Document:

Exhibit 10.1

 

EXECUTION VERSION

 

VOTING
AND SUPPORT AGREEMENT

 

VOTING AND SUPPORT AGREEMENT, dated as of April 30,
2008 (this “Agreement”), by and
among Green Equity Investors IV, L.P. (“GEI”), FTD Co-Investment, LLC (“LLC”
and, together with GEI, the “Principal
Stockholders”), and United Online, Inc., a Delaware corporation (“Purchaser”).

 

RECITALS

 

As of the date hereof, GEI owns 9,183,539 shares of
the Common Stock, par value $0.01 per share (the “Company Common Stock”), of FTD
Group, Inc., a Delaware corporation (the “Company”);

 

As of the date hereof, LLC owns 93,256 shares of
Company Common Stock;

 

Purchaser proposes to enter into a transaction with
the Company, upon the terms and subject to the conditions set forth in the
Agreement and Plan of Merger, dated as of the date hereof, by and among Purchaser,
UNOLA Corp., a Delaware corporation and a wholly owned Subsidiary of Purchaser,
and the Company (the “Merger Agreement”); and

 

As a condition to its willingness to enter into the
Merger Agreement, Purchaser has required that the Principal Stockholders execute
and deliver this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing
and the representations, warranties, covenants and agreements contained herein,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

1. Definitions.  For
purposes of this Agreement, capitalized terms used and not defined herein shall
have the respective meanings ascribed to them in the Merger Agreement.

 

2. Representations of the Principal Stockholders.   Each Principal Stockholder hereby
represents and warrants to Purchaser as follows:

 

(a) Such Principal
Stockholder is the beneficial owner (for purposes of this Agreement, such term
shall have the meaning set forth in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”), and the rules and regulations promulgated thereunder, but
without regard to any conditions (including the passage of time) to the
acquisition of such shares) of, and has good and valid and marketable title to,
the number of shares of Company Common Stock described in the Recitals as owned
by it.  With respect to either Principal
Stockholder, all of such shares are collectively referred to herein as the “Shares.”

 

(b) Such Principal
Stockholder is not the beneficial owner of any shares of Company Common Stock
or other voting securities or instruments of the Company, other than the applicable
Shares.

 

 

(c) Such Principal
Stockholder is a limited partnership or limited liability company, duly formed,
validly existing and in good standing under the laws of its jurisdiction of
organization and has all requisite power and authority necessary to execute and
deliver this Agreement and to consummate the transactions contemplated hereby.  Other than as required or permitted by this
Agreement, such Principal Stockholder has the power and authority (corporate or
other) to vote the Shares.

 

(d) The execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all requisite partnership
or limited liability company action on the part of such Principal Stockholder
and no other proceedings on the part of such Principal Stockholder are
necessary to authorize this Agreement or the consummation of the transactions
contemplated hereby.  This Agreement has
been duly executed and delivered by such Principal Stockholder and this
Agreement constitutes a valid and binding agreement of such Principal
Stockholder, enforceable against such Principal Stockholder in accordance with
its terms, subject to bankruptcy, insolvency, reorganization, moratorium and
similar Laws of general applicability relating to or affecting creditors’
rights and to general equity principles (regardless of whether such enforcement
is considered in a proceeding at law or in equity).

 

(e) Other than as
required or permitted by this Agreement, the applicable Shares are now and
shall at all times during the term of this Agreement be owned of record by such
Principal Stockholder (or by a nominee or custodian for the account of such
Principal Stockholder), free and clear of all pledges, liens, proxies, claims,
charges, security interests, preemptive rights, voting trusts, voting
agreements, options, rights of first offer or refusal and any other
encumbrances or arrangements whatsoever (other than transfer restrictions
imposed by generally applicable securities Laws) with respect to the ownership,
transfer or voting of such Shares, and there are no outstanding options,
warrants or rights to purchase or acquire, or agreements or arrangements
relating to the voting of, any of such Shares other than this Agreement.

 

(f) The execution and
delivery of this Agreement by such Principal Stockholder, the consummation by such
Principal Stockholder of the transactions contemplated hereby and the
performance by such Principal Stockholder of its obligations hereunder shall
not (including with notice or lapse of time or both):

 

(i) require any
consent, approval, order, authorization or permit of, or registration, filing
with or notification to, any governmental body, court, agency, official or
regulatory or other authority, whether federal, state, local or foreign (each,
a “Governmental Entity”) or other party and except for the filing with the
Securities and Exchange Commission (the “Commission”)
of any Schedules 13D or 13G or amendments to Schedules 13D or 13G and filings
under Section 16 of the Exchange Act, as may be required in connection
with this Agreement and the transactions contemplated hereby;

 

(ii) contravene or
conflict with the certificate of formation, limited partnership agreement or
limited liability company agreement of such Principal Stockholder;

 

2

 

(iii) result in any
violation or the breach of, or constitute a default under, or give rise to any
right of termination, cancellation or acceleration or any payments under, or
result in a loss of a benefit or in the creation or imposition of a lien under,
any of the terms, conditions or provisions of any note, lease, mortgage,
indenture, license, agreement or other instrument or obligation to which such
Principal Stockholder is a party or by which such Principal Stockholder or any
of its assets is bound; or

 

(iv) violate the
provisions of any order, writ, injunction, judgment, decree, statute, rule or
regulation applicable to such Principal Stockholder in such a manner as would,
individually or in the aggregate, or reasonably be expected to materially
impair the ability of such Principal Stockholder to perform its obligations
under this Agreement or prevent or delay the consummation of any of the
transactions contemplated by this Agreement.

 

(g) Such Principal
Stockholder acknowledges receipt and review of the Merger Agreement and
understands the terms and conditions thereof. 
Such Principal Stockholder has had the opportunity to review this
Agreement and the Merger Agreement with counsel of its own choosing.  Such Principal Stockholder understands and acknowledges
that Purchaser is entering into the Merger Agreement in reliance upon such
Principal Stockholder’s execution, delivery and performance of this Agreement.

