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EXHIBIT 4.2    
  

Execution Copy  

REGISTRATION AGREEMENT  

        THIS AGREEMENT is made as of June 28, 2002 by and among (i) FTD, Inc., a Delaware corporation formerly known as IOS Brands Corporation (the
"Company"), (ii) Perry Acquisition Partners, L.P., a Delaware limited partnership, Perry Partners, L.P., a Delaware limited partnership, Perry
Partners International, Inc., a Cayman Islands corporation, and Perry Principals Holdings, LLC, a Delaware limited liability company (collectively, the "Perry
Entities"), (iii) Bain Capital Fund IV, L.P., a Delaware limited partnership, Bain Capital Fund IV-B, L.P., a Delaware limited partnership, Information
Partners Capital Fund, L.P., a Delaware limited partnership, BCIP Associates, a Delaware general partnership, and BCIP Trust Associates, L.P., a Delaware limited partnership (collectively, the
"Bain Entities"), (iv) Chisholm Partners II L.P., a Delaware limited partnership, Fleet Equity Partners VII, L.P., a Delaware limited
partnership, and Fleet Growth Resources III, Inc., a Delaware corporation (collectively, the "Fleet Entities"), and (v) Randolph Street
Partners, an Illinois general partnership. Each of the parties to this Agreement other than the Company is referred to herein as an "Investor" and
collectively, the "Investors". Unless otherwise provided in this Agreement, capitalized terms used herein shall have the meanings set forth in  Section 9 below. 

        WHEREAS,
pursuant to that certain Stockholders' Agreement dated as of December 19, 1994, among the Company and the Investors (the "Old Stockholders
Agreement"), the Stockholders had certain registration and other rights; 

        WHEREAS,
the Company has requested that the Investors consent to the termination of the Old Stockholders Agreement; and 

        WHEREAS,
as a condition to the Investors consent to the termination of the Old Stockholders Agreement, each Investor is requiring that the Company enter into this Agreement. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby agreed and acknowledged, the Company and the Investors agree as follows 

        1.    Demand Registrations.  

        (a)    Requests for Registration.  At any time on or after the first anniversary of the date of this Agreement,
(i) the holders of at least a majority of the Perry Registrable Securities and (ii) the holders of at least a majority of the Other Investor Registrable Securities may, subject to the
limitations set forth in Section 1(b) below, each request registration under the Securities Act of all or any portion of their Registrable
Securities on Form S-1 or any similar long-form registration ("Long-Form Registrations"), and (1) the
holders of at least a majority of the Perry Registrable Securities and (2) the holders of at least a majority of the Other Investor Registrable Securities may each request registration under
the Securities Act of all or any portion of their Registrable Securities on Form S-2 or S-3 or any similar short-form registration
("Short-Form Registrations") if available. All registrations requested pursuant to this  Section 1(a) are referred to herein as "Demand Registrations." Each request for a Demand
Registration shall specify the approximate number of Registrable Securities requested to be registered and the anticipated per share price range for such offering. Within ten days after receipt of any
such request, the Company shall give written notice of such requested registration to all other holders of Registrable Securities and, subject to the terms of  Section 1(d) hereof, shall include in
such registration all Registrable Securities with respect to which the Company has received written
requests for inclusion therein within 15 days after the receipt of the Company's notice. At the request of the holders of at least a majority of the Registrable Securities requesting a Demand
Registration, the Company shall file with the Securities and Exchange Commission a registration statement pursuant to Rule 415 promulgated under the Securities Act (a
"Shelf Registration Statement"). 

 

        (b)    Long-Form Registrations.  The holders of Perry Registrable Securities shall be entitled to
request two Long-Form Registrations in which the Company shall pay all Registration Expenses ("Company-paid Long-Form
Registrations") and the holders of Other Investors Registrable Securities shall be entitled to request one Company-paid Long-Form Registration;  provided, in each case, that the
aggregate offering value of the Registrable Securities requested to be registered in any Company-Paid
Long-Form Registration must equal at least $75 million. The holders of Registrable Securities shall be further entitled to unlimited Long-Form Registrations in which the
holders of Registrable Securities participating in such registration shall pay their share of the Registration Expenses as set forth in  Section 5 hereof. A registration shall not count as one of
the permitted Company-paid Long-Form Registrations until it
has become effective (unless such Long-Form Registration has not become effective due solely to the fault of the holders requesting such registration), and neither the  last or any subsequent
Company-paid Long-Form Registration shall count as one of the permitted Company-paid
Long-Form Registrations unless the holders of Registrable Securities requesting a Company-paid Long-Form Registration are able to register and sell at least 25% of
the Registrable Securities requested by such holders to be included in such registration; provided that in any event the Company shall pay all
Registration Expenses in connection with any registration initiated as a Company-paid Long-Form Registration whether or not it has become effective and whether or not such
registration has counted as one of the permitted Company-paid Long-Form Registrations. All Long-Form Registrations shall be underwritten registrations. 

        (c)    Short-Form Registrations.  In addition to the Long-Form Registrations, the holders of
Registrable Securities shall be entitled to request an unlimited number of Short-Form Registrations in which the Company shall pay all Registration Expenses;  provided that the aggregate offering value
of the Registrable Securities requested to be registered in any Short-Form Registration must
equal at least $75 million. Demand Registrations shall be Short-Form Registrations whenever the Company is permitted to use any applicable short form and if the managing
underwriters (if any) agree to the use of a Short-Form Registration. So long as the Company remains subject to the reporting requirements of the Securities Exchange Act, the Company shall
use its reasonable best efforts to make Short-Form Registrations on Form S-3 available for the sale of Registrable Securities. 

        (d)    Priority on Demand Registrations.  The Company shall not include in any Demand Registration any securities
which are not Registrable Securities without the prior written consent of the holders of at least a majority of the Registrable Securities initially requesting such registration;  provided, however, such
consent shall not be required for the Company to include (subject to the limitation in the next sentence) in a Demand
Registration securities of the Company held by Persons entitled to exercise "piggy-back" registration rights with respect to such securities pursuant to contractual commitments of the
Company. If a Demand Registration is an underwritten offering and the managing underwriters advise the Company in writing that in their opinion the number of Registrable Securities and, if permitted
hereunder, other securities requested to be included in such offering exceeds the number of Registrable Securities and other securities, if any, which can be sold therein in an orderly manner in such
offering within a price range acceptable to the holders of a majority of the Registrable Securities initially requesting registration, without adversely affecting the marketability of the offering,
the Company shall include in such registration (i) first, the maximum number of Registrable Securities requested to be included which in the opinion of such underwriters can be sold without
adversely affecting the marketability of the offering, pro rata among the respective holders thereof on the basis of the amount of Registrable Securities owned by each such requesting holder; and
(ii) second, securities other than Registrable Securities requested to be included in such registration which, in the opinion of such
underwriters, can be sold without adversely affecting the marketability of the offering, pro rata among the respective holders thereof on the basis of the amount of such securities owned by each such
holder. Any Persons, other than holders of Registrable Securities, who participate in Demand Registrations which are not at the Company's expense must pay their share of the Registration Expenses as
provided in Section 5 hereof. 

