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  Exhibit 10.37    
    

 
 

  CARDIONET, INC.
  
    INDEMNITY AGREEMENT    
    

        THIS INDEMNITY AGREEMENT (this
"Agreement") dated as of May 8, 2009, is made by and between  CARDIONET, INC., a Delaware
corporation (the "Company"), and REBECCA W.
RIMEL ("Indemnitee"). 

 
 

RECITALS    
    

        A.    The Company desires to attract and retain the services of highly qualified individuals as directors, officers, employees
and agents. 

        B.    The Company's Amended and Restated Bylaws (the "Bylaws") require that the
Company indemnify its directors and officers, and empowers the Company to indemnify its employees and agents, as authorized by the Delaware General Corporation Law, as amended (the
"Code"), under which the Company is organized and such Bylaws expressly provide that the indemnification provided therein is not exclusive and
contemplates that the Company may enter into separate agreements with its directors, officers and other persons to set forth specific indemnification provisions. 

        C.    Indemnitee does not regard the protection currently provided by applicable law, the Company's governing documents and
available insurance as adequate under the present circumstances, and the Company has determined that Indemnitee and other directors, officers, employees and agents of the Company may not be willing to
serve or continue to serve in such capacities without additional protection. 

        D.    The Company desires and has requested Indemnitee to serve or continue to serve as a director, officer, employee or agent
of the Company, as the case may be, and has proferred this Agreement to Indemnitee as an additional inducement to serve in such capacity. 

        E.    Indemnitee is willing to serve, or to continue to serve, as a director, officer, employee or agent of the Company, as the
case may be, if Indemnitee is furnished the indemnity provided for herein by the Company. 

 
 

AGREEMENT    
    

        NOW THEREFORE, in consideration of the mutual covenants and agreements set forth
herein, the parties hereto, intending to be legally bound, hereby agree as follows: 

        1.    Definitions.    

        (a)    Agent.    For purposes of this Agreement, the term "agent" of
the Company means any person who: (i) is or was a director, officer, employee or other fiduciary of the Company, a subsidiary of the Company or an employee benefit plan of the Company or a
subsidiary of the Company; or (ii) is or was serving at the request or for the convenience of, or representing the interests of, the Company or a subsidiary of the Company, as a director,
officer, employee or other fiduciary of a foreign or domestic corporation, partnership, joint venture, trust or other enterprise. 

        (b)    Expenses.    For purposes of this Agreement, the term
"expenses" shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys', witness, or
other professional fees and related disbursements, premiums, security for and other costs relating to any bonds and other out-of-pocket costs of whatever nature), actually and
reasonably incurred by Indemnitee in connection with the investigation, defense or appeal of a proceeding or establishing or enforcing a 

1

 

right
to indemnification under this Agreement, the Code or otherwise, and amounts paid in settlement by or on behalf of Indemnitee, but shall not include any judgments, fines or penalties actually
levied against Indemnitee for such individual's violations of law. The term "expenses" shall also include reasonable compensation for time spent by Indemnitee for which he is not compensated by the
Company or any subsidiary or third party (i) for any period during which Indemnitee is not an agent, in the employment of, or providing services for compensation to, the Company or any
subsidiary; and (ii) if the rate of compensation and estimated time involved is approved by the directors of the Company who are not parties to any action with respect to which expenses are
incurred, for Indemnitee while an agent of, employed by, or providing services for compensation to, the Company or any subsidiary. 

        (c)    Proceeding.    For purposes of this Agreement, the term
"proceeding" shall be broadly construed and shall include, without limitation, any threatened, pending, or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or
investigative nature, and whether formal or informal in any case, in which Indemnitee was, is or will be involved as a party or otherwise by reason of: (i) the fact that Indemnitee is or was a
director or officer of the Company; (ii) the fact that any action taken by Indemnitee or of any action on Indemnitee's part while acting as director, officer, employee or agent of the Company;
or (iii) the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise, and in any such case described above, whether or not serving in any such capacity at the time any liability or expense is incurred for which indemnification,
reimbursement, or advancement of expenses may be provided under this Agreement. 

        (d)    Subsidiary.    For purposes of this Agreement, the term
"subsidiary" means any corporation or limited liability company of which more than 20% of the outstanding voting securities or equity interests are owned, directly or indirectly, by the Company and
one or more of its subsidiaries, and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was
serving at the request of the Company as a director, officer, employee, agent or fiduciary. 

        (e)    Independent Counsel.    For purposes of this Agreement, the
term "independent counsel" means a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past
five (5) years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any other party to the
proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "independent counsel" shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. 

        2.    Consideration.    The Company acknowledges that it has entered
into this Agreement and assumes the obligations imposed on it hereby, in addition to and separate from its obligations to Indemnitee under the Bylaws, to induce Indemnitee to serve, or continue to
serve, as a director, officer, employee or agent of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director, officer, employee or agent of the
Company. 

        3.    Indemnification.    

        (a)    Indemnification in Third Party Proceedings.    Subject to
Section 10 below, the Company shall indemnify Indemnitee, if Indemnitee is a party to or threatened to be made a party to or 

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otherwise
involved in any proceeding, for any and all expenses, actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of such proceeding. 

        (b)    Indemnification in Derivative Actions and Direct Actions by the
Company.    Subject to Section 10 below, the Company shall indemnify Indemnitee, if Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any proceeding by or in the right of the Company to procure a judgment in its favor, against any and all expenses actually and reasonably incurred by Indemnitee in connection with the
investigation, defense, settlement, or appeal of such proceedings. 

        4.    Indemnification of Expenses of Successful
Party.    Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any
proceeding or in defense of any claim, issue or matter therein, including the dismissal of any action without prejudice, the Company shall indemnify Indemnitee against all expenses actually and
reasonably incurred in connection with the investigation, defense or appeal of such proceeding. 

        5.    Partial Indemnification.    If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a portion of any expenses actually and reasonably incurred by Indemnitee in the investigation, defense, settlement or appeal
of a proceeding, but is precluded by applicable law or the specific terms of this Agreement to indemnification for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion thereof to which Indemnitee is entitled. 