 

(h) Such Principal
Stockholder hereby waives, and agrees not to assert or perfect, any dissenters’
rights or any similar rights that it may have by virtue of ownership of the
Shares.

 

(i) As of the date
hereof, there is no action, suit, investigation or proceeding pending, or, to
the knowledge of such Principal Stockholder, threatened, against or affecting, such
Principal Stockholder or any of its properties or assets (including the Shares)
that could reasonably be expected to impair the ability of such Principal
Stockholder to perform its obligations hereunder or to consummate the
transactions contemplated hereby on a timely basis.

 

3.
Agreement to Vote Shares. During
the period commencing on the date hereof and continuing until the termination
of this Agreement in accordance with its terms (except as provided in the last
sentence of this Section 3), each Principal Stockholder agrees to: (i) appear,
or cause the record holder of any Shares on the applicable record date (each a
“Record Holder”) to appear (in
person or by proxy), at any annual or special meeting of the stockholders of
the Company for the purpose of obtaining a quorum, or, if stockholders of the
Company are requested to vote their shares through the execution of an action
by written consent in lieu of any such annual or special meeting of
stockholders of the Company, such Principal Stockholder agrees to execute or
cause all Record Holders to execute such consent, and (ii) vote (or, if
requested, execute consents or proxies with respect to), or cause each Record
Holder to vote (or, if requested, execute consents or proxies with respect to),
the Shares and any New Shares (as defined in Section 8 hereof): (A) in
favor of adoption and approval of the Merger Agreement and the transactions
contemplated thereby, including the Merger, at every meeting (or in connection
with any action by written consent) of the stockholders of the Company at which
such matters are considered and at every adjournment or postponement thereof; (B) against
any Acquisition 

 

3

 

Proposal; (C) against any action,
proposal, transaction or agreement which would reasonably be expected to result
in a breach of any covenant, representation or warranty or any other obligation
or agreement of the Company under the Merger Agreement or of such Principal
Stockholder under this Agreement; (D) against any liquidation, dissolution,
recapitalization, extraordinary dividend or significant corporate
reorganization of the Company or any of its subsidiaries; (E) except as
otherwise agreed to in writing in advance by Purchaser, against any other
action, proposal, transaction or agreement that would reasonably be expected to
compete or interfere with, or would reasonably be expected to delay,
discourage, adversely affect or inhibit the timely consummation of, the Merger;
and (F) in favor of any other matter necessary for the consummation of the
transactions contemplated by the Merger Agreement which is considered at any
such meeting of stockholders.  Each
Principal Stockholder agrees not to enter into any agreement, letter of intent,
agreement in principle or understanding whatsoever with any Person that would
reasonably be expected to violate, conflict or interfere with the provisions of
this Agreement or that would reasonably be expected to delay, discourage,
adversely affect or inhibit the timely consummation of the Merger.  Notwithstanding the foregoing, each Principal
Stockholder shall remain free to vote (or execute consents or proxies with
respect to) the Shares with respect to any matter not covered by this Section 3
in any manner it deems appropriate, provided that
such vote (or execution of consents or proxies with respect thereto) would not
reasonably be expected to (i) violate or conflict with the provisions of
this Agreement or (ii) materially impair the ability of such Principal
Stockholder to perform its obligations under this Agreement.  Notwithstanding the foregoing or anything to
the contrary contained herein, the obligations of the Principal Stockholders
under this Section 3 shall be suspended during the pendency of an Adverse
Recommendation Change due to an Intervening Event (provided that such
obligations shall be reinstated at such time, if any, that the Board or a
committee thereof withdraws the Adverse Recommendation Change or approves or
recommends the Merger Agreement subsequent to the Adverse Recommendation Change).

 

4. Representations of Purchaser.  Purchaser hereby represents and warrants to
the Principal Stockholders as follows:

 

(a) Purchaser is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power and
authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby.

 

(b) The execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all requisite
corporate action on the part of Purchaser and no other corporate proceedings on
the part of Purchaser are necessary to authorize this Agreement or the
consummation of the transactions contemplated hereby.  This Agreement has been duly and validly
executed and delivered by Purchaser and is a valid and binding agreement of Purchaser
enforceable against it in accordance with its terms, subject to bankruptcy,
insolvency, reorganization, moratorium and similar Laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles (regardless of whether such enforcement is considered in a
proceeding at law or in equity).

 

4

 

(c) The execution,
delivery and performance by Purchaser of this Agreement and the consummation by
Purchaser of the transactions contemplated hereby do not and shall not
(including with notice or lapse of time or both):

 

(i) contravene or
conflict with the certificate of incorporation or the bylaws of Purchaser;

 

(ii) result in any
violation or the breach of, or constitute a default under, or give rise to any
right of termination, cancellation or acceleration or any payments under, or
result in a loss of a benefit or in the creation or imposition of a lien under,
any of the terms, conditions or provisions of any note, lease, mortgage,
indenture, license, agreement or other instrument or obligation to which Purchaser
is a party or by which Purchaser or any of its assets may be bound;

 

(iii) violate the
provisions of any order, writ, injunction, judgment, decree, statute, rule or
regulation applicable to Purchaser in such a manner as would, individually or
in the aggregate, reasonably be expected to materially impair the ability of Purchaser
to perform its obligations under this Agreement or prevent or delay the
consummation of any of the transactions contemplated by this Agreement; or

 

(iv) require any
consent, approval, order, authorization or permit of, or registration or filing
with or notification to, any Governmental Entity or other party.

 

(d) Purchaser does not,
and will not at any time during the term of this Agreement, directly or
indirectly, own, beneficially or of record, any shares of Company Common Stock.