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        (e)    Restrictions on Demand Registrations.  The Company shall not be obligated to effect any Demand Registration
within 365 days after (i) the effective date of a previous Demand Registration or (ii) the effective date of a registration of Common Stock (other than a Demand Registration) in
which the holders of Registrable Securities were given piggyback rights pursuant to Section 2 hereof and in which there was no reduction in the
number of Registrable Securities requested to be included. The Company may postpone for up to 90 days the filing or the effectiveness of a registration statement for a Demand Registration if
the Company's board of directors determines in its reasonable good faith judgment that such Demand Registration would reasonably be expected to have a material adverse effect on any proposal or plan
by the Company or any of its Subsidiaries to engage in any acquisition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer, reorganization or similar
transaction; provided that in such event, the holders of Registrable Securities initially requesting such Demand Registration shall be entitled to
withdraw such request and, if such request is withdrawn, such Demand Registration shall not count as one of the permitted Demand Registrations hereunder and the Company shall pay all Registration
Expenses in connection with such registration. 

        (f)    Selection of Underwriters.  If any Demand Registration is an underwritten offering, the investment banker(s)
and manager(s) for the offering shall be selected by the Company. 

        (g)    Other Registration Rights.  The Company represents and warrants that it is not a party to, or otherwise
subject to, any other agreement granting registration rights to any other Person, and no Person has any such registration rights, with respect to any securities of the Company other than the Persons
set forth on the attached Other Registration Rights Schedule. Except as provided in this Agreement, the Company shall not grant to any Persons
(including, without limitation, the Investors) the right to request the Company to register any equity securities of the Company, or any securities convertible into or exchangeable or exercisable for
such securities, without the prior written consent of the holders of at least a majority of the Registrable Securities; provided that the Company may
grant rights to other Persons to participate in Piggyback Registrations so long as such rights are subordinate to the rights of the holders of Registrable Securities with respect to such Piggyback
Registrations as set forth in Sections 2(c) and 2(d)
hereof.

        2.    Piggyback Registrations.  

        (a)    Right to Piggyback.  Whenever the Company proposes to register any of its securities under the Securities Act
(other than (i) pursuant to a Demand Registration or (ii) until the first anniversary of the date of this Agreement, pursuant to any agreement set forth on the  Other Registration Rights Schedule) and the registration form to be used may be used for the registration of Registrable Securities (a
"Piggyback Registration"), the Company shall give prompt written notice (in any event within three business days after its receipt of notice of any
exercise of demand registration rights other than under this Agreement) to all holders of Registrable Securities of its intention to effect such a registration and, subject to the terms of
clause (ii) of the first parenthetical in this Section 2(a) and Sections 2(c) and  2(d) hereof,
shall include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion
therein within 20 days after the receipt of the Company's notice. 

        (b)    Piggyback Expenses.  The Registration Expenses of the holders of Registrable Securities shall be paid by the
Company in all Piggyback Registrations. 

        (c)    Priority on Primary Registrations.  If a Piggyback Registration is an underwritten primary registration on
behalf of the Company, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which
can be sold in such offering without adversely affecting the marketability of the offering, the Company shall include in such registration (i) first, the securities the Company proposes to
sell, (ii) second, the Registrable Securities requested to be included in such registration, pro rata among the 

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holders of such Registrable Securities on the basis of the number of shares owned by each such holder, and (iii) third, other securities requested to be included in such registration. 

        (d)    Priority on Secondary Registrations.  If a Piggyback Registration is an underwritten secondary registration
on behalf of holders of the Company's securities, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company shall include in such registration
(i) first, the securities requested to be included therein by the holders requesting such registration and the Registrable Securities requested
to be included in such registration, pro rata among the holders of such securities on the basis of the number of securities owned by each such holder, and
(iii) second, other securities requested to be included in such registration. 

        (e)    Selection of Underwriters.  If any Piggyback Registration is an underwritten offering, the investment
banker(s) and manager(s) for the offering shall be selected by the Company. 

        (f)    Other Registrations.  If the Company has previously filed a registration statement with respect to
Registrable Securities pursuant to Section 1 or pursuant to this Section 2, and if such
previous registration has not been withdrawn or abandoned, the Company shall not file or cause to be effected any other registration of any of its equity securities or securities convertible into or
exchangeable or exercisable for its equity securities under the Securities Act (except on Form S-4, Form S-8 or any successor form), whether on its own behalf or
at the request of any holder or holders of such securities, until a period of at least 180 days has elapsed from the effective date of such previous registration. 

        3.    Transfer and Holdback Agreements.  

        (a)  Until
the first anniversary of the date of this Agreement, each holder of Registrable Securities shall not sell, transfer or otherwise distribute any Registrable
Securities to any Person other than (i) its affiliates, (ii) another holder of Registrable Securities or (iii) the Company; provided,
however, that at any
time on or after the six month anniversary of the date of this Agreement, each holder of Registrable Securities shall be entitled to sell, transfer or distribute any Registrable Securities pursuant to
a Public Sale, and provided, further, that each holder of Registrable Securities shall be entitled to sell, transfer or distribute any Registrable
Securities in a Piggyback Registration in accordance with Section 2 hereof. 

        (b)  Until
the second anniversary of the date of this Agreement, the Perry Entities agree not to make any sale, transfer or distribution of any Registrable Securities to any
of their limited partners or other equity or interest holders which are not then affiliates of one or more of the Perry Entities; provided, however,
that, notwithstanding Section 3(a) above, the Perry Entities may, at any time or from time to time during the period beginning six months after
the date of this Agreement and ending 12 months following the date of this Agreement, distribute to any such Person or Persons up to 10% of the Registrable Securities held by the Perry Entities
as of the date of this Agreement, and provided, further, that the Perry Entities may, at any time or from time to time between the first and second
anniversaries of the date of this Agreement, distribute to any such Person or Persons up to 50% of any of the Registrable Securities held by the Perry Entities as of the first anniversary of the date
of this Agreement. 

        (c)  Until
the second anniversary of the date of this Agreement, the Bain Entities agree not to make any sale, transfer or distribution of any Registrable Securities to any
of their limited partners or other equity or interest holders which are not then affiliates of one or more of the Bain Entities; provided, however,
that, notwithstanding Section 3(a) above, the Bain Entities may, at any time or from time to time during the period beginning six months after
the date of this Agreement and ending 12 months following the date of this Agreement, distribute to any such Person or Persons up to 10% of the Registrable Securities held by the Bain Entities
as of the date of this Agreement, and provided,  

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 further, that the Bain Entities may, at any time or from time to time between the first and second anniversaries of the date of this Agreement, distribute to any such Person
or Persons up to 50% of any of the Registrable Securities held by the Bain Entities as of the first anniversary of the date of this Agreement. 

        (d)  Until
the second anniversary of the date of this Agreement, the Fleet Entities agree not to make any sale, transfer or distribution of any Registrable Securities to any
of their limited partners or other equity or interest holders which are not then affiliates of one or more of the Fleet Entities; provided, however,
that, notwithstanding Section 3(a) above, the Fleet Entities may, at any time or from time to time during the period beginning six months after
the date of this Agreement and ending 12 months following the date of this Agreement, distribute to any such Person or Persons up to 10% of the Registrable Securities held by the Fleet Entities
as of the date of this Agreement, and provided, further, that the Fleet Entities may, at any time or from time to time between the first and second
anniversaries of the date of this Agreement, distribute to any such Person or Persons up to 50% of any of the Registrable Securities held by the Fleet Entities as of the first anniversary of the date
of this Agreement. 