        6.    Advancement of Expenses.    To the extent not prohibited by law,
the Company shall advance the expenses incurred by Indemnitee in connection with any proceeding, and such advancement shall be made within twenty (20) days after the receipt by the Company of a
statement or statements requesting such advances (which shall include invoices received by Indemnitee in connection with such expenses but, in the case of invoices in connection with legal services,
any references to legal work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice) and upon request of
the Company, an undertaking to repay the advancement of expenses if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal,
that Indemnitee is not entitled to be indemnified by the Company. Advances shall be unsecured, interest free and without regard to Indemnitee's ability to repay the expenses. Advances shall include
any and all expenses actually and reasonably incurred by Indemnitee pursuing an action to enforce Indemnitee's right to indemnification under this Agreement, or otherwise and this right of
advancement, including expenses incurred preparing and forwarding statements to the Company to support the advances claimed. Indemnitee acknowledges that the execution and delivery of this Agreement
shall constitute an undertaking providing that Indemnitee shall, to the fullest extent required by law, repay the advance if and to the extent that it is ultimately determined by a court of competent
jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to advances under this Section shall continue until final
disposition of any proceeding, including any appeal therein. This Section 6 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 10(b). 

        7.    Notice and Other Indemnification Procedures.    

        (a)    Notification of Proceeding.    Indemnitee will notify the
Company in writing promptly upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any proceeding or matter which may be subject to
indemnification or advancement of expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under
this Agreement or otherwise. 

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        (b)    Request for Indemnification and Indemnification
Payments.    Indemnitee shall notify the Company promptly in writing upon receiving notice of any demand, judgment or other requirement for payment that Indemnitee
reasonably believes to be subject to indemnification under the terms of this Agreement, and shall request payment thereof by the Company. Indemnification payments requested by Indemnitee under
Section 3 hereof shall be made by the Company no later than sixty (60) days after receipt of the written request of Indemnitee. Claims for advancement of expenses shall be made under the
provisions of Section 6 herein. 

        (c)    Application for Enforcement.    In the event the Company fails
to make timely payments as set forth in Sections 6 or 7(b) above, Indemnitee shall have the right to apply to any court of competent jurisdiction
for the purpose of enforcing Indemnitee's right to indemnification or advancement of expenses pursuant to this Agreement. In such an enforcement hearing or proceeding, the burden of proof shall be on
the Company to prove that indemnification or advancement of expenses to Indemnitee is not required under this Agreement or permitted by applicable law. Any determination by the Company (including its
Board of Directors, stockholders or independent counsel) that Indemnitee is not entitled to indemnification hereunder, shall not be a defense by the Company to the action nor create any presumption
that Indemnitee is not entitled to indemnification or advancement of expenses hereunder. 

        (d)    Indemnification of Certain Expenses.    The Company shall
indemnify Indemnitee against all expenses incurred in connection with any hearing or proceeding under this Section 7 unless the Company prevails in such hearing or proceeding on the merits in
all material respects. 

        8.    Assumption of Defense.    In the event the Company shall be requested by Indemnitee to pay the expenses of any
proceeding, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, or to participate to the extent permissible in such proceeding, with counsel reasonably acceptable
to Indemnitee. Upon assumption of the defense by the Company and the retention of such counsel by the Company, the Company shall not be liable to Indemnitee under this Agreement for any fees of
counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that Indemnitee shall have the right to employ separate counsel in such proceeding at Indemnitee's sole cost
and expense. Notwithstanding the foregoing, if Indemnitee's counsel delivers a written notice to the Company stating that such counsel has reasonably concluded that there is an actual or potential
conflict of interest between the Company and Indemnitee in the conduct of any such defense or the Company shall not, in fact, have employed counsel or otherwise actively pursued the defense of such
proceeding within a reasonable time, then in any such event the fees and expenses of Indemnitee's counsel to defend such proceeding shall be subject to the indemnification and advancement of expenses
provisions of this Agreement. 

        9.    Insurance.    To the extent that the Company maintains an insurance policy or policies providing liability
insurance for directors, officers, employees, or agents of the Company or of any subsidiary ("D&O Insurance"), Indemnitee shall be covered by such policy or policies in accordance with its or their
terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to
the terms hereof, the Company has D&O Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in
the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding
in accordance with the terms of such policies. 

        10.    Exceptions.    

        (a)    Certain Matters.    Any provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee on account of any proceeding with respect to (i) remuneration paid to
Indemnitee if it is determined 

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by
final judgment or other final adjudication that such remuneration was in violation of law (and, in this respect, both the Company and Indemnitee have been advised that the Securities and Exchange
Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should
be submitted to appropriate courts for adjudication, as indicated in Section 10(d) below); (ii) a final judgment rendered against Indemnitee for an accounting, disgorgement or repayment
of profits made from the purchase or sale by Indemnitee of securities of the Company against Indemnitee or in connection with a settlement by or on behalf of Indemnitee to the extent it is
acknowledged by Indemnitee and the Company that such amount paid in settlement resulted from Indemnitee's conduct from which Indemnitee received monetary personal profit, pursuant to the provisions of
Section 16(b) of the Securities Exchange Act of 1934, as amended, or other provisions of any federal, state or local statute or rules and regulations thereunder; (iii) a final judgment
or other final adjudication that Indemnitee's conduct was in bad faith, knowingly fraudulent or deliberately dishonest or constituted willful misconduct (but only to the extent of such specific
determination); or (iv) on account of conduct that is established by a final judgment as constituting a breach of Indemnitee's duty of loyalty to the Company or resulting in any personal profit
or advantage to which Indemnitee is not legally entitled. For purposes of the foregoing sentence, a final judgment or other adjudication may be reached in either the underlying proceeding or action in
connection with which indemnification is sought or a separate proceeding or action to establish rights and liabilities under this Agreement. 

        (b)    Claims Initiated by Indemnitee.    Any provision herein to the
contrary notwithstanding, the Company shall not be obligated to indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought by Indemnitee against the Company
or its directors, officers, employees or other agents and not by way of defense, except (i) with respect to proceedings brought to establish or enforce a right to indemnification under this
Agreement or under any other agreement, provision in the Bylaws or Amended and Restated Certificate of Incorporation (the "Certificate of
Incorporation") or applicable law, or (ii) with respect to any other proceeding initiated by Indemnitee that is either approved by the Board of Directors or Indemnitee's
participation is required by applicable law. However, indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors determines it to be
appropriate. 

        (c)    Unauthorized Settlements.    Any provision herein to the
contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee under this Agreement for any amounts paid in settlement of a proceeding
effected without the Company's written consent. Neither the Company nor Indemnitee shall unreasonably withhold consent to any proposed settlement; provided, however, that the Company may in any event
decline to consent to (or to otherwise admit or agree to any liability for indemnification hereunder in respect of) any proposed settlement if the Company is also a party in such proceeding and
determines in good faith that such settlement is not in the best interests of the Company and its stockholders. 