 

5. No
Solicitations.  Subject to Section 12
hereof, each Principal Stockholder, in its capacity as a beneficial owner of
Shares and New Shares, agrees that it shall not, (a) solicit or initiate
or knowingly encourage or facilitate (including by way of furnishing non-public
information) any proposal, inquiry, offer or request that constitutes, or that
is reasonably likely to lead to, an Acquisition Proposal, (b) enter into, participate
in, continue or engage in discussions or negotiations with any Person regarding
an Acquisition Proposal, or any proposal, inquiry, offer or request that is
reasonably likely to lead to an Acquisition Proposal, or (c) approve or
recommend, or publicly propose to approve or recommend, or enter into any
agreement or agreement in principle regarding an Acquisition Proposal, or any
proposal, inquiry, offer or request that is reasonably likely to lead to an
Acquisition Proposal.

 

6. Transfer and
Encumbrance.

 

(a) Subject to the
terms of this Agreement, during the term of this Agreement, each Principal
Stockholder agrees not to, directly or indirectly, transfer, sell, offer,
hypothecate, assign, gift, pledge or otherwise dispose of or encumber (“Transfer”),
or enter into any contract, option or other agreement with respect to, or
consent to, a Transfer of, any of the Shares or New Shares or such Principal
Stockholder’s voting or economic interest therein.  Subject to the terms of this Agreement, during
the term of this Agreement, each Principal Stockholder agrees not to (i) grant
any proxies, options or rights of first offer or refusal with respect to any of
the Shares or New Shares, (ii) permit 

 

5

 

any such Shares or New Shares to be, or become subject
to, any pledges, liens, preemptive rights, security interests, claims, charges
or other encumbrances or arrangements or (iii) enter into any voting
agreement, voting trust or other voting arrangement with respect to any of the
Shares or New Shares.  Notwithstanding
the foregoing, each Principal Stockholder may take any action described in the first
sentence of this Section 6(a) or clause (ii) of the second
sentence of this Section 6(a), so long as such Principal Stockholder provides
Purchaser with prior written notice and the other party (a “transferee”) to
such Transfer executes this Agreement (or a joinder thereto in a form
reasonably satisfactory to Purchaser) and agrees to be bound by its terms;
provided, however, that notwithstanding such Transfer or arrangement, such
Principal Stockholder shall continue to be liable for any breach by such
transferee of its agreements and covenants under this Agreement.

 

(b) Any attempted
Transfer of the Shares or the New Shares or any interest therein, or any other
attempted action or arrangement, in violation of this Section 6 shall be
null and void.

 

7. Additional
Covenant of Principal Stockholders. 
The Principal Stockholders shall notify Purchaser of any development
occurring after the date of this Agreement that causes, or that would
reasonably be expected to cause, any breach of any of the representations and
warranties set forth in Section 2 hereof.

 

8. Additional Purchases.  Each Principal Stockholder agrees that it will
notify Purchaser in the event (a) any shares of Company Common Stock or
other voting securities of the Company are issued pursuant to any stock
dividend, stock split, recapitalization, reclassification, combination or
exchange of shares of capital stock of the Company on, of or affecting the
Shares of such Principal Stockholder or otherwise; (b) such Principal
Stockholder purchases or otherwise acquires beneficial ownership of any shares
of Company Common Stock or other voting securities of the Company after the
execution of this Agreement; or (c) such Principal Stockholder acquires
the right to vote or share in the voting of any shares of Company Common Stock
or other voting securities of the Company after the execution of this Agreement
(such additional Company Common Stock and other voting securities of the
Company, collectively, the “New Shares”).  Each Principal Stockholder agrees that any
New Shares acquired or purchased by such Principal Stockholder shall be subject
to the terms of this Agreement to the same extent as if they constituted Shares,
and that it shall vote any such New Shares in the same manner as the Shares.

 

9. Irrevocable
Proxies.  Each Principal
Stockholder hereby irrevocably appoints Purchaser, or any nominee of Purchaser,
with full power of substitution, its proxy with full power and authority, in
the event that such Principal Stockholder shall at any time fail to perform its
obligations under Section 3 hereof, to vote or act by consent in respect of
such Principal Stockholder’s Shares exclusively as provided in Section 3
hereof.  Each proxy hereby granted shall,
for the term of this Agreement, be irrevocable and shall be deemed coupled with
an interest in accordance with Section 212 of the Delaware General
Corporation Law.  Notwithstanding the
foregoing or anything to the contrary contained herein, each proxy granted to
Purchaser under this Section 9 shall be suspended during the pendency of
an Adverse Recommendation Change due to an Intervening Event (provided that
such proxy shall be reinstated at such time, if any, 

 

6

 

that the Board or a committee thereof
withdraws the Adverse Recommendation Change or approves or recommends the
Merger Agreement subsequent to the Adverse Recommendation Change).

 

10. Covenants of
the Principal Stockholders.

 

(a) Each Principal Stockholder
agrees that it shall not seek to avoid the observance or performance of any of
the covenants, stipulations or conditions to be observed or performed hereunder
by such Principal Stockholder.

 

(b) Each Principal
Stockholder will, in its capacity as a beneficial owner of Shares and New
Shares, (1) use reasonable best efforts to cooperate with the Company and Purchaser
in connection with the Merger, (2) provide any information reasonably
requested by the Company or Purchaser for any regulatory application or filing
made, or approval sought, for the Merger (including, without limitation, the
Proxy/Prospectus and any Other Filings), and (3) to the extent required by
law, consent to and authorize the publication and disclosure by Purchaser of
such Principal Stockholder’s identity and the holding of Shares and New Shares,
and the nature of its commitments, arrangements and understandings under this
Agreement.

 

11. Fees and Expenses. Except as otherwise
expressly provided herein, each of the parties hereto shall bear and pay all
costs and expenses incurred by it or on its behalf in connection with the
transactions contemplated hereunder, including fees and expenses of their own
financial consultants, investment bankers, accountants and counsel.

