Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.12    
    

 
 

CLASSMATES MEDIA CORPORATION
  STOCK OPTION AGREEMENT    
    

RECITALS  

        A.    The
Corporation has implemented the Plan for the purpose of providing eligible persons in the Corporation's service with the opportunity to participate in one or more
cash or equity incentive compensation programs designed to encourage them to continue their service relationship with the Corporation. 

        B.    Optionee
is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation's grant of an option to Optionee. 

        C.    All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 

        NOW, THEREFORE, it is hereby agreed as follows: 

        1.    Grant of Option.    The Corporation hereby grants to Optionee, as of the Grant Date, an
option to purchase up to the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price. 

        2.    Option Term.    The term of this option shall commence on the Grant Date and continue in
effect until the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6. 

        3.    Limited Transferability.    

        (a)   Except
to the limited extent provided in Paragraph 3(b), this option shall be neither transferable nor assignable by Optionee other than by will or the laws of
inheritance following Optionee's death and may be exercised, during Optionee's lifetime, only by Optionee. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of
this option, and this option shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee's death while holding this option. Such
beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of this Agreement, including (without limitation) the limited time period during which this
option may, pursuant to Paragraph 5, be exercised following Optionee's death. 

        (b)   If
this option is designated a Non-Statutory Option in the Grant Notice, then this option may, with the Plan Administrator's consent, be assigned in whole or
in part during Optionee's lifetime through a gratuitous transfer to one or more of Optionee's Family Members or to a trust established for the exclusive benefit of Optionee and/or one or more such
Family Members. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such assignment. The terms applicable to the
assigned portion shall be the same as those in effect for this option immediately prior to such assignment. 

        4.    Dates of Exercise.    This option shall become exercisable for the Option Shares in one
or more installments in accordance with the Exercise Schedule set forth in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate, and the
option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term under Paragraph 5 or 6. 

 

        5.    Cessation of Service.    The option term specified in Paragraph 2 shall terminate
(and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 

        (a)   Except
as otherwise expressly provided in subparagraphs (b) through (f) of this Paragraph 5, should Optionee cease to remain in Service for any
reason while this option is outstanding, then Optionee (or any person or person to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) shall have a three
(3)-month period measured from the date of such cessation of Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the
time of Optionee's cessation of Service, but in no event shall this option be exercisable at any time after the Expiration Date. 

        (b)   Should
Optionee die while this option is outstanding, then this option may be exercised, for any or all of the Option Shares for which this option is vested and
exercisable at the time of Optionee's death, by (i) the personal representative of Optionee's estate, (ii) the person or persons to whom the option is transferred pursuant to Optionee's
will or the laws of inheritance following Optionee's death or (iii) the person or person to whom this option is transferred pursuant to a permitted transfer under Paragraph 3, as the
case may be. However, if Optionee dies while holding this option and has an effective beneficiary designation in effect for this option at the time of his or her death, then the designated beneficiary
or beneficiaries shall have the exclusive right to exercise this option following Optionee's death. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding,
upon the earlier of (i) the expiration of the twelve (12)-month period measured from the date of Optionee's death or (ii) the Expiration Date. Upon the expiration of such limited
exercise period or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been
exercised. 

        (c)   Should
Optionee cease Service by reason of Permanent Disability while this option is outstanding, then Optionee (or any person or persons to whom this option is
transferred pursuant to a permitted transfer under Paragraph 3) shall have a twelve (12)-month period measured from the date of such cessation of Service during which to exercise this option.
In no event, however, shall this option be exercisable at any time after the Expiration Date. 

        (d)   Should
Optionee's Service terminate by reason of an Involuntary Termination within twelve (12) months following a Change in Control while this option is
outstanding, then this option shall remain outstanding until the earlier of (i) the expiration of the twelve (12) month period measured
from the date of such Involuntary Termination or (ii) the close of business on the Expiration Date. 

        (e)   The
applicable period of post-Service exercisability in effect pursuant to the foregoing provisions of this Paragraph 5 shall automatically be
extended by an additional period of time equal in duration to any interval within such post-Service exercise period during which the exercise of this option or the immediate sale of the
Option Shares acquired under this option cannot be effected in compliance with applicable federal and state securities laws, but in no event shall such an extension result in the continuation of this
option beyond the Expiration Date. 

        (f)    Should
Optionee's Service be terminated for Misconduct, or should Optionee engage in any other conduct, while in Service or following such cessation of Service, that is
materially detrimental to the business or affairs of the Corporation (or any Parent or Subsidiary), as determined in the sole discretion of the Plan Administrator, then this option, whether or not
vested and exercisable, shall terminate immediately and cease to be outstanding. 

2

 

        (g)   During
the limited period of post-Service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for
which this option is at the time vested and exercisable. Except to the extent (if any) specifically authorized by the Plan Administrator pursuant to an express written agreement with the Optionee,
this option shall not vest or become exercisable for any additional Option Shares, whether pursuant to the normal Exercise Schedule specified in the Grant Notice or the special vesting acceleration
provisions of Paragraph 6, following the Optionee's cessation of Service. Upon the expiration of such limited exercise period or (if earlier) upon the Expiration Date, this option shall
terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. 

        6.    Special Acceleration of Option.    

        (a)   This
option, to the extent outstanding at the time of an actual Change in Control but not otherwise fully exercisable, shall automatically accelerate so that this option
shall, immediately prior to the effective date of such Change in Control, become exercisable for all of the Option Shares at the time subject to this option and may be exercised for any or all of
those Option Shares as fully vested shares of Common Stock. However, this option shall not become exercisable on such an accelerated basis, if and to
the extent: (i) this option is to be assumed by the successor corporation (or parent thereof) or is otherwise to continue in full force and effect pursuant to the terms of the Change in Control
transaction or (ii) this option is to be replaced with a cash retention program of the successor corporation which preserves the spread existing at the time of the Change in Control on any
Option Shares for which this option is not otherwise at that time exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and
provides for subsequent payout of that spread in accordance with the same (or more favorable) Exercise Schedule for those Option Shares as set forth in the Grant Notice. 

        (b)   Immediately
following the consummation of the Change in Control, this option shall terminate and cease to be outstanding, except to the extent assumed by the successor
corporation (or parent thereof) or otherwise continued in effect pursuant to the terms of the Change in Control transaction. 

        (c)   If
this option is assumed in connection with a Change in Control or otherwise continued in effect, then this option shall be appropriately adjusted, immediately after
such Change in Control, to apply to the number and class of securities into which the shares of Common Stock subject to this option would have been converted in consummation of such Change in Control
had those shares actually been outstanding at the time. Appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the extent the
actual holders of the Corporation's outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may, in connection
with the assumption or continuation of this option but subject to the Plan Administrator's approval, substitute one or more shares of its own common stock with a fair market value equivalent to the
cash consideration paid per share of Common Stock in such Change in Control, provided such common stock is readily tradable on an established U.S. securities exchange or market. 