        (d)    Securities Act Liabilities.    Any provision herein to the
contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee or otherwise act in violation of any undertaking appearing in and required
by the rules and regulations promulgated under the Securities Act of 1933, as amended (the "Act"), or in any registration statement filed with the SEC
under the Act. Indemnitee acknowledges that paragraph (h) of Item 512 of Regulation S-K currently generally requires the Company to undertake in connection with any
registration statement filed under the Act to submit the issue of the enforceability of Indemnitee's rights under this Agreement in connection with any liability under the Act on public policy grounds
to a court of appropriate jurisdiction and to be governed 

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by
any final adjudication of such issue. Indemnitee specifically agrees that any such undertaking shall supersede the provisions of this Agreement and to be bound by any such undertaking. 

        11.    Nonexclusivity and Survival of Rights.    The provisions for indemnification and advancement of expenses set
forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may at any time be entitled under any provision of applicable law, the Company's Certificate of
Incorporation, Bylaws or other agreements, both as to action in Indemnitee's official capacity and Indemnitee's action as an agent of the Company, in any court in which a proceeding is brought, and
Indemnitee's rights hereunder shall continue after Indemnitee has ceased acting as an agent of the Company and shall inure to the benefit of the heirs, executors, administrators and assigns of
Indemnitee. The obligations and duties of the Company to Indemnitee under this Agreement shall be binding on the Company and its successors and assigns until terminated in accordance with its terms.
The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, expressly to
assume and agree in writing to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 

        No
amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or
omitted by such Indemnitee in his or her corporate status prior to such amendment, alteration or repeal. To the extent that a change in the Code, whether by statute or judicial decision, permits
greater indemnification or advancement of expenses than would be afforded currently under the Company's Certificate of Incorporation, Bylaws and this Agreement, it is the intent of the parties hereto
that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, by Indemnitee shall not prevent the concurrent assertion or employment of any other right or remedy by Indemnitee. 

        12.    Subrogation.    In the event of payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnitee, who, at the request and expense of the Company, shall execute all papers required and shall do everything that may be reasonably
necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 

        13.    Interpretation of Agreement.    It is understood that the parties hereto intend this Agreement to be
interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by law. 

        14.    Severability.    If any provision of this Agreement shall be held to be invalid, illegal or unenforceable for
any reason whatsoever, (a) the validity, legality and enforceability of the remaining provisions of the Agreement (including without limitation, all portions of any paragraphs of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and
(b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing any such provision held to be
invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or
unenforceable and to give effect to Section 13 hereof. 

        15.    Amendment and Waiver.    No supplement, modification, amendment, termination, or cancellation of this Agreement
shall be binding unless executed in writing by the parties hereto. No 

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waiver
of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver. 

        16.    Notice.    Except as otherwise provided herein, any notice or demand which, by the provisions hereof, is
required or which may be given to or served upon the parties hereto shall be in writing and, if by telegram, telecopy or telex, shall be deemed to have been validly served, given or delivered when
sent, if by overnight delivery, courier or personal delivery, shall be deemed to have been validly served, given or delivered upon actual delivery and, if mailed, shall be deemed to have been validly
served, given or delivered three (3) business days after deposit in the United States mail, as registered or certified mail, with proper postage prepaid and addressed to the party or parties to
be notified at the addresses set forth on the signature page of this Agreement (or such other address(es) as a party may designate for itself by like notice). If to the Company, notices and demands
shall be delivered to the attention of the Secretary of the Company. 

        17.    Governing Law.    This Agreement shall be governed exclusively by and construed according to the laws of the
State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within Delaware. 

        18.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall for all
purposes be deemed to be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be produced to evidence the existence of this Agreement. 

        19.    Headings.    The headings of the sections of this Agreement are inserted for convenience only and shall not be
deemed to constitute part of this Agreement or to affect the construction hereof. 

        20.    Entire Agreement.    This Agreement constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior agreements, understandings and negotiations, written and oral, between the parties with respect to the subject matter of this Agreement; provided,
however, that this Agreement is a supplement to and in furtherance of the Company's Certificate of Incorporation, Bylaws, the Code and any other applicable law, and shall not be deemed a substitute
therefor, and does not diminish or abrogate any rights of Indemnitee thereunder. 

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

 

 

							
	 
	 	 CARDIONET, INC.
	 
	 	 	 	 	 	 
	 
	 	By:	 	 	 	 
	 	 	 	 	

  
	 
	 	 	 	Name:	 	 
	 	 	 	 	 	 	

  
	 
	 	 	 	Title:	 	 
	 	 	 	 	 	 	

  
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 INDEMNITEE
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	

  Signature of Indemnitee
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Rebecca W. Rimel

  Print or Type Name of Indemnitee

 

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QuickLinks

Exhibit 10.37

CARDIONET, INC. INDEMNITY AGREEMENT

RECITALS

AGREEMENTExhibit 10.15

 

AMENDED
AND RESTATED

 

UNITED
ONLINE, INC.

 

SEVERANCE
BENEFIT PLAN

 

AND

 

SUMMARY
PLAN DESCRIPTION

 

Amended and
Restated Effective January 1, 2010

 

 

UNITED
ONLINE, INC. SEVERANCE BENEFIT PLAN

AND

SUMMARY
PLAN DESCRIPTION

 

I.              INTRODUCTION

 

United Online, Inc.
(the “Company”) grants severance
pay to terminated full-time employees only under limited circumstances.  The Company retains the right to amend,
modify or terminate its severance pay policy at any time, in whole or part, and
to determine employee eligibility for severance pay and the amount of severance
pay at its sole discretion; provided, however, that this Plan may not be
amended, modified or terminated within eighteen (18) months following the
consummation of a Transaction (as defined below) with respect to eligible
employees as of the closing of that Transaction.

 

This
Plan shall only apply to the Company and the subsidiaries of the Company listed
in attached Schedule A.  The Plan
shall not apply to any other subsidiary, parent or affiliated company unless
the Chief Executive Officer of the Company so extends the application of this
Plan in a written addendum to attached Schedule A. This Plan shall not
apply to any subsidiary listed in attached Schedule A following the time
such subsidiary ceases to be a direct or indirect subsidiary of the Company.

 

This Severance Benefit
Plan (the “Plan”) supersedes all
obligations, agreements or policies regarding severance pay, except such terms
as are set forth in a written agreement signed by an authorized officer of the
Company or one of its subsidiaries and in effect at the time of the applicable
termination of employment.  This Plan
supplements any such written agreements to provide all terms that are not otherwise
expressly incorporated into those written agreements.  The purpose of severance pay is to provide
economic help to compensate for periods of unemployment due to job loss as
provided herein.

