GAAP.  For purposes of the foregoing, total interest
expense shall be determined after giving effect to any net payments made or
received with respect to Interest Rate Agreements.

 

“Consolidated Net Income”
means, for any period, the net income (or loss) of Company and its subsidiaries
on a consolidated basis for such period taken as a single accounting period
determined in conformity with GAAP; provided that there shall be
excluded (i) the income (or loss) of any Person (other than a subsidiary
of Company) in which any other Person (other than Company or any of its
subsidiaries) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to Company or any of its
subsidiaries by such Person during such period, (ii) the income (or loss)
of any Person accrued prior to the date it becomes a subsidiary of Company or
is merged into or consolidated with Company or any of its subsidiaries or that
Person’s assets are acquired by Company or any of its subsidiaries (provided
however that the exclusion in this sub-clause (ii) shall not apply in
connection with the calculation of any financial ratio), (iii) the income
of any subsidiary of Company to the extent that the declaration or payment of dividends
or similar distributions by that subsidiary of that income is not at the time
permitted by operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that subsidiary, (iv) any after-tax gains or
losses attributable to asset sales or returned surplus assets of any employee
benefit plan (other than a multiemployer plan), (v) non-cash gains and
losses attributable to the movement in 

 

14

 

the mark to market valuation of Hedge
Obligations (as defined below) pursuant to Financial Accounting Standards Board
Statement No. 133) and (vi) (to the extent not included in clauses (i) through
(v) above) any net non-cash extraordinary gains or net extraordinary
losses.

 

“Currency Agreement”
means any foreign exchange contract, currency swap agreement, futures contract,
option contract, synthetic cap or other similar agreement or arrangement in
which Company or any of its subsidiaries is a party.

 

“Hedge Obligations”
means any obligation in respect of an Interest Rate Agreement or a Currency
Agreement.

 

“Interest Rate Agreement”
means any interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement or other similar agreement or arrangement to which
Company or any of its subsidiaries is a party.

 

“Transaction Costs”
means the fees, costs and expenses payable by Intermediate Co or any of its
subsidiaries in connection with the transactions contemplated by the Commitment
Letter (including the Acquisition and the financings utilized to consummate the
Acquisition).

 

15

 

SCHEDULE III

 

COVENANTS

 

Maximum Leverage
Ratio:

 

	
  Closing - 3QCY09

  	
   

  	
  <4.75x

  	
   

  
	
  4QCY09 - 3QCY10

  	
   

  	
  <4.50x

  	
   

  
	
  4QCY10 - 3QCY11

  	
   

  	
  <4.00x

  	
   

  
	
  4QCY11 - 3QCY12

  	
   

  	
  <3.50x

  	
   

  
	
  4QCY12 - 3QCY13

  	
   

  	
  <3.00x

  	
   

  
	
  4QCY13 and thereafter

  	
   

  	
  <2.50x

  	
   

  

 

Minimum Fixed
Charge Coverage Ratio:

 

	
  Closing
  and thereafter

  	
   

  	
  1.35x

  	
   

  

 

Maximum Capital
Expenditures:

 

	
  CY2008

  	
   

  	
  $

  	
  17,000,000

  	
   

  
	
  CY2009

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  CY2010

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  CY2011 and anycalendar year thereafter

  	
   

  	
  $

  	
  11,000,000

  	
   

  

 

16

 

ANNEX B 

INITIAL CONDITIONS PRECEDENT

 

The
obligation to make the initial loans under the Senior Credit Facilities is
subject to the satisfaction of the conditions precedent set forth in the
Commitment Letter and on this Annex B) (all terms defined in the Summary of
Terms or in the Commitment Letter to which this Annex B is attached and not
otherwise defined herein having the same meanings when used herein).

 

	
  Transaction
  Structure and Documentation:

  	
  The Transaction shall be consummated in accordance
  in all material respects with the Merger Agreement and no provision of the
  Merger Agreement shall have been amended, supplemented, waived or otherwise
  modified in any manner which is materially adverse to the Lenders without the
  prior written consent of the Lead Arranger.

   

  
	
  Senior
  Credit Facilities Documentation:

  	
  The definitive documentation evidencing the Senior
  Credit Facilities (the “Definitive Senior Financing Documents”) shall
  be prepared by counsel to the Lead Arranger, shall be in form and substance
  consistent with the Commitment Letter (including without limitation the fifth
  paragraph thereof) and shall have been executed and delivered by the Credit
  Parties.  Terms of the Senior Credit
  Facilities not set forth in the Commitment Letter shall be mutually agreed
  upon by the Borrower and the Lead Arranger. 
  Such Definitive Senior Financing Documents shall provide for delivery
  of the following in customary form: legal opinions, officers’ certificates, incumbency certificates, compliance
  certificates, a solvency certificate from an officer of the Company or
  the Acquisition Sub, resolutions, corporate and public records, guaranties, security agreements, mortgage,
  termination statements, IP security interest grants, foreign pledge
  agreements, UCC financing statements, stock certificates, insurance certificates, copies of related
  agreements and evidence of governmental authorizations required by the Merger
  Agreement and shall provide for the use of reasonable efforts by the
  Borrower, upon the request of the Lead Arranger, to obtain a Phase 1
  environmental report.