        (d)   Immediately
upon an Involuntary Termination of Optionee's Service within twelve (12) months following a Change in Control in which this option is assumed or
otherwise continued in effect, this option, to the extent outstanding at the time but not otherwise fully exercisable, shall automatically accelerate as to a part of the Option Shares so that the
total number of Option Shares for which this option shall be exercisable, after taking such acceleration into account, shall be equal to the greater of
(i) the number of Option Shares for 

3

 

which
this option would have otherwise, in accordance with the normal Exercise Schedule, been exercisable at the time of such Involuntary Termination had Optionee completed twice the amount of Service
actually completed by him or her at the time of such Involuntary Termination (but in no event shall the number of Option Shares for which this option becomes exercisable on such an accelerated basis
exceed the number of Option Shares for which this option is not otherwise exercisable at the time of such Involuntary Termination in accordance with the normal Exercise Schedule) or (ii) the
number of Option Shares for which the Option would otherwise be exercisable at such time under the normal Exercise Schedule had Optionee actually completed twelve (12) months of Service prior
to his or her Involuntary Termination. The balance credited to any cash retention program maintained for Optionee pursuant to Paragraph 6(a) at the time of his or her Involuntary Termination
within twelve (12) months following a Change in Control shall also vest and become immediately payable on a partially-accelerated basis in accordance with the same vesting-acceleration formula
set forth above for the Option Shares. 

        (e)   This
Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

        7.    Adjustment in Option Shares.    Should any change be made to the Common Stock by reason
of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares, spin-off transaction, or other change affecting the outstanding Common Stock as a class
without the Corporation's receipt of consideration, or should the value of outstanding shares of Common Stock be substantially reduced as a result of a spin-off transaction or an
extraordinary dividend or distribution, or should there occur any merger, consolidation or other reorganization, then equitable
adjustments shall be made by the Plan Administrator to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price. The adjustments shall be made
in such manner as the Plan Administrator deems appropriate in order to reflect such change and thereby prevent the dilution or enlargement of benefits hereunder, and those adjustments shall be final,
binding and conclusive upon Optionee and any other person or persons having an interest in the option. In the event of any Change in Control transaction, the adjustment provisions of
Paragraph 6(c) shall be controlling. 

        8.    Stockholder Rights.    The holder of this option shall not have any stockholder rights
with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares. 

        9.    Manner of Exercising Option.    

        (a)   In
order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or
persons exercising the option) must take the following actions: 

          (i)  Execute
and deliver to the Corporation a Notice of Exercise as to the Option Shares for which the option is exercised or comply with such other procedures as the
Corporation may establish for notifying the Corporation of the exercise of this option for one or more Option Shares. 

         (ii)  Pay
the aggregate Exercise Price for the purchased shares in one or more of the following forms: 

        (A)  cash
or check made payable to the Corporation; 

        (B)  shares
of Common Stock (whether delivered in the form of actual stock certificates or through attestation of ownership in a manner reasonably satisfactory to 

4

 

the
Corporation) held for the requisite period (if any) necessary to avoid any resulting charge to the Corporation's earnings for financial reporting purposes and valued at Fair Market Value on the
Exercise Date; or 

        (C)  through
a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall concurrently provide irrevocable
instructions (i) to a brokerage
firm (reasonably satisfactory to the Corporation for purposes of administering such procedure in accordance with the Corporation's pre-clearance/pre-notification policies) to
effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price
payable for the purchased shares plus all applicable Withholding Taxes required to be withheld by the Corporation by reason of such exercise and (ii) to the Corporation to deliver the
certificates for the purchased shares directly to such brokerage firm on such settlement date in order to complete the sale. 

        Except
to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Notice of Exercise (or other
notification procedure) delivered to the Corporation in connection with the option exercise. 

        (iii)  Furnish
to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 

        (iv)  Make
appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state and local income
and employment tax withholding requirements applicable to the option exercise. 

        (b)   As
soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or any other person or persons exercising this option) a
certificate for the purchased Option Shares (either in paper or electronic form), with the appropriate legends affixed thereto. 

        (c)   In
no event may this option be exercised for any fractional shares. 

        10.    Compliance with Laws and Regulations.    

        (a)   The
exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation and Optionee with all applicable
requirements of law relating thereto and with all applicable regulations of any Stock Exchange on which the Common Stock may be listed for trading at the time of such exercise and issuance. 

        (b)   The
inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale
of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not
have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 

        11.    Successors and Assigns.    Except to the extent otherwise provided in Paragraphs 3 and
6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee's assigns, the legal representatives,
heirs and legatees of Optionee's estate and any beneficiaries of this option designated by Optionee. 

5

 

        12.    Notices.    Any notice required to be given or delivered to the Corporation under the
terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall either be in writing and
addressed to Optionee at the address indicated below Optionee's signature line on the Grant Notice or shall be delivered electronically to Optionee through the Corporation's electronic mail system.
All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified, or (with respect to notices to
Optionee) upon delivery through the Corporations electronic mail system. 

        13.    Construction.    This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in this option. 

        14.    Governing Law.    The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of Delaware without resort to that State's conflict-of-laws rules. 

        15.    Excess Shares.    If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued under the Plan, then this option shall be void with respect to those excess shares, unless stockholder
approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event shall the Option be
exercisable with respect to any of the excess Option Shares unless and until such stockholder approval is obtained. 

        16.    Employment at Will.    Nothing in this Agreement or in the Plan shall confer upon
Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or
retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee's Service at any time for any reason, with or without cause. 

        17.    Additional Terms Applicable to an Incentive Option.    In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also apply to the grant: 

        (a)   This
option shall cease to qualify for favorable tax treatment as an Incentive Option if (and to the extent) this option is exercised for one or more Option Shares:
(A) more than three (3) months after the date Optionee ceases to be an Employee for any reason other than death or Permanent Disability or (B) more than twelve (12) months
after the date Optionee ceases to be an Employee by reason of Permanent Disability. 

        (b)   No
installment under this option shall qualify for favorable tax treatment as an Incentive Option if (and to the extent) the aggregate Fair Market Value (determined at
the Grant Date) of the Common Stock for which such installment first becomes exercisable hereunder would, when added to the aggregate value (determined as of the respective date or dates of grant) of
the Common Stock or other securities for which this option or any other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the
Corporation or any Parent or Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should such One Hundred Thousand
Dollar ($100,000) limitation be exceeded in any calendar year, this option shall nevertheless become exercisable for the excess shares in such calendar year as a Non-Statutory Option. 

6

 

        (c)   Should
the exercisability of this option be accelerated upon a Change in Control, then this option shall qualify for favorable tax treatment as an Incentive Option only
to the extent the aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this option first becomes exercisable in the calendar year in which the Change in Control
transaction occurs does not, when added to the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or other securities for which this option or one or more
other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or Subsidiary) first become exercisable during the
same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should the applicable One Hundred Thousand Dollar ($100,000) limitation be exceeded in the calendar year of such
Change in Control, the option may nevertheless be exercised for the excess shares in such calendar year as a Non-Statutory Option. 