 

This Plan is designed to
be an “employee welfare benefit plan,” as defined in Section 3(1) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and to meet the descriptive
requirements of a plan constituting a “severance pay plan” within the meaning
of the regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations, section 2510.3-2(b).  This document shall also serve as a Summary
Plan Description.  Accordingly, the
benefits paid by the Plan are not deferred compensation and no employee shall
have a vested right to such benefits.

 

II.            DEFINITIONS

 

For
purposes of this Plan, the following definitions shall be in effect:

 

“base pay” means: (a) in
the case of a Layoff Termination (as defined herein): (i) if you are a
salaried employee, your set weekly salary (“Weekly
Salary”) in effect as of your termination date or (ii) if
you are an employee paid on an hourly basis, your base hourly rate times 40 for
a work week (“Weekly Rate”); or (b) in
the case of an Involuntary Termination (as defined herein):  the greater of (i) your highest
Weekly Salary or Weekly Rate, as applicable, at any time during the Transaction
Protection Period (as defined herein), and (ii) your Weekly Salary or
Weekly Rate, as applicable, at the time you received your notice of
termination.  Base pay does not include
any variable forms of compensation such as, but not limited to, overtime, shift
differentials, bonuses, incentive compensation, commissions, expenses or
expense allowances.

 

2

 

“Change in Control” means the event
of a change in ownership or control of United Online, Inc. affected
through either of the following transactions:

 

(i)            the acquisition, directly or indirectly,
by any person or related group of persons (other than United Online, Inc.
or a person that directly or indirectly controls, is controlled by, or is under
common control with, United Online, Inc.) of beneficial ownership (within
the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as
amended) of securities possessing more than fifty percent (50%) of the total
combined voting power of the outstanding securities of United Online, Inc.
pursuant to a tender or exchange offer made directly to the stockholders of
United Online, Inc., or

 

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

 

“Code” means the Internal Revenue
Code of 1986, as amended from time to time.

 

“Corporate Transaction” means either
of the following stockholder-approved transactions to which United Online, Inc.
is a party:

 

(i)            a merger or consolidation in which the
record and beneficial ownership of securities possessing more than fifty
percent (50%) of the total combined voting power of the outstanding securities
of United Online, Inc. are transferred, both beneficially and of record,
to a person or persons different from the persons holding those securities
immediately prior to such transaction (for example, it will not be a Corporate
Transaction if following the transaction United Online, Inc. is directly
or indirectly (including through a parent or one or more subsidiaries)
controlled by the person or persons who controlled 50% of the outstanding
securities of United Online, Inc. prior to such transaction), or

 

(ii)           the sale, transfer or other disposition
of all or substantially all of the assets of United Online, Inc. resulting
in the complete liquidation or dissolution of United Online, Inc.

 

“Covered Subsidiary”
means any subsidiary listed in attached Schedule A, as such schedule may
be revised from time to time, as a participating Employer in the Plan.

 

“Employer Group” means the
Company and each member of the group of commonly controlled corporations or
other businesses that include the Company, as determined in accordance with
Sections 414(b) and (c) of the Code and the Treasury Regulations
thereunder, except that in applying Sections 1563(1), (2) and (3) of
the Code for purposes of determining the controlled group of corporations under
Section 414(b), the phrase “at least 50 percent” shall be used instead of “at
least 80 percent” each place the latter phrase appears in such sections and in
applying Section 1.414(c)-2 of the Treasury Regulations for purposes of
determining trades or businesses that are under common control for purposes of Section 414(c),
the phrase “at least 50 percent” shall be used instead of “at least 80 percent”
each place the latter phrase appears in Section 1.414(c)-2 of the Treasury
Regulations.

 

3

 

“Involuntary Termination” or “Involuntarily Terminated” means the
following: (i) you are terminated by the Company or any successor to the
Company or any Covered Subsidiary for reasons other than Misconduct (as defined
below) during the Transaction Protection Period or (ii) your employment
terminates as a result of a Resignation for Good Reason during the Transaction
Protection Period.  Unless otherwise
determined by the Chief Executive Officer of United Online, Inc., the
Involuntary Termination provisions of the Plan shall only apply in the event of
a Change in Control or Corporate Transaction with respect to United Online, Inc.

 

“Misconduct” means the (i) commission
of any act of fraud, embezzlement or dishonesty, (ii) any unauthorized use
or disclosure of confidential information or trade secrets of the Company (or
any other member of the Employer Group), (iii) any intentional misconduct
adversely affecting the business or affairs of the Company (or any other member
of the Employer Group), or (iv) failure to use reasonable efforts to
follow reasonable directives or instructions of a manager or supervisor after
written notice of such failure that specifies in detail the reasons for such
failure and a chance to remedy such failure.

 

“Plan Administrator” means the
Compensation Committee of the Board of Directors of the Company or any other
committee appointed by the Board of Directors to perform the functions of the
Compensation Committee (the “Committee”)
or any person, committee or entity to whom or which the Committee delegates any
of its power or duties under the Plan from time to time.

 

“Resignation for Good Reason” means
the termination of your employment during the Transaction Protection Period as
a result of your resignation for either of the following reasons: (A) a
material reduction in the amount of base salary in effect for you immediately
prior to the commencement of the Transaction Protection Period or (B) a
relocation of your primary place of employment by more than fifty (50) miles; provided, however, that your
resignation for either of the foregoing reasons shall constitute a Resignation
for Good Reason only if the following requirements are satisfied: (i) you provide written
notice of the clause (A) or (B) event to your Employer within thirty
(30) days after the occurrence of that event, (ii) your Employer fails to
take appropriate remedial action to remedy such event within thirty (30) days
after receipt of such notice and (iii) you resign from your employment
with such Employer within ninety (90) days following the initial occurrence of
the clause (A) or (B) event.

 

“Separation from Service”
means your cessation of employment with your Employer (as defined herein) and
all other members of the Employer Group and shall be deemed to occur at such
time as the level of bona fide services you are render as such an employee (or
non-employee consultant) permanently decreases to a level that is not more than
twenty percent (20%) of the average level of services you rendered as an
employee of the Company or any other member of the Employer Group during the immediately
preceding thirty-six (36) months (or such shorter period of time in which your
have been in such employee status). Any such determination, however, shall be
made in accordance with the applicable standards of the Treasury Regulations
issued under Internal Revenue Code Section 409A.

 

“Transaction” means a Change in
Control or a Corporate Transaction, as such terms are defined herein.

