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Exhibit 10.2    
    

 
 

ADMINISTRATIVE SERVICES AGREEMENT    
    

dated as of                        , 2007  

 between  

 UNITED ONLINE, INC.  

 and  

 CLASSMATES MEDIA CORPORATION  

 
 TABLE OF CONTENTS  

	 
	 	 
	 	PAGE

	ARTICLE I

DEFINITIONS
	

Section 1.01	
 	

Definitions	
 	

1
	Section 1.02	 	Internal References	 	3
	

ARTICLE II

PURCHASE AND SALE OF SERVICES
	

Section 2.01	
 	

Purchase and Sale of UOL Services	
 	

3
	Section 2.02	 	Purchase and Sale of CMC Services	 	3
	Section 2.03	 	Additional Services	 	3
	

ARTICLE III

SERVICE COSTS; OTHER CHARGES
	

Section 3.01	
 	

Service Costs Generally	
 	

4
	Section 3.02	 	Invoicing and Settlement of Costs	 	4
	Section 3.03	 	Financial Responsibility for Personnel	 	4
	

ARTICLE IV

TRADEMARKS AND SERVICE MARKS
	

Section 4.01	
 	

Trademarks and Service Marks	
 	

4
	

ARTICLE V

STANDARD OF SERVICE; SERVICES MANAGEMENT
	

Section 5.01	
 	

General Standard of Service	
 	

5
	Section 5.02	 	Services Management	 	5
	

ARTICLE VI

INDEMNIFICATION AND LIMITATION OF LIABILITY
	

Section 6.01	
 	

Indemnification Related to UOL Services	
 	

5
	Section 6.02	 	Procedures for Defense, Settlement and Indemnification of the Third Party Claims	 	6
	Section 6.03	 	Limitation of Liability	 	6
	

ARTICLE VII

TERM AND TERMINATION
	

Section 7.01	
 	

Term	
 	

6
	Section 7.02	 	Termination	 	6
	Section 7.03	 	Effect of Termination	 	7
	 	 	 	 	 

i

 

	

ARTICLE VIII

MISCELLANEOUS
	

Section 8.01	
 	

No Agency	
 	

7
	Section 8.02	 	Subcontractors	 	7
	Section 8.03	 	Force Majeure	 	7
	Section 8.04	 	Entire Agreement	 	8
	Section 8.05	 	Information	 	8
	Section 8.06	 	Notices	 	8
	Section 8.07	 	Governing Law	 	9
	Section 8.08	 	Severability	 	9
	Section 8.09	 	Third Party Beneficiaries	 	9
	Section 8.10	 	Amendment and Modification	 	9
	Section 8.11	 	Counterparts	 	9
	Section 8.12	 	Authority	 	9
	Section 8.13	 	Interpretation	 	9
	Section 8.14	 	Dispute Resolution	 	10
	Section 8.15	 	Confidentiality	 	10
	Section 8.16	 	Failure or Indulgence Not Waiver; Remedies Cumulative	 	10
	Section 8.17	 	Binding Effect; Assignment	 	10

	

SCHEDULE I:	
 	

Financial Transaction and Corporate Financial Services
	SCHEDULE II:	 	Human Resources and Employee Benefits Services
	SCHEDULE III:	 	Marketing Services
	SCHEDULE IV:	 	Facilities Services
	SCHEDULE V:	 	Legal Services
	SCHEDULE VI:	 	Trademark and Domain Name Registration Services
	SCHEDULE VII:	 	Corporate Development Services
	SCHEDULE VIII:	 	Web Analytic Services
	SCHEDULE IX:	 	Co-Marketing Services

ii

   ADMINISTRATIVE SERVICES AGREEMENT  

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

RECITALS  

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

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

        WHEREAS,
the UOL Entities (as defined below) directly or indirectly provide certain services to the CMC Entities (as defined below), and the CMC Entities directly or indirectly provide
certain services to the UOL Entities; 

        WHEREAS,
following consummation of the Offering, the UOL Entities desire to continue to provide certain services to the CMC Entities, and the CMC Entities desire to continue to provide
certain services to the UOL Entities; and 

        WHEREAS,
each Party desires to set forth in this Agreement the principal terms and conditions pursuant to which it will provide and/or receive such services. 

        NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, for
themselves and their respective successors and assigns, hereby covenant and agree as follows: 

ARTICLE I

DEFINITIONS  

        Section
1.01    Definitions.    (a) As used in this Agreement, the following terms shall have the following
meanings, applicable both to the singular and the plural forms of the terms described: 

        "Agreement" means this Administrative Services Agreement, together with the schedules and annex hereto, as the same may be amended or
supplemented from time to time in accordance with the provisions hereof. 

        "CMC Entities" means CMC and its Subsidiaries and any entity which becomes a Subsidiary of CMC after the date hereof, and "CMC Entity"
means any one of the CMC Entities. 

        "CMC Service Costs" means the amounts to be paid to CMC by UOL for CMC Services provided hereunder. 

        "CMC Services" means the services to be provided by CMC to the UOL Entities under this Agreement, as more fully described in the Schedules
hereto and any additional services provided pursuant to Section 2.03. 

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

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

1

 

        "Master Transaction Agreement" means the Master Transaction Agreement between the Parties of even date herewith. 

        "Offering Date" means the date on which the Offering is consummated. 

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

        "Schedules" means any one or more of the schedules referred to in and attached to this Agreement. 

        "Service Costs" means the CMC Service Costs and/or the UOL Service Costs, as the context may require. 

        "Services" means the CMC Services and/or the UOL Services, as the context may require. 

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

        "UOL Entities" means UOL and its Subsidiaries (other than the CMC Entities) and any entity which becomes a Subsidiary of UOL after the
date hereof, and "UOL Entity" means any one of the UOL Entities. 

        "UOL Service Costs" means the amounts to be paid to UOL by CMC for UOL Services provided hereunder. 

        "UOL Services" means the services to be provided by UOL to the CMC Entities under this Agreement, as more fully described in the Schedules
hereto and any additional services provided pursuant to Section 2.03. 

        (b)   Each
of the following terms is defined in the Section set forth opposite such term: 

	TERM
 
	 	SECTION

	Actions	 	6.01
	Additional Interest	 	3.02(b)
	Annual Budget	 	5.02(b)
	CMC	 	Preamble
	Force Majeure	 	8.03(a)
	Indemnified Person	 	6.01
	Indemnifying Party	 	6.01
	Initial Term	 	7.01
	Offering	 	Preamble
	Parties	 	Preamble
	Party	 	Preamble
	Payment Date	 	3.02(b)
	Quarterly Service Cost	 	5.02
	Registration Statement	 	Preamble
	Renewal Term	 	7.01
	Subcontractor	 	8.02
	UOL	 	Preamble

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        Section
1.02    Internal References.    Unless the context indicates otherwise, references to Articles, Sections and
paragraphs shall refer to the corresponding articles, sections. 

ARTICLE II

PURCHASE AND SALE OF SERVICES  

        Section
2.01    Purchase and Sale of UOL Services.    

        (a)   Subject
to the terms and conditions of this Agreement and in consideration of the UOL Service Costs to be paid to UOL as described below, UOL agrees to provide or cause
to be provided to the CMC Entities, and CMC agrees to purchase from UOL, the UOL Services, until the obligation to provide such UOL Services is terminated in accordance with the provisions hereof. 

        (b)   The
Parties acknowledge and agree that (i) at CMC's request, UOL shall provide the UOL Services directly to CMC or Subsidiaries of CMC and (ii) UOL may
satisfy its obligation to provide or to procure the UOL Services hereunder by causing one or more of its Subsidiaries to provide or to procure such UOL Services. With respect to the UOL Services
provided to, or procured on behalf of, any Subsidiary of CMC, CMC agrees to pay on behalf of such Subsidiary all amounts payable by or in respect of such UOL Services pursuant to this Agreement. 

        Section
2.02    Purchase and Sale of CMC Services.    

        (a)   Subject
to the terms and conditions of this Agreement and in consideration of the CMC Service Costs to be paid to CMC as described below, CMC agrees to provide or cause
to be provided to the UOL Entities, and UOL agrees to purchase from CMC, the CMC Services, until the obligation to provide such CMC Services is terminated in accordance with the provisions hereof. 

        (b)   The
Parties acknowledge and agree that (i) at UOL's request, CMC shall provide the CMC Services directly to UOL or Subsidiaries of UOL and
(ii) CMC may satisfy its obligation to provide or to procure the CMC Services hereunder by causing one or more of its Subsidiaries to provide or to procure such CMC Services. With respect to
the CMC Services provided to, or procured on behalf of, any Subsidiary of UOL, UOL agrees to pay on behalf of such Subsidiary all amounts payable by or in respect of such CMC Services pursuant to this
Agreement. 

        Section
2.03    Additional Services.    

        (a)   In
addition to the UOL Services to be provided or procured by UOL in accordance with Section 2.01 and set forth in the Schedules hereto, if requested by CMC, and
to the extent that UOL and CMC may mutually agree in writing, UOL shall provide additional services to CMC. The scope of any such additional services, as well as the costs and other terms and
conditions applicable to such additional services, shall be as mutually agreed by UOL and CMC prior to the provision of such additional services. 

        (b)   In
addition to the CMC Services to be provided or procured by CMC in accordance with Section 2.02 and set forth in the Schedules hereto, if requested by UOL, and
to the extent that CMC and UOL may mutually agree in writing, CMC shall provide additional services to UOL. The scope of any such additional services, as well as the costs and other terms and
conditions applicable to such additional services, shall be as mutually agreed by CMC and UOL prior to the provision of such additional services. 

3

 

ARTICLE III

SERVICE COSTS; OTHER CHARGES  

        Section
3.01    Service Costs Generally.    Set forth in the Schedules hereto (as may be amended from time to time) is
the billing methodology for each Service. Each Party agrees to pay to the other Party in the manner set forth in Section 3.02 an amount equal to the Service Costs applicable to each of the
Services provided or procured by such other Party. 

        Section
3.02    Invoicing and Settlement of Costs.    

        (a)   As
soon as practicable after the end of each month, each Party will invoice the other Party for the applicable Service Costs on a monthly basis, in arrears, for the
prior month just ended. The invoice shall set forth in reasonable detail for the period covered by such invoice (i) the Services rendered, (ii) the Service Costs for each type of Service
provided and (iii) such additional information as reasonably requested 

        (b)   Each
Party agrees to pay all of the Service Costs on or before thirty (30) days after the date on which an invoice for Service Costs is delivered to such Party
(the "Payment Date") by check or wire transfer of immediately available funds; provided that the Parties
may agree to a net amount owed by one Party to the other. If a Party fails to pay any monthly payment on or before the Payment Date, such Party shall be obligated to pay, in addition to the amount due
pursuant to such invoice, interest on such amount at the prime rate published in The Wall Street Journal (as of the applicable Payment Date) plus two
percent (2%) per annum, compounded monthly from the relevant Payment Date through the date of payment ("Additional Interest");  provided that if the Parties
agree to a net amount owed by one Party to the other with respect to Service Costs in any monthly period, the Party to whom
such net amount is owed shall not be liable for Additional Interest. Unless otherwise agreed in writing between the Parties, all payments made pursuant to this Agreement shall be made in U.S. dollars. 

        (c)   Notwithstanding
the foregoing, if a Party in good faith disputes any invoiced charge, payment of such charge shall be made only after mutual resolution of such dispute.
Each Party agrees to notify the other Party promptly, and in no event later than the relevant Payment Date, of any disputed charge. Additional Interest shall not accrue on any amount in dispute and no
default shall be alleged until after the relevant Payment Date. 

        (d)   During
the term of this Agreement, each Party shall keep such books, records and accounts as are reasonably necessary to verify the calculation of the fees and related
expense for Services provided hereunder. Each Party shall provide documentation supporting any amounts invoiced pursuant to this Section 3.02 as the other Party may from time to time reasonably
request. Each Party shall have the right to review such books, records and accounts at any time during normal business hours upon reasonable written notice, and each Party agrees to conduct any such
review in a manner so as not to unreasonably interfere with the other Party's normal business operations. 

        Section
3.03    Financial Responsibility for Personnel.    Each Party will pay for all personnel and other related
expenses, including salary or wages, of its employees performing the Services. No person providing Services to a Party pursuant to the terms of this Agreement shall be deemed to be, or shall have any
rights as, an employee of such Party. 