        (e)  As
a condition to any sale, transfer or other distribution of Registrable Securities other than pursuant to a Public Sale, the holder of such Registrable Securities
shall cause the purchaser, transferee
or distributee, as the case may be, to execute and deliver a joinder (in form and substance reasonably satisfactory to the Company) to the Company agreeing to be bound by the provisions of this
Agreement. 

        (f)    Each
holder of Registrable Securities shall not effect any Public Sale of equity securities of the Company, or any securities convertible into or exchangeable or
exercisable for such securities, during the 30 days prior to and the 90-day period beginning on the effective date of any underwritten Demand Registration or any underwritten
Piggyback Registration in which Registrable Securities are included (except as part of such underwritten registration), unless the underwriters managing the registered public offering otherwise agree. 

        (g)  The
Company shall not effect any Public Sale of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during the
30 days prior to and the 90-day period beginning on the effective date of any underwritten Demand Registration or any underwritten Piggyback Registration (except as part of such
underwritten registration or pursuant to registrations on Form S-4, Form S-8 or any successor form), unless the underwriters managing the registered public
offering otherwise agree. 

        4.    Registration Procedures.  Whenever the holders of Registrable Securities have requested that any Registrable
Securities be registered pursuant to this Agreement, the Company shall use its reasonable best efforts to effect the registration and the sale of such Registrable Securities in accordance with the
intended method of disposition thereof (including the registration of Class A Common issued upon the conversion of Class B Common held by a holder of Registrable Securities requesting
registration as to which the Company has received reasonable assurances that only Registrable Securities shall be distributed to the public), and pursuant thereto the Company shall as expeditiously as
possible: 

        (a)  prepare
and file with the Securities and Exchange Commission a registration statement with respect to such Registrable Securities and use its reasonable best efforts to
cause such registration statement to become effective (provided that before filing a registration statement or prospectus or any amendments or
supplements thereto, the Company shall furnish to the counsel selected by the holders of a majority of the Registrable Securities covered by such registration statement copies of all such documents
proposed to be filed, which documents shall be subject to the review and comment of such counsel); 

5

 

        (b)  notify
each holder of Registrable Securities of the effectiveness of each registration statement filed hereunder and prepare and file with the Securities and Exchange
Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period
of not less than 180 days and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement during such period in
accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement; provided, however, that at any
time, upon
written notice to the participating holders of Registrable Securities and for a period not to exceed thirty (30) days thereafter (the "Suspension
Period"), the Company may suspend the use or effectiveness of any Shelf Registration Statement (and the holders of Registrable Securities participating in such offering hereby
agree not to offer or sell any Registrable Securities pursuant to such Shelf Registration Statement during such Suspension Period) if the Company reasonably believes that the Company may, in the
absence of such suspension hereunder, be required under applicable state or federal securities laws to disclose any corporate development the disclosure of which could reasonably be expected to have a
material and adverse effect upon the Company, its stockholders, a potentially significant transaction or event involving the Company, or any negotiations, discussions or proposals directly relating
thereto. No more than one (1) Suspension Period shall occur in any six (6) month period. In the event that the Company exercises its rights hereunder, the applicable time period during
which the Shelf Registration Statement is to remain effective shall be extended by a period of time equal to the duration of the Suspension Period. The Company may extend any Suspension Period for an
additional consecutive thirty (30) days with the consent of the holders of at least 75% of the Registrable Securities proposed to be sold by the holders participating in such Shelf
Registration. If so directed by the Company, the holders of Registrable Securities shall use their commercially reasonable efforts to deliver to the Company (at the Company's expense) all copies,
(other than permanent file copies) then in such holder's possession of the prospectus relating to such Registrable Securities current at the time of such holder's receipt of such notice. 

        (c)  furnish
to each seller of Registrable Securities such number of copies of such registration statement, each amendment and supplement thereto, the prospectus included in
such registration statement (including each preliminary prospectus) and such other documents as such seller may reasonably request in order to facilitate the disposition of the Registrable Securities
owned by such seller; 

        (d)  use
its reasonable best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller
reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such seller (provided that the Company shall not be required to (i) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this subsection, (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in
any such jurisdiction); 

        (e)  notify
each seller of such Registrable Securities, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening
of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not
misleading, and, at the request of any such seller, the Company shall prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading; 

        (f)    cause
all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed and, if not so listed,
to be listed on the NASD 

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automated quotation system and, if listed on the NASD automated quotation system, use its reasonable best efforts to secure designation of all such Registrable Securities covered by such registration
statement as a NASDAQ "national market system security" within the meaning of Rule 11Aa2-1 promulgated under the Securities Exchange Act or, failing that, to secure NASDAQ
authorization for such Registrable Securities and, without limiting the generality of the foregoing, to arrange for at least two market makers to register as such with respect to such Registrable
Securities with the NASD; 

        (g)  provide
a transfer agent and registrar for all such Registrable Securities not later than the effective date of such registration statement; 

        (h)  enter
into such customary agreements (including underwriting agreements in customary form) and take all such other actions as the holders of a majority of the
Registrable Securities being sold or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities (including effecting a stock split
or a combination of shares); 

        (i)    make
available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition pursuant to such registration statement and any
attorney, accountant or other agent retained by any such seller or underwriter, all financial and other pertinent records, pertinent corporate documents and properties of the Company, and cause the
Company's officers, directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with
such registration statement; 

        (j)    otherwise
use its reasonable best efforts to comply with all applicable rules and regulations of the Securities and Exchange Commission, and make available to its
security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months beginning with the first day of the Company's first full calendar quarter after
the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 

        (k)  permit
any holder of Registrable Securities which holder, in its sole and exclusive judgment, might be deemed to be an underwriter or a controlling person of the
Company, to participate in the preparation of such registration or comparable statement and to require the insertion therein of material, furnished to the Company in writing, which in the reasonable
judgment of such holder and its counsel should be included; 

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

        (m)  obtain
a cold comfort letter from the Company's independent public accountants in customary form and covering such matters of the type customarily covered by cold
comfort letters as the holders of a majority of the Registrable Securities being sold reasonably request (provided that such Registrable Securities
constitute at least 10% of the securities covered by such registration statement). 

        5.    Registration Expenses.  

        (a)  All
expenses incident to the Company's performance of or compliance with this Agreement, including without limitation all registration and filing fees, fees and expenses
of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel for the Company and all
independent certified public accountants, underwriters (excluding discounts and commissions) and other Persons retained by the Company (all such expenses being herein called
"Registration Expenses"), shall be borne as provided 

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in this Agreement, except that the Company shall, in any event, pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities
exchange on which similar securities issued by the Company are then listed or on the NASD automated quotation system. 

        (b)  In
connection with each Demand Registration and each Piggyback Registration, the Company shall reimburse the holders of Registrable Securities included in such
registration for the reasonable fees and disbursements of one counsel chosen by the holders of a majority of the Registrable Securities initially requesting such registration and for the reasonable
fees and disbursements of each additional counsel retained by any holder of Registrable Securities for the purpose of rendering a legal opinion on behalf of such holder in connection with any
underwritten Demand Registration or Piggyback Registration. 

        (c)  To
the extent Registration Expenses are not required to be paid by the Company, each holder of securities included in any registration hereunder shall pay those
Registration Expenses allocable to the registration of such holder's securities so included, and any Registration Expenses not so allocable shall be borne by all sellers of securities included in such
registration in proportion to the aggregate selling price of the securities to be so registered. 