        (d)   Should
Optionee hold, in addition to this option, one or more other options to purchase Common Stock which become exercisable for the first time in the same calendar
year as this option, then for purposes of the foregoing limitations on the exercisability of such options as Incentive Options, this option and each of those other options shall be deemed to become
first exercisable in that calendar year, on the basis of the chronological order in which such options were granted, except to the extent otherwise provided under applicable law or regulation. 

7

   APPENDIX  

        The
following definitions shall be in effect under the Agreement: 

        A.    Agreement shall mean this Stock Option Agreement. 

        B.    Board shall mean the Corporation's Board of Directors. 

        C.    Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 

          (i)  a
merger, consolidation or reorganization approved by the Corporation's stockholders, unless (a) securities
representing more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the successor corporation are immediately thereafter beneficially owned, directly
or indirectly, by the person or persons who beneficially owned fifty percent (50%) or more of the Corporation's outstanding voting securities immediately prior to such transaction or (b) the
merger, consolidation or reorganization is with or into United Online, Inc. or any entity that directly or indirectly controls, is controlled by or is under common control with, United
Online, Inc.; 

         (ii)  any
stockholder-approved transfer or other disposition of all or substantially all of the Corporation's assets (other than to United Online, Inc. or any entity
that directly or indirectly controls, is controlled by or is under common control with, United Online, Inc.); 

        (iii)  the
closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a "group" within the meaning of
Rule 13d-5(b)(1) of the 1934 Act (other than United Online, Inc. or the Corporation or any other person that, prior to such transaction or series of related transactions,
directly or indirectly controls, is controlled by or is under common control with, United Online Inc. or the Corporation) becomes directly or indirectly (whether as
a result of a single acquisition or by reason of one or more acquisitions within the twelve (12)-month period ending with the most recent acquisition) the beneficial owner (within the meaning of
Rule 13d-3 of the 1934 Act) of (A) securities possessing (or convertible into or exercisable for securities possessing) thirty three and one third percent
(331/3%) or more of the total combined voting power of all of the Corporation's outstanding securities (as measured in terms of the power to vote with respect to the election of Board
members) or (B) securities representing thirty three and one third percent (331/3%) or more of the aggregate market value of all of the Corporation's outstanding capital stock,
measured in each instance immediately after the consummation of such transaction or series of related transactions and whether such transaction or transactions involve a direct issuance from the
Corporation or the acquisition of outstanding securities held by one or more of the Corporation's existing stockholders, including an indirect acquisition of those securities effected through an
acquisition of United Online, Inc., by merger, consolidation or sale of all or substantially all of its assets or outstanding capital stock at a time when United Online, Inc. is the
Parent of the Corporation; or 

        (iv)  a
change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members
ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period
or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the
time the Board approved such election or nomination. 

        In
no event, however, shall a Change in Control be deemed to occur as a result of a spin-off distribution by United Online, Inc of all or any portion of the Corporation's
outstanding securities held 

A-1

 

by
United Online, Inc. to its existing stockholders in proportion to their holdings of United Online, Inc. capital stock. 

        D.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        E.    Common Stock shall mean shares of the Corporation's Class A common stock. 

        F.     Corporation shall mean Classmates Media Corporation, a Delaware corporation, and any successor corporation to all or
substantially all of the assets or voting stock of Classmate Media Corporation which shall by appropriate action adopt the Plan. 

        G.    Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the
control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 

        H.    Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of
the Agreement. 

        I.     Exercise Price shall mean the exercise price per Option Share as specified in the Grant Notice. 

        J.     Exercise Schedule shall mean the schedule set forth in the Grant Notice pursuant to which the option is to become
exercisable for the Option Shares in one or more installments over the Optionee's period of Service. 

        K.    Expiration Date shall mean the date on which the option expires as specified in the Grant Notice. 

        L.    Fair Market Value per share of Common Stock on any relevant date shall be the closing selling price per share of Common
Stock at the close of regular hours trading (i.e., before after-hours trading beings) on date in question on the Stock Exchange serving as the primary market for the Common Stock, as such price is
reported by the National Association of Securities Dealers (if primarily traded on the Nasdaq Global or Global Select Market) or as officially quoted in the composite tape of transactions on any other
Stock Exchange on which the Common Stock is then primarily traded. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation exists. 

        M.   Family Member shall mean any of the following members of Optionee's family: any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law. 

        N.    Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 

        O.    Grant Notice shall mean the Notice of Grant of Stock Option informing Optionee of the basic terms of the option subject to
this Agreement. 

        P.     Involuntary Termination shall mean the termination of Participant's Service by reason of: 

          (i)  Optionee's
involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or 

         (ii)  Optionee's
voluntary resignation following (A) a material reduction in the scope of his or her day-to-day responsibilities with the
Corporation (or any Parent or Subsidiary), it being understood that a change in such individual's title shall not, in and of itself, be deemed a material reduction, (B) a material reduction in
Optionee's base salary, which shall be deemed to occur if such reduction is more than fifteen percent (15%), or (C) a material relocation of Participant's principal place of employment, which
shall be deemed to occur if such relocation is more than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the Corporation (or any Parent or Subsidiary)
without Optionee's consent and Optionee's resignation occurs after 

A-2

 

providing
the Corporation with notice of the event or events constituting grounds for an Involuntary Termination pursuant to this subparagraph (ii) and the Corporation's failure to remedy such
event or events after a cure period of thirty (30) days following the delivery of such notice. 

        Q.    Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by Optionee, any unauthorized use or
disclose by Optionee of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by Optionee adversely affecting the business or
affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way prelude or restrict the right of the Corporation (or any Parent or
Subsidiary) to discharge or dismiss Optionee or any other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omission, but such other acts or omissions shall
not be deemed, for purposes of the Plan, to constitute grounds for termination for Misconduct. 

        R.    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

        S.     Notice of Exercise shall mean the notice of option exercise in the form prescribed by the Corporation. 

        T.     Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the Grant Notice. 

        U.    Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

        V.     Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        W.    Permanent Disability shall mean the inability of Optionee to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which is expected to result in death or to be of continuous duration of twelve (12) months or more. 

        X.    Plan shall mean the Corporation's 2007 Incentive Compensation Plan. 

        Y.    Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the
Plan. 

        Z.    Service shall mean Optionee's performance of services for the Corporation (or any Parent or Subsidiary, whether now
existing or subsequently established) in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor. However, Optionee shall be
deemed to cease Service immediately upon the occurrence of either of the following events: (i) Optionee no longer performs services in any of the foregoing capacities for the Corporation or any
Parent or Subsidiary or (ii) the entity for which Optionee is performing such services ceases to remain a Parent or Subsidiary of the Corporation, even though the Optionee may subsequently
continue to perform services for that entity. Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Corporation. However, except to
the extent otherwise required by law or expressly authorized by the Plan Administrator or by the Corporation's written policy on leaves of absence, no Service credit shall be given for vesting
purposes for any period the Optionee is on a leave of absence. 