ARTICLE IV

TRADEMARKS AND SERVICE MARKS  

        Section
4.01    Trademarks and Service Marks.    CMC agrees to permit UOL to use the trademarks and service marks
owned by CMC and its Subsidiaries at no cost to UOL for use in UOL's annual report to stockholders, documentation relating to any of the UOL Services, and for any other similar 

4

 

purpose,
so long as CMC reviews and consents to such particular use, such consent not to be unreasonably withheld, conditioned or delayed. 

ARTICLE V

STANDARD OF SERVICE; SERVICES MANAGEMENT  

        Section
5.01    General Standard of Service.    Except as otherwise agreed to in writing by the Parties or as
described in this Agreement, the Parties agree that the nature, quality and standard of care applicable to the delivery of the Services hereunder, and the skill levels of the employees providing such
Services, shall be substantially the same as or consistent with those which each Party exercises or employs in providing similar services for itself and its Subsidiaries. 

        Section
5.02    Services Management.    

        (a)   On
or prior to the first day of each fiscal quarter, each Party will provide the other with a written estimate of the expected Service Costs, set forth in reasonable
detail and by month, to be charged to the other Party for Services to be provided that quarter. The Parties will use their reasonable best efforts to reach an agreement as to estimated Service Costs
for a fiscal quarter no later than the fifteenth (15th) day of such quarter, and the Chief Financial Officer of each Party shall initial the document reflecting their agreement as to the
estimated Service Costs (the "Quarterly Service Cost"). Except as set forth in this Section 5.02(a), the Quarterly Service Cost shall be the
charges that will be invoiced to each Party by the other for Service Costs for such quarter. While the Quarterly Service Cost will contain estimates of Service Costs to be billed directly or
indirectly from third parties, the Quarterly Service Cost will only constitute an estimate and the bills received from third parties will be the actual amounts invoiced. In the event that a Party
becomes aware that the actual Service Cost being, or to be, incurred by a Party is materially different from that set forth in the Quarterly Service Cost, such Party will provide the other with a
written estimate of the expected change and the Parties will negotiate in good faith to have the Quarterly Service Cost modified to reflect the actual cost (calculated in accordance with the terms of
this Agreement and the Schedules hereto). Any modification of the Quarterly Service Cost will be set forth in writing and initialed by the Chief Financial Officer of each Party. The Parties may from
time to time agree to amend the process set forth in this Section 5.02(a). 

        (b)   The
Parties agree to work together and to cooperate with each other in good faith to develop an annual budget ("Annual
Budget") to reflect the estimated annual Service Costs to each Party for each of the Services to be provided and/or procured by the other Party as contemplated by this
Agreement. The Parties agree to use their reasonable efforts to harmonize the interests of the Parties to have quality services at affordable costs and to recover the costs of performing and/or
procuring the Services. On or before December 31 of each calendar year, an Annual Budget for the next calendar year shall be submitted to the respective Chief Financial Officer of each of the
Parties for review and approval. Such approval shall constitute approval of the Annual Budget by the Party represented by such person. The Annual Budget is for planning purposes and, unlike the
Quartely Service Cost, shall not be the amounts billed one another under this Agreement. 

ARTICLE VI

INDEMNIFICATION AND LIMITATION OF LIABILITY  

        Section
6.01    Indemnification Related to UOL Services.    Each Party (the "Indemnifying
Party") agrees to indemnify, defend and hold harmless the other Party and its directors, officers, agents and employees (each an "Indemnified
Person") from and against any loss, cost or damage related to, and to reimburse each Indemnified Person for all reasonable expenses (including, without limitation, attorneys'
fees) as they are incurred in connection with pursuing or defending any third-party claim, 

5

 

action
or proceeding (collectively, "Actions") arising out of or relating to the Indemnifying Party's recklessness or willful misconduct in performing
or failing to perform the Indemnifying Party's obligations under this Agreement. 

        Section
6.02    Procedures for Defense, Settlement and Indemnification of the Third Party Claims.    Each Party hereto
agrees that Section 6.8 of the Master Transaction Agreement is hereby incorporated by reference into and made a part hereof mutatis mutandis. 

        Section
6.03    Limitation of Liability.    

        (a)   EXCEPT
FOR THIRD-PARTY CLAIMS UNDER ANY INDEMNITY PROVISION HEREIN OR CLAIMS RELATED TO A BREACH OF CONFIDENTIALITY PURSUANT TO SECTION 8.15, IN NO EVENT SHALL
UOL OR CMC BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE)
ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

        (b)   None
of the CMC Entities shall have any liability to any UOL Entity or any other Person for failure to perform CMC's obligations under this Agreement or otherwise, where
such failure to perform similarly affects the CMC Entities receiving the same or similar services and does not have a disproportionately adverse effect on the UOL Entities, taken as a whole. In
addition, none of the UOL Entities shall have any liability to any CMC Entity or any other Person for failure to perform UOL's obligations under this Agreement or otherwise, where such
failure to perform similarly affects the UOL Entities receiving the same or similar services and does not have a disproportionately adverse effect on the CMC Entities, taken as a whole. 

ARTICLE VII

TERM AND TERMINATION  

        Section
7.01    Term.    Except as otherwise provided in this Article VII or as otherwise agreed in writing by
the Parties, this Agreement shall have an initial term from the Offering Date through December 31, 2008 (the "Initial Term") and will be renewed
automatically thereafter for successive one-year terms. 

        Section
7.02    Termination.    

        (a)   The
Parties may by mutual agreement from time to time terminate this Agreement with respect to one or more of the Services, in whole or in part. 

        (b)   Either
Party may terminate Services provided pursuant to any Schedule by notice in writing to the other Party as set forth in the Schedule, and this Agreement will
automatically terminate when Services provided pursuant to all Schedules have been so terminated. 

        (c)   CMC
may terminate the obligations under this Agreement as to any UOL Service at any time if UOL shall have failed to perform any of its material obligations under this
Agreement relating to such UOL Service, CMC shall have notified UOL in writing of such failure, and such failure shall have continued for a period of at least thirty (30) days after receipt by
UOL of written notice of such failure from CMC. 

        (d)   UOL
may terminate the obligations under this Agreement as to any CMC Service at any time if CMC shall have failed to perform any of its material obligations under this
Agreement relating to such CMC Service, UOL shall have notified CMC in writing of such failure, and such failure shall have continued for a period of at least thirty (30) days after receipt by
CMC of written notice of such failure from UOL. 

6

 

        (e)   Either
Party may terminate the obligations under this Agreement as to any affected Service effective immediately upon written notice to the other Party if the
performance of such Service (in all material respects as required hereby) would require such Party to violate any applicable laws, rules or regulations or would result in the breach of any applicable
Contract in existence on the Offering Date. 

        (f)    Except
as provided in Section 7.02(a), termination of Services provided pursuant to any Schedule shall apply to the Schedule as a whole, not in part. 

        Section
7.03    Effect of Termination.    

        (a)   Other
than as required by law, upon the effective date of the termination of the obligations under this Agreement as to any Service pursuant to Section 7.01 or
7.02, or upon termination of this Agreement in accordance with its terms, the Party whose Service is terminated shall have no further obligation to provide the terminated Service (or any Service, in
the case of termination of this Agreement) and the Party terminating such Service shall have no obligation to pay any CMC Service Costs or UOL Service Costs, as the case may be, relating to such
terminated Service; provided that, notwithstanding such termination, (i) the Party terminating such Service shall remain liable to the Party
whose Service is terminated for CMC Service Costs or UOL Service Costs, as the case may be, owed and payable in respect of Services provided prior to the effective date of the termination and
(ii) the provisions of Articles V, VI, VII and VIII shall survive any such termination indefinitely. Any termination of the obligations under this Agreement as to any Service or upon
termination of this Agreement in accordance with its terms will not relieve a Party of any liability for breach hereof. 

        (b)   Following
termination of this Agreement with respect to any Service, each Party agrees to cooperate with the other Party in providing for an orderly transition of such
Service to such other Party or to a successor service provider as designated by such other Party, and CMC shall reimburse UOL for its reasonable expenses incurred in connection with such transition of
services. 

ARTICLE VIII

MISCELLANEOUS  

        Section
8.01    No Agency.    Nothing in this Agreement shall constitute or be deemed to constitute a partnership or
joint venture between the Parties hereto or constitute or be deemed to constitute any Party the agent or employee of the other Party for any purpose whatsoever, and neither Party shall have authority
or power to bind the other Party or to contract in the name of, or create a liability against, the other Party in any way or for any purpose. 

        Section
8.02    Subcontractors.    Either Party may hire or engage one or more third-party subcontractors (each, a
"Subcontractor") to perform all or any of its obligations under this Agreement; provided that subject to
Section 6.03, such Party shall pay for all amounts due to each such Subcontractor and shall in all cases remain primarily responsible for all obligations undertaken by each such Subcontractor
on such Party's behalf pursuant to the terms of this Agreement with respect to the scope, quality and nature of the Services provided to the other Party; provided
further that in each case the use of a Subcontractor to perform such Party's obligations would not substantially increase the costs to the other Party. 

        Section
8.03    Force Majeure.    

        (a)   For
purposes of this Section 8.03, "Force Majeure" means an event beyond the control of a Party, which by its
nature could not have been foreseen by such Party, or, if it could have been foreseen, was unavoidable and includes, without limitation, acts of God, storms, floods, riots, fires, sabotage, civil
commotion or civil unrest, interference by civil or military authorities, acts of war (declared or undeclared) and failure of energy sources. 

7

 

        (b)   Continued
performance of a Service may be suspended immediately to the extent caused by Force Majeure. The Party claiming suspension of a Service due to Force Majeure
will give prompt notice to the other of the occurrence of the event giving rise to the suspension and of its nature and anticipated duration. The Parties shall cooperate with each other to find
alternative means and methods for the provision of the suspended Service. 

        (c)   Without
limiting the generality of Section 6.03, neither Party shall be under any liability for failure to fulfill any obligation under this Agreement, so long as
and to the extent to which the fulfillment of
such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. 

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

        Section
8.05    Information.    Subject to applicable law and privileges, each Party hereto covenants with and agrees
to provide to the other Party all information regarding itself and transactions under this Agreement that the other Party reasonably believes is required to comply with all applicable federal, state,
county and local laws, ordinances, regulations and codes, including, but not limited to, securities laws and regulations. 

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

	(a)
	If
to UOL, to: 

United
Online, Inc.

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: General Counsel

Fax: (818) 287-3010 

with
a copy to: 

United
Online, Inc.

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: Chief Financial Officer

Fax: (818) 287-3049 

	(b)
	If
to CMC, to: 

Classmates
Media Corporation

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: General Counsel

Fax: (818) 287-3010 

8

 

with
a copy to: 

Classmates
Media Corporation

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: Chief Financial Officer

Fax: (818) 287-3035 

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

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

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

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

        Section
8.10    Amendment and Modification.    This Agreement may be amended, modified or supplemented only by a
written agreement signed by all of the Parties hereto. 

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

        Section
8.12    Authority.    Each of the Parties represent to the other Party that (a) it has the corporate or
other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all
necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement and (d) this Agreement is its legal, valid and binding obligation, enforceable
against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equity
principles. 

        Section
8.13    Interpretation.    The headings contained in this Agreement and in the table of contents to this
Agreement are for reference purposes only and shall not affect in any way the meaning 

9

 

or
interpretation of this Agreement. When a reference is made in this Agreement to an Article or a Section, such reference shall be to an Article or Section of this Agreement unless otherwise
indicated. 

        Section
8.14    Dispute Resolution.    Each Party hereto agrees that Section 3.12 of the Master Transaction
Agreement is hereby incorporated by reference into and made a part hereof mutatis mutandis. 

        Section
8.15    Confidentiality.    Each of UOL and CMC agrees to, and will cause the UOL Entities and the CMC
Entities, respectively, to, maintain and safeguard all Confidential Information (as such term is defined in the Master Transaction Agreement) pursuant to Section 3.5 of the Master Transaction
Agreement, and each Party hereto agrees that Section 3.5 of the Master Transaction Agreement is hereby incorporated by reference into and made a part hereof mutatis mutandis. 

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

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

[SIGNATURE
PAGE FOLLOWS] 

10

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

	 	 	UNITED ONLINE, INC.
	

 	
 	

By:	
 	

    
 Name:

Title:
	

 	
 	

CLASSMATES MEDIA CORPORATION
	

 	
 	

By:	
 	

    
 Name:

Title:

SCHEDULE I  

Financial Transaction and Corporate Financial Services  

Services:  

        UOL will provide the following accounting, finance, tax and other corporate services to CMC: 

A.    Financial Transaction Services    

	•
	Accounts
payable processing, billing, monthly accounting, fixed asset processing, general ledger, accounts receivable, cash receipts and lease and license payments for
Classmates Online, Inc.