 

12. Fiduciary Duties.  Nothing contained herein shall limit or affect
any actions taken by a Principal Stockholder or any person or entity
controlling or under the control of a Principal Stockholder of the types
described in the first proviso of the first sentence of Section 7.10(b) of
the Merger Agreement in response to an Acquisition Proposal, to the extent that
the Company is permitted to take such actions under the aforementioned proviso,
nor shall anything contained herein limit or affect any actions taken by any person
in his or her capacity as a director of the Company, and none of such actions
taken in accordance with the provisions of this Section 12 or in
accordance with the provisions of the Merger Agreement shall constitute or be
deemed to constitute a breach of this Agreement.

 

13. Specific Performance.  Each party hereto acknowledges that it will be
impossible to measure in money the damages to the other parties if a party
hereto fails to comply with any of the obligations imposed by this Agreement,
that every such obligation is material and that, in the event of any such
failure, the other parties will not have an adequate remedy at law or in
damages.  Accordingly, each party hereto
agrees that injunctive relief or any other equitable remedy, in addition to
remedies at law or in damages, is the appropriate remedy for any such failure
and will not oppose the granting of such relief on the basis that the other
party has an adequate remedy at law or in damages.  Each party hereto agrees that it will not
seek, and agrees to waive any requirement for, the securing or posting of a
bond in connection with any other party’s seeking or obtaining such equitable
relief.

 

7

 

14. Successors and Assigns.  This Agreement shall be binding upon, inure
to the benefit of, and be enforceable by the parties hereto and their
respective successors, assigns, heirs and devises, as applicable; and, other
than in respect of Section 6, nothing in this Agreement, express or
implied, is intended to confer upon any other Person any rights or remedies of
any nature whatsoever under or by reason of this Agreement.  This Agreement shall not be assignable
without the written consent of the other parties hereto, except that Purchaser
may assign all or any of its respective rights hereunder to any affiliate, provided that no such assignment shall relieve Purchaser of
its obligations hereunder.

 

15. Termination.  This Agreement will terminate on the earlier
of (a) the mutual agreement of Purchaser and GEI, (b) the Effective
Time, (c) the termination of the Merger Agreement pursuant to its terms, and
(d) the execution by the Company of any amendment, supplement, waiver or
modification to the Merger Agreement that has not previously been approved in
writing by GEI.

 

16. Entire Agreement.  This Agreement (including the documents and
the instruments referred to herein) constitutes the entire agreement and
supersedes all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof.

 

17. Governing Law; Jurisdiction; Waiver of Jury Trial.
 This Agreement shall be governed by and
construed in accordance with the Laws of the State of Delaware without regard to
its rules of conflict of laws.  Each
of the Principal Stockholders and the Purchaser hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the Court
of Chancery of the State of Delaware, County of New Castle and of the United
States of America located in the District of Delaware (collectively, the “Delaware
Courts”) for any litigation arising out of or relating to this Agreement and
the transactions contemplated hereby (and agrees not to commence any litigation
relating thereto except in such courts), waives any objection to the laying of
venue of any such litigation in the Delaware Courts and agrees not to plead or
claim in any Delaware Court that such litigation brought therein has been
brought in an inconvenient forum.  EACH
OF THE PARTIES HERETO WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

18. Notices.  Any notice required to be given hereunder
shall be sufficient if in writing, and shall be deemed given and received when
sent by facsimile transmission (with a confirmatory copy sent by overnight
courier), one business day after being delivered to an overnight courier
service (with proof of service), hand delivery, or three business days after
being mailed by certified or registered mail (return receipt requested and
first-class postage prepaid), addressed as follows:

 

	
  If
  to Purchaser:

  United
  Online, Inc.

  21301
  Burbank Boulevard

  Woodland
  Hills, CA 91367

  Facsimile:
  (818) 287-3110

  Attention:
  General Counsel

  	
  If
  to GEI or LLC, to:

  Green Equity Investors IV, L.P.

  11111 Santa
  Monica Blvd.

  Suite 2000

  Los Angeles, CA 90025

  Attention:
  Timothy Flynn

  Facsimile:
  310-954-0404

  

 

8

 

	
  With
  a copy to:

  	
  With
  a copy to:

  
	
   

  	
   

  
	
  Skadden,
  Arps, Slate, Meagher & Flom LLP

  	
  Latham &
  Watkins LLP

  
	
  300
  South Grand Avenue, Suite 3400

  	
  885
  Third Avenue

  
	
  Los
  Angeles, CA 90071

  	
  New
  York, NY 10022

  
	
  Facsimile:

  	
  (213)
  687-5600

  	
  Facsimile:  (212) 751-4864

  
	
  Attention:

  	
  Brian
  J. McCarthy

  	
  Attention:  Howard A. Sobel

  
	
   

  	
  David
  C. Eisman

  	
   

  

 

or to such other address or facsimile number
as any party shall specify by written notice so given.

 

19. Severability.  This Agreement shall be deemed severable; the
invalidity or unenforceability of any term or provision of this Agreement shall
not affect the validity or enforceability of the balance of this Agreement or
of any other term hereof, which shall remain in full force and effect.  If any of the provisions hereof are determined
to be invalid or unenforceable, the parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as
closely as possible.

 

20. Waiver.  The parties hereto may, to the extent
permitted by applicable Law, subject to Section 21 hereof, (a) waive
any inaccuracies in the representations and warranties contained herein or in
any document delivered pursuant hereto or (b) waive compliance with any of
the agreements or conditions contained herein.  Any agreement on the part of a party hereto to
any such waiver shall be valid only if set forth in a written instrument signed
on behalf of such party.  The failure of
any party to this Agreement to assert any of its rights under this Agreement or
otherwise shall not constitute a waiver of those rights.

 

21. Modification.  No supplement, modification or amendment of
this Agreement will be binding unless made in a written instrument that is
signed by all of the parties hereto and that specifically refers to this
Agreement.