        6.    Indemnification.  

        (a)  The
Company agrees to indemnify, to the extent permitted by law, each holder of Registrable Securities, its officers and directors and each Person who controls such
holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses caused by any untrue or alleged untrue statement of material fact contained in any
registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder expressly for use
therein or by such holder's failure to deliver a copy of the registration statement or prospectus or any amendments or supplements thereto after the Company has furnished such holder with a sufficient
number of copies of the same. In connection with an underwritten offering, the Company shall indemnify such underwriters, their officers and directors and each Person who controls such underwriters
(within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification of the holders of Registrable Securities. 

        (b)  In
connection with any registration statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify the Company,
its directors and officers and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue
or alleged untrue statement of material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such holder; provided that the obligation to indemnify shall be individual, not joint and several,
for each holder and shall be limited to the net amount of proceeds received by such holder from the sale of Registrable Securities pursuant to such registration statement. 

        (c)  Any
Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice shall not impair any Person's right to indemnification hereunder to the extent 

8

 

such failure has not prejudiced the indemnifying party) and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties
may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the
indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). An indemnifying
party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim. 

        (d)  The
indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party
or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities. The Company also agrees to make such provisions, as are reasonably requested by
any indemnified party, for contribution to such party in the event the Company's indemnification is unavailable for any reason. 

        7.    Participation in Underwritten Registrations.  No Person may participate in any registration hereunder which is
underwritten unless such Person completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting
arrangements. 

        8.    Report and Information Filing Covenant.  The Company shall file all reports required to be filed by it under
the Securities Act and the Securities Exchange Act and the rules and regulations adopted by the Securities and Exchange Commission thereunder and shall take such further action as any holder or
holders of Registrable Securities may reasonably request, all to the extent required to enable such holders to sell Registrable Securities pursuant to Rule 144 promulgated under the Securities
Act (as such rule may be amended from time to time) or any similar rule or regulation hereafter adopted by the Securities and Exchange Commission. Upon request, the Company shall deliver to any holder
of Registrable Securities a written statement as to whether it has complied with such requirements. 

        9.    Definitions.  

        (a)    "Class A Common"  means shares of the Company Class A Common Stock, par value $.01 per share. 

        (b)    "Class B Common"  means shares of the Company's Class B Common Stock, par value $.0005 per
share. 

        (c)    "Common Stock"  means the Class A Common, Class B Common and any other class of common stock of
the Company subsequently authorized by the Company's charter. 

        (d)    "Other Investor Registrable Securities"  means (i) any Class A Common (other than Perry
Registrable Securities) held by any Investor as of the date hereof or hereinafter acquired by such Investor from the Company or another Investor, (ii) any Class A Common (other than
Perry Registrable Securities) issued upon the conversion of any Class B Common held by an Investor as of the date hereof or hereinafter acquired from the Company by an Investor, and
(iii) any Class A Common or other Common Stock issued or issuable with respect to the securities referred to in clauses (i) and (ii) above by way of a stock dividend or
stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. As to any particular Other Investor Registrable Securities, such securities
shall cease to be Other Investor Registrable Securities when they have been distributed pursuant to a Public Sale or distributed by any Investor to any of its limited partners or other equity or
interest holders which are not then an affiliate of such Investor. For purposes of this Agreement, a Person shall be deemed to be a holder of Other Investor Registrable 

9

 

Securities, and the Other Investor Registrable Securities shall be deemed to be in existence, whenever such Person (1) has the right to acquire directly or indirectly (upon conversion or
permitted exercise or otherwise, but disregarding any restrictions or limitations upon the exercise of such right) Other Investor Registrable Securities or (2) has actually acquired Other
Investor Registrable Securities (in connection with the exercise of rights described in clause (1) of this sentence or a transfer of Other Investor Registrable Securities) other than in a
Public Sale, and such Person shall be entitled to exercise the rights of a holder of Other Investor Registrable Securities hereunder with respect to any such Other Investor Registrable Securities. 

        (e)    "Perry Registrable Securities"  means (i) any Class A Common held by the any of the Perry
Entities as of the date hereof or hereinafter acquired by any of the Perry Entities from the Company, (ii) any Class A Common issued upon the conversion of any Class B Common held
by any of the Perry Entities as of the date hereof or hereinafter acquired from the Company by any of the Perry Entities, and (iii) any Class A Common or other Common Stock issued or
issuable with respect to the securities referred to in clauses (i) and (ii) above by way of a stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any particular Perry Registrable Securities, such securities shall cease to be Perry Registrable Securities when they have been
distributed pursuant to a Public Sale or pursuant to Section 3(b) above. For purposes of this Agreement, a Person shall be deemed to be a holder
of Perry Registrable Securities, and the Perry Registrable Securities shall be deemed to be in existence, whenever such Person (1) has the right to acquire directly or indirectly (upon
conversion or permitted exercise or otherwise, but disregarding any restrictions or limitations upon the exercise of such right) Perry Registrable Securities or (2) has actually acquired Perry
Registrable Securities (in connection with the exercise of rights described in clause (1) of this sentence or a transfer of Perry Registrable Securities) other than in a Public Sale, and such
Person shall be entitled to exercise the rights of a holder of Perry Registrable Securities hereunder with respect to any such Perry Registrable Securities. 

        (f)    "Person"  means any individual, corporation, association, limited liability company, partnership, trust or
estate, an unincorporated organization, a joint venture, a government or any agency or political subdivision thereof, or any other entity of whatever nature. 

        (g)    "Public Sale"  means a distribution of securities to the public pursuant to an offering registered under the
Securities Act or sold to the public in compliance with Rule 144 or Rule 144(k) promulgated under the Securities Act (or any similar rules then in force). 

        (h)    "Registrable Securities"  means the Perry Registrable Securities and the Other Investor Registrable
Securities. 

        (i)    "Securities Act"  means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 

        (j)    "Securities Exchange Act"  means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 

        10.    Miscellaneous.  

        (a)    Old Stockholders Agreement.  The Old Stockholders Agreement is hereby terminated and is of no further force
or effect. 

        (b)    No Inconsistent Agreements.  The Company shall not hereafter enter into any agreement with respect to its
securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement. 

        (c)    Adjustments Affecting Registrable Securities.  The Company shall not take any action, or permit any change to
occur, with respect to its securities which would materially and adversely affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration 

10

 

undertaken pursuant to this Agreement or which would materially and adversely affect the marketability of such Registrable Securities in any such registration (including, without limitation,
effecting a stock split or a combination of shares). 

        (d)    Remedies.  Any Person having rights under any provision of this Agreement shall be entitled to enforce such
rights specifically to recover damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that, in addition to any other rights and remedies existing in its favor, any party shall be entitled
to specific performance and/or other injunctive relief from any court of law or equity of competent jurisdiction (without posting any bond or other security) in order to enforce or prevent violation
of the provisions of this Agreement. 