        AA. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock
Exchange. 

A-3

 

        BB.  Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

        CC. Withholding Taxes shall mean the federal, state and local income taxes and the employee portion of the federal, state and
local employment taxes required to be withheld by the Corporation in connection with the exercise of the option. 

A-4

QuickLinks

Exhibit 10.12

CLASSMATES MEDIA CORPORATION STOCK OPTION AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.13    
    

 
 

CLASSMATES MEDIA CORPORATION    
    
    RESTRICTED STOCK UNIT ISSUANCE AGREEMENT    
    

RECITALS  

        A.    The
Board has adopted the Plan for the purpose of retaining the services of selected Employees and consultants and other independent advisors who provide services to the
Corporation (or any Parent or Subsidiary). 

        B.    Participant
is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation's issuance of shares of Common Stock to the Participant under the Stock Issuance Program. 

        C.    All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix A. 

NOW, THEREFORE, it is hereby agreed as follows: 

        1.    Grant of Restricted Stock Units.    The Corporation hereby awards to the Participant, as
of the Award Date, Restricted Stock Units under the Plan. Each Restricted Stock Unit represents the right to receive one share of Common Stock on the vesting date of that unit. The number of shares of
Common Stock subject to the awarded Restricted Stock Units, the applicable vesting schedule for those shares, the dates on which those vested shares shall become issuable to Participant and the
remaining terms and conditions governing the award (the "Award") shall be as set forth in this Agreement. 

AWARD SUMMARY  

	Participant:	 	                                        
                    
	

Award Date:	
 	

                                        ,
200            
	

Number of Shares Subject to Award:	
 	

            shares of Common Stock (the "Shares")
	

Vesting Schedule:	
 	

The Shares shall vest in a series of installments over the Participant's continued Service as follows: (i) twenty five percent (25%) of the Shares shall vest upon the Participant's completion of one (1) year of service measured from the Award
Date and (ii) the balance of the Shares shall vest in a series of twelve (12) successive equal quarterly installments upon the Participant's completion of each successive three (3)-month period of Service over the three (3) year period measured
from the first anniversary of the Award Date. However, one or more Shares may be subject to accelerated vesting in accordance with the provisions of Paragraph 5 of this Agreement.
	

Issuance Schedule	
 	

Each Share in which the Participant vests in accordance with the foregoing Vesting Schedule shall be issued on the date that Share vests or as soon thereafter as administratively practicable, but in no event later than the later of (i) the close of the calendar year in which that Share vests or (ii) the fifteenth day of the third calendar month following such vesting date (the "Issuance Date"). The Corporation shall collect the
applicable Withholding Taxes with respect to the issued Shares pursuant to the procedures set forth in Paragraph 7 of this Agreement.

 

        2.    Limited Transferability.    Prior to actual receipt of the Shares which vest hereunder,
the Participant may not transfer any interest in the Award or the underlying Shares. Any Shares which vest hereunder but which otherwise remain unissued at the time of the Participant's death may be
transferred pursuant to the provisions of the Participant's will or the laws of inheritance or to the Participant's designated beneficiary or beneficiaries of this Award. The Participant may also
direct the Corporation to immediately re-issue the stock certificates for any Shares which in fact vest and become issuable to Participant under the Award during his or her lifetime to one
or more designated Family Members or a trust established for the Participant and/or his or her Family Members. The Participant may make such a beneficiary designation or certificate directive at any
time by filing the appropriate form with the Plan Administrator or its designee. 

        3.    Cessation of Service.    Except as otherwise provided in Paragraph 5 below,
should the Participant cease Service for any reason prior to vesting in one or more Shares subject to this Award, then the Award will be immediately cancelled with respect to those unvested Shares,
and the number of Restricted Stock Units will be reduced accordingly. The Participant shall thereupon cease to have any right or entitlement to receive any Shares under those cancelled units. 

        4.    Stockholder Rights and Dividend Equivalents    

        (a)   The
holder of this Award shall not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the Shares subject to the Award until
the Participant becomes the record holder of those Shares upon their actual issuance following the Corporation's collection of the applicable Withholding Taxes. 

        (b)   Notwithstanding
the foregoing, should any dividend or other distribution, whether regular or extraordinary and whether payable in cash, securities (other than Common
Stock) or other property, be declared and paid on the outstanding Common Stock while one or more Shares remain subject to this Award (i.e., those Shares are not otherwise issued and outstanding for
purposes of entitlement to the dividend or distribution), then the following provisions shall govern the Participant's interest in that dividend or distribution: 

          (i)  If
the dividend is a regularly-scheduled cash dividend on the Common Stock, then the Participant shall be entitled to a current cash distribution from the Corporation
equal to the cash dividend the Participant would have received with respect to the Shares at the time subject to this Award had those Shares actually been issued and outstanding and entitled to that
cash dividend. Each cash dividend equivalent under this subparagraph (i) shall be paid to Participant within five (5) business day following the payment of the actual cash dividend on
the outstanding Common Stock, subject to the
Corporation's collection of all applicable federal, state and local income and employment withholding taxes. 

         (ii)  For
any other dividend or distribution, a special book account shall be established for the Participant and credited with a phantom dividend equivalent to the actual
dividend or distribution which would have been paid on the Shares at the time subject to this Award had they been issued and outstanding and entitled to that dividend or distribution. As the Shares
subsequently vest hereunder, the phantom dividend equivalents so credited to those Shares in the book account shall vest and be distributed to the Participant (in the same form the actual dividend or
distribution was paid to the holders of the Common Stock entitled to that dividend or distribution) concurrently with the issuance of the vested Shares to which those phantom dividend equivalents
relate. However, each such distribution shall be subject to the Corporation's collection of the Withholding Taxes applicable to that distribution. 

2

 

        5.    Change of Control.    

        (a)   Any
Restricted Stock Units subject to this Award at the time of a Change in Control may be assumed by the successor entity or otherwise continued in full force and
effect or may be replaced with a cash retention program of the successor entity which preserves the Fair Market Value of the unvested shares of Common Stock subject to the Award at the time of the
Change in Control and provides for subsequent payout of that value in accordance with the same vesting and issuance schedules applicable to the Award. In the event of such assumption or continuation
of this Award or such replacement of the Award with a cash retention program, no accelerated vesting of the Restricted Stock Units shall occur at the time of the Change in Control. 