	•
	Payroll
for CMC 

B.    Corporate Financial Services    

	•
	Treasury,
stock plan administration, public reporting and CMC's consolidation services.

	•
	Petty
cash, management reporting, cash management and tax services (including income, franchise, sales, use, personal property and rent taxes, preparation of returns and
reports, and advisory services).

	•
	Property
and casualty insurance procurement, claims administration and consulting services.

	•
	Investor
relations services. 

        The
services are anticipated to be provided by UOL's personnel located at UOL's offices in Woodland Hills, California. 

        CMC
shall remain responsible for all accounting policy decisions. UOL will be responsible for incorporating accounting policies into the functions performed for CMC. UOL will provide
input on proposed accounting policy changes. UOL will escalate to appropriate CMC management any exceptions to accounting policies. Public reporting shall be done in accordance with generally accepted
accounting principles and in compliance with all applicable laws, rules and regulations. 

C.    Other Corporate Services    

	•
	UOL
and CMC will share access to any corporate jet services provided by outside vendor(s), except to the extent each party may independently procure such services for
itself. 

Billing Methodology:  

A.    For
the Financial Transaction Services, UOL will charge CMC the cost to UOL of each employee (including salary, bonus and other
compensation, insurance, benefits and taxes) engaged full-time in providing the services (based on 40 hour work week) or, if less than
full-time, a percentage of that cost, in each case based on the number of hours worked or percentage (reasonable approximation) of time spent. 

B.    In
addition, for the Corporate Financial Services, UOL will charge CMC 50% of UOL's corporate costs and expenses for
accounting, finance and tax services. These corporate costs are comprised of: 

	•
	The
employee costs of those employees focused primarily on the administration and supervision of accounting, finance and tax functions.

	•
	The
UOL Service Costs for services that benefit UOL and CMC such as expenses related to common tax filings, financial reporting, corporate accounting, financial reporting
systems, etc.

	•
	The
insurance costs that benefit UOL and CMC, unless the underwriting criteria warrants a different allocation. 

C.    Other Corporate Services shall be charged the basis as the parties shall mutually agree. For example: 

	•
	For
any corporate jet services not independently procured by CMC, 50% of UOL's monthly lease costs and 50% of UOL's operating expenses for the
services that benefit both the companies fairly equally shall be allocated to CMC, while 100% of operating expenses that are fairly attributable, based upon number of passengers and flight hours, to
either UOL or CMC shall be charged directly or allocated to that particular company. 

        Miscellaneous
overhead expenses such as those for supplies, office equipment, employee training, cell phone and other miscellaneous expenses will be allocated on a basis similar to that
determined for Financial Transaction Services and charged as a percentage of allocated employee costs. 

        Travel
and related expenses that are fairly attributable to CMC will be charged or allocated directly to CMC. 

        Services
performed by a subcontractor or outside service provider on CMC's behalf will be billed directly to CMC where practical; otherwise, the compensation or consideration will be
allocated in good faith to CMC in the exercise of UOL's reasonable discretion. 

        CMC
will generally be billed directly by insurance companies (where practical), brokers, agents and consultants (where practical and the charges can be reasonably segregated). 

Termination of Accounting and Finance Services:  

        Either Party may terminate the Financial Transaction and Corporate Finance Services at any time upon notice in writing to the other Party of not less than one
hundred and eighty (180) days. 

SCHEDULE II  

Human Resources and Employee Benefits Services  

Services:  

A.    Human Resources Services    

	•
	UOL
will provide human resources oversight, personnel recruiting and corporate training services and related assistance on an as needed or requested basis. 

B.    Employee Benefits Services    

	•
	UOL
will administer UOL's employee benefit plans ("UOL Benefit Plans") to and in respect of CMC employees who
are entitled or allowed to remain participants or beneficiaries of UOL Benefit Plans required by applicable law or as otherwise agreed by UOL and CMC in the same manner as UOL administered UOL Benefit
Plans prior to the IPO date.

	•
	UOL
will, at the direction of CMC, design, negotiate and administer CMC's health and welfare benefit plans, 401(k) plan and other benefit plans and shall provide advice with
respect to, and administer, wage and salary, bonus and other compensation programs ("CMC Benefit Plans"). 

Billing Methodology:  

        UOL service costs for both the Human Resources Services and Employee Benefits
Services will be calculated based on the cost to UOL of each employee (including salary, bonus and other compensation, insurance, benefits and taxes) engaged
full-time in providing the services (based on 40 hour work week) or, if less than full-time, a percentage of that cost, in each case based on the number of hours worked
or percentage (reasonable approximation) of time spent. 

        Travel
and related expenses that are fairly attributable to CMC will be charged or allocated directly to CMC. 

        In
addition, any expenses for employee training, job posting, applicant tracking (e.g. ICIMS), performance evaluations, and similar types of services will be allocated between UOL and
CMC. Unless the costs for such are directly attributable to CMC, the percentage of costs allocated to CMC will be calculated by dividing the number of employees of CMC and its subsidiaries by the
total
number of employees of UOL and its subsidiaries (including CMC and its subsidiaries) at the beginning of each fiscal quarter. 

        Miscellaneous
overhead expenses such as those for supplies, office equipment, cell phone and other miscellaneous expenses will be allocated on a basis similar to that determined for
Human Resources Services and charged as a percentage of allocated employee costs. 

        Services
performed by a subcontractor or outside service provider on CMC's behalf will be billed directly to CMC where practical; otherwise, the compensation or consideration will be
allocated in good faith to CMC in the exercise of UOL's reasonable discretion. 

        CMC
will generally be billed directly by insurance companies, brokers, agents and consultants (where practical and the charges can be reasonably segregated). 

Termination of Human Resources and Employee Benefits Services:  

        Following the Initial Term, either Party may terminate the Human Resources and Employee Benefits Services at any time upon notice in writing to the other Party of
not less than one hundred and eighty (180) days. 

SCHEDULE III  

Marketing Services  

Services:  

        UOL will provide Marketing Services to CMC (such as Web site design and advertising creative work), on an as needed or requested basis. 

Billing Methodology:  

        UOL Service Costs for Marketing Services will be calculated based on the cost to UOL of each employee (including salary, bonus and other compensation, insurance,
benefits and taxes) engaged full-time in providing the services (based on 40 hour work week) or, if less than full-time, a percentage of that cost, in each case based on
the number of hours worked or percentage (reasonable approximation) of time spent. 

        Miscellaneous
overhead expenses such as those for supplies, office equipment, cell phone and other miscellaneous expenses will be allocated on a basis similar to that determined for
Marketing Services and charged as a percentage of allocated employee costs. 

        Travel
and related expenses that are fairly attributable to CMC will be charged or allocated directly to CMC. 

        Marketing
Services performed by a subcontractor or outside service provider on CMC's behalf will be billed directly to CMC where feasible; otherwise, the compensation or consideration
will be allocated in good faith to CMC in the exercise of UOL's reasonable discretion. 

Termination of Marketing Services:  

        Either may terminate the Marketing Services at any time upon notice in writing to the other Party of not less than ninety (90) days. 

SCHEDULE IV  

Facilities Services  

Services:  

        UOL will provide Facilities Services to CMC, including the negotiation of leases for office facilities and services, related relocation, office equipment and
communications devices, on an as needed or requested basis. 

Billing Methodology:  

        UOL Service Costs for Facilities Services will be a flat charge of $2,000 per month. In the event that a project or other activity outside the normal course of
the Facilities Services typically being provided arises such that a material change to the UOL Service Costs is warranted, UOL and CMC will work in good faith to reach an agreement as to the amount of
service costs to be charged either on a case by case basis or going forward. 

        Travel
and related expenses that are fairly attributable to CMC will be charged or allocated directly to CMC. 

        Facilities
Services performed by a subcontractor or outside service provider on CMC's behalf will be billed directly to CMC where feasible; otherwise, the compensation or consideration
will be allocated in good faith to CMC in the exercise of UOL's reasonable discretion. 

Termination of Facilities Services:  

        Either may terminate the Facilities Services at any time upon notice in writing to the other Party of not less than ninety (90) days. 

SCHEDULE V  

Legal Services  

Services:  

        Each of UOL and CMC will provide Legal Services to the other, on an as needed or requested basis. 

Billing Methodology:  

        UOL service costs or CMC service costs, as the case may be, for Legal Services will be calculated based on the cost to UOL and CMC, respectively, of each employee
(including salary, bonus and other compensation, insurance, benefits and taxes, but excluding stock based compensation) engaged full-time in providing the services (based on 40 hour
work week) or, if less than full-time, a percentage of that cost, in each case based on the number of hours worked or percentage (reasonable approximation) of time spent. 

        Miscellaneous
overhead expenses such as those for supplies, office equipment, cell phone and other miscellaneous expenses will be allocated on a basis similar to that determined for
Legal Services and charged as a percentage of allocated employee costs. 

        Travel
and related expenses that are fairly attributable to UOL or CMC, as applicable, will be charged or allocated directly to that party. 

        CMC
and UOL generally billed directly by outside counsel for legal services where feasible; otherwise, the fees and expenses will be allocated in good faith to the appropriate party
based on the billing statement entries. 

Termination of Legal Services:  

        Either Party may terminate the Legal Services at any time upon notice in writing to the other Party of not less than one hundred and eighty (180) days. 

SCHEDULE VI  

Trademark and Domain Name Registration Services  

Services:  

        CMC will maintain the database of UOL trademarks and domain names and provide services to maintain and register the UOL trademarks and domain names. CMC will work
with UOL to transition the UOL trademarks and domain names and registration process to UOL systems and database. 

Billing Methodology:  

        CMC service costs for Trademark and Domain Name Registration Services (including the cost of maintaining the database and systems) will be a flat charge of $1,500
per month. 

        Travel
and related expenses fairly attributable to UOL will be charged or allocated directly to UOL. 

        UOL
generally billed directly by outside counsel for trademark and domain name registration services where feasible; otherwise, the fees and expenses will be allocated in good faith to
the appropriate party based on the billing statement entries. 

        Services
performed by a subcontractor or outside service provider on UOL's behalf will be billed directly to UOL where feasible; otherwise, the compensation or
consideration will be allocated in good faith to UOL in the exercise of CMC's reasonable discretion. 

Termination of Trademark and Domain Name Registration Services:  

        Either Party may terminate the Trademark and Domain Name Registration Services at any time upon notice in writing to the other Party of not less than ninety
(90) days. 

SCHEDULE VII  

Corporate Development Services  

Services:  

        UOL will provide business development on an as needed or requested basis. 

Billing Methodology:  

        UOL Service Costs for Corporate Development Services will be the cost to UOL of each employee (including salary, bonus, and other compensation, insurance,
benefits and taxes, but excluding stock based compensation) engaged full-time in providing the services (based on 40 hour work week) or, if less than full-time, a
percentage of that cost, in each case based on the number of hours worked or percentage (reasonable approximation) of time spent. 

        Miscellaneous
overhead expenses such as those for supplies, office equipment, cell phone and other miscellaneous expenses will be allocated on a basis similar to that determined for the
Corporate Development Services and charged as a percentage of allocated employee costs. 

        Travel
and related expenses that are fairly attributable to CMC will be charged or allocated directly to CMC. 

        Services
performed by a subcontractor or outside service provider on CMC's behalf, will be billed directly to CMC where feasible; otherwise, the compensation or consideration will be
allocated in good faith to CMC in the exercise of UOL's reasonable discretion. 

Termination of Corporate Services:  

        Either Party may terminate the Corporate Development Services at any time upon notice in writing to the other Party of not less than ninety (90) days. 

SCHEDULE VIII  

Web Analytic Services  

Services:  

        CMC will provide Web Analytic Services to UOL, including managing the vendor relationship with Omniture and supporting the use of its SiteCatalyst web analytics
products at UOL. Services will include end user account administration (set up, security, password resets), questions on reports and reporting results, the communication of system best practices and
the exploration of business requirements for future tool enhancements. 

Billing Methodology:  

        CMC Service Costs for Web Analytic Services will be a flat fee of $2,500 per month, based on the anticipated percentage of time to be spent by three CMC employees
providing the Web Analytic Services. CMC Service Costs are subject to adjustment by mutual agreement of the Parties if the anticipated amount of time to provide the Web Analytic Services materially
changes. 

        Travel
and related expenses that are fairly attributable to UOL will be charged or allocated directly to UOL. 

        Services
performed by a subcontractor or outside service provider on UOL's behalf will be billed directly to UOL where feasible; otherwise, the compensation or
consideration will be allocated in good faith to UOL in the exercise of CMC's reasonable discretion. 