 

“Transaction Protection Period” means
the period beginning with the closing date of the Transaction and ending upon
the expiration date of the eighteen (18)-month period measured from such
closing date.

 

4

 

III.           ELIGIBILITY

 

   A.         Eligibility Criteria.

 

You generally  are
eligible for benefits under
the Plan if you satisfy all of the following conditions:

 

1.             You are a full-time U.S. employee of the
Company or any subsidiary thereof listed in attached Schedule A, with
the company for which you are such a full-time employee to be designated your “Employer” for purposes of the Plan.

 

2.             You are either (i) notified while
the Plan is in effect that, as a result of a reduction-in-force decision by
your Employer that eliminates your position, your employment is terminated (“Layoff Termination”), or (ii) Involuntarily
Terminated during the Transaction Protection Period.

 

3.             You are not offered an alternate position
with the Company or other Employer within fifty (50) miles of either your
residence or your most recent work place; provided, however, that this
condition will not be required during the Transaction Protection Period.

 

4.             You have signed a form of
confidential/proprietary/trade secret information, non-disclosure and
inventions assignment agreement(s) with the Company, a predecessor of the
Company, or your Employer that covers the period of your employment with the
Company (and/or with a predecessor of the Company) or any other member of the
Employer Group and which also may include post-employment obligations
concerning the confidential information of the Company and its subsidiaries.

 

5.             You have returned, on or within five (5) business
days after your employment termination date, to your Employer all Company and
Employer documents created and received by you during your employment
(electronic and paper) with the exception only of your personal copies of
documents evidencing your hire, termination, compensation, benefits and stock
options, and any other documents you have received as a shareholder of the
Company or any parent or subsidiary of the Company.

 

6.             If you previously received an advance(s) for
business travel and entertainment expenses, (i) you have properly
completed and submitted an expense reimbursement form(s) and supporting
receipts to your manager within fifteen (15) days after your Layoff Termination
or Involuntary Termination, (ii) your manager has approved your expenses,
and (iii) you have repaid within that fifteen (15)-day period (via check
payable to “United Online, Inc.”) any amount advanced but not used.

 

7.             On or before your employment termination
date, you have met with your manager and: (i) you have transitioned your
work and information concerning your work to your manager; and (ii) you
have provided your manager with all passwords and passcodes you have created
for documents, email and electronic files that you created or used on Company’s
computers and computer systems.

 

8.             On or before your employment termination
date, you have returned to the Company all items of property received by you
for your use during employment with your Employer, including, but not limited
to, any laptops, computer equipment, software programs, cell phones, keys and
passes, and credit and calling cards.

 

5

 

9.             You have signed a general release of all
claims in a form acceptable to the Company (the “Required
Release”) and delivered it to your Employer in accordance with
following requirements:

 

·                  if you are under age forty (40), then (i) you
must sign the Required Release and deliver it to your Employer within ten (10) business
days (or such shorter   period of time
required by your Employer) after the date of your Layoff Termination or
Involuntary Termination and (ii) such Required Release must become
effective after the expiration of any revocation period applicable by law or
regulation to that release.

 

·                  If you are age forty (40) or older, then (i) you
must sign the Required Release and deliver it to your Employer within
twenty-one  (21) days (or forty-five (45)
days if required by applicable law) after the date of your Layoff Termination
or Involuntary Termination and (ii) such Required Release must become
effective after the expiration of any revocation period applicable by law or
regulation to that release.

 

10.           You are not
in one of the excluded categories listed below.

 

    B.        Criteria for Exclusion
from Eligibility.

 

You  are  not eligible
for severance benefits under this Plan if any of the following apply:

 

1.             You are a temporary, leased or seasonal
employee of the Company or any Covered Subsidiary.

 

2.             You work for the Company or any Covered
Subsidiary as an independent contractor, consultant, or agent under a written
contract or purchase order or you are otherwise classified as such by your
Employer (whether or not such classification is upheld on governmental,
judicial or other review.)

 

3.             You resign your employment with the
Company or any Covered Subsidiary (other than a resignation constituting an
Involuntary Termination).

 

4.             You terminate your employment prior to
the date of termination set by your Employer in its notice of termination
(other than in instances involving Involuntary Termination during the
Transaction Protection Period). Your Employer has sole discretion to select
your termination date in circumstances not involving an Involuntary Termination
during the Transaction Protection Period, and failure to work through the
termination date may render you ineligible for severance benefits.  Vacation may be taken between the date you
receive notice of termination and your termination date only with the prior
written approval of senior management.

 

5.             You are terminated for reasons unrelated
to an economically motivated reduction in force and under circumstances that do
not constitute an Involuntary Termination.

 

6.             In situations other than an Involuntary
Termination during the Transaction Protection Period, you are terminated for
unsatisfactory performance, negligence in performance of your duties,
misconduct, or violation of a policy of the Company or any other of your
Employers.

 

6

 

7.             In situations other than an Involuntary
Termination during the Transaction Protection Period, you are dismissed prior
to the effective date of your Layoff Termination for a reason other than your
Layoff Termination (including, but not limited to, any reason such as
unsatisfactory performance, violation of applicable company policy or
procedures, insubordination, misconduct, or the unauthorized use or disclosure
of confidential information or trade secrets of the Company or any parent or
subsidiary of the Company), whether or not you already received notice of your
Layoff Termination that would otherwise qualify you for severance benefits
under this Plan.

 

8.             In situations other than an Involuntary
Termination during the Transaction Protection Period, you are offered
comparable employment by a company or entity that acquires, merges with,
acquires some or all of the assets of, or otherwise carries on the business of
the Company or other Employer relating to your employment.  For purposes of this provision “comparable
employment” means employment within 50 miles of your prior employment site and
at least 100% of your prior base pay.

 

9.             Your termination results from long-term
or permanent disability that renders you unable to perform your essential job
functions even with accommodation or your death.

 

10.           You are covered by any other written
severance or separation pay plan or arrangement with the Company, or any
subsidiary of the Company, or by an employment or other agreement with the
Company or any subsidiary of the Company that provides for severance or
separation pay/benefits in a lump sum or in installment payments following
termination of your employment.

 

11.           The Plan Administrator determines, in its
sole discretion, that your receipt of severance benefits would not under the
circumstances further the purposes of the Plan or would otherwise be inappropriate
and not in the best interests of the Company, provided, however, that this
provision shall not apply during the Transaction Protection Period.