        (b)   In
the event this Award is assumed or otherwise continued in effect, the Restricted Stock Units subject to the Award shall be adjusted immediately after the consummation
of the Change in Control so as to apply to the number and class of securities into which the Shares subject to those units immediately prior to the Change in Control would have been converted in
consummation of that Change in Control had those Shares actually been issued and outstanding at that time. To the extent the actual holders of the outstanding Common Stock receive cash consideration
for their Common Stock in consummation of the Change in Control, the successor corporation (or parent entity) may, in connection with the assumption or continuation of the Restricted Stock Units
subject to the Award at that time and with the approval of the Plan Administrator, substitute one or more shares of its own common stock with a fair market value equal to the cash consideration paid
per share of Common Stock in the Change in Control transaction, provided the substituted common stock is readily tradable on an established U.S. securities exchange or market. 

        (c)   Any
Restricted Stock Units which are assumed or otherwise continued in effect in connection with a Change in Control or replaced with a cash retention program under
Paragraph 5(a) shall be subject to accelerated vesting in accordance with the following provisions: 

	•
	Should
an Involuntary Termination of the Participant's Service occur within twelve (12) months after the Change in Control event, then the Participant shall
immediately vest in an additional number of Shares (or an additional portion of his or her cash retention balance related to those Shares) equal to the  greater of (i) twenty-five percent
(25%) of the total number of Shares subject to this Award or (ii) the additional number of
Shares in which the Participant would have been vested at the time of such Involuntary Termination had he or she completed an additional period of Service equal in duration to the actual period of
Service completed by the Participant between the Award Date and the date of such Involuntary Termination and the Shares subject to this Award had vested in forty eight (48) successive equal monthly
installments over the duration of the Vesting Schedule. In no event, however, shall the number of Shares which vest on such an accelerated basis exceed the number of Shares unvested immediately prior
to the date of the Participant's Involuntary Termination. The Shares which so vest (or the portion of the cash retention balance which so vests) shall be issued or distributed to the Participant
within fifteen (15) business days following the date of such Involuntary Termination. 

        (d)   If
the Restricted Stock Units subject to this Award at the time of the Change in Control are not assumed or otherwise continued in effect or replaced with a cash
retention program in accordance with Paragraph 5(a), then those units will vest immediately prior to the closing of the Change in Control. The Shares subject to those vested units will be
issued immediately upon the effective date of such Change in Control or as soon as administratively 

3

 

practicable
thereafter, but in no event more than fifteen (15) business days after the effective date of the Change in Control, or will otherwise be converted into the right to receive the same
consideration per share of Common Stock payable to the holders of the Corporation's Common Stock in consummation of the Change in Control and distributed at the same time as such stockholder payments,
but in no event shall the distribution to Participant be completed later than the later of (i) the close of the calendar year in which the Change
in Control is effected or (ii) the fifteenth day of the third calendar month following the effective date of that Change in Control. 

        (e)   This
Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

        6.    Adjustment in Shares.    Should any change be made to the Common Stock by reason of any
stock split, stock dividend, recapitalization, combination of shares, exchange of shares, spin-off transaction or other change affecting the outstanding Common Stock as a class without the
Corporation's receipt of consideration, or should the value of outstanding shares of Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary
dividend or distribution, or should there occur any merger, consolidation or other reorganization, then equitable adjustments shall be made by the Plan Administrator to the total number and/or class
of securities issuable pursuant to this Award in order to reflect such change and thereby prevent a dilution or enlargement of benefits hereunder. In making such equitable adjustments, the Plan
Administrator shall take into account any amounts distributed to Participant or credited to the Participant's book account under Paragraph 4(b) in connection with the transaction, and the
determination of the Plan Administrator shall be final, binding and conclusive. In the event of a Change in Control, the provisions of Paragraph 5 shall be controlling. 

        7.    Issuance of Shares of Common Stock.    

        (a)   Except
as otherwise provided in Paragraph 5, on the applicable Issuance Date under Paragraph 1, the Corporation shall issue to or on behalf of Participant
a certificate (which may be in electronic form) for the vested shares of Common Stock to be issued on that date and shall concurrently distribute to the Participant any phantom dividend equivalents
with respect to those Shares. The Corporation shall collect the Withholding Taxes with respect to the distributed phantom dividend equivalents by withholding a portion of that distribution equal to
the amount of the applicable Withholding Taxes, with the cash portion of the distribution to be the first portion so withheld. Until such time as the Corporation provides the Participant with notice
to the contrary, the Corporation shall collect the Withholding Taxes with respect to the vested Shares through an automatic Share withholding procedure pursuant to which the Corporation will withhold,
immediately as the Shares vest under the Award, a portion of those vested Shares with a Fair Market Value (measured as of the vesting date) equal to the amount of such Withholding Taxes (the "Share
Withholding Method"); provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy the Corporation's
required tax withholding obligations using the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to supplemental taxable income.
Participant shall be notified (either in writing or through the Corporation's electronic mail system) in the event such Share Withholding Method is no longer available. 

4

 

        (b)   Should
any Shares vest under the Award at time the Share Withholding Method is not available, then the Withholding Taxes shall be collected from the Participant through
either of the following alternatives: 

	•
	the
Participant's delivery of his or her separate check payable to the Corporation in the amount of such Withholding Taxes, or

	•
	the
use of the proceeds from a next-day sale of the Shares issued to the Participant, provided and only if (i) such a sale is permissible under the
Corporation's insider trading policies governing the sale of Common Stock, (ii) the Participant makes an irrevocable commitment, on or before the vesting date for those Shares, to effect such
sale of the Shares and (iii) the transaction is not otherwise deemed to constitute a prohibited loan under Section 402 of the Sarbanes-Oxley Act of 2002. 

        (c)   Except
as otherwise provided in Paragraph 5 or Paragraph 7(a), the settlement of all Restricted Stock Units which vest under the Award shall be made solely
in shares of Common Stock. In no event, however, shall any fractional shares be issued. Accordingly, the total number of shares of Common Stock to be issued at the time the Award vests shall, to the
extent necessary, be rounded down to the next whole share in order to avoid the issuance of a fractional share. 

        8.    Compliance with Laws and Regulations.    The issuance of shares of Common Stock pursuant
to the Award shall be subject to compliance by the Corporation and Participant with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange on
which the Common Stock may be listed for trading at the time of such issuance. 

        9.    Notices.    Any notice required to be given or delivered to the Corporation under the
terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices and directed to the attention of the Stock Plan Administrator. Any notice required to be
given or delivered to Participant shall be in writing and addressed to Participant at the address on record with the Corporation. An email to the email address of Participant on record with the
Corporation shall be deemed to be written notice. All notices shall be deemed effective upon personal delivery, upon sending of an email or upon deposit in the U.S. mail, postage prepaid and properly
addressed to the party to be notified. 

        10.    Successors and Assigns.    Except to the extent otherwise provided in this Agreement,
the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Participant, Participant's assigns, the legal representatives,
heirs and legatees of Participant's estate and any beneficiaries of the Award designated by Participant. 

        11.    Construction.    This Agreement and the Award evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in the Award. 