        (e)    Amendments and Waivers.  Except as otherwise provided herein, the provisions of this Agreement may be amended
or waived only upon the prior written consent of each of (i) the Company and (ii) the holders of at least a majority of the Registrable Securities. In the event that any amendment or
waiver disproportionately and adversely effects the rights of the holders of Other Investor Registrable Securities under this Agreement, the prior written consent of the holders of at least a majority
of the Other Investor Registrable Shares shall be required to effect any such amendment or waiver. In the
event that any amendment or waiver disproportionately and adversely effects the rights of the holders of Perry Registrable Securities under this Agreement, the prior written consent of the holders of
at least a majority of the Perry Registrable Shares shall be required to effect any such amendment or waiver. Notwithstanding anything contained herein to the contrary, the amendment or waiver of any
material provision of this Agreement by the Company (other than (1) any amendment of Section 3(a) except an amendment that would permit
Public Sales of Registrable Securities during the first six months immediately after the date of this Agreement, and, (2) any amendment of Sections 3(b),
3(c) or 3(d) that does not affect the restrictions contained therein restricting sales, transfers or distributions during the
first six months immediately after the date of this Agreement) shall require the approval of a majority of the Company's directors who are not Perry Nominees (as defined in the Governance Agreement,
dated as of June 28, 2002, among the Company and the stockholders of the Company party thereto (as amended from time to time pursuant to its terms, the "Governance
Agreement")) or Bain Nominees (as defined in the Governance Agreement). 

        (f)    Successors and Assigns.  All covenants and agreements in this Agreement by or on behalf of any of the parties
hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not. Notwithstanding the foregoing, no transferee or subsequent holder
of Registrable Securities shall be entitled to the benefit of (or enforce) any rights hereunder unless and until such transferee or subsequent holder of Registrable Securities executes and delivers a
joinder (in form and substance reasonably satisfactory to the Company) to the Company agreeing to be bound by the provisions of this Agreement. 

        (g)    Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent
of such prohibition or invalidity, without invalidating the remainder of this Agreement. 

        (h)    Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, any one of which
need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement. 

        (i)    Descriptive Headings.  The descriptive headings of this Agreement are inserted for convenience only and do
not constitute a part of this Agreement. 

11

 

        (j)    Governing Law.  The corporate law of the State of Delaware shall govern all issues and questions concerning
the relative rights of the Company and its stockholders. Issues and questions concerning the construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules
hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the
State of
Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 

        (k)    Notices.  All notices, demands or other communications to be given or delivered under or by reason of the
provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient, sent to the recipient by reputable overnight courier service
(charges prepaid) or mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid. Such notices, demands and other communications shall be sent to each
Investor at the address indicated on the attached Schedule of Investors and to the Company at the address indicated below: 

FTD, Inc.

3113 Woodcreek Drive

Downers Grove, IL 60515

Fax: 630-719-8170

Attention: Chief Financial Officer 

or
to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. 

        (l)    Termination.  With respect to each holder of Registrable Securities, such holder's rights and obligations
hereunder shall terminate upon the later to occur of (i) the fifth anniversary of the date of this Agreement and (ii) the date when such holder, together with its affiliates, holds less
than ten percent (10%) of the then outstanding Common Stock. 

*
* * * * 

12

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

	 	 	FTD, INC. (f/k/a IOS BRANDS CORPORATION)
	

 	
 	

By:	

/s/  ROBERT L. NORTON      

	 	 	Name:	

	 	 	Its:	

	

 	
 	

PERRY ACQUISITION PARTNERS, L.P.
	

 	
 	

By:	

PERRY INVESTORS, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	

	 	 	Its:	

	

 	
 	

PERRY PARTNERS, L.P.
	

 	
 	

By:	

PERRY CORP.
	 	 	Its:	Managing General Partner
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	

	 	 	Its:	

	

 	
 	

PERRY PARTNERS INTERNATIONAL, INC.
	

 	
 	

By:	

PERRY INVESTORS, L.L.C.,
	 	 	Its:	Investment Manager
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	

	 	 	Its:	

	
Signature Page to Registration Agreement

	

 	
 	

PERRY PRINCIPALS HOLDINGS, LLC
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	Richard C. Perry
	 	 	Its:	Managing Member
	

 	
 	

BAIN CAPITAL FUND IV, L.P.

BAIN CAPITAL FUND IV-B, L.P.
	

 	
 	

By:	

BAIN CAPITAL PARTNERS IV, L.P.
	 	 	Their:	General Partner
	

 	
 	

By:	

BAIN CAPITAL INVESTORS, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  STEPHEN G. PAGLIUCA      

	 	 	Name:	Stephen G. Pagliuca
	 	 	Its:	Managing Director
	
Signature Page to Registration Agreement

	

 	
 	

INFORMATION PARTNERS CAPITAL FUND, L.P.
	

 	
 	

By:	

INFORMATION PARTNERS
	 	 	Its:	General Partner
	

 	
 	

By:	

BAIN CAPITAL PARTNERS IV, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

BAIN CAPITAL INVESTORS, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  STEPHEN G. PAGLIUCA      

	 	 	Name:	Stephen G. Pagliuca
	 	 	Its:	Managing Director
	

 	
 	

BCIP ASSOCIATES

BCIP TRUST ASSOCIATES, L.P.
	

 	
 	

By:	

/s/  STEPHEN G. PAGLIUCA      

	 	 	Name:	Stephen G. Pagliuca
	 	 	Their:	Authorized Partner
	

 	
 	

CHISHOLM PARTNERS II, L.P.
	

 	
 	

By:	

SILVERADO II, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

SILVERADO II CORP.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  HABIB Y. GORGI      

	 	 	Name:	Habib Y. Gorgi
	 	 	Its:	President
	
Signature Page to Registration Agreement

	

 	
 	

FLEET EQUITY PARTNERS VII, L.P.
	

 	
 	

By:	

SILVERADO V CORP.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  HABIB Y. GORGI      

	 	 	Name:	Habib Y. Gorgi
	 	 	Its:	President
	

 	
 	

FLEET GROWTH RESOURCES III, INC.
	

 	
 	

By:	

/s/  HABIB Y. GORGI      

	 	 	Name:	Habib Y. Gorgi
	 	 	Its:	Attorney in Fact (Granted 8/4/00)
	

 	
 	

RANDOLPH STREET PARTNERS
	

 	
 	

By:	

/s/  JACK S. LEVIN      

	 	 	Name:	

	 	 	Its:	

	
Signature Page to Registration Agreement

Schedule of Investors  

Notice to Perry Acquisition Partners, L.P., Perry Partners, L.P., Perry Partners International, Inc. or Perry Principals Holdings, LLC  

c/o
Perry Capital Corp.

599 Lexington Avenue

New York, NY 10022

Attention: Richard C. Perry

Fax: 212-583-4040 

Notice to Bain Capital Fund IV, L.P., Bain Capital Fund IV-B, L.P., Information Partners Capital Fund, L.P., BCIP Associates, or BCIP Trust Associates, L.P.  

c/o
Bain Capital LLC

111 Huntington Avenue

Boston, MA 02199

Attention: Steve Pagliuca

Fax: 617-516-2010 

Notice to Chisholm Partners II L.P., Fleet Equity Partners VII, L.P., or Fleet Growth Resources III, Inc.  

c/o
Navis Partners LLC

50 Kennedy Plaza, 12th Floor

Providence, Rhode Island 02903

Attention: Habib Y. Gorgi

Fax: 401-278-6387 

Notice to Randolph Street Partners  

c/o
Kirkland & Ellis

200 E. Randolph Drive

Chicago, Illinois 60601

Attention: William S. Kirsch, P.C.