 

22. Counterparts.  This Agreement may be executed in two (2) or
more counterparts, all of which shall be considered one and the same agreement
and shall become effective when such counterparts have been signed by each of
the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart.

 

23. Headings.  All Section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

24. No Agency.  Nothing herein shall be deemed to create any
agency or partnership relationship between the parties hereto.

 

9

 

[Signature Page Follows]

 

10

 

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

 

 

	
   

  	
  GREEN
  EQUITY INVESTORS IV, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GEI
  Capital IV, LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/
  Timothy J. Flynn

  
	
   

  	
   

  	
  Name:
  Timothy J. Flynn

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  

 

 

	
   

  	
  FTD
  CO-INVESTMENT, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Leonard
  Green & Partners, L.P., its Manager

  
	
   

  	
  By:

  	
  LGP
  Management, Inc., its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/
  Timothy J. Flynn

  
	
   

  	
   

  	
  Name:
  Timothy J. Flynn

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  

 

 

	
   

  	
  UNITED
  ONLINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/
  Mark R. Goldston

  
	
   

  	
   

  	
  Name:
  Mark R. Goldston

  
	
   

  	
   

  	
  Title:
  Chairman, President and Chief 

  
	
   

  	
   

  	
  Executive
  Officer

  

 

 

[Signature Page to Voting and Support Agreement]Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this
“Agreement”) is entered into as of April 30,
2008 between Jon R. Burney (“you”) and Florists’ Transworld
Delivery, Inc., a Michigan corporation (the “Company”).

 

WHEREAS,
you and the Company are parties to an employment agreement dated as of December 3,
2007 (the “Prior Agreement”) and to a related
Confidentiality and Non-Competition Agreement (the “Confidentiality
Agreement”);

 

WHEREAS,
United Online, Inc. (“United Online”)
and UNOLA Corp., an indirect wholly-owned subsidiary of United Online (“Merger Sub”) have entered into an
Agreement and Plan of Merger dated April 30, 2008 (the “Merger Agreement”) with FTD Group, Inc.
(“FTD”) whereby Merger Sub will merge
with and into FTD (the “Merger”)
and the shareholders of FTD will receive consideration from United Online;

 

WHEREAS,
you acknowledge that you hold an equity interest in FTD and are a senior
executive of the Company;

 

WHEREAS,
this Agreement is being entered into in connection with the transactions
contemplated by the Merger Agreement and as a material inducement to United
Online, Merger Sub and FTD entering into the Merger Agreement and, effective
upon the consummation of the Merger, will wholly-replace and supersede the
Prior Agreement in its entirety;

 

WHEREAS, upon the
consummation of the Merger, the Company will continue to employ you, and you
will be so employed, subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants set forth below and in the
Confidentiality Agreement, you, the Company and United Online hereby agree as
follows:

 

1.                                       Term; Position.  The term of this Agreement will
commence upon the consummation of the Merger (the “Effective
Date”) and extend for two years from the Effective Date, unless
this Agreement is earlier terminated as provided herein (which term shall
automatically renew for successive one-year terms thereafter unless the Company
provides written notice of non-renewal to you at least ninety (90) days prior
to the expiration of the then current term) (the “Term”).  For the avoidance of doubt, you will not be
entitled to the benefits pursuant to Section 4 and the payments pursuant
to Section 7 of this Agreement by reason of the Company electing not to
renew the Term.  During the Term, you
will serve as Executive Vice President and General

 

1

 

Counsel of the Company and will have such duties and responsibilities
consistent with your position or such other duties and responsibilities as may
from time to time be determined by the Chief Executive Officer or President of
the Company or United Online.  You will
report to a member of senior management of the Company or United Online as may
be designated by the Chief Executive Officer or President of the Company or
United Online.  You
will agree to devote your full-time attention, skill and efforts to the
performance of your duties for the Company.

 

2.                                       Salary and Benefits.

 

(a)                                  You will be
paid a salary at an annualized rate of $225,000.00, payable in bi-weekly or
semi-monthly installments in accordance with the Company’s standard payroll
practices, subject to such increases as may be determined from time to time by
the Company.

 

(b)                                  You will be
eligible to participate in the employee benefit plans, including its 401(k) plan,
that are made generally available to the Company’s senior executives.  You will be entitled to a minimum of four (4) weeks
of paid vacation each year or such greater amount as determined in accordance
with the standard vacation policy in effect for the Company.

 

(c)                                  The Company
will promptly reimburse you for all reasonable and necessary business expenses
you incur in connection with the business of the Company and the performance of
your duties hereunder upon your submission of reasonable and timely
documentation of the expenses.

 

3.                                       (a)                                  Annual Bonus.  For each fiscal year of the Company during your period of employment,
you will be eligible to participate in a bonus program with eligibility for up
to 100% of your annualized base salary except as provided below.  The performance criteria for purposes of
determining your actual bonus for each fiscal year will be established by the
Company.  Your annual bonus will be
increased to include any increases in your annual bonus as approved by the
Company.  Except as otherwise determined
by the Company or as set forth herein, you will be entitled to a bonus award
only if you are employed by and in good standing with the Company on the date
bonus payments are paid for that fiscal year. 
Notwithstanding the foregoing, it is anticipated that, following the
Effective Date, the fiscal year of the Company will be changed so as to end on December 31
instead of June 30, and that for the fiscal year ending December 31,
2008, any bonus you are eligible to receive will be prorated.

 

(b)                                  Transaction Bonus.  Subject to and upon consummation of the
Merger, you will receive a transaction bonus in the amount of $250,000.00,
which will be paid in a lump sum within ten (10) business days following
the Effective Date.