Termination of Web Analytic Services:  

        Either Party may terminate the Web Analytic Services at any time upon notice in writing to the other Party of not less than ninety (90) days. 

SCHEDULE IX  

Co-Marketing Services  

Services:  

        From time to time, UOL and CMC may agree to market or promote each other's services on their respective Web sites and properties on such terms and conditions as
the parties may then negotiate and agree. Currently the Parties have various co-registration and advertising placements on one another's properties, all of which are currently immaterial.
To the extent the Parties agree to market one another's services, such agreements shall be on substantially the terms that the Parties generally provide similar services to third parties. 

Billing Methodology:  

        Depending on the service being provided, the consideration may be a bounty, a flat fee, a percentage payment, barter arrangement or such other payment structure
as the parties may determine. 

Termination of Co-Registration Services:  

        Following the Initial Term, either Party may terminate the Co-Marketing Services at any time upon notice in writing to the other Party of not less
than thirty (30) days. 

QuickLinks

Exhibit 10.2

ADMINISTRATIVE SERVICES AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.3    
    

 
 

TAX SHARING AGREEMENT    
    

   

by and among 

UNITED ONLINE, INC.  

 AND ITS AFFILIATES,  

and

 CLASSMATES MEDIA CORPORATION  

 AND ITS AFFILIATES,  

   

Dated

                       ,
2007 

  

 
 

TABLE OF CONTENTS

	 
	 	 
	 	Page

	Section 1.	 	Definitions	 	1
	

Section 2.	
 	

Preparation and Filing of Tax Returns	
 	

6
	 	
 2.01.	
 	

Parent's Responsibility	
 	

6
	 	2.02.	 	CMC's Responsibility	 	6
	 	2.03.	 	Agent	 	6
	 	2.04.	 	Manner of Tax Return Preparation	 	6
	

Section 3.	
 	

Liability for Taxes	
 	

7
	 	
 3.01.	
 	

CMC's Liability for Taxes	
 	

7
	 	3.02.	 	Parent's Liability for Taxes	 	7
	 	3.03.	 	Taxes & Reimbursements	 	7
	 	3.04.	 	Payment of Tax Liability	 	8
	 	3.05.	 	Computation	 	8
	

Section 4.	
 	

Deconsolidation Events	
 	

8
	 	
 4.01.	
 	

Tax Allocations	
 	

8
	 	4.02.	 	Carrybacks	 	8
	 	4.03.	 	Continuing Covenants	 	8
	

Section 5.	
 	

Distribution Taxes	
 	

9
	 	
 5.01.	
 	

Liability for Distribution Taxes	
 	

9
	 	5.02.	 	Continuing Covenants	 	11
	

Section 6.	
 	

Indemnification	
 	

12
	 	
 6.01.	
 	

In General	
 	

12
	 	6.02.	 	Inaccurate or Incomplete Information	 	12
	 	6.03.	 	No Indemnification for Tax Items	 	13
	

Section 7.	
 	

Payments	
 	

13
	 	
 7.01.	
 	

Estimated Tax Payments	
 	

13
	 	7.02.	 	True-Up Payments	 	13
	 	7.03.	 	Redetermination Amounts	 	13
	 	7.04.	 	Payments of Refunds, Credits and Reimbursements	 	13
	 	7.05.	 	Payments Under This Agreement	 	13
	 	 	 	 	 

i

 

	

Section 8.	
 	

Tax Proceedings	
 	

14
	 	
 8.01.	
 	

In General	
 	

14
	 	8.02.	 	Participation of Non-Controlling Party	 	14
	 	8.03.	 	Notice	 	15
	 	8.04.	 	Control of Distribution Tax Proceedings	 	15
	

Section 9.	
 	

Stock Options and Restricted Stock	
 	

15
	 	
 9.01.	
 	

Notices, Withholding, Reporting	
 	

15
	

Section 10.	
 	

Miscellaneous Provisions	
 	

16
	 	
 10.01.	
 	

Effectiveness	
 	

16
	 	10.02.	 	Cooperation and Exchange of Information	 	16
	 	10.03.	 	Dispute Resolution	 	16
	 	10.04.	 	Notices	 	17
	 	10.05.	 	Changes in Law	 	18
	 	10.06.	 	Confidentiality	 	18
	 	10.07.	 	Binding Effect; Successors	 	18
	 	10.08.	 	Affiliates	 	18
	 	10.09.	 	Authority	 	18
	 	10.10.	 	Entire Agreement	 	19
	 	10.11.	 	Counterparts	 	19
	 	10.12.	 	Severability	 	19
	 	10.13.	 	Third Party Beneficiaries	 	19
	 	10.14.	 	Failure or Indulgence Not Waiver; Remedies Cumulative	 	19
	 	10.15.	 	Setoff	 	19
	 	10.16.	 	Other Remedies	 	19
	 	10.17.	 	Amendment and Modification	 	19
	 	10.18.	 	Interpretations	 	20

ii

   TAX SHARING AGREEMENT

        THIS
TAX SHARING AGREEMENT (this "Agreement") dated as of                        , 2007,
by and among United Online, Inc., a Delaware
corporation ("Parent"), each Parent Affiliate (as defined below), Classmates Media Corporation, an Delaware corporation
("CMC"), and each CMC Affiliate (as defined below) is entered into in connection with the IPO (as defined below). 

RECITALS

        WHEREAS,
as of the date hereof, Parent and its direct and indirect domestic subsidiaries are members of an Affiliated Group (as defined below), of which Parent is the common parent; 

        WHEREAS,
Parent owns all of the issued and outstanding shares of CMC stock and intends to effect the initial public offering by CMC of CMC common stock that will reduce Parent's
ownership of CMC, (the "IPO"); and 

        WHEREAS,
in contemplation of the IPO, the parties hereto have determined to enter into this Agreement, setting forth their agreement with respect to certain tax matters. 

AGREEMENT

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto hereby agree as follows: 

Section 1.    Definitions.  

        As used in this Agreement, capitalized terms shall have the following meanings (such meanings to be equally applicable to both the singular and the plural forms
of the terms defined): 

        "Affiliated Group" means an affiliated group of corporations within the meaning of section 1504(a) of the Code that files a
consolidated return for United States federal Income Tax purposes. 

        "After-Tax Amount" means any additional amount necessary to reflect the hypothetical Tax consequences of the receipt or
accrual of any payment required to be made under this Agreement (including payment of an additional amount or amounts hereunder and the effect of the deductions available for interest paid or accrued
and for Taxes such as state and local Income Taxes), determined by using the highest applicable statutory corporate Income Tax rate (or rates, in the case of an item that affects more than one Tax)
for the relevant taxable period (or portion thereof). 

        "Agreement" has the meaning set forth in the preamble hereto. 

        "Audit" means any audit, assessment of Taxes, other examination by any Taxing Authority, proceeding, or appeal of such a proceeding
relating to Taxes, whether administrative or judicial, including proceedings relating to competent authority determinations. 

        "Carryback Period" has the meaning set forth in Section 4.02 of this Agreement. 

        "CMC" has the meaning set forth in the preamble hereto. 

        "CMC Affiliate" means any corporation or other entity directly or indirectly "controlled" by CMC at the time in question, where "control"
means the ownership of fifty percent (50%) or more of the ownership interests of such corporation or other entity (by vote or value) or the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of such corporation or other entity. 

        "CMC Business" means the business and operations conducted by CMC and CMC Affiliates as such business and operations will continue after
the IPO Date. 

1

 

        "CMC Business Records" has the meaning set forth in Section 10.02(b) of this Agreement. 

        "CMC Group" means the Affiliated Group, or similar group of entities as defined under corresponding provisions of the laws of other
jurisdictions, of which CMC will be the common parent corporation immediately after a Deconsolidation Event and including any corporation or other entity which may become a member of such group from
time to time. 

        "CMC Separate Tax Liability" means an amount equal to the Tax liability that CMC and each CMC Affiliate would have incurred if they had
filed a consolidated return, combined return (including nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination), unitary return
or a separate return, as the case may be, separate from the members of the Parent Group, for the relevant Tax period, and such amount shall be computed by Parent (A) in a manner consistent with
(i) general Tax accounting principles, (ii) the Code and the Treasury regulations promulgated thereunder, and (iii) past practice, and (B) taking into account any Tax Asset
of CMC and any CMC Affiliate attributable to any Tax period beginning on or after the IPO Date; provided, however, that, although the CMC Separate Tax
Liability is to be computed on a hypothetical basis as if CMC and each CMC Affiliate were separate from the members of the Parent Group, any Tax Asset of the Parent Group in a Consolidated Return or
Combined Return and the effect of such inclusion on the calculation of any Tax Item, shall nevertheless be taken into account for purposes of computing the CMC Separate Tax Liability (for example, for
purposes of calculating its research and development credit, CMC shall be entitled to its allocable share of the consolidated research and development credit of the Parent Group). 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Combined Return" means any Tax Return, other than with respect to United States federal Income Taxes, filed on a consolidated, combined
(including nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination) or unitary basis wherein CMC or one or more CMC Affiliates
join in the filing of such Tax Return (for any taxable period or portion thereof) with Parent or one or more Parent Affiliates. 

        "Consolidated Return" means any Tax Return with respect to United States federal Income Taxes filed on a consolidated basis wherein CMC or
one or more CMC Affiliates join in the filing of such Tax Return (for any taxable period or portion thereof) with Parent or one or more Parent Affiliates. 

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

        "Controlling Party" has the meaning set forth in Section 8.01 of this Agreement. 

        "Deconsolidation Event" means, with respect to CMC and each CMC Affiliate, any event or transaction that causes CMC and/or one or more CMC
Affiliates to no longer be eligible to join with Parent or one or more Parent Affiliates in the filing of a Consolidated Return or a Combined Return. 

        "Distribution" means any distribution by Parent of the issued and outstanding shares of CMC stock (and securities, if any) that Parent
holds at such time to Parent shareholders and/or securityholders in a transaction intended to qualify as a distribution under section 355 of the Code. 

        "Distribution Taxes" means any Taxes imposed on, or increase in Taxes incurred by, Parent or any Parent Affiliate, and any Taxes of an
Parent shareholder (or former Parent shareholder) that are required to be paid or reimbursed by Parent or any Parent Affiliate pursuant to a legal determination, provided that Parent shall have
vigorously defended itself in any legal proceeding involving Taxes of a Parent shareholder, (without regard to whether such Taxes are offset or reduced by any Tax Asset, Tax Item, or otherwise)
resulting from, or arising in connection with, the failure of a Distribution to qualify as a tax-free transaction under section 355 of the Code (including any Tax resulting from the
application of section 355(d) or section 355(e) of the Code to a Distribution) or corresponding 

2

 

provisions
of the laws of any other jurisdictions. Any Income Tax referred to in the immediately preceding sentence shall be determined using the highest applicable statutory corporate Income Tax rate
for the relevant taxable period (or portion thereof). 

        "Estimated Tax Installment Date" means, with respect to United States federal Income Taxes, the estimated Tax installment due dates
prescribed in section 6655(c) of the Code and, in the case of any other Tax, means any other date on which an installment payment of an estimated amount of such Tax is required to be made. 

        "Final Determination" shall mean the final resolution of liability for any Tax for any taxable period, by or as a result of: (i) a
final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a final settlement with the IRS (as defined below), a closing agreement or accepted
offer in compromise under sections 7121 or 7122 of the Code, or a comparable agreement under the laws of other jurisdictions, which resolves the entire Tax liability for any taxable period;
(iii) any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered by the jurisdiction
imposing the Tax; or (iv) any other final disposition, including by reason of the expiration of the applicable statute of limitations. 

        "Income Tax" shall mean any federal, state, local or non-United States Tax determined (in whole or in part) by reference to
net income, net worth, gross receipts or capital, or any Taxes imposed in lieu of such a tax. For the avoidance of doubt, the term "Income Tax" includes any franchise tax or any Taxes imposed in lieu
of such a tax. 

        "Income Tax Return" means any Tax Return relating to any Income Tax. 

        "Independent Accountant" means an internationally-recognized and reputable independent public accounting firm jointly selected and
retained by the Parties at such time that Section 10.03 of this Agreement becomes invoked. 

        "IPO" has the meaning set forth in the recitals hereto. 

        "IPO Date" means the close of business on the date which the IPO is effected. 

        "IRS" means the United States Internal Revenue Service or any successor thereto, including its agents, representatives, and attorneys. 

        "Joint Responsibility Item" means any Tax Item for which the non-Controlling Party's responsibility under this Agreement could
exceed two hundred fifty thousand dollars ($250,000), but not a Sole Responsibility Item. 