        12.    Governing Law.    The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State's conflict-of-laws rules. 

        13.    Employment at Will.    Nothing in this Agreement or in the Plan shall confer upon
Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing
or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to terminate Participant's Service at any time for any reason, with or without cause. 

5

 

        IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first indicated above. 

	 	 	CLASSMATES MEDIA CORPORATION
	

 	
 	

By:	

 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	

    	 	 	 
	 	 	PARTICIPANT
	

 	
 	

Signature:	

 
	 	 	 	

	 	 	Address:	 
	 	 	 	

	    	 	    	 
	 	 	 	

6

   APPENDIX A  

DEFINITIONS  

        The following definitions shall be in effect under the Agreement: 

        A.    Agreement shall mean this Restricted Stock Unit Issuance Agreement. 

        B.    Award shall mean the award of restricted stock units made to the Participant pursuant to the terms of this Agreement. 

        C.    Award Date shall mean the date the restricted stock units are awarded to Participant pursuant to the Agreement and shall
be the date indicated in Paragraph 1 of the Agreement. 

        D.    Board shall mean the Corporation's Board of Directors. 

        E.    Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 

          (i)  a
merger, consolidation or reorganization approved by the Corporation's stockholders, unless (a) securities
representing more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the successor corporation are immediately thereafter beneficially owned, directly
or indirectly, by the person or persons who beneficially owned fifty percent (50%) or more of the Corporation's outstanding voting securities immediately prior to such transaction or (b) the
merger, consolidation or reorganization is with or into United Online, Inc. or any entity that directly or indirectly controls, is controlled by or is under common control with, United
Online, Inc.; 

         (ii)  any
stockholder-approved transfer or other disposition of all or substantially all of the Corporation's assets (other than to United Online, Inc. or any entity
that directly or indirectly controls, is controlled by or is under common control with, United Online, Inc.); 

        (iii)  the
closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a "group" within the meaning of
Rule 13d-5(b)(1) of the 1934 Act (other than United Online, Inc. or the Corporation or any other person that, prior to such transaction or series of related transactions,
directly or indirectly controls, is controlled by or is under common control with, United Online Inc. or the Corporation) becomes directly or indirectly (whether as a result of a single
acquisition or by reason of one or more acquisitions within the twelve (12)-month period ending with the most recent acquisition) the beneficial owner (within the meaning of
Rule 13d-3 of the 1934 Act) of (A) securities possessing (or convertible into or exercisable for securities possessing) thirty three and one third percent
(331/3%) or more of the total combined voting power of all of the Corporation's outstanding securities (as measured in terms of the power to vote with respect to the election of Board
members) or (B) securities representing thirty three and one third percent (331/3%) or more of the aggregate market value of all of the Corporation's outstanding capital stock,
measured in each instance immediately after the consummation of such transaction or series of related transactions and whether such transaction or transactions involve a direct issuance from the
Corporation or the acquisition of outstanding securities held by one or more of the Corporation's existing stockholders, including an indirect acquisition of those securities effected through an
acquisition of United Online, Inc., by merger, consolidation or sale of all or substantially all of its assets or outstanding capital stock at a time when United Online, Inc. is the
Parent of the Corporation; or 

        (iv)  a
change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members
ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period
or (B) have been elected or 

A-1

 

nominated
for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such
election or nomination. 

        In
no event, however, shall a Change in Control be deemed to occur as a result of a spin-off distribution by United Online, Inc of all or any portion of the Corporation's
outstanding securities held by United Online, Inc. to its existing stockholders in proportion to their holdings of United Online, Inc. capital stock. 

        F.     Code shall mean the Internal Revenue Code of 1986, as amended. 

        G.    Common Stock shall mean shares of the Corporation's Class A common stock. 

        H.    Corporation shall mean Classmates Media Corporation, a Delaware corporation, and any successor corporation to all or
substantially all of the assets or voting stock of Classmates Media Corporation which shall by appropriate action adopt the Plan. 

        I.     Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the
control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 

        J.     Fair Market Value per share of Common Stock on any relevant date shall be the closing selling price per share of Common
Stock at the close of regular hours trading (i.e., before after-hours trading begins) on date on question on the Stock Exchange serving as the primary market for the Common Stock, as such price is
reported by the National Association of Securities Dealers (if primarily traded on the Nasdaq Global or Global Select Market) or as officially quoted in the composite tape of transactions on any other
Stock Exchange on which the Common Stock is then primarily traded. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation exists. 

        K.    Family Members shall mean, with respect to the Participant, any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law. 

        L.    Involuntary Termination shall mean the termination of Participant's Employee status by reason of: 

          (i)  Participant's
involuntary dismissal or discharge by the Corporation (or any Parent or Subsidiary) for reasons other than Misconduct, or 

         (ii)  Participant's
voluntary resignation following (A) a material reduction in the scope of his or her day-to-day responsibilities with the
Corporation (or any Parent or Subsidiary), it being understood that a change in such individual's title shall not, in and of itself, be deemed a material reduction, (B) a material reduction in
Participant's base salary, which shall be deemed to occur if such reduction is more than fifteen percent (15%), or (C) a material relocation of Participant's principal place of employment,
which shall be deemed to occur if such relocation is more than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the Corporation (or any Parent or
Subsidiary) without Participant's consent. 

        M.   Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by Participant, any unauthorized use
or disclosure by Participant of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary) or any other intentional misconduct by Participant adversely affecting the
business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any
Parent or Subsidiary) to discharge or dismiss Participant or any other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such 

A-2

 

other
acts or omissions shall not be deemed, for purposes of this Agreement, to constitute grounds for termination for Misconduct. 

        N.    1934 Act shall mean the Securities Exchange Act of 1934, as amended from time to time. 

        O.    Participant shall mean the person to whom the Award is made pursuant to the Agreement. 

        P.     Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        Q.    Plan shall mean the Corporation's 2007 Incentive Compensation Plan, as amended and restated. 

        R.    Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the
Plan. 

        S.     Service shall mean the Participant's performance of services for the Corporation (or any Parent or Subsidiary) in the
capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor. For purposes of this Agreement, Participant shall be deemed to cease
Service immediately upon the occurrence of the either of the following events: (i) Participant no longer performs services in any of the foregoing capacities for the Corporation (or any Parent
or Subsidiary) or (ii) the entity for which Participant performs such services ceases to remain a Parent or Subsidiary of the Corporation, even though Participant may subsequently continue to
perform services for that entity. Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Corporation;  provided, however, that
except to the extent otherwise required by law or expressly authorized by the Plan Administrator or by the Corporation's written
policy on leaves of absence, no Service credit shall be given for vesting purposes for any period the Participant is on a leave of absence. 

        T.     Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock
Exchange. 

        U.    Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the
Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

        V.     Withholding Taxes shall mean the federal, state and local income taxes and the employee portion of the federal, state and
local employment taxes required to be withheld by the Corporation in connection with the issuance of the shares of Common Stock which vest under of the Award and any phantom dividend equivalents
distributed with respect to those shares. 