Fax: 312-861-2200 

Other Registration Rights Schedule  

	1.
	BT
Securities Corporation and Montgomery Securities may have registration rights pursuant to that certain Securityholders' and Registration Rights Agreement, dated as of
December 19, 1994, among Perry Capital Corp. (n/k/a FTD, Inc.), Perry Acquisition Partners, L.P., Bain Capital Fund IV, L.P., Bain Capital Fund IV-B, L.P., Information
Partners Capital Fund, L.P., BCIP Associates, BCIP Trust Associates, L.P., Chisholm Partners II, L.P., Fleet Growth Resources III, Inc., Turnberry Partners, L.P., Randolph Street Partners, BT
Securities Corporation and Montgomery Securities. 

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EXHIBIT 4.2QuickLinks
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EXHIBIT 4.3    
  

Execution Copy  

GOVERNANCE AGREEMENT  

        THIS GOVERNANCE AGREEMENT (this "Agreement") is made as of June 28, 2002, by and among
(i) FTD, Inc., a Delaware corporation formerly known as IOS Brands Corporation (the "Company"), (ii) Perry Acquisition Partners,
L.P., a Delaware limited partnership, Perry Partners, L.P., a Delaware limited partnership, Perry Partners International, Inc., a Cayman Islands corporation, and Perry Principals Holdings, LLC,
a Delaware limited liability company (collectively, the "Perry Entities"), (iii) Bain Capital Fund IV, L.P., a Delaware limited partnership, Bain
Capital Fund IV-B, L.P., a Delaware limited partnership, Information Partners Capital Fund, L.P., a Delaware limited partnership, BCIP Associates, a Delaware general partnership, and BCIP
Trust Associates, L.P., a Delaware limited partnership (collectively, the "Bain Entities", (iv) Randolph Street Partners, an Illinois general
partnership ("Randolph"), and (v) Chisholm Partners II L.P., a Delaware limited partnership, Fleet Equity Partners VII, L.P., a Delaware limited
partnership, and Fleet Growth Resources III, Inc., a Delaware corporation (collectively, the "Fleet Entities"). Each of the parties to this
Agreement other than the Company is referred to herein as an "Investor" and collectively, the  "Investors". Each of the Investors other than the Perry
Entities is referred to herein as an "Other
Investor" and collectively, the "Other Investors."

        WHEREAS,
as of the date hereof, the Perry Entities Beneficially Own (as defined below) shares of Common Stock (the "Perry Shares"), that
represent approximately 46% of the Common Stock (as defined in Section 1) of the Company; 

        WHEREAS,
as of the date hereof, the Bain Entities, Fleet Entities and Randolph Beneficially Own (as defined below) shares of Common Stock (the "Other Investor
Shares"), that represent approximately 23% of the Common Stock of the Company; 

        WHEREAS,
pursuant to that certain Stockholders' Agreement dated as of December 19, 1994, among the Company and the Investors (the "Old Stockholders
Agreement"), the Investors had the right to designate members of the Board of Directors of the Company and the Company's direct and indirect subsidiaries; 

        WHEREAS,
the Company has requested the Investors consent to the termination of the Old Stockholders Agreement; and 

        WHEREAS,
a condition to the Investors' obligation to consent to the termination of the Old Stockholders Agreement is that the Company enter into this Agreement. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the parties hereby agrees as follows: 

        1.    Definitions.  As used in this Agreement, the following terms shall have the following meanings: 

        "Affiliate" means, with respect to a Person, any other Person that directly or indirectly, through one or more intermediaries, Controls,
is Controlled by or is under common Control with such Person. 

        "Bain Nominees" means such Persons as are so designated by the Bain Entities from time to time to serve as members of the Board pursuant
to this Agreement. 

        "Beneficially Own" has the meaning specified in Rule 13d-3 under the Exchange Act as in effect on the date hereof. 

        "Board" means the Board of Directors of the Company. 

        "Common Stock" means, collectively, (i) the Class A Common Stock of the Company, par value $.01 per share, (ii) the
Class B Common Stock of the Company, par value $.0005 per share, and 

 

(iii) any other class or series of common stock issued by the Company subsequent to the date of this Agreement. 

        "Control" has the meaning specified in Rule 12b-2 under the Exchange Act as in effect on the date hereof. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

        "Nominees" means Perry Nominees and Bain Nominees. 

        "Perry Nominees" means such Persons as are so designated by the Perry Entities from time to time to serve as members of the Board pursuant
to this Agreement. 

        "Person" means any individual, corporation, association, limited liability company, partnership, trust or estate, an unincorporated
organization, a joint venture, a government or any agency or political subdivision thereof, or any other entity of whatever nature. 

        2.    Nomination.  Until the termination of this Agreement:

        (a)  The
Perry Entities shall vote their Perry Shares and the Other Investors shall vote their Other Investor Shares, and shall take all other necessary or desirable actions
within its control (whether in its capacity as a stockholder, director or otherwise), to cause the board of directors to consist of nine members. The Perry Entities shall have the right to designate
four Perry Nominees and the Bain Entities shall have the right to designate two Bain Nominees; provided, however, that: 

	(i)
	if
at any time the number of Perry Shares falls below (for a period of at least 30 consecutive days) the number of shares equal to 20% of the then
outstanding shares of Common Stock, the Perry Entities shall only be entitled to designate two Perry Nominees;

	(ii)
	notwithstanding
the other provisions of this Section 2(a), if at any time the number of Perry
Shares falls below (for a period of at least 30 consecutive days) 30% of the number of Perry Shares as of the date of this Agreement, the Perry Entities shall no longer be entitled to designate any
Perry Nominees (and the number of Perry Nominees shall be zero);

	(iii)
	if
at any time the number of Other Investor Shares falls below (for a period of at least 30 consecutive days) the number of shares equal to 10% of the
then outstanding shares of Common Stock, the Bain Entities shall only be entitled to designate one Bain Nominee;

	(iv)
	notwithstanding
the other provisions of this Section 2(a), if at any time the number of Other
Investor Shares falls below (for a period of at least 30 consecutive days) 30% of the number of Other Investor Shares as of the date of this Agreement, beginning at the next designation of a Bain
Nominee, the Other Investors shall no longer be entitled to designate any Bain Nominees (and the number of Bain Nominees shall be zero) and the number of Perry Nominees shall be increased to five if,
at such time, the Perry Entities would be entitled to designate at least three Perry Nominees without giving effect to this clause (iv); and

	(v)
	if
at any time the number of Perry Shares is less than or equal to the number of Other Investor Shares and the Perry Entities would, but for this
clause (v), be entitled to designate pursuant to this Agreement four Perry Nominees, then notwithstanding the other provisions of this  Section 2(a),beginning at the next designation of a Perry
Nominee (whether to fill a vacancy or at an election of directors to the board), the
Bain Entities shall be entitled to designate three Bain Nominees and the Perry Entities shall be entitled to designate three (rather than four) Perry Nominees. 

2

 

For
purposes of these calculations, the number of shares shall be calculated after giving effect to any stock dividend, stock split, recapitalization or other reorganization. Any waiver or failure by
the Perry Entities or the Bain Entities to designate the maximum number of nominees to which they are entitled hereunder shall not be deemed a waiver of such Person's rights hereunder in connection
with any future elections of directors to the Board. 