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

        "Master Transaction Agreement" means the Master Transaction Agreement between CMC and the Parent of even date herewith. 

        "Non-Income Tax Return" means any Tax Return relating to any Tax other than an Income Tax. 

        "Officer's Certificate" means a letter executed by an officer of Parent or CMC, and
provided to Tax Counsel as a condition for the completion of a Tax Opinion or Supplemental Tax Opinion. 

        "Option" means an option to acquire common stock, or other equity-based incentives the economic value of which is designed to mirror that
of an option, including non-qualified stock options, 

3

 

discounted
non-qualified stock options, cliff stock options to the extent stock is issued or issuable (as opposed to cash compensation), and tandem stock options to the extent stock is
issued or issuable (as opposed to cash compensation). 

        "Owed Party" has the meaning set forth in Section 7.05 of this Agreement. 

        "Owing Party" has the meaning set forth in Section 7.05 of this Agreement. 

        "Parent" has the meaning set forth in the preamble hereto. 

        "Parent Affiliate" means any corporation or other entity directly or indirectly "controlled" by Parent where "control" means the ownership
of fifty percent (50%) or more of the ownership interests of such corporation or other entity (by vote or value) or the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such corporation or other entity, but at all times excluding CMC or any CMC Affiliate. 

        "Parent Business" means all of the businesses and operations conducted by Parent and Parent Affiliates, excluding the CMC Business, at any
time, whether prior to or after the IPO Date. 

        "Parent Group" means the Affiliated Group, or similar group of entities as defined under corresponding provisions of the laws of other
jurisdictions, of which Parent is the common parent
corporation, and any corporation or other entity which may be, may have been or may become a member of such group from time to time, but excluding any member of the CMC Group. 

        "Payment Period" has the meaning set forth in Section 7.05(e) of this Agreement. 

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

        "Post-Deconsolidation Period" means any taxable period beginning after the date of a Deconsolidation Event. 

        "Post-IPO Period" means any taxable period beginning after the IPO Date. 

        "Pre-Deconsolidation Period" means any taxable period beginning on or before the date of a Deconsolidation Event. 

        "Ruling" means (i) any private letter ruling issued by the IRS in connection with a Distribution in response to a request for such
a private letter ruling filed by Parent (or any Parent Affiliate) prior to the date of a Distribution, and (ii) any similar ruling issued by any other Taxing Authority addressing the
application of a provision of the laws of another jurisdiction to a Distribution. 

        "Ruling Documents" means (i) the request for a Ruling filed with the IRS, together with any supplemental filings or other materials
subsequently submitted on behalf of Parent, Parent Affiliates, and Parent shareholders to the IRS, the appendices and exhibits thereto, and any Ruling issued by the IRS to Parent (or any Parent
Affiliate) in connection with a Distribution and (ii) any similar filings submitted to, or rulings issued by, any other Taxing Authority in connection with a Distribution. 

        "Sole Responsibility Item" means any Tax Item for which the non-Controlling Party has the entire economic liability under this
Agreement. 

        "Straddle IPO Period" means any taxable period beginning on or before the IPO Date and ending after the IPO Date. 

        "Supplemental Ruling" means (i) any ruling (other than the Ruling) issued by the IRS in connection with a Distribution, and
(ii) any similar ruling issued by any other Taxing Authority addressing the application of a provision of the laws of another jurisdiction to a Distribution. 

4

 

        "Supplemental Ruling Documents" means (i) the request for a Supplemental Ruling, together with any supplemental filings or other
materials subsequently submitted, the appendices and exhibits thereto, and any Supplemental Rulings issued by the IRS in connection with a Distribution and (ii) any similar filings submitted
to, or rulings issued by, any other Taxing Authority in connection with a Distribution. 

        "Supplemental Tax Opinion" has the meaning set forth in Section 5.02(c) of this Agreement. 

        "Taxes" means all federal, state, local or non-United States taxes, charges, fees, duties, levies, imposts, rates or other
assessments, including income, gross receipts, net worth, excise, property, sales, use, license, capital stock, transfer, franchise, payroll, withholding, social security, value added or other taxes,
(including any interest, penalties or additions attributable thereto) and a "Tax" shall mean any one of such Taxes. 

        "Taxpayer" means any taxpayer and its Affiliated Group or similar group of entities as defined under corresponding provisions of the laws
of any other jurisdiction of which a taxpayer is a member. 

        "Tax Asset" means any Tax Item that has accrued for Tax purposes, but has not been realized during the taxable period in which it has
accrued, and that could reduce a Tax in another taxable period, including but not limited to a net operating loss, net capital loss, investment tax credit, foreign tax credit, charitable deduction or
credit related to alternative minimum tax or any other Tax credit. 

        "Tax Benefit" means a reduction in the Tax liability (or increase in refund or credit or any item of deduction or expense) of a Taxpayer
for any taxable period. Except as otherwise provided in this Agreement, a Tax Benefit shall be deemed to have been realized or received from a Tax Item in a taxable period only if and to the extent
that the Tax liability of the Taxpayer for such period, after taking into account the effect of the Tax Item on the Tax liability of such Taxpayer in the current period and all prior periods, is less
than it would have been had such Tax liability been determined without regard to such Tax Item. 

        "Tax Counsel" means a nationally recognized law firm selected by Parent to provide a Tax Opinion. 

        "Tax Detriment" means an increase in the Tax liability (or reduction in refund or credit or any item of deduction or expense) of a
Taxpayer for any taxable period. Except as otherwise provided in this Agreement, a Tax Detriment shall be deemed to have been realized or incurred from a Tax Item in a taxable period only if and to
the extent that the Tax liability of the Taxpayer for such period, after taking into account the effect of the Tax Item on the Tax liability of such Taxpayer in the current period and all prior
periods, is more than it would have been had such Tax liability been determined without regard to such Tax Item. 

        "Tax Item" means any item of income, gain, loss, deduction, expense or credit, or other attribute that may have the effect of increasing
or decreasing any Tax. 

        "Tax Opinion" means an opinion issued by Tax Counsel as one of the conditions to completing a Distribution addressing certain United
States federal Income Tax consequences of a Distribution under section 355 of the Code. 

        "Tax Return" means any return, report, certificate, form or similar statement or document (including any related or supporting information
or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of estimated Tax) required to be supplied to, or filed with, a Taxing Authority in
connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax. 

5

 

        "Taxing Authority" means any governmental authority or any subdivision, agency, commission or authority thereof or any quasi-governmental
or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS). 

Section 2.    Preparation and Filing of Tax Returns.  

        2.01.    Parent's Responsibility.    Subject to the other applicable provisions of this Agreement, Parent shall have
sole and exclusive responsibility for the preparation and filing of: 

        (a)   all
Consolidated Returns and all Combined Returns for any taxable period; 

        (b)   all
Income Tax Returns (other than Consolidated Returns and Combined Returns) with respect to Parent and/or any Parent Affiliate for any taxable period; 

        (c)   all
Income Tax Returns (other than Consolidated Returns and Combined Returns) with respect to CMC and/or any CMC Affiliate that are required to be filed (taking into
account any extension of time which has been requested or received) on or prior to the IPO Date; and 

        (d)   all
Non-Income Tax Returns with respect to Parent, any Parent Affiliate, or the Parent Business or any part thereof for any taxable period. 

        2.02.    CMC's Responsibility.    Subject to the other applicable provisions of this Agreement, CMC shall have sole
and exclusive responsibility for the preparation and filing of: 

        (a)   all
Income Tax Returns (other than Consolidated Returns and Combined Returns) with respect to CMC and/or any CMC Affiliate that are required to be filed (taking into
account any extension of time which has been requested or received) after the IPO Date; and 

        (b)   all
Non-Income Tax Returns with respect to CMC, any CMC Affiliate, or the CMC Business or any part thereof for any taxable period. 

        2.03.    Agent.    Subject to the other applicable provisions of this Agreement, CMC hereby irrevocably designates,
and agrees to cause each CMC Affiliate to so designate, Parent as its sole and exclusive agent and attorney-in-fact to take such action (including execution of documents) as
Parent, in its sole discretion, may deem appropriate in any and all matters (including Audits) relating to any Tax Return described in Section 2.01 of this Agreement. 

        2.04.    Manner of Tax Return Preparation.    

        (a)   Unless
otherwise required by a Taxing Authority, the parties hereby agree to prepare and file all Tax Returns, and to take all other actions, in a manner consistent with
(1) this Agreement, (2) any Tax Opinion, (3) any Supplemental Tax Opinion, (4) any Ruling, and (5) any Supplemental Ruling. All Tax Returns shall be filed on a
timely basis (taking into account applicable extensions) by the party responsible for filing such returns under this Agreement. 

        (b)   Parent
shall have the exclusive right, in its sole discretion, with respect to any Tax Return described in Section 2.01 of this Agreement, to determine
(1) the manner in which such Tax Return shall be prepared and filed, including the elections, method of accounting, positions, conventions and principles of taxation to be used and the manner
in which any Tax Item shall be reported, (2) whether any extensions shall be requested, (3) the elections that will be made by Parent, any Parent Affiliate, CMC, and/or any CMC Affiliate
on such Tax Return, (4) whether any amended Tax Returns shall be filed, (5) whether any claims for refund shall be made, (6) whether any refunds shall be recognized by way of
refund or credited against any liability for the related Tax, and (7) whether to retain outside firms to prepare and/or review such Tax Returns; provided,
however, that Parent shall consult with CMC prior to changing any method of accounting if such action would solely impact CMC or CMC Affiliates. In the case of any Consolidated
Return or Combined Return with respect to a Straddle IPO Period or a Post-IPO Period that reports a CMC 

6

 

Separate
Tax Liability in excess of five million dollars ($5,000,000), Parent shall provide to CMC a pro forma draft of the portion of such Tax Return that reflects the CMC Separate Tax Liability and
a statement showing in reasonable detail Parent's calculation of the CMC Separate Tax Liability (including copies of all worksheets and other materials used in preparation thereof) at least
twenty-one (21) days prior to the due date (with applicable extensions) for the filing of such Tax Return for CMC's review and comment. CMC shall provide its comments to Parent at
least ten (10) days prior to the due date (with applicable extensions) for the filing of such Tax Return. Any dispute with respect to the reporting of any Tax Item on such Tax Return or the
requesting of a change of method of accounting which would solely impact CMC or CMC Affiliates shall be resolved pursuant to Section 10.03 of this Agreement. 

        (c)    Information.    CMC shall timely provide, in accordance with Parent's internal tax return calendar, which will
be provided to CMC on a rolling one-year schedule, all information necessary for Parent to prepare all Tax Returns and compute all estimated Tax payments (for purposes of
Section 7.01 of this Agreement). If CMC does not meet these deadlines, the Section 2.04(b) notice period to CMC shall be waived. 

Section 3.    Liability for Taxes.  

        3.01.    CMC's Liability for Taxes.    CMC and each CMC Affiliate shall be jointly and severally liable for the
following Taxes, and shall be entitled to receive and retain all refunds of Taxes previously incurred by CMC, any CMC Affiliate, or the CMC Business with respect to such Taxes: 

        (a)   all
Taxes with respect to Tax Returns described in Section 2.01(a) of this Agreement to the extent that such Taxes are related to (i) the CMC Separate Tax
Liability, or (ii) the CMC Business, for any taxable period; 

        (b)   all
Taxes with respect to Tax Returns described in Section 2.01(c) of this Agreement; 

        (c)   all
Taxes with respect to Tax Returns described in Section 2.02 of this Agreement; and 

        (d)   all
Taxes imposed by any Taxing Authority with respect to the CMC Business, CMC or any CMC Affiliate (other than in connection with the required filing of a Tax Return
described in Sections 2.01(a), 2.01(c) or 2.02 of this Agreement) for any taxable period. 

        3.02.    Parent's Liability for Taxes.    Parent shall be liable for the following Taxes, and shall be entitled to
receive and retain all refunds of Taxes previously incurred by Parent, any Parent Affiliate, or the Parent Business with respect to such Taxes: 

        (a)   except
as provided in Section 3.01(a) of this Agreement, all Taxes with respect to Tax Returns described in Section 2.01(a) of this Agreement; 

        (b)   all
Taxes with respect to Tax Returns described in Sections 2.01(b) or 2.01(d) of this Agreement; and 

        (c)   all
Taxes imposed by any Taxing Authority with respect to Parent, any Parent Affiliate, or the Parent Business (other than in connection with the required filing of a
Tax Return described in Sections 2.01(a), 2.01(b) or 2.01(d) of this Agreement) for any taxable period. 