 

4.                                       Restricted Stock Unit and Other
Equity Awards.

 

(a)                                  Effective on
the 15th day of the second month of the calendar quarter coinciding
with or next following the Effective Date (the “Award
Date”), you will be awarded restricted stock units covering 30,000
shares of the United Online’s common stock (the “RSU
Award”).  The RSU Award
will be granted under a stock plan of United Online (the “Plan”)
and will be subject to the standard terms and conditions set forth in the Plan
and the standard form restricted 

 

2

 

stock unit agreement for employee awards under such Plan.  Your RSU Award will vest, and the underlying
shares will be issued, according to the following schedule subject to your
continued employment with the Company through such vesting dates:  twenty-five percent (25%) of the RSU Award
will vest on each succeeding anniversary date of the Award Date.

 

(b)                                  Except as set
forth in Section 4(c) of this Agreement, if your employment is
terminated by the Company “without cause” or by you for “good reason” (as each
term is defined below) during the Term,  the
vesting and (subject to Section 7(e)) payment of your RSU Award and any
other equity awards you hold as of the date of such termination will be
accelerated by the additional number of shares in which you would have
otherwise been vested at the time of such termination had you completed an
additional twelve (12) months of employment with the Company, calculated as if
such RSU Award and any such other equity awards vested on a monthly basis.  Such vesting acceleration and (subject to Section 7(e))
payment are subject to your executing and delivering to the Company, and will
occur upon the expiration of all applicable review and revocation periods
applicable to, the Release referred to in Section 7(b) as statutorily
required by law and in no event later than the later of (i) the 15th day
of the third month following the end of your taxable year in which such termination
of employment occurs or (ii) the 15th day of the third month following the
end of the Company’s taxable year in which such termination of employment
occurs.  In no event will the number of
shares which vest on such an accelerated basis with respect to any particular
equity grant exceed the number of shares unvested immediately prior to the date
of such termination with respect to such grant.

 

(c)                                  If your
employment is terminated by the Company “without cause” or by you for “good
reason” (as each term is defined below) in connection with, or within twelve
(12) months after, a change in control of United Online (as defined in the
applicable stock plan, stock option agreement or restricted stock unit
agreement), the vesting and (subject to Section 7(e)) payment of your RSU
Award and any other equity awards you hold as of the date of such termination
will be accelerated by the additional number of shares in which you would have
otherwise been vested at the time of such termination had you completed an additional
twelve (12) months of employment with the Company or, if greater, an
additional period of service equal in duration to the actual period of service
you completed between the Effective Date (or, with respect to any such other
equity awards you hold outstanding as of the date of such termination, the date
of the commencement of vesting with respect to such equity awards) and the date
of such termination, in all cases calculated as if such RSU Award and such
other equity awards vested on a monthly basis. 
Such vesting acceleration and (subject to Section 7(e)) payment are
subject to your executing and delivering to the Company, and will occur upon
the expiration of all applicable review and revocation periods applicable to,
the Release referred to in Section 7(b) as statutorily required by
law and in no event later than the later of (i) the 15th day of the third
month following the end of your taxable year in which such termination of
employment occurs or (ii) the 15th day of the third month following the
end of the Company’s taxable year in which such termination of employment
occurs.  In no event will the number of
shares which vest on such an accelerated basis with respect to any particular
equity grant exceed the number of shares unvested immediately prior to the date
of such termination with respect to such grant.

 

(d)                                  Upon the
termination of your employment during the Term as a result of death or
Disability (as defined below), the vesting and (subject to Section 7(e))
payment of your

 

3

 

outstanding RSU Award and any other equity awards you hold as of the
date of such termination will be accelerated by the additional number of shares
in which you would have been vested at the time of such termination if you had
completed an additional twelve (12) months of service, calculated as if such
RSU Award and any other such equity awards vested on a monthly basis; provided
however, that in no event will the number of shares which vest on such an
accelerated basis with respect to any particular equity grant exceed the number
of shares unvested immediately prior to the date of such termination with
respect to such grant.  For purposes of
this Agreement, “Disability” means your inability to engage in any substantial gainful
activity necessary to perform your duties hereunder by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted, or can be expected to last, for a continuous period
of not less than twelve (12) months.

 

(e)                                  In the event of
any inconsistency between the terms set forth in this Section 4 and the
terms set forth in the agreement evidencing your RSU Award, the terms set forth
in this Agreement will control. The provisions of this Section 4 and Section 7
will apply to the RSU Award, and will also apply to future equity awards,
except to the extent specifically stated in the applicable award agreement or
in a resolution of the Board of Directors or committee thereof of United Online.

 

5.                                       Policies; Procedures.  As an employee of the Company, you agree to abide by all of the
policies and procedures in effect for the Company, including (without
limitation) the insider trading policy, the code of ethics and the employee
handbook, as well as the Confidentiality Agreement.

 

6.                                       At Will Employment. 
Notwithstanding anything to the contrary contained herein, your
employment with the Company will be “at will” and will not be for any specified
term, meaning that either you or the Company will be entitled to terminate your
employment at any time and for any reason, with or without cause or advance
notice.  Any contrary representations
that may have been made to you are superseded by the terms set forth in this Agreement.  This is the full and complete agreement
between you, the Company and United Online on this subject.  Although your job duties, title, compensation
and benefits, as well as the personnel policies and procedures applicable to
the Company, may change from time to time, the “at will” nature of your
employment may only be changed in an express written agreement signed by you
and the Chief Executive Officer of the Company or United Online.

 

7.                                       Separation from Service.

 

(a)                                  Termination by You Without Good
Reason.  If you terminate your employment with the
Company for any reason other than as a result of your death or Disability or
your resignation for “good reason” (as defined below), then all obligations of
the Company as set forth in this Agreement will cease, other than the
obligation to pay you, on your termination date, any earned but unpaid
compensation for services rendered through that date and any accrued but unused
vacation days as of your termination date (collectively, the “Accrued Obligations”).  Notwithstanding your Separation from Service
pursuant to this Section 7(a), you will continue to be obligated to comply
with the terms of the policies, procedures and agreements referenced in Section 5
above.