        (b)  The
Company shall take (and cause to be taken) all commercially reasonable actions and agrees to exercise all authority under applicable law to cause any slate of
directors presented to stockholders of the Company for election to the Board to include the Nominees. In this regard, the Company shall, subject to applicable law and the listing requirements of any
stock exchange or interdealer quotation system, if and to the extent the Company is subject thereto (the "Listing Rules"), duly nominate the Nominees
for election to the Board and shall solicit proxies in favor of the election of the Nominees from the stockholders of the Company entitled to vote for the election of directors. In connection
therewith and in furtherance thereof, the Company shall include in any proxy solicitation materials related to the election of members of the Board such information regarding the Nominees and
recommendations of the Board as are appropriate in proxy solicitation materials or as may be required under the rules and regulations promulgated by the Securities and Exchange Commission. 

        (c)  So
long as the Perry Entities or the Bain Entities are entitled to designate Nominees, if at any time no Nominee is serving as a director on the Board, then, at the
request of the Perry Entities or the Bain Entities, as the case may be, the Company shall promptly invite (or cause to be invited) at least one Perry Nominee and/or Bain Nominee, as the case may be,
to attend all meetings of (i) the Board, and, unless otherwise prohibited by applicable law or the Listing Rules, any meetings of any committees of the Board and (ii) the board of
directors (and any committees thereof) of all of the Company's subsidiaries, in each case in a nonvoting observer capacity (an "Observer") and, in this
respect, shall give (or cause to be given) to the Observer copies of all notices, minutes, consents, and other material that the Company provides to its directors (and, in the case of meetings of the
board of directors (and any committees thereof) of the Company's subsidiaries, that such subsidiary provides to its directors), provided, however, that
the Company and its subsidiaries shall have the right to exclude the Observer from access to any material or meeting or portion thereof if the Board (or, in the case of a meeting of the board of
directors (or a committee thereof) of a subsidiary of the Company, such board of directors), based on the advice of its attorneys, believes that such exclusion is reasonably necessary to preserve the
attorney-client privilege, to protect confidential proprietary information or to avoid a conflict of interest or potential conflict of interest. An Observer's rights hereunder shall terminate at such
time as a Perry Nominee or Bain Nominee, as the case may be, is elected to the Board. 

        3.    Removal and Replacement.  Following the election of a Nominee to the Board, such Nominee shall not be removed
from the Board except for cause under applicable law. Upon the removal for cause or the resignation, death or disability of a Nominee serving as a director of the Board, the Perry Entities or the Bain
Entities, as the case may be, shall have the right to designate a replacement Nominee and, without regard to the level of Beneficial Ownership of Shares by the Perry Entities or the Bain Entities, as
the case may be, at the time of any such resignation, death or disability, either the remaining directors on the Board shall promptly (and in any event within ten business days) appoint such
replacement Nominee to fill the vacancy on the Board or, if the remaining directors fail to the appoint such replacement Nominee to fill such vacancy, then the Company shall duly nominate such
replacement Nominee for election to the Board pursuant to Section 2(b), and, if requested by the Perry Entities or the Bain Entities, promptly
call (or cause to be called) and hold a special meeting of the Company's stockholders for the purpose of voting on such replacement Nominee. 

        4.    Committees and Subsidiary Boards.  Unless otherwise prohibited by applicable law or the Listing Rules, the
composition of (i) any committee of the Board and (ii) the board of directors (and any 

3

 

committees thereof) of all of the Company's majority-owned subsidiaries shall include at least one Perry Nominee and such committees shall make recommendations to their respective boards of directors
but shall not have the authority to act in lieu of their respective boards. 

        5.    Expenses.  The Company shall pay the reasonable out-of-pocket expenses incurred by
each Nominee (including any serving as an Observer) in connection with attending any meeting of the Board, any board of directors of the Company's direct or indirect subsidiaries or any committee of
the Board and
other travel expenses reasonably incurred in discharging such individuals duties as a director or Observer. 

        6.    Certain Actions.  The affirmative vote of at least two Perry Nominees (for so long as the Perry Entities shall
be entitled to designate any Perry Nominees) and one Bain Nominee (for so long as the Bain Entities shall be entitled to designate any Bain Nominee) shall be required with respect to any of the
following actions: 

	(i)
	amendment
of the charter or by-laws of the Company or any subsidiary of the Company;

	(ii)
	(A)
any recapitalization of the Company or any issuance or sale by the Company or any subsidiary of the Company of any of its equity or debt securities
(or any other instrument convertible into such securities) (whether by public offering, private placement or otherwise), provided this provision shall not apply to any issuance of shares of common
stock in connection with an employee benefit plan (so long as the aggregate number of shares of common stock issued or issuable in connection with all such plans does not exceed 15% of the outstanding
shares of common stock of the Company or the applicable subsidiary) or (B) any incurrence of any long-term indebtedness (including guarantees of such indebtedness) by the Company or
any subsidiary of the Company which is not reflected in the Board approved annual operating budget;

	(iii)
	the
registration by the Company or any subsidiary of the Company of any of its equity or debt securities pursuant to the Securities Act in connection
with a public offering of such securities, except on a Form S-8 registration statement (or pursuant to contractual registration rights);

	(iv)
	except
for (A) assets acquired in the ordinary course of business and (B) capital assets acquired in accordance with the Company's or any
of its subsidiaries' board of directors-approved annual budgets, any material acquisition by the Company or any of its subsidiaries, by merger, consolidation or otherwise, of assets or stock of any
other person or entity;

	(v)
	except
for transactions between the Company and any of its subsidiaries or between any of the Company's subsidiaries, any merger, consolidation or sale
of the Company or any subsidiary, any mortgage, lease or other disposition of a material amount of the assets of the Company or any subsidiary of the Company, or the liquidation of the Company or any
subsidiary of the Company;

	(vi)
	except
for transactions in the ordinary course of business or that would not ordinarily be submitted to the Board for authorization or approval,
transactions with any Affiliates of the Company; and

	(vii)
	approval
of the annual operating budget for the Company and any of its subsidiaries and any material amendment or modification thereof or material
deviation therefrom. 

        6.    Representations and Warranties of the Company.  The Company represents and warrants to the Investors as
follows: (i) it has full power and authority to execute, deliver and perform its obligations under this Agreement and (ii) this Agreement and all actions to be undertaken by the Company
contemplated hereby have been, or will be when taken, duly and validly authorized by all necessary 

4

 

action on its part and constitutes a legal, valid and binding obligation enforceable against the Company in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws of general application which may affect the enforcement of creditors= rights generally and by general equitable principles. 

        7.    Representations and Warranties of the Investors.  Each Investor represents and warrants to the Company, with
respect to itself, as follows: (i) such Investor has full power and authority to execute, deliver and perform its obligations under this Agreement and (ii) this Agreement and all actions
to be undertaken by such Investor contemplated hereby have been, or will be when taken, duly and validly authorized by all necessary action on such Investor's part and constitutes a legal, valid and
binding obligation enforceable against such Investor in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws of
general application which may affect the enforcement of creditors' rights generally and by general equitable principles. 

        8.    Termination.  This Agreement shall terminate automatically and be of no further force and effect upon  the first to occur of:

	(i)
	the
Perry Entities and the Other Investors and their respective Affiliates Beneficially Own in the aggregate (for a period of at least 30 consecutive
days) less than ten percent (10%) of the outstanding shares of Common Stock of the Company; or

	(ii)
	the
agreement of the parties to this Agreement to terminate this Agreement. 

        9.    Company Bylaws.  

        (a)  The
Company hereby covenants and agrees not to amend and to use its best efforts to prevent an amendment of the bylaws of the Company (as in effect on the date hereof)
if such amendment could adversely affect the Investors' rights hereunder without the Investors' prior written consent thereto. 