A-3

 
 

IPO GRANT
  NON-EMPLOYEE BOARD MEMBER    
    

 
 

CLASSMATES MEDIA CORPORATION
  RESTRICTED STOCK UNIT AWARD AGREEMENT    
    

RECITALS  

        A.    The
Corporation has implemented an automatic award program under the Plan pursuant to which eligible non-employee Board members will automatically receive
special awards of restricted stock units at periodic intervals over their period of Board service in order to provide such individuals with a meaningful incentive to continue to serve as members of
the Board. 

        B.    Participant
is an eligible non-employee Board member, and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in
connection with the award of restricted stock units under the Automatic Grant Program. 

        C.    All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix A. 

        NOW, THEREFORE, it is hereby agreed as follows: 

        1.    Grant of Restricted Stock Units.    The Corporation hereby awards to Participant, as of
the Award Date, an award (the "Award") of restricted stock units under the Automatic Grant Program. Each restricted stock unit represents the right to receive one share of Common Stock on the
designated issuance date following the vesting of that unit. The number of shares of Common Stock subject to the awarded restricted stock units, the applicable vesting schedule for the restricted
stock units and the underlying shares, the dates on which those vested shares shall be issued to Participant and the remaining terms and conditions governing the Award shall be as set forth in this
Agreement. 

AWARD SUMMARY  

	Participant	 	                                        
                    
	

Award Date:	
 	

                                        ,
2007
	

Number of Shares Subject to Award:	
 	

            shares of Common Stock (the "Shares")
	

Vesting Schedule:	
 	

One third of the Shares shall vest upon the Participant's continuation in Board service through February 15, 2008, and the remaining Shares shall vest in two (2) successive equal annual installments upon the Participant's completion of each
additional year of Board service over the two (2)-year period measured from February 15, 2008. The Shares may vest in whole or in part on an accelerated basis in accordance with the provisions of Paragraphs 3 and 5 of this Agreement.
	

Issuance Schedule:	
 	

Any Shares which vest on February 15, 2008 shall be issued on August 15, 2008 or as soon thereafter as administratively practicable, and any other Share which vests in accordance with the foregoing Vesting Schedule shall be issued on the date that
Share vests or as soon thereafter as administratively practicable, but in no event shall any Share which vests hereunder be issued later than the later of (i) the close of the calendar year in which that
Share vests or (ii) the fifteenth day of the third calendar month following such vesting date (the "Issuance Date").

 

        2.    Limited Transferability.    Prior to the actual issuance of the Shares which vest
hereunder, Participant may not transfer any interest in the restricted stock units subject to the Award or the underlying Shares or pledge or otherwise hedge the sale of those units or Shares,
including (without limitation) any short sale or any acquisition or disposition of any put or call option or other instrument tied to the value of those Shares. However, any Shares which vest
hereunder but otherwise remain unissued at the time of Participant's death may be transferred pursuant to the provisions of Participant's will or the laws of inheritance or to Participant's designated
beneficiary or beneficiaries of this Award. Participant may also direct the Corporation to immediately re-issue the stock certificates for any Shares which in fact vest and become issuable
to Participant hereunder to one or more designated Family Members or a trust established for Participant and/or his or her Family Members. Participant may make such a beneficiary designation or
certificate directive at any time by filing the appropriate form with the Plan Administrator or its designee. 

        3.    Cessation of Service.    The restricted stock units subject to this Award shall
immediately vest in full upon Participant's cessation of Board service by reason of death or Permanent Disability. Should Participant cease Board service for any other reason prior to vesting in all
the Shares subject to this Award, then the Award will be immediately cancelled with respect to those unvested Shares, and the number of restricted stock units will be reduced accordingly. Participant
shall thereupon cease to have any right or entitlement to receive any Shares under those cancelled units. 

        4.    Stockholder Rights and Dividend Equivalents    

        (a)   Participant
shall not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the Shares subject to the Award until Participant
becomes the record holder of those Shares upon their actual issuance. 

        (b)   Notwithstanding
the foregoing, should any dividend or other distribution, whether regular or extraordinary and whether payable in cash, securities (other than Common
Stock) or other property, be declared and paid on the outstanding Common Stock while one or more Shares remain subject to this Award (i.e., those Shares are not otherwise issued and outstanding for
purposes of entitlement to the dividend or distribution), then the following provisions shall govern the Participant's interest in that dividend or distribution: 

          (i)  If
the dividend is a regularly-scheduled cash dividend on the Common Stock, then the Participant shall be entitled to a current cash distribution from the Corporation
equal to the cash dividend the Participant would have received with respect to the Shares at the time subject to this Award had those Shares actually been issued and outstanding and entitled to that
cash dividend. Each cash dividend equivalent under this subparagraph (i) shall be paid within five (5) business day following the payment of the actual cash dividend on the outstanding
Common Stock. 

         (ii)  For
any other dividend or distribution, a special book account shall be established for the Participant and credited with a phantom dividend equivalent to the actual
dividend or distribution which would have been paid on the Shares at the time subject to this Award had they been issued and outstanding and entitled to that dividend or distribution. As the Shares
subsequently vest hereunder, the phantom dividend equivalents so credited to those Shares in the book account shall vest and be distributed to the Participant (in the same form the actual dividend or
distribution was paid to the holders of the Common Stock entitled to that dividend or distribution) concurrently with the issuance of the vested Shares to which those phantom dividend equivalents
relate. 

        5.    Special Vesting Acceleration.    The restricted stock units subject to this Award shall
immediately vest in full upon Participant's continuation in Board service until the effective date of 

2

 

any
Change in Control transaction. The vested Shares will be issued immediately upon such effective date or as soon as administratively practicable thereafter, but in no event more than fifteen
(15) business days after such effective date, or will otherwise be converted into the right to receive the same consideration per share of Common Stock payable to the holders of the
Corporation's Common Stock in consummation of the Change in Control and distributed at the same time as such stockholder payments, but in no event shall the distribution to Participant be completed
later than the later of (i) the close of the calendar year in which the Change in Control is effected or (ii) the fifteenth day of the
third calendar month following the effective date of that Change in Control. 

        6.    Adjustment in Shares.    Should any change be made to the Common Stock by reason of any
stock split, stock dividend, recapitalization, combination of shares, exchange of shares, spin-off transaction or other change affecting the outstanding Common Stock as a class without the
Corporation's receipt of consideration, or should the value of outstanding shares of Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary
dividend or distribution, or should there occur any merger, consolidation or other reorganization, then equitable adjustments shall be made by the Plan Administrator to the total number and/or class
of securities issuable pursuant to this Award in order to reflect such change and thereby prevent a dilution or enlargement of benefits hereunder. In making such equitable adjustments, the Plan
Administrator shall take into account any amounts distributed to Participant or credited to Participant's book account under Paragraph 4(b) in connection with the transaction, and the
determination of the Plan Administrator shall be final, binding and conclusive. 