 

IV.           HOW
THE PLAN WORKS

 

A.    Payment Date of Severance
Benefits

 

If you satisfy all the
eligibility criteria of Section III and are eligible for benefits under
the Plan, you will receive your separation benefits (the “Severance
Payment Benefit”), in the amount determined pursuant to Section IV.B.
below, in a lump sum payment on the first regularly scheduled pay day within the sixty (60) day period following the date
of your Separation from Service due to your Layoff Termination or Involuntary
Termination that is coincident with or next following the first date on which
your Required Release first becomes effective following the expiration of all
applicable revocation periods and you have otherwise complied with all the
other terms and conditions of Section III.A., or as soon as practical
thereafter, but in no event shall such lump sum payment be made later than the last
business day of such sixty (60)-day period on which your Required Release is so
effective.

 

    B.        Severance Benefits
Guidelines

 

The Severance Payment
Benefit for which you are eligible under the Plan depends on your position,
your base pay, your length of service, the type of termination, and whether you
are entitled to receive prior notice of your termination under the terms of the
Worker Adjustment and Retraining Notification Act (“WARN
Act”).  No Severance
Payment Benefit will be paid to you if you fail to comply with or meet the
eligibility conditions stated above, including (without limitation) the
execution and effectiveness of the Required Release on or before applicable
date

 

7

 

specified in Section III.A.9.
above, but in no event after the expiration of the sixty (60)-day period
measured from the date of your Separation from Service.

 

The actual Severance
Payment Benefit for which you are eligible generally will be determined in
accordance with the guidelines set forth below.

 

1.             Severance Payment Benefit
Guideline for Employees Not Entitled to WARN Act Notice: 
If you are not entitled to advance notice of your termination pursuant
to the provisions of the WARN Act, this section will serve as your Severance
Payment Benefit guideline.

 

(a)           For employees other than Presidents,
Executive Vice Presidents, Senior Vice Presidents or Vice Presidents, the
Severance Payment Benefit shall depend on whether you are terminated during the
Transaction Protection Period as follows:

 

(i)         For a termination that does not occur
during the Transaction Protection Period, the Severance Payment Benefit for
employees who are not entitled to prior notice of layoff under the WARN Act is
one week’s base pay for each full $20,000 of annual base pay, and an additional
one week’s base pay for each full six (6) month period of employment
completed prior to termination, up to a maximum of an additional five (5) weeks
of base pay.  For example, an employee
with a $40,000 per year base salary who has been employed continuously for four
years would be eligible for a severance benefit equal to seven (7) weeks
of base pay.

 

(ii)        For a termination that occurs during the
Transaction Protection Period, the severance benefit for employees who are not
entitled to prior notice of layoff under the WARN Act is one week’s base pay
for each full $10,000 of annual base pay which the employee was receiving prior
to the Transaction (or, if greater, the base pay such employee was receiving
before the termination) and an additional one week’s base pay for each full six
(6) month period of employment completed prior to termination, up to an
additional five (5) weeks of base pay. 
For example, an employee with a $40,000 per year base salary who has
been employed continuously for four years would be eligible for a severance
benefit equal to nine (9) weeks of base pay.

 

(b)           The Severance Payment Benefit amount for
Presidents and Executive Vice Presidents shall be one year of base pay. The Severance
Payment Benefit amount for Senior Vice Presidents and Vice Presidents shall be
six (6) months of base pay.  The
amounts for Presidents, Executive Vice Presidents, Senior Vice Presidents and
Vice Presidents shall apply whether or not the termination occurs during the
Transaction Protection Period.  Whether
an employee is a President, Executive Vice President, Senior Vice President or
Vice President will be based upon such employee’s title as of the date of
termination or, if during the Transaction Protection Period, the employee’s
highest title at any time during that period. It shall be solely in the Company’s
discretion to change employees’ titles.

 

2.             Severance Payment Benefit
Guideline for Employees Entitled to Notice Under the WARN Act.  If you are entitled to prior notice of your
termination pursuant to the provisions of the WARN Act, the Severance Payment
Benefit guideline is as follows:  The
Severance Payment Benefit amount is the greater of (a) the amount
for which you would be eligible under Section IV.B.1. above (if you had
not been entitled to WARN Act notice) minus eight weeks’ base pay, or (b) one
week’s base pay.  For example, the
benefit guideline for a person who has been employed for five years with a base
salary of $100,000 who is not terminated during the Transaction Protection
Period would be two weeks’ base pay.  The
benefit 

 

8

 

guideline for a person
who has been employed for three years with a base salary of $60,000 would be
one week’s base pay.

 

3.             Payment of Benefits.  The lump sum payment of the Severance Payment Benefit
determined in accordance with the provisions of this Section IV.B. will be
subject to legally required tax withholdings and all other applicable payroll
deductions.  Such withholdings and
deductions may not include 401k Plan contributions or other elective benefit
and benefit plan contributions as participation in such benefits and plans
terminate upon termination of employment.

 

4.             Administrator Discretion.  The Plan Administrator may, as it deems appropriate
and in its sole discretion, authorize Severance Payment Benefits in an amount
different from that set forth in the Severance Payment Benefit Guidelines.  Under certain circumstances, the Plan
Administrator may, in its sole discretion, waive or modify, with respect to one
or more employees or classes of employees, the eligibility requirements for
Severance Payment Benefits or modify the amount of Severance Payment
Benefits.  The foregoing shall not apply
during the Transaction Protection Period. 
In no event, however, shall any Severance Payment Benefit payments be
structured in a manner, or shall the Plan Administrator take any other action,
that would contravene the applicable requirements, restrictions and limitations
of Code Section 409A and the Treasury Regulations thereunder or otherwise
result in a prohibited acceleration, or impermissible deferral, of benefit
payments under Code Section 409A and the Treasury Regulations thereunder.

 

6.             Miscellaneous.  Regardless of whether you meet the eligibility
criteria of Section III and are eligible for benefits under the Plan, you
will be subject to the following rights and obligations in connection with your
Layoff Termination or Involuntary Termination:

 

·                  In your final paycheck, you will receive a lump sum
payment for your salary or wages through your termination date, and all your
accrued but unused vacation.

 

·                  As of the effective date of your Layoff Termination,
except as otherwise provided through COBRA, you will cease participation in all
employee benefits and benefit plans the Company makes available to its
employees, in accordance with the terms and conditions of such benefits and
benefit plans.

 

·                  In accordance with COBRA, you and/or your eligible dependents
may elect temporary continuation coverage under the Company’s group health
benefit plans (medical, dental and/or vision), provided
that you timely elect such coverage and you timely pay the full
amount of premiums due.  In connection
with your Layoff Termination, you and your eligible dependents will be provided
with COBRA election forms and a notice that describes your rights to, and the
terms and conditions of, temporary continuation coverage under COBRA.  These documents will be provided separately.