        3.03.    Taxes & Reimbursements.    Notwithstanding Sections 3.01 and 3.02 of this Agreement, (i) Parent
and each Parent Affiliate shall be liable for all Taxes incurred by any person with respect to the Parent Business for all periods and shall be entitled to all refunds and credits of Taxes previously
incurred by any person with respect to such Taxes, and (ii) CMC and each CMC Affiliate shall be jointly and severally liable for all Taxes incurred by any person with respect to the CMC
Business for all periods and shall be entitled to all refunds and credits of Taxes previously incurred by any person with respect to such Taxes. 

7

 

        3.04.    Payment of Tax Liability.    If one party is liable or responsible for Taxes, under Sections 3.01 through
3.03 of this Agreement, with respect to Tax Returns for which another party is responsible for filing, or with respect to Taxes that are paid by another party, then the liable or responsible party
shall pay the Taxes (or a reimbursement of such Taxes) to the other party pursuant to Section 7.05 of this Agreement. 

        3.05.    Computation.    Parent shall provide CMC with a written calculation in reasonable detail (including, upon
reasonable request, copies of all work sheets and other materials used in preparation thereof) setting forth the amount of any CMC Separate Tax Liability or estimated CMC Separate Tax Liability (for
purposes of Section 7.01 of this Agreement) and any Taxes related to the CMC Business. CMC shall have the right to review and comment on such calculation. Any dispute with respect to such
calculation shall be resolved pursuant to Section 10.03 of this Agreement; provided, however, that, notwithstanding any dispute with respect to
any such calculation, in no event shall any payment attributable to the amount of any CMC Separate Tax Liability or estimated CMC Separate Tax Liability be paid later than the date provided in
Section 7 of this Agreement. 

Section 4.    Deconsolidation Events.  

        4.01.    Tax Allocations.    The parties have set forth how certain Tax matters with respect to a Deconsolidation
Event would be handled in the event of a Deconsolidation Event. 

        (a)    Allocation of Tax Items.    In the case of a Deconsolidation Event, all Tax computations for (1) any
Pre-Deconsolidation Periods ending on the date of the Deconsolidation Event and (2) the immediately following taxable period of CMC or any CMC Affiliate, shall be made pursuant to
the principles of section 1.1502-76(b) of the Treasury Regulations or of a corresponding provision under the laws of other jurisdictions, as reasonably determined by Parent, taking
into account all reasonable suggestions made by CMC with respect thereto. 

        (b)    Allocation of Tax Assets.    In the case of a Deconsolidation Event, Parent and CMC shall cooperate in
determining the allocation of any Tax Assets among Parent, each Parent Affiliate, CMC, and each CMC Affiliate. The parties hereby agree that in the absence of controlling legal authority or unless
otherwise provided under this Agreement, Tax Assets shall be allocated to the legal entity that is required under Section 3 of this Agreement to bear the liability for the Tax associated with
such Tax Asset, or in the case where no party is required hereunder to bear such liability, the party that incurred the cost or burden associated with the creation of such Tax Asset. 

        4.02.    Carrybacks.    In the case of a Deconsolidation Event, Parent agrees to pay to CMC the Tax Benefit from the
use in any Pre-Deconsolidation Period (the "Carryback Period") of a carryback
of any Tax Asset of the CMC Group from a Post-Deconsolidation Period (other than a carryback of any Tax Asset attributable to Distribution Taxes for which the liability is borne by Parent
or any Parent Affiliate). If subsequent to the payment by Parent to CMC of the Tax Benefit of a carryback of a Tax Asset of the CMC Group, there shall be a Final Determination which results in a
decrease (1) to the amount of the Tax Asset so carried back or (2) to the amount of such Tax Benefit, CMC shall repay to Parent any amount which would not have been payable to CMC
pursuant to this Section 4.02 had the amount of the benefit been determined in light of these events. Nothing in this Section 4.02 shall require Parent to file an amended Tax Return or
claim for refund of Income Taxes; provided, however, that Parent shall use its reasonable efforts to use any carryback of a Tax Asset of the CMC Group
that is carried back under this Section 4.02. 

        4.03.    Continuing Covenants.    Each of Parent (for itself and each Parent Affiliate) and CMC (for itself and each
CMC Affiliate) agrees (1) not to take any action reasonably expected to result in an increased Tax liability to the other, a reduction in a Tax Asset of the other or an increased liability to
the other under this Agreement, and (2) to take any action reasonably requested by the other that would reasonably be expected to result in a Tax Benefit or avoid a Tax Detriment to the other, 

8

 

provided,
in either such case, that the taking or refraining to take such action does not result in any additional cost not fully compensated for by the other party or any other adverse effect to such
party. The parties hereby acknowledge that the preceding sentence is not intended to limit, and therefore shall not apply to, the rights of the parties with respect to matters otherwise covered by
this Agreement. 

Section 5.    Distribution Taxes.  

        5.01    Liability for Distribution Taxes.    Although neither party has any plan or intent to effectuate a
Distribution, the parties have set forth how certain Tax matters with respect to a Distribution would be handled in the event that, as a result of changed circumstances, a Distribution is pursued at
some future time. 

        (a)    Parent's Liability for Distribution Taxes.    In the event of a Distribution, notwithstanding Sections 3.01
through 3.03 of this Agreement, Parent and each Parent Affiliate shall be jointly and severally liable for any Distribution Taxes, to the extent that such Distribution Taxes are attributable to,
caused by, or result from, one or more of the following: 

        (i)    any
action or omission by Parent (or any Parent Affiliate) inconsistent with any information, covenant, representation, or material related to Parent, any Parent
Affiliate, or the Parent Business in an Officer's Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling Documents, Ruling, or Supplemental Ruling (for the avoidance
of doubt, disclosure of any action or fact that is inconsistent with any information, covenant, representation, or material submitted to Tax Counsel, the IRS, or other Taxing Authority, as applicable,
in connection with an Officer's Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling Documents, Ruling, or Supplemental Ruling shall not relieve Parent (or any
Parent Affiliate) of liability under this Agreement); 

        (ii)   any
action or omission by Parent (or any Parent Affiliate), including a cessation, transfer to affiliates, or disposition of its active trades or businesses, or an
issuance of stock, stock buyback or payment of an extraordinary dividend by Parent (or any Parent Affiliate) following a Distribution; 

        (iii)  any
acquisition of any stock or assets of Parent (or any Parent Affiliate) by one or more other persons (other than CMC or a CMC Affiliate) prior to or following a
Distribution; or 

        (iv)  any
issuance of stock by Parent (or any Parent Affiliate), or change in ownership of stock in Parent (or any Parent Affiliate). 

        (b)    CMC's Liability for Distribution Taxes.    In the event of a Distribution, notwithstanding Sections 3.01
through 3.03 of this Agreement, CMC and each CMC Affiliate shall be jointly and severally liable for any Distribution Taxes, to the extent that such Distribution Taxes are attributable to, caused by,
or result from, one or more of the following: 

        (i)    any
action or omission by CMC (or any CMC Affiliate) after a Distribution at any time, that is inconsistent with any information, covenant, representation, or material
related to CMC, any CMC Affiliate, or the CMC Business in an Officer's Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling Documents, Ruling, or Supplemental
Ruling (for the avoidance of doubt, disclosure by CMC (or any CMC Affiliate) to Parent (or any Parent Affiliate) of any action or fact that is inconsistent with any information, covenant,
representation, or material submitted to Tax Counsel, the IRS, or other Taxing Authority, as applicable, in connection with an Officer's Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling
Documents, Supplemental Ruling Documents, Ruling, or 

9

 

Supplemental
Ruling shall not relieve CMC (or any CMC Affiliate) of liability under this Agreement); 

        (ii)   any
action or omission by CMC (or any CMC Affiliate) after the date of a Distribution (including any act or omission that is in furtherance of, connected to, or part of
a plan or series of related transactions (within the meaning of section 355(e) of the Code) occurring on or prior to the date of a Distribution) including a cessation, transfer to affiliates or
disposition of the active trades or businesses of CMC (or any CMC Affiliate), stock buyback or payment of an extraordinary dividend; 

        (iii)  any
acquisition of any stock or assets of CMC (or any CMC Affiliate) by one or more other persons (other than Parent or any Parent Affiliate) prior to or following a
Distribution; or 

        (iv)  any
issuance of stock by CMC (or any CMC Affiliate) after a Distribution, including any issuance pursuant to the exercise of employee stock options or other employment
related arrangements or the exercise of warrants, or change in ownership of stock in CMC (or any CMC Affiliate) after a Distribution. 

        (c)    Joint Liability for Remaining Distribution Taxes.    Parent shall be liable for fifty percent (50%) and CMC and
each CMC Affiliate shall be jointly and severally liable for fifty percent (50%), of any Distribution Taxes not otherwise allocated by Sections 5.01(a) or (b) of this Agreement. 

10

   
        5.02.    Continuing Covenants.    

        (a)    CMC Restrictions.    CMC agrees that, so long as a Distribution could, in the reasonable determination of
Parent, be effectuated, CMC will not knowingly take or fail to take, or permit any CMC Affiliate to knowingly take or fail to take, any action that could reasonably be expected to preclude Parent's
ability to effectuate a Distribution. In the event of a Distribution, CMC agrees that (1) it will take, or cause any CMC Affiliate to take, any action reasonably requested by Parent in order to
enable Parent to effectuate a Distribution and (2) it will not take or fail to take, or permit any CMC Affiliate to take or fail to take, any action where such action or failure to act would
be inconsistent with any information, covenant, representation, or material that relates to facts or matters related to CMC (or any CMC Affiliate) or within the control of CMC and is contained in an
Officer's Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling Documents, Ruling, or Supplemental Ruling (except where such information, covenant, representation,
or material was not previously disclosed to CMC) other than as permitted by Section 5.02(c) of this Agreement. For this purpose an action is considered inconsistent with a representation if the
representation states that there is no plan or intention to take such action. In the event of a Distribution, CMC agrees that it will not take (and it will cause the CMC Affiliates to refrain from
taking) any position on a Tax Return that is inconsistent with such Distribution qualifying under section 355 of the Code. 

        (b)    Parent Restrictions.    In the event of a Distribution, Parent agrees that it will not take or fail to take, or
permit any Parent Affiliate to take or fail to take, any action where such action or failure to act would be inconsistent with any material, information, covenant or representation that relates to
facts or matters related to Parent (or any Parent Affiliate) or within the control of Parent and is contained in an Officer's Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents,
Supplemental Ruling Documents, Ruling, or Supplemental Ruling. For this purpose an action is considered inconsistent with a representation if the representation states that there is no plan or
intention to take such action. In the event of a Distribution, Parent agrees that it will not take (and it will cause the Parent Affiliates to refrain from taking) any position on a Tax Return that is
inconsistent with such Distribution qualifying under section 355 of the Code. 

        (c)    Certain CMC Actions Following a Distribution.    In the event of a Distribution, CMC agrees that, during the
two (2) year period following a Distribution, without first obtaining, at CMC's own expense, either a supplemental opinion from Tax Counsel that such action will not result in Distribution
Taxes (a "Supplemental Tax Opinion") or a Supplemental Ruling that such action will not result in Distribution Taxes, unless in any such case Parent and
CMC agree otherwise, CMC shall not (1) sell all or substantially all of the assets of CMC or any CMC Affiliate, (2) merge CMC or any CMC Affiliate with another entity, without regard to
which party is the surviving entity, (3) transfer any assets of CMC in a transaction described in section 351 (other than a transfer to a corporation which files a Consolidated Return
with CMC and which is wholly-owned, directly or indirectly, by CMC) or subparagraph (C) or (D) of section 368(a)(1) of the Code, (4) issue stock of CMC or any CMC Affiliate
(or any instrument that is convertible or exchangeable into any such stock) in an acquisition or public or private offering (other than any compensatory related issuances as described in Treasury
Regulation section 1.355-7(e)(i)), or (5) facilitate or otherwise participate in any acquisition of stock in CMC that would result in any shareholder owning five percent (5%)
or more of the outstanding stock of CMC. CMC (or any CMC Affiliate) shall only undertake any of such actions after Parent's receipt of such Supplemental Tax Opinion or Supplemental Ruling and pursuant
to the terms and conditions of any such Supplemental Tax Opinion or Supplemental Ruling or as otherwise consented to in writing in advance by Parent. The parties hereby agree that they will act in
good faith to take all reasonable steps necessary to amend this Section 5.02(c), from time to time, by mutual agreement, to (i) add certain actions to the list contained herein, or
(ii) remove certain actions from the list 

11

 

contained
herein, in either case, in order to reflect any relevant change in law, regulation or administrative interpretation occurring after the date of this Agreement. 