        7.    Issuance of Shares of Common Stock.    

        (a)   Except
as otherwise provided in Paragraph 5, on the applicable Issuance Date under Paragraph 1, the Corporation shall issue to or on behalf of Participant
a certificate (which may be in electronic form) for the vested shares of Common Stock to be issued on that date. 

        (b)   Except
as otherwise provided in Paragraph 5, the settlement of all restricted stock units which vest under this Award shall be made solely in shares of Common
Stock. In no event, however, shall any fractional shares be issued. Accordingly, the total number of shares of Common Stock to be issued at the time the Award vests shall, to the extent necessary, be
rounded down to the next whole share in order to avoid the issuance of a fractional share. 

        8.    Compliance with Laws and Regulations.    

        (a)   The
issuance of shares of Common Stock pursuant to the Award shall be subject to compliance by the Corporation and Participant with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange on which the Common Stock may be listed for trading at the time of such issuance. 

        (b)   The
inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance of any
Common Stock hereby shall relieve the Corporation of any liability with respect to the non-issuance of the Common Stock as to which such approval shall not have been obtained. The
Corporation, however, shall use its best efforts to obtain all such approvals. 

        9.    Successors and Assigns.    Except to the extent otherwise provided in this Agreement,
the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Participant, Participant's assigns, the legal representatives,
heirs and legatees of Participant's estate and any beneficiaries of the Award designated by Participant. 

        10.    Notices.    Any notice required to be given or delivered to the Corporation under the
terms of this Agreement shall be in writing and addressed to the Corporation at its principal 

3

 

corporate
offices. Any notice required to be given or delivered to Participant shall be in writing and addressed to Participant at the address indicated below Participant's signature line on this
Agreement. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 

        11.    Construction.    This Agreement and the Award evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in the Award. 

        12.    Governing Law.    The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State's conflict-of-laws rules. 

        13.    No Impairment of Rights.    This Agreement shall not in any way affect the right of the
Corporation to adjust, reclassify, reorganize or otherwise make changes in its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets. In addition, this Agreement shall not in any way be construed or interpreted so as to affect adversely or otherwise impair the right of the Corporation or its stockholders to
remove Participant from the Board at any time in accordance with the provisions of applicable law. 

        IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first indicated above. 

	 	 	CLASSMATES MEDIA CORPORATION
	

 	
 	

By:	

 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	Address:	 
	 	 	 	

	    	 	    	 
	 	 	 	

	

    	 	 	 
	 	 	PARTICIPANT
	

 	
 	

Signature:	

 
	 	 	 	

	 	 	Address:	 
	 	 	 	

	    	 	    	 
	 	 	 	

4

   APPENDIX A
  DEFINITIONS  

        A.    Agreement shall mean this Restricted Stock Unit Award Agreement. 

        B.    Automatic Grant Program shall mean the automatic grant program for non-employee Board members in effect under
Article Five of the Plan. 

        C.    Award shall mean the award of restricted stock units made to Participant pursuant to the terms of this Agreement. 

        D.    Award Date shall mean the date the restricted stock units are awarded to Participant pursuant to the Agreement and shall
be the date indicated in Paragraph 1 of the Agreement. 

        E.    Board shall mean the Corporation's Board of Directors. 

        F.     Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 

          (i)  a
merger, consolidation or reorganization approved by the Corporation's stockholders, unless (a) securities
representing more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the successor corporation are immediately thereafter beneficially owned, directly
or indirectly, by the person or persons who beneficially owned fifty percent (50%) or more of the Corporation's outstanding voting securities immediately prior to such transaction or (b) the
merger, consolidation or reorganization is with or into United Online, Inc. or any entity that directly or indirectly controls, is controlled by or is under common control with, United
Online, Inc.; 

         (ii)  any
stockholder-approved transfer or other disposition of all or substantially all of the Corporation's assets (other than to United Online, Inc. or any entity
that directly or indirectly controls, is controlled by or is under common control with, United Online, Inc.); 

        (iii)  the
closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a "group" within the meaning of
Rule 13d-5(b)(1) of the 1934 Act (other than United Online, Inc. or the Corporation or any other person that, prior to such transaction or series of related transactions,
directly or indirectly controls, is controlled by or is under common control with, United Online Inc. or the Corporation) becomes directly or indirectly (whether as a result of a single
acquisition or by reason of one or more acquisitions within the twelve (12)-month period ending with the most recent acquisition) the beneficial owner (within the meaning of
Rule 13d-3 of the 1934 Act) of (A) securities possessing (or convertible into or exercisable for securities possessing) thirty three and one third percent
(331/3%) or more of the total combined voting power of all of the Corporation's outstanding securities (as measured in terms of the power to vote with respect to the election of Board
members) or (B) securities representing thirty three and one third percent (331/3%) or more of the aggregate market value of all of the Corporation's outstanding capital stock,
measured in each instance immediately after the consummation of such transaction or series of related transactions and whether such transaction or transactions involve a direct issuance from the
Corporation or the acquisition of outstanding securities held by one or more of the Corporation's existing stockholders, including an indirect acquisition of those securities effected through an
acquisition of United Online, Inc., by merger, consolidation or sale of all or substantially all of its assets or outstanding capital stock at a time when United Online, Inc. is the
Parent of the Corporation; or 

        (iv)  a
change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members
ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have 

A-1

 

been
Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board
members described in clause (A) who were still in office at the time the Board approved such election or nomination. 

        In
no event, however, shall a Change in Control be deemed to occur as a result of a spin-off distribution by United Online, Inc of all or any portion of the Corporation's
outstanding securities held by United Online, Inc. to its existing stockholders in proportion to their holdings of United Online, Inc. capital stock. 

        F.     Code shall mean the Internal Revenue Code of 1986, as amended. 

        G.    Common Stock shall mean shares of the Corporation's Class A common stock. 

        H.    Corporation shall mean Classmates Media Corporation, a Delaware corporation, and any successor corporation to all or
substantially all of the assets or voting stock of Classmates Media Corporation which shall by appropriate action adopt the Plan. 

        I.     Family Members shall mean, with respect to the Participant, any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law. 

        J.     1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

        K.    Participant shall mean the non-employee Board member to whom the Award is made pursuant to the Automatic Grant
Program. 

        L.    Permanent Disability shall mean the inability of Participant to perform his or her usual duties as a Board member by
reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. 

        M.   Plan shall mean the Corporation's 2007 Incentive Compensation Plan. 

        N.    Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the
Plan. 

A-2

QuickLinks

Exhibit 10.13

CLASSMATES MEDIA CORPORATION RESTRICTED STOCK UNIT ISSUANCE AGREEMENT

IPO GRANT NON-EMPLOYEE BOARD MEMBER

CLASSMATES MEDIA CORPORATION RESTRICTED STOCK UNIT AWARD AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]