 

4

 

(b)                                  Termination
by the Company; Termination by You for Good Reason.  If your employment is
terminated by the Company “without cause” (as defined below) during the Term or
you terminate your employment for “good reason” (as defined below) during the
Term, and subject to your execution (without
revoking) and delivery to the Company of a comprehensive agreement releasing
the Company and its officers, directors, employees, stockholders, subsidiaries,
affiliates, representatives and other parties and containing such other and
additional terms as the Company deems satisfactory (“Release”),
which becomes effective after the expiration of any applicable revocation
period, the Company will pay you a separation payment (the “Separation Payment”) equal to the
sum of (i) twelve (12) months of your then current annual base salary, (ii) your
Annual Bonus (as defined below), and (iii) a prorated portion of your
Annual Bonus (as defined below).  In
addition, notwithstanding the second to last sentence of Section 3(a) hereof,
if your date of termination occurs following the end of a fiscal year and prior
to the date that you would have otherwise been entitled to be paid your annual
bonus for such fiscal year, the Company will pay you an amount equal to the
annual bonus that you would have received had you remained employed by and in
good standing with the Company through the date the annual bonus for such
fiscal year is paid, which amount shall be paid at the same time and manner
that such payment would have been paid to you had you remained employed through
such date.  Solely for purposes of the
first sentence hereof, “Annual Bonus”
shall mean the lesser of (1) 100% of your then current annual base
salary and (2) the most recent annual bonus paid to you for a full fiscal
year. Subject to the provisions of Section 7(e) and your continued
compliance with the policies, procedures and agreements referenced in Section 5
above, this Separation Payment will be payable monthly on a pro rata basis over
twelve (12) months with the first such payment commencing upon the expiration
of all applicable review and revocation periods applicable to the Release as
statutorily required by law.

 

If your employment is terminated by the Company “without cause” or by
you for “good reason” during the Term, the Company will have no further
obligation to you pursuant to this Agreement other than the Accrued
Obligations, the acceleration of vesting provided in Section 4 above and
the obligations of the Company pursuant to this Section 7(b).

 

If your employment is terminated by the Company “with cause” as defined
below, the Company will have no further obligation to you under the terms of
this Agreement, other than the Accrued Obligations.

 

Notwithstanding the termination of your
employment by the Company “with cause” or “without cause,” or by you for “good
reason”, you will continue to be obligated to comply with the terms of the
policies, procedures and agreements referenced in Section 5 above.

 

 If any
payment or benefit received or to be received by you (including any payment or
benefit received pursuant to this Agreement or otherwise) would be (in whole or
part) subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code (the “Code”), or any successor
provision thereto, or any similar tax imposed by state or local law, or any
interest or penalties with respect to such excise tax (such tax or taxes,
together with any such interest and penalties, are hereafter collectively
referred to as the “Excise Tax”), then, the
payments and benefits provided hereunder shall be reduced in the manner
selected by you in accordance with

 

5

 

the requirements of Section 409A of the Code to the extent
necessary to make such payments and benefits not subject to such Excise Tax,
but only if such reduction results in a higher after-tax payment to you after
taking into account the Excise Tax and any additional taxes you would pay if
such payments and benefits were not reduced.

 

(c)                                  Termination by Death or
Disability.  If your employment is terminated during the
Term as a result of your death or Disability, the Company will be obligated to
pay the Accrued Obligations to you, your estate or beneficiaries (as the case
may be).  In the event of a termination
of your employment due to death or Disability, you or your estate or
beneficiaries, as the case may be, will be entitled to the accelerated vesting
of your equity awards as set forth in Section 4(d) above.  The provisions of this Section 7(c) will
not affect or change the rights or benefits to which you are otherwise entitled
under the Company’s employee benefit plans or otherwise.

 

(d)                                  Definitions.

 

For purposes of this Agreement, the following
definitions will be in effect:

 

 “good reason”
means:

 

(i)                         a material reduction in your base salary
without your prior written consent;

 

(ii)                      a material reduction in your position, duties
or responsibilities, without your prior written consent (for avoidance of
doubt, any diminution or reduction in position, duties or responsibilities
attached to the position that you held immediately prior to the consummation of
the Merger which in any way whatsoever is attributable or relates to the fact
that you (w) are not an executive or officer of a public company or an
ultimate parent company, (x) may no longer report to an executive or
officer of a public company or an ultimate parent company, (y) may no
longer be regarded as an “officer” or “executive officer” under federal or
state securities laws, rules and regulations, and/or (z) may no
longer be regarded as being in charge of a principal business unit, division or
function of, or as performing a policy making function for, a public company or
an ultimate parent company, shall not constitute “good reason”);

 

(iii)                   a material change in your place of employment
which is not within a 50-mile radius of the following address, without your
prior written consent:  3113 Woodcreek
Drive, Downers Grove, IL  60515; or

 

(iv)                  any material un-waived breach by the Company
of the terms of this Agreement;

 

provided, however, that with respect to any
of (i) — (iv) above, you shall not have good reason to terminate your
employment unless you provide written notice to the Company of the existence of
the good reason condition within ninety (90) days of its initial existence and
the Company does not cure such condition within thirty (30) days of receiving
such notice.