        (d)    Notice of Specified Transactions.    Not later than twenty (20) days prior to entering into any oral or
written contract or agreement, and not later than five (5) days after it first becomes aware of any negotiations, plan or intention (regardless of whether it is a party to such negotiations,
plan or intention), regarding any of the transactions described in Section 5.02(c), CMC shall provide written notice of its intent to consummate such transaction or the negotiations, plan or
intention of which it becomes aware, as the case may be, to Parent. 

        (e)    CMC Cooperation.    CMC agrees that, at the request of Parent, CMC shall cooperate fully with Parent to take
any action necessary or reasonably helpful to effectuate a Distribution, including seeking to obtain, as expeditiously as possible, a Tax Opinion, Supplemental Tax Opinion, Ruling, and/or Supplemental
Ruling. Such cooperation shall include the execution of any documents that may be necessary or reasonably helpful in connection with obtaining any Tax Opinion, Supplemental Tax Opinion, Ruling, and/or
Supplemental Ruling (including any (i) power of attorney, (ii) Officer's Certificate, (iii) Ruling Documents, (iv) Supplemental Ruling Documents, and/or
(v) reasonably requested written representations confirming that (a) CMC has read the Officer's Certificate, Ruling Documents, and/or Supplemental Ruling Documents and (b) all
information and representations, if any, relating to CMC, any CMC Affiliate or the CMC Business contained therein are true, correct and complete in all material respects). 

        (f)    Earnings and Profits.    Parent will advise CMC in writing of the decrease in Parent earnings and profits
attributable to a Distribution under section 312(h) of the Code on or before the first anniversary of a Distribution; provided, however, that
Parent shall provide CMC with estimates of such amounts (determined in accordance with past practice) prior to such anniversary as reasonably requested by CMC. 

Section 6.    Indemnification.  

        6.01.    In General.    Parent and each member of the Parent Group shall jointly and severally indemnify CMC, each CMC
Affiliate, and their respective directors, officers and employees, and hold them harmless from and against any and all Taxes for which Parent or any Parent Affiliate is liable under this Agreement and
any loss, cost, damage or expense, including reasonable attorneys' fees and costs, that is attributable to, or results from, the failure of Parent, any Parent Affiliate or any director, officer or
employee to make any payment required to be made under this Agreement. CMC and each member of the CMC Group shall jointly and severally indemnify Parent, each Parent Affiliate, and their respective
directors, officers and employees, and hold them harmless from and against any and all Taxes for which CMC or any CMC Affiliate is liable under this Agreement and any loss, cost, damage or expense,
including reasonable attorneys' fees and costs, that is attributable to, or results from, the failure of CMC, any CMC Affiliate or any director, officer or employee to make any payment required to be
made under this Agreement. 

        6.02.    Inaccurate or Incomplete Information.    Parent and each member of the Parent Group shall jointly and
severally indemnify CMC, each CMC Affiliate, and their respective directors, officers and employees, and hold them harmless from and against any cost, fine, penalty, or other expense of any kind
attributable to the failure of Parent or any Parent Affiliate in supplying CMC or any CMC Affiliate with inaccurate or incomplete information, in connection with the preparation of any Tax Return. CMC
and each member of the CMC Group shall jointly and severally indemnify Parent, each Parent Affiliate, and their respective directors, officers and employees, and hold them harmless from and against
any cost, fine, penalty, or other expenses of any kind attributable to the failure of CMC or any CMC Affiliate in supplying Parent or any Parent Affiliate with inaccurate or incomplete information, in
connection with the preparation of any Tax Return. 

12

 

        6.03.    No Indemnification for Tax Items.    Nothing in this Agreement shall be construed as a guarantee of the
existence or amount of any loss, credit, carryforward, basis or other Tax Item, whether past, present or future, of Parent, any Parent Affiliate, CMC or any CMC Affiliate. In addition, for the
avoidance of doubt, for purposes of determining any amount owed between the parties hereto, all such
determinations shall be made without regard to any financial accounting tax asset or liability or other financial accounting items. 

Section 7.    Payments.  

        7.01.    Estimated Tax Payments.    Not later than five (5) days prior to each Estimated Tax Installment Date with
respect to a taxable period for which a Consolidated Return or a Combined Return will be filed, CMC shall pay to Parent on behalf of the CMC Group an amount equal to the amount of any estimated CMC
Separate Tax Liability that CMC otherwise would have been required to pay to a Taxing Authority on such Estimated Tax Installment Date. Not later than seven (7) days prior to each such
Estimated Tax Installment Date, Parent shall provide CMC with a written notice setting forth the amount payable by CMC in respect of such estimated CMC Separate Tax Liability and a calculation of such
amount. 

        7.02.    True-Up Payments.    Not later than ten (10) business days after receipt of any CMC
Separate Tax Liability computation pursuant to Section 3.05 of this Agreement, CMC shall pay to Parent, or Parent shall pay to CMC, as appropriate, an amount equal to the difference, if any,
between the CMC Separate Tax Liability and the aggregate amount paid by CMC with respect to such period under Section 7.01 of this Agreement. 

        7.03    Redetermination Amounts.    In the event of a redetermination of any Tax Item reflected on any Consolidated
Return or Combined Return (other than Tax Items relating to Distribution Taxes), as a result of a refund of Taxes paid, a Final Determination or any settlement or compromise with any Taxing Authority
which in any such case would affect the CMC Separate Tax Liability, Parent shall prepare a revised pro forma Tax Return in accordance with Section 2.04(b) of this Agreement for the relevant
taxable period reflecting the redetermination of such Tax Item as a result of such refund, Final Determination, settlement or compromise. CMC shall pay to Parent, or Parent shall pay to CMC, as
appropriate, an amount equal to the difference, if any, between the CMC Separate Tax liability reflected on such revised pro forma Tax Return and the CMC Separate Tax liability for such period as
originally computed pursuant to this Agreement. 

        7.04.    Payments of Refunds, Credits and Reimbursements.    If one party receives a refund or credit of any Tax to
which the other party is entitled pursuant to Section 3.03 of this Agreement, the party receiving such refund or credit shall pay to the other party the amount of such refund or credit pursuant
to Section 7.05 of this Agreement. If one party pays a Tax with respect to which the other party is liable of responsible pursuant to Sections 3.01 through 3.03 of this Agreement, then the
liable or responsible party shall pay to the other party the amount of such Tax pursuant to Section 7.05 of this Agreement. 

        7.05.    Payments Under This Agreement.    In the event that one party (the "Owing
Party") is required to make a payment to another party (the "Owed Party") pursuant to this Agreement, then such payments shall
be made according to this Section 7.05. 

        (a)    In General.    All payments shall be made to the Owed Party or to the appropriate Taxing Authority as specified
by the Owed Party within the time prescribed for payment in this Agreement, or if no period is prescribed, within ten (10) days after delivery of written notice of payment owing together with a
computation of the amounts due. 

        (b)    Treatment of Payments.    Unless otherwise required by any Final Determination, the parties agree that any
payments made by one party to another party pursuant to this Agreement 

13

 

(other
than (i) payments for the CMC Separate Tax Liability for any Post-Deconsolidation Period, (ii) payments of interest pursuant to Section 7.05(e) of this
Agreement, and (iii) payments of After-Tax Amounts pursuant to Section 7.05(d) of this Agreement) shall be treated for all Tax and financial accounting purposes as nontaxable payments
(dividend distributions or capital contributions, as the case may be) made immediately prior to the Deconsolidation Event and, accordingly, as not includible in the taxable income of the recipient or
as deductible by the payor. 

        (c)    Prompt Performance.    All actions required to be taken (including payments) by any party under this Agreement
shall be performed within the time prescribed for performance in this Agreement, or if no period is prescribed, such actions shall be performed promptly. 

        (d)    After-Tax Amounts.    If pursuant to a Final Determination it is determined that the receipt or
accrual of any payment made under this Agreement (other than payments of interest pursuant to Section 7.05(e) of this Agreement) is subject to any Tax, the party making such payment shall be
liable for (a) the After-Tax Amount with respect to such payment and (b) interest at the rate described in Section 7.05(e) of this Agreement on the amount of such Tax
from the date such Tax accrues through the date of payment of such After-Tax Amount. A party making a demand for a payment pursuant to this Agreement and for a payment of an
After-Tax Amount with respect to such payment shall separately specify and compute such After-Tax Amount. However, a party may choose not to specify an After-Tax
Amount in a demand for payment pursuant to this Agreement without thereby being deemed to have waived its right subsequently to demand an After-Tax Amount with respect to such payment.
CMC's liability for any and all payments of the CMC Separate Tax Liability for any Post-Deconsolidation Period shall be increased by the After-Tax Amount with respect to such
payment and decreased by the corresponding Tax Benefit, if any, attributable to such CMC Separate Tax Liability. 

        (e)    Interest.    Payments pursuant to this Agreement that are not made within the period prescribed in this
Agreement (the "Payment Period") shall bear interest for the period from and including the date immediately following the last date of the Payment
Period through and including the date of payment at a per annum rate equal to the prime rate as published in The Wall Street Journal on the last day of such Payment Period. Such interest will be
payable at the same time as the payment to which it relates and shall be calculated on the basis of a year of three hundred sixty-five (365) days and the actual number of days for
which due. 

Section 8.    Tax Proceedings.  

        8.01.    In General.    Except as otherwise provided in this Agreement, (i) with respect to Tax Returns
described in Sections 2.01(a), 2.01(b), or 2.01(d) of this Agreement, Parent and (ii) with respect to Tax Returns described in Sections 2.01(c) or 2.02 of this Agreement, CMC (in either case,
the "Controlling Party"), shall have the exclusive right, in its sole discretion, to control, contest, and represent the interests of Parent, any Parent
Affiliate, CMC, and/or any CMC Affiliate in any Audit relating to such Tax Return and to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection
with or as a result of any such Audit. The Controlling Party's rights shall extend to any matter pertaining to the management and control of an Audit, including execution of waivers, choice of forum,
scheduling of conferences and the resolution of any Tax Item. Any costs incurred in handling, settling, or contesting an Audit shall be borne by the Controlling Party. 

        8.02.    Participation of Non-Controlling Party.    Except as otherwise provided in Section 8.04 of
this Agreement, the non-Controlling Party shall have control over decisions to resolve, settle or otherwise agree to any deficiency, claim or adjustment with respect to any Sole
Responsibility Item. Except as otherwise provided in Section 8.04 of this Agreement, the Controlling Party and the non-Controlling Party shall have joint control over decisions to
resolve, settle or otherwise agree to any deficiency, claim 

14

 

or
adjustment with respect to any Joint Responsibility Item. Except as otherwise provided in Section 8.04 of this Agreement, the Controlling Party shall not settle any Audit it controls
concerning a Tax Item on a basis that would reasonably be expected to adversely affect the non-Controlling Party by at least two hundred fifty thousand dollars ($250,000) without obtaining
such non-Controlling Party's consent, which consent shall not be unreasonably withheld, conditioned or delayed if failure to consent would adversely affect the Controlling Party. 

        8.03.    Notice.    Within ten (10) business days after a party becomes aware of the existence of a Tax issue
that may give rise to an indemnification obligation under this Agreement, such party shall give prompt notice to the other party of such issue (such notice shall contain factual information, to the
extent
known, describing any asserted tax liability in reasonable detail), and shall promptly forward to the other party copies of all notices and material communications with any Taxing Authority relating
to such issue. Notwithstanding any provision in Section 10.14 of this Agreement to the contrary, if a party to this Agreement fails to provide the other party notice as required by this
Section 8.03, and the failure results in a detriment to the other party then any amount which the other party is otherwise required to pay pursuant to this Agreement shall be reduced by the
amount of such detriment. 