        (b)  In
furtherance of Section 9(a) hereof, the Company hereby covenants and agrees that, until the termination of this
Agreement, the Company shall use its best efforts to include the following provision in its Bylaws: 

Vacancies. Any vacancy occurring in the Board of Directors for any reason and any newly created directorship may be filled by either (i) a
majority of the remaining Directors, although less than a quorum, or (ii) by a plurality of the votes of the shares present in person or represented by proxy at a stockholders' meeting and
entitled to vote in the election of Directors; provided, that any (i) vacancy resulting from the death, disability, resignation or removal for cause of a Nominee (as such term is defined in the
Governance Agreement, dated as of June 28, 2002, between the Corporation and the stockholders of the Corporation party thereto (as such agreement may be amended from time to time pursuant to
its terms, the "Governance Agreement"), a true and correct copy of which shall be available for inspection by the Corporation's stockholders during normal business hours at the Corporation's corporate
headquarters upon reasonable prior request and (ii) any newly created directorship shall, in each case, only be filled by either (1) a majority of the remaining Directors with a
replacement Nominee designated pursuant to the terms of the Governance Agreement or (2) by the stockholders of the Corporation. Each Director elected to replace a former Director shall hold
such office until the expiration of the term of office of the Director whom he or she has replaced and the election and qualification of his or her successor, or until his or her earlier death,
resignation or removal for cause. A Director elected to fill a newly created directorship shall serve until the next annual meeting of stockholders at which the terms of office of the class of
Directors to which he or she is assigned expire and the election and qualification of his or her successor, or until his or her earlier death, resignation or removal for cause. Notwithstanding any
provision in these Bylaws to the contrary, any 

5

 

amendment or revision of this subsection of these Bylaws shall be subject to and in compliance with the restrictions thereon set forth in Section 9(a) of the Governance Agreement. 

        10.    Amendment and Waiver.  This Agreement may be amended only by a writing signed by the Company and the holders
of at least a majority of the Perry Shares and at least a majority of the Other Investor Shares. Any provision of this Agreement may be waived by a writing signed by the party granting such waiver.
Notwithstanding anything contained herein to the contrary, the amendment or waiver of any material provision of this Agreement by the Company shall require the approval of a majority of the directors
of the Company who are not Perry Nominees or Bain Nominees. 

        11.    Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if
such invalid, illegal or unenforceable provision had never been herein. 

        12.    Entire Agreement.  Except as otherwise expressly set forth herein, this document embodies the complete
agreement and understanding among the parties hereto with respect to the subject matter
hereof and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 

        13.    Descriptive Headings.  The descriptive headings of this Agreement are inserted for convenience only and do
not constitute a part of this Agreement 

        14.    Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the
benefit of and be enforceable by the Company and its successors and permitted assigns and the Investors and their successors and permitted assigns. Neither the Company nor any Investor may assign,
directly or indirectly, this Agreement to any Person (other than, in the case of an Investor, an Affiliate of such Investor) without the prior consent of the other parties hereto. 

        15.    Remedies.  The Investors shall be entitled to enforce their rights under this Agreement specifically to
recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The Company agrees and acknowledges that money damages may not be an
adequate remedy for any breach by the Company of the provisions of this Agreement and that the Investors may in their sole discretion apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation (or threatened violation) of the provisions of this Agreement. The
Company hereby consents to and submits to the jurisdiction of any state or federal court located in New York, New York, and irrevocably agree that, subject to the Investor's election hereunder, all
actions relating to enforcement of this Agreement shall be litigated in such courts and the Company waives any objection which it may have based on improper venue or forum non conveniens to the
conduct of any proceeding in any such court. 

        16.    Governing Law.  The laws of Delaware shall govern all issues concerning the relative rights of the Company
and the Investors and all other questions concerning the construction, validity and interpretation of this Agreement, without giving effect to any choice of law or other conflict of law provision or
rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 

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

*
* * * * 

6

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

	 	 	FTD, INC. (f/k/a IOS BRANDS CORPORATION)
	

 	
 	

By:	

/s/  ROBERT L. NORTON      

	 	 	Name:	

	 	 	Its:	

	

 	
 	

PERRY ACQUISITION PARTNERS, L.P.
	

 	
 	

By:	

PERRY INVESTORS, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	

	 	 	Its:	

	

 	
 	

PERRY PARTNERS, L.P.
	

 	
 	

By:	

PERRY CORP.
	 	 	Its:	Managing General Partner
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	

	 	 	Its:	

	

 	
 	

PERRY PARTNERS INTERNATIONAL, INC.
	

 	
 	

By:	

PERRY INVESTORS, L.L.C.,
	 	 	Its:	Investment Manager
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	

	 	 	Its:	

	
[Signature Page to Governance Agreement]

	

 	
 	

PERRY PRINCIPALS HOLDINGS, LLC
	

 	
 	

By:	

/s/  RICHARD C. PERRY      

	 	 	Name:	Richard C. Perry
	 	 	Its:	Managing Member
	

 	
 	

BAIN CAPITAL FUND IV, L.P.

BAIN CAPITAL FUND IV-B, L.P.
	

 	
 	

By:	

BAIN CAPITAL PARTNERS IV, L.P.
	 	 	Their:	General Partner
	

 	
 	

By:	

BAIN CAPITAL INVESTORS, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  STEPHEN G. PAGLIUCA      

	 	 	Name:	Stephen G. Pagliuca
	 	 	Its:	Managing Director
	
[Signature Page to Governance Agreement]

	

 	
 	

INFORMATION PARTNERS CAPITAL FUND, L.P.
	

 	
 	

By:	

INFORMATION PARTNERS
	 	 	Its:	General Partner
	

 	
 	

By:	

BAIN CAPITAL PARTNERS IV, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

BAIN CAPITAL INVESTORS, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  STEPHEN G. PAGLIUCA      

	 	 	Name:	Stephen G. Pagliuca
	 	 	Its:	Managing Director
	

 	
 	

BCIP ASSOCIATES

BCIP TRUST ASSOCIATES, L.P.
	

 	
 	

By:	

/s/  STEPHEN G. PAGLIUCA      

	 	 	Name:	Stephen G. Pagliuca
	 	 	Their:	Authorized Partner
	

 	
 	

CHISHOLM PARTNERS II, L.P.
	

 	
 	

By:	

SILVERADO II, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

SILVERADO II CORP.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  HABIB Y. GORGI      

	 	 	Name:	Habib Y. Gorgi
	 	 	Its:	President
	
[Signature Page to Governance Agreement]

	

 	
 	

FLEET EQUITY PARTNERS VII, L.P.
	

 	
 	

By:	

SILVERADO V CORP.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  HABIB Y. GORGI      

	 	 	Name:	Habib Y. Gorgi
	 	 	Its:	President
	

 	
 	

FLEET GROWTH RESOURCES III, INC.
	

 	
 	

By:	

/s/  HABIB Y. GORGI      

	 	 	Name:	Habib Y. Gorgi
	 	 	Its:	Attorney in Fact (Granted 8/4/00)
	

 	
 	

RANDOLPH STREET PARTNERS
	

 	
 	

By:	

/s/  JACK S. LEVIN      

	 	 	Name:	

	 	 	Its:	

	
[Signature Page to Governance Agreement]

QuickLinks

EXHIBIT 4.3

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