   

  
	
  Equity
  Contribution:

  	
  Cash on hand of Online shall be contributed as cash
  common equity to the Borrower in at least the amounts described (i) in
  clause (A) (x) of the definition of Financing Scenario 1 or (ii) in
  Financing Scenario 2.  The covenants,
  defaults, remedies and all other terms of the Online Debt (if any) shall be
  reasonably satisfactory to the Lead Arranger (it being acknowledged by the
  Lead Arranger that all terms of the Online Debt described in the Description
  of Notes attached to the Merger Agreement are satisfactory to the Lead
  Arranger).  The covenants,
  defaults, remedies and all other terms of the Alternative Online Debt (if 

  

 

17

 

	
   

  	
  any)
  shall be reasonably satisfactory to the Lead Arranger.  The holders of the
  Online Debt and/or the Alternative Online Debt shall have no recourse to the
  Borrower or its assets for payment of the Online Debt or Alternative Online
  Debt, as the case may be.  The terms and
  conditions of the cash equity contributions to the Borrower (if
  other than common equity or capital contribution) shall be reasonably
  satisfactory to the Lead Arranger. 
  Upon consummation of the Transaction, Online shall, directly or
  indirectly, control Intermediate Co.

   

  
	
  Escrow

  	
  In the event that there is Dissenting Common Stock,
  an escrow or similar arrangement (the “Escrow”) shall have been
  established on terms reasonably satisfactory to the Lead Arranger and
  Online.  The Lead Arranger has been
  instructed by the Borrower to deposit an amount equal to the Cash Merger
  Consideration (as defined in the Merger Agreement) that would have been
  payable in respect of all Dissenting Common Stock (as defined in the Merger
  Agreement) in the Escrow using the term loans that would otherwise have been
  distributed to the Borrower on the Closing Date but for such Dissenting
  Common Stock.  The escrowed term loans
  shall be released from the Escrow on the earlier of (i) the settlement
  or resolution of the appraisal proceedings with respect to any particular
  holder of Dissenting Common Stock in proportion to the amount of Dissenting
  Common Stock for which such resolution or settlement relates and (ii) the
  one year anniversary of the Closing Date.

   

  
	
  Existing
  Debt:

  	
  The Refinancing shall have been consummated, all
  commitments relating thereto shall have been terminated and all liens or
  security interests related thereto shall have been terminated or released.

   

  
	
  Fees
  and Expenses:

  	
  All fees and expenses to be paid on or prior to the
  Closing Date to the Administrative Agent or other Agents, the Lead Arranger
  and the Lenders as set forth in the Commitment Letter and the Fee Letter
  shall have been paid in full.

   

  
	
  Financial
  Statements:

  	
  The Lead Arranger shall have received (i) audited
  consolidated balance sheets and related statements of income, stockholders’
  equity and cash flows of the Company and its subsidiaries for the three most
  recently completed fiscal years ended at least 90 days prior to the Closing
  Date; (ii) unaudited consolidated balance sheets and related statements
  of income, stockholders’ equity and cash flows of the Company and its
  subsidiaries for each subsequent fiscal quarter ended at least 45 days prior
  to the Closing Date and after the most recently completed fiscal year of 

  

 

18

 

	
   

  	
  the Company for which audited financial statements
  have been prepared (but in any event excluding the fourth fiscal quarter of
  any fiscal year of the Company); (iii) a pro  forma
  consolidated balance sheet and related pro forma consolidated statement of
  income of the Borrower and its subsidiaries as of and for the most recently
  completed 12 month period ended at least 30 days prior to the Closing Date as
  if prepared after giving effect to the Transaction (including the financings
  contemplated hereby) as if the Transaction had occurred as of such date (in
  the case of such balance sheet) or at the beginning of such period (in the
  case of such statement of income); and (iv) unaudited consolidated
  balance sheets and related statements of income, stockholder’s equity and
  cash flows of the Company and its subsidiaries for each subsequent calendar
  month ended at least 30 days prior to the Closing Date and after the most
  recently completed fiscal quarter of the Company for which unaudited
  financial statements have been prepared.

   

  
	
  Closing
  Date Certificate:

  	
  On the Closing Date, the Borrower shall deliver to
  the Lead Arranger a Closing Date Certificate signed by the Borrower’s chief
  financial officer, demonstrating in reasonable detail that Closing Date Consolidated Adjusted EBITDA
  of the Company and its subsidiaries for the most recently completed trailing
  12 month period ended at least 30 days prior to the Closing Date for which
  financial statements are available pursuant to clauses (i), (ii) and (iv) of
  “Financial Statements” above of not less than $97,500,000.

   

  
	
  Credit
  Ratings:

  	
  If requested by the Lead Arranger, the Company shall
  use commercially reasonable efforts to obtain, at least 30 days prior to the
  Closing Date, an LT issuer rating from Moody’s Investors Service, Inc.
  and an issuer credit rating from Standard & Poor’s Ratings Service,
  in each case, giving pro forma effect to the consummation of the
  Transaction.  

  

 

19

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