        8.04.    Control of Distribution Tax Proceedings.    In the event of a Distribution, Parent shall have the exclusive
right, in its sole discretion, to control, contest, and represent the interests of Parent, any Parent Affiliate, CMC, and/or any CMC Affiliate in any Audits relating to Distribution Taxes and to
resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any such Audit; provided,
however, that Parent shall not settle any such Audit with respect to Distribution Taxes with a Taxing Authority that would reasonably be expected to result in a material Tax
cost to CMC or any CMC Affiliate, without the prior consent of CMC, which consent shall not be unreasonably withheld, conditioned or delayed. Parent's rights shall extend to any matter pertaining to
the management and control of such Audit, including execution of waivers, choice of forum, scheduling of conferences and the resolution of any Tax Item; provided,
however, that to the extent that CMC is obligated to bear at least fifty percent (50%) of the liability for any Distribution Taxes under Section 5.01 of this Agreement,
Parent and CMC shall have joint control over decisions to resolve, settle or otherwise agree to any deficiency, claim or adjustment. CMC may assume sole control of any Audits relating to Distribution
Taxes if it acknowledges in writing that it has sole liability for any Distribution Taxes under Section 5.01 of this Agreement that might arise in such Audit and can demonstrate to the
reasonable satisfaction of Parent that it can satisfy its liability for any such Distribution Taxes. If CMC is unable to demonstrate to the reasonable satisfaction of Parent that it will be able to
satisfy its liability for such Distribution Taxes, but acknowledges in writing that it has sole liability for any Distribution Taxes under Section 5.01 of this Agreement, CMC and Parent shall
have joint control over the Audit. 

Section 9.    Stock Options and Restricted Stock.  

        9.01.    Notices, Withholding, Reporting.    Parent shall promptly notify CMC of any post-IPO Date event
giving rise to income to any CMC Group employees or former employees in connection with exercises of Options to purchase shares of Parent stock or the lapse of any restrictions with respect to shares
of Parent stock subject to a substantial risk of forfeiture (within the meaning of section 83 of the Code). If required by the Tax law, CMC shall withhold applicable Taxes and satisfy
applicable Tax reporting obligations in connection therewith. 

15

 

Section 10.    Miscellaneous Provisions.  

        10.01.    Effectiveness.    This Agreement shall become effective upon the IPO Date. 

        10.02.    Cooperation and Exchange of Information.    

        (a)    Cooperation.    CMC and Parent shall each cooperate fully (and each shall cause its respective affiliates to
cooperate fully) with all reasonable requests from another party for information and materials not otherwise available to the requesting party in connection with the preparation and filing of Tax
Returns, claims for refund, and Audits concerning issues or other matters covered by this Agreement or in connection with the determination of a liability for Taxes or a right to a refund of Taxes.
Such cooperation shall include: 

        (i)    the
retention until the expiration of the applicable statute of limitations, and the provision upon request, of copies of all Tax Returns, books, records (including
information regarding ownership and Tax basis of property), documentation and other information relating to the Tax Returns, including accompanying schedules, related work papers, and documents
relating to rulings or other determinations by Taxing Authorities; 

        (ii)   the
execution of any document that may be necessary or reasonably helpful in connection with any Tax Proceeding, or the filing of a Tax Return or refund claim by a
member of the Parent Group or the CMC Group, including certification, to the best of a party's knowledge, of the accuracy and completeness of the information it has supplied; and 

        (iii)  the
use of the party's reasonable best efforts to obtain any documentation that may be necessary or reasonably helpful in connection with any of the foregoing. Each
party shall make its employees and facilities available on a reasonable and mutually convenient basis in connection with the foregoing matters. 

        (b)    Retention of Records.    Any party that is in possession of documentation of Parent (or any Parent Affiliate)
or CMC (or any CMC Affiliate) relating to the CMC Business, including books, records, Tax Returns and all supporting schedules and information relating thereto (the "CMC
Business Records") shall retain such CMC Business Records for a period of seven (7) years following the IPO Date. Thereafter, any party wishing to dispose of CMC
Business Records in its possession (after the expiration of the applicable statute of limitations), shall provide written notice to the other party describing the documentation proposed to be
destroyed or disposed of sixty (60) days prior to taking
such action. The other party may arrange to take delivery of any or all of the documentation described in the notice at its expense during the succeeding sixty (60) day period. 

        10.03.    Dispute Resolution.    In the event that Parent and CMC disagree as to the amount or calculation of any
payment to be made under this Agreement, the parties shall attempt in good faith to resolve such dispute. If such dispute is not resolved within sixty (60) business days following the
commencement of the dispute, Parent and CMC shall jointly select and retain an Independent Accountant to resolve the dispute. The Independent Accountant shall act as an arbitrator to resolve all
points of disagreement and its decision shall be final and binding upon all parties involved. Following the decision of the Independent Accountant, Parent and CMC shall each take or cause to be taken
any action necessary to implement the decision of the Independent Accountant. In the case of a dispute with respect to the reporting of any Tax Item on any Tax Return described in Section 2.01
of this Agreement of the requesting of a change of method of accounting which would solely impact CMC or CMC Affiliates, the relevant Tax Item shall be reported in the manner that the Independent
Accountant determines is more appropriate, and such determination shall be final and binding on Parent and CMC. If such dispute has not been resolved by the due date (with applicable extension) for
the filing of any Tax Return, Parent shall file such Tax Return reporting all Tax Items in the manner as originally set forth on the pro forma draft of the portion of the Tax Return provided to CMC;  provided,  

16

 

 however, that Parent agrees that it will thereafter file an amended Tax Return, if necessary, reporting any disputed Tax Item in the manner determined by the Independent
Accountant, and any other Tax Item as agreed upon by Parent and CMC. The fees and expenses relating to the Independent Accountant shall be borne equally by Parent and CMC, except that if the
Independent Accountant determines that the position advanced by either party is frivolous, has not been asserted in good faith or for which there is not substantial authority, one hundred percent
(100%) of the fees and expenses of the Independent Accountant shall be borne by such party. Notwithstanding anything in this Agreement to the contrary, the dispute resolution provisions set forth in
this Section 10.03 shall not be applicable to any disagreement between the parties relating to Distribution Taxes and any such dispute shall be settled in a court of law or as otherwise agreed
to by the parties. 

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

If
to Parent or any Parent Affiliate, to the Director of Corporate Tax of Parent, with a copy to: 

United
Online, Inc.

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: General Counsel

Fax: (818) 287-3010 

with
a copy to: 

United
Online, Inc.

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: Chief Financial Officer

Fax: (818) 287-3049 

If
to CMC or any CMC Affiliate, to Director of Corporate Tax of CMC, with a copy to the General Counsel of CMC, at: 

Classmates
Media Corporation

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: General Counsel

Fax: (818) 287-3010 

with
a copy to: 

Classmates
Media Corporation

21301 Burbank Boulevard

Woodland Hills, California 91367

Attention: Chief Financial Officer

Fax: (818) 287-3035 

or
to such other addresses or facsimile numbers as may be specified by like notice to the other party. Any notice involving non-performance, termination or renewal shall be sent by hand
delivery, recognized overnight courier or, within the United States, via certified mail, return receipt requested. All other notices may also be sent by facsimile, confirmed by first class mail. All
notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted by facsimile or similar electronic transmission method with confirmation of successful
transmission; one 

17

 

working
day after it is sent, if sent by recognized overnight courier; and three (3) days after it is postmarked, if mailed first class mail or certified mail, return receipt requested, with
postage prepaid. 

        10.05.    Changes in Law.    

        (a)   Any
reference to a provision of the Code or a law of another jurisdiction shall include a reference to any applicable successor provision or law. 

        (b)   If,
due to any change in applicable law or regulations or their interpretation by any court of law or other governing body having jurisdiction subsequent to the date of
this Agreement, performance of any provision of this Agreement or any transaction contemplated thereby shall become impracticable or impossible, the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision. 

        10.06.    Confidentiality.    Each of the Parent and CMC agrees to, and will cause each of their respective
Subsidiaries to, maintain and safeguard all Confidential Information (as such term is defined in the Master Transaction Agreement) pursuant to Section 3.5 of the Master Transaction Agreement,
and each party hereto agrees that Section 3.5 of the Master Transaction Agreement is hereby incorporated by reference into and made a part hereof mutatis mutandis. 

        10.07.    Binding Effect; Successors.    This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature
whatsoever under or by reason of this Agreement. This Agreement may be enforced separately by each member of the Parent Group and each member of the CMC Group. 

        10.08.    Affiliates.    Parent shall cause to be performed, and hereby guarantees the performance of, all actions,
agreements and obligations set forth herein to be performed by any Parent Affiliate, and CMC shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth herein to be performed by any CMC Affiliate; provided, however, that, if it is contemplated that an Parent Affiliate may cease to
be an Parent Affiliate as a result of a transfer of its stock or other ownership interests to a third party in exchange for consideration in an amount approximately equal to the fair market value of
the stock or other ownership interests transferred and such consideration is not distributed outside of the Parent Group to the shareholders of Parent, then (a) CMC shall execute a release of
such Parent Affiliate from its obligations under this Agreement effective as of such transfer provided that Parent shall have confirmed in writing its obligations and the obligations of its remaining
Parent Affiliates with respect to their own obligations and the obligations of the departing Parent Affiliate and that such departing Parent Affiliate shall have executed a release of any rights it
may have against CMC or any CMC Affiliate by reason of this Agreement, or (b) Parent shall acknowledge in writing no later than thirty (30) days prior to such cessation that it shall
bear one hundred percent (100%) of the liability for the obligations of Parent and each Parent Affiliate (including the departing Parent Affiliate) under this Agreement. If at any time CMC shall,
directly or indirectly, obtain beneficial ownership of more than fifty percent (50%) of the total combined voting power of any other entity, CMC shall cause such entity to become a party to this
Agreement by executing together with Parent an agreement in substantially the same form as set forth in Schedule 10.08 and such entity shall have all rights and obligations of an CMC Affiliate
under this Agreement. 

        10.09.    Authority.    Each of the parties hereto hereby represents and warrants to the other party that
(a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have
been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement and (d) this Agreement is its legal, valid and binding
obligation, enforceable 

18

 

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

        10.10.    Entire Agreement.    This Agreement constitutes the entire agreement between the parties hereto with respect
to the subject matter hereof and thereof and shall supersede all prior agreements, understandings and negotiations, both written and oral, between the parties with respect to the subject matter
hereof. This Agreement is not intended to confer upon any Person other than the parties hereto any rights or remedies hereunder. If, and to the extent, the provisions of this Agreement conflict with
any agreement entered into in connection with a Distribution or another Deconsolidation Event, the provisions of this Agreement shall control. 

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

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

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

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

        10.15.    Setoff.    All payments to be made by any party under this Agreement may be netted against payments due to
such party under this Agreement, but otherwise shall be made without setoff, counterclaim or withholding, all of which are hereby expressly waived. 

        10.16.    Other Remedies.    CMC recognizes that any failure by it or any CMC Affiliate to comply with its obligations
under Section 5 of this Agreement would, in the event of a Distribution, result in Distribution Taxes that would cause irreparable harm to Parent, Parent Affiliates, and their stockholders.
Accordingly, Parent shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in
addition to any other remedy to which Parent is entitled at law or in equity. 

        10.17.    Amendment and Modification.    This Agreement may be amended, modified or supplemented only by a written
agreement signed by all of the parties hereto. 

19

 

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

[SIGNATURE
PAGE FOLLOWS] 

20

        IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by a duly authorized officer as of the date first above written. 

	 	 	UNITED ONLINE, INC.

on behalf of itself and each of the Parent Affiliates
	

 	
 	

By:	
 	

    

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 
	

 	
 	

CLASSMATES MEDIA CORPORATION

on behalf of itself and each of the CMC Affiliates
	

 	
 	

By:	
 	

    

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 

 
 

Schedule 10.08    
    

        WHEREAS, CMC, a Delaware corporation ("CMC"), owns, directly or indirectly, [all/more than fifty
percent (50%)] of the outstanding stock or interests in the undersigned; 

        WHEREAS,
the undersigned is not a party to that certain Tax Sharing Agreement, dated as of [DATE], by and among Parent, each Parent Affiliate, CMC and each CMC
Affiliate (as defined therein) (the "Agreement"); and 

        WHEREAS,
the undersigned, Parent and CMC desire to have the undersigned become a party to the Agreement and to have all rights and obligations of a party to the Agreement. 

        NOW,
THEREFORE, in consideration of mutual obligations and undertakings contained in the Agreement, the parties agree that the undersigned shall become a party to the Agreement and shall
have all rights and obligations of a party to the Agreement. 

        IN
WITNESS WHEREOF, the parties have executed this agreement on the dates accompanying their respective signatures, but effective as
of                        . 

UNITED
ONLINE, INC. 

	By:	 	    
	 
	Title:	 	    
	 
	Dated:	 	    
	 
	

CLASSMATES MEDIA CORPORATION	

 
	

By:	
 	

    
	

 
	Title:	 	    
	 
	Dated:	 	    
	 
	

[NAME]	

 
	

By:	
 	

    
	

 
	Title:	 	    
	 
	Dated:	 	    
	 

QuickLinks

Exhibit 10.3

TAX SHARING AGREEMENT

TABLE OF CONTENTS

Schedule 10.08

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