 

 “with cause”
means your commission of any one or more of the following acts:

 

(i)                         willfully damaging of the property, business, business relationships,
reputation or goodwill of the Company or its affiliates;

 

(ii)                      commission of a felony or a misdemeanor
involving moral turpitude;

 

6

 

(iii)                   theft, dishonesty, fraud or embezzlement;

 

(iv)                  willfully violating any rules or
regulations of any governmental or regulatory body that is or is reasonably
expected to be injurious to the Company or its affiliates;

 

(v)                     the use of alcohol, narcotics or other
controlled substances to the extent that it prevents you from efficiently
performing services for the Company or its affiliates;

 

(vi)                  willfully injuring any other employee of the
Company or its affiliates;

 

(vii)               willfully injuring any person in the course
of performance of services for the Company or its affiliates;

 

(viii)            disclosing to a competitor or other
unauthorized persons confidential or proprietary information or secrets of the
Company or its affiliates;

 

(ix)                    solicitation of business on behalf of a
competitor or a potential competitor of the Company or its affiliates;

 

(x)                       harassment of any other employee of the
Company or its affiliates or the commission of any act which otherwise creates
an offensive work environment for other employees of the Company or its
affiliates;

 

(xi)                    failure for any reason within five (5) days
after receipt by you of written notice thereof from the Company, to correct,
cease or otherwise alter any insubordination, failure to comply with
instructions, inattention to or neglect of the duties to be performed by you or
other act or omission to act that in the opinion of the Company or United
Online does or may adversely affect the business or operations of the Company
or its affiliates;

 

(xii)                 breach of any material term of this
Agreement; or

 

(xiii)              any other act or omission that is determined
to constitute “cause” in the good faith discretion of the Board of Directors of
the Company or United Online.

 

“without
cause” means any reason not within the scope of the definition
of the term “with cause.”

 

(e)                                  Code Section 409A. 
Notwithstanding anything contained herein to the contrary, you shall not
be considered to have terminated employment with the Company for purposes of
this Agreement and no payments shall be due to you under Section 7 of this
Agreement unless you would be considered to have incurred a “separation from
service” from the Company within the meaning of Section 409A of the
Code.  For purposes of this Agreement,
each amount to be paid or benefit to be provided shall be construed as a
separate identified payment for purposes of Section 409A of the Code, and
any payments described in Section 3 that are due within the “short term
deferral period” as defined in Section 409A of the Code shall not be
treated as deferred compensation unless applicable law requires otherwise.  Notwithstanding any provision to the contrary
in this Agreement, no payment or distribution under this Agreement which
constitutes an item of deferred compensation under Section 409A of the
Code and becomes payable by reason of your termination of employment with the
Company will be made to you prior to the earlier of (i) the expiration of
the six (6)-month period measured from the date of your “separation from
service” (as such term is defined in Treasury Regulations issued under Code Section 409A)
or (ii) the date of your death, if you are deemed at the time of such
separation from service to be a “key employee” within the meaning of that term
under Code Section 416(i) and such delayed commencement is otherwise
required in order to avoid a prohibited distribution under Code Section 409A(a)(2).  Upon the expiration of the applicable Code Section 409A(a)(2) 

 

7

 

deferral period, all payments and benefits deferred pursuant to this Section 7(e) (whether
they would have otherwise been payable in a single sum or in installments in
the absence of such deferral) shall be paid or reimbursed to you in a lump sum,
and any remaining payments due under this Agreement will be paid in accordance
with the normal payment dates specified for them herein.  In addition, to the extent required in order
to avoid accelerated taxation and/or tax penalties under Section 409A of
the Code, if you terminate employment after November 1st
pursuant to Section 7(b) of this Agreement, amounts that would
otherwise be payable and benefits that would otherwise be provided pursuant to
this Agreement prior to December 31st of the year in which the termination
of employment occurs shall, subject to the previous sentence of this Section,
instead be paid on the first business day following January 1st of the
year following your termination of employment.

 

8.                                       Withholding Taxes.  All
forms of compensation payable pursuant to the terms this Agreement, whether
payable in cash, shares of the Company’s common stock or other property, are
subject to reduction to reflect the applicable withholding and payroll taxes.

 

9.                                       Entire Agreement.  This
Agreement, together with the Confidentiality Agreement, any handbooks, policies
and procedures in effect from time to time and the applicable stock plans and
any stock option agreements, restricted stock unit agreements or other
agreement evidencing the equity awards made to you from time to time during
your period of employment (including, without limitation, the RSU Award),
contains all of the terms of your employment with the Company and supersede any
prior understandings or agreements relating to the subject matter hereof,
whether oral or written, between or among you, United Online and the Company,
including, without limitation, the Prior Agreement; provided, however, that in
the event the Merger is not consummated, the Prior Agreement shall remain in
full force and effect.  Nothing herein
shall affect any written indemnification agreement between you and the Company
or any of its affiliates in effect on the date hereof.  If any provision of this Agreement is held by
an arbitrator or a court of competent jurisdiction to conflict with any
federal, state or local law, or to be otherwise invalid or unenforceable, such
provision shall be construed in a manner so as to maximize its enforceability
while giving the greatest effect as possible to the intent of the parties.  To the extent any provision cannot be
construed to be enforceable, such provision will be deemed to be eliminated
from this Agreement and of no force or effect, and the remainder of this
Agreement will otherwise remain in full force and effect and be construed as if
such portion had not been included in this Agreement. This Agreement is not
assignable by you.  This Agreement may be
assigned by the Company to its affiliates or to successors in interest to the
Company or its lines of business.

 

10.                                 Amendment and Governing Law.  This
Agreement may not be amended or modified except by an express written agreement
signed by you and the Chief Executive Officer of the Company or United Online.  The validity, interpretation, enforceability,
and performance of this Agreement and the resolution of any disputes will be
governed by and construed and enforced in accordance with the internal laws of
the State of Illinois, without giving effect to the conflicts of laws
principles thereof. You and the Company consent to jurisdiction and venue in
any federal or state court of competent jurisdiction located in the City of
Chicago.

 

8

 

11.                                 Surviving Provisions. 
Following any termination of this Agreement, Sections 5, 6, 7(e), 8, 9,
10 and 11 will survive, and, if your employment with the Company continues
thereafter, your employment with the Company will continue to be “at will”.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date stated in the opening paragraph.

 

 

	
   

  	
  /S/ JON R. BURNEY

  
	
   

  	
  Jon R. Burney

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ MICHAEL J. SOENEN

  
	
   

  	
   

  	
  Michael J. Soenen

  
	
   

  	
   

  	
  Chairman, Chief Executive Officer and

      President

  

 

9

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