 

·                  During the limited post-employment exercise period and
pursuant to the procedures specified in the applicable stock option
agreement(s), you may exercise any outstanding stock options that vested on or
prior to the effective date of your Layoff Termination.

 

·                  You will receive information describing unemployment
insurance benefits separately.

 

9

 

V.            OTHER
IMPORTANT INFORMATION

 

    A.        Plan Administration.  The Plan
Administrator has full discretionary authority to administer and interpret the
Plan, including discretionary authority to determine eligibility for
participation and for benefits under the Plan, the amount of benefits (if any)
payable per participant, and to interpret terms of the Plan; provided, however,
that the Plan Administrator shall not have discretion to change the severance
amount or payment terms during the Transaction Protection Period.  The Plan Administrator may delegate any or
all of its duties to Company personnel. 
Any such delegation will carry with it the full discretionary authority
of the Plan Administrator to carry out the delegated duties.  Any determination by the Plan Administrator
or its delegate will be final and conclusive upon all persons.  The Company will indemnify and hold harmless
any person to whom it delegates its responsibilities; provided, however, such
person does not act with gross negligence or willful misconduct.

 

It
is the intention of the Company and the other Employers that this Plan
continues to comply with the requirements of the short-term deferral exception
of Section 409A of the Code and Treasury Regulations Section 1.409A-1(b)(4).  Accordingly, to the extent there is any
ambiguity as to whether one or more provisions of this Plan would otherwise contravene
the requirements or limitations of Code Section 409A applicable to such
short-term deferral exception, then those provisions shall be interpreted and
applied in a manner that does not result in a violation of the requirements or
limitations of Code Section 409A and the Treasury Regulations thereunder
that apply to such exception.

 

    B.        Benefits. 
All benefits will be paid from the general assets of the Company.  The Company is not required to and will not
establish a trust to fund the Plan.  The
benefits provided under this Plan are not assignable and may be conditioned
upon your compliance with any confidentiality agreement you have entered into
with the Company or upon your compliance with any Company policy or program.  The payment of benefits under this Plan does
not increase the benefits due to you under any other benefit plan or Company
policy.

 

 
C.    Claims Procedure.

 

1.             Application for Benefits. 
If you believe you are incorrectly denied a benefit or are entitled to a
greater benefit than the benefit you receive under the Plan, you may submit a
signed, written application to the Chief Personnel Officer of the Company
within ninety (90) days after the effective date of your Layoff Termination or
Involuntary Termination.

 

2.             Denial of Application for
Benefits.  In the event that your application for
benefits is denied in whole or in part, the Plan Administrator must notify you,
in writing, of the denial of the application, and of your right to review the
denial.  The written notice of denial
will be set forth in a manner designed to be understood by you, and will
include specific reasons for the denial, specific references to the Plan
provision upon which the denial is based, a description of any information or
material that the Plan Administrator needs to complete the review and an
explanation of the Plan’s review procedure. 
This written notice will be given to you within ninety (90) days after
the Plan Administrator receives the application, unless special circumstances
require an extension of time, in which case, the Plan Administrator has up to
an additional ninety (90) days for processing the application.  If an extension of time for processing is
required, written notice of the extension will be furnished to you before the
end of the initial ninety (90) day period. 
This notice of extension will describe the special circumstances
necessitating the additional time and the date by which the Plan Administrator
is to render its decision on the application. 
If written notice of denial of the application for benefits is not
furnished within the specified time, the application shall be deemed to be
denied.  You will then be permitted to
appeal the denial in accordance with the review procedure described below.

 

10

 

3.             Request for Review. 
If your application for benefits is denied (or deemed denied), in whole
or in part, you (or your authorized representative) may appeal the denial by
submitting a request for a review to the Chief Personnel Officer of the Company
within sixty (60) days after the application is denied (or deemed denied).  The Plan Administrator will give you (or your
representative) an opportunity to review pertinent documents in preparing a request
for a review.  A request for a review
shall be in writing.  A request for
review must set forth all of the grounds on which it is based, all facts in
support of the request and any other matters that you feel are pertinent.  The Plan Administrator may require you to
submit additional facts, documents or other material as it may find necessary
or appropriate in making its review.

 

4.             Decision on Review. 
The Plan Administrator will act on each request for review within sixty
(60) days after receipt of the request, unless special circumstances require an
extension of time (not to exceed an additional 60 days) for processing the
request for a review.  If an extension
for review is required, written notice of the extension will be furnished to
you within the initial sixty (60) day period. 
The Plan Administrator will give prompt, written notice of its decision
to you.  In the event that the Plan
Administrator confirms the denial of the application for benefits in whole or
in part, the notice will outline, in a manner calculated to be understood by
you, the specific reasons for the decision and the Plan provisions upon which
the decision is based.  If written notice
of the Plan Administrator’s decision is not given to you within the time
prescribed in this subsection (4), the application will be deemed denied on
review.

 

5.             Exhaustion of Remedies. 
No legal action for benefits under the Plan may be brought until: (i) you
have submitted a written application for benefits in accordance with the
procedures described by Section V.C.1., above; (ii) you have been
notified by the Plan Administrator that the application is denied (or the
application is deemed denied due to the Plan Administrator’s failure to act on
it within the established time period);  (iii) you
have filed a written request for a review of the application in accordance with
the appeal procedure described in Section V.C.3., above;  and (iv) you have been notified in
writing that the Plan Administrator has denied the appeal (or the appeal is
deemed to be denied due to the Plan Administrator’s failure to take any action
on the claim within the time prescribed by Section V.C.4., above).

 

    D.        Plan Terms.  This Plan
supersedes any and all prior separation, severance and salary continuation
arrangements, programs and plans which were previously offered by the Company
to eligible employees of this Plan, except such terms as are set forth in a
written agreement signed by an authorized officer of the Company or any
subsidiary of the Company.  This policy
supplements any such written agreements to provide all terms that are not
otherwise expressly set forth in those written agreement.

 

    E.         Plan Amendment or
Termination.  The Compensation Committee of the Company
reserves the right to change, suspend, discontinue or terminate all or any part
of this Plan at any time; provided, however, that the Plan may not be amended,
modified or terminated during the Transaction Protection Period with respect to
eligible employees under the Plan as of the closing of that Transaction.  Other than during the Transaction Protection
Period with respect to eligible employees as of the closing of that
Transaction, the provisions of the Plan are intended to serve as mere
guidelines for the payment of benefits under certain prescribed circumstances
and are not intended to provide any employee with a vested right to
benefits.  Accordingly, any termination
or amendment of the Plan may be made effective immediately with respect to any
benefits not yet paid, whether or not prior notice of such amendment or
termination has been given to affected employees.  This Plan terminates by its own terms when
all benefits hereunder have been paid.

 

11

 

  
F.          Taxes and Other Payroll Deductions.  Company will
withhold taxes and all other applicable payroll deductions from any Severance
Payment Benefit made under this Plan. 
The Company may also offset from any Severance Payment Benefit any
amounts owed to the Company, except to the extent such offset would contravene
any applicable restrictions  or
limitations under Code Section 409A.

 

    G.        No Right to Employment.  No provision
of this Plan is intended to provide you or any other employee with any right to
continue employment with Company or any other member of the Employer Group or
otherwise affect the right of the Company or any other member of the Employer
Group, which right is hereby expressly reserved, to terminate the employment of
any individual at any time for any reason, without cause.

 

VI.           STATEMENT
OF ERISA RIGHTS

 

As a participant in the
United Online, Inc. Severance Benefit Plan (the “Plan”), you are entitled
to certain rights and protections under the Employment Retirement Income
Security Act of 1974, as amended (“ERISA”).  ERISA provides that all Plan participants
shall be entitled to:

 

1.     Examine, without charge, at the Plan Administrator’s
office, all Plan documents, including all documents filed by the Plan with the
U.S. Department of Labor, such as plan descriptions.

 

2.     Obtain copies of all Plan documents and other Plan
information upon written request to the Plan Administrator.  The Plan Administrator may make a reasonable
charge for the copies.

 

In addition to creating
rights for certain employees of the Company under the Plan, ERISA imposes
obligations upon the people who are responsible for the operation of the
Plan.  The people who operate the Plan
(called “fiduciaries”) have a duty to
do so prudently and in the interest of the Company’s employees who are covered
by the Plan.

 

No one, including your
Employer or any other person, may terminate your employment or otherwise
discriminate against you in any way to prevent you from obtaining a benefit to
which you are entitled under the Plan or from exercising your rights under
ERISA.

 

If your claim for a
benefit under this Plan is denied in whole or in part, you must receive a
written explanation of the reason for the denial.  You have the right to have the Plan
Administrator review and reconsider your claim. 
Under ERISA, there are steps you can take to enforce the above
rights.  For instance, if you request
materials from the Plan and do not receive them within thirty (30) days, you
may file suit in a federal court.  In
such a case, the court may require the Plan Administrator to provide the
materials and pay you up to $110 a day until you receive the materials, unless
the materials were not sent because of reasons beyond the control of the Plan
Administrator.  If you have a claim for a
benefit under this Plan that is denied or ignored, in whole or in part, you may
file suit in a federal or a state court. 
If it should happen that the Plan fiduciaries misuse the Plan’s assets
(if any) or if you are discriminated against for asserting your rights, you may
seek assistance from the U.S. Department of Labor or you may file suit in a federal
court.  The court will decide who should
pay court costs and legal fees.  If you
are successful in your lawsuit, the court may order the party you have sued to
pay your legal costs, including attorney fees. 
However, if you lose, the court may order you to pay these costs and
fees, for example, if it finds that your claim or suit is frivolous.

 

If you have any questions
about the Plan, this statement or your rights under ERISA, you should contact
the Plan Administrator or the nearest Area Office of the Pension and Welfare
Benefits 

 

12

 

Administration, U.S.
Department of Labor, listed in your local telephone directory or contact the
Division of Technical Assistance and Inquiries, Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210.

 

13

 

ADDITIONAL
PLAN INFORMATION

 

	
  Plan Sponsor:

  	
   

  	
  United
  Online, Inc.

  
	
   

  	
   

  	
   

  
	
  Plan Name:

  	
   

  	
  The United
  Online, Inc. Severance Benefit Plan

  
	
   

  	
   

  	
   

  
	
  Employer Identification
  Number

  	
   

  	
  77-0575839

  
	
   

  	
   

  	
   

  
	
  Plan Number:

  	
   

  	
  5 01

  
	
   

  	
   

  	
   

  
	
  Plan Effective Date:

  	
   

  	
  January 1, 2010

  
	
   

  	
   

  	
   

  
	
  Plan Administrator:

  	
   

  	
  United
  Online, Inc.

  
	
   

  	
   

  	
  21301 Burbank Blvd.

  
	
   

  	
   

  	
  Woodland Hills, CA
  91367

  
	
   

  	
   

  	
  Telephone: (818) 287-3000

  
	
   

  	
   

  	
   

  
	
  Direct Inquiries to:

  	
   

  	
  Plan Administrator

  
	
   

  	
   

  	
  c/o General Counsel

  
	
   

  	
   

  	
  United
  Online, Inc.

  
	
   

  	
   

  	
  21301 Burbank Blvd.

  
	
   

  	
   

  	
  Woodland Hills, CA  91367

  
	
   

  	
   

  	
  Telephone: (818) 287-3000

  
	
   

  	
   

  	
   

  
	
  Agent for Service of
  Legal Process:

  	
   

  	
  Plan Administrator or

  
	
   

  	
   

  	
  United Online’s
  Executive Vice President and

  
	
   

  	
   

  	
  General Counsel

  
	
   

  	
   

  	
   

  
	
  Type of Plan:

  	
   

  	
  Severance Plan /
  Employee Welfare Benefit Plan

  
	
   

  	
   

  	
   

  
	
  Plan Costs:

  	
   

  	
  The cost of the plan is
  paid by United Online, Inc.

  

 

IN WITNESS WHEREOF, UNITED
ONLINE, INC. HAS CAUSED THIS AMENDED AND RESTATED SEVERANCE BENEFIT PLAN AND
SUMMARY PLAN DESCRIPTION TO BE EXECUTED ON ITS BEHALF BY ITS DULY AUTHORIZED
OFFICER ON THE DATE AND YEAR INDICATED BELOW.

 

 

	
   

  	
  UNITED ONLINE, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark R. Goldston

  
	
   

  	
   

  
	
   

  	
  Title:  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  Dated:  December 22, 2009

  

 

14

 

SCHEDULE
A

 

LIST
OF COVERED SUBSIDIARIES PARTICIPATING IN THE PLAN

AS OF
JANUARY 1, 2010

 

NetZero, Inc.

Juno Internet Services, Inc.

United Online Advertising
Network, Inc.

Classmates Online, Inc.

MyPoints.com, Inc.

FTD.COM, Inc.

Florists’ Transworld
Delivery, Inc.

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