Document:

Exhibit
10.1

 

CREDIT
AGREEMENT

 

DATED AS OF
AUGUST 4, 2008

 

AMONG

 

UNOLA CORP.,

as
Borrower,

 

THE LENDERS LISTED HEREIN,

as
Lenders,

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION,

as
Administrative Agent

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION,

as
Lead Arranger

 

LA SALLE
BANK NATIONAL ASSOCIATION,

as
Syndication Agent

 

ING
(U.S.) CAPITAL CORPORATION,

as
Documentation Agent

 

 

TABLE
OF CONTENTS

	
   

  	
   

  	
   

  	
  Page No.

  
	
  SECTION 1.

  	
  DEFINITIONS

  	
   

  	
  2

  
	
  1.1

  	
  Certain Defined Terms

  	
   

  	
  2

  
	
  1.2

  	
  Accounting Terms; Utilization of GAAP for Purposes
  of Calculations Under Agreement

  	
   

  	
  35

  
	
  1.3

  	
  Other Definitional Provisions and Rules of
  Construction

  	
   

  	
  35

  
	
  SECTION 2.

  	
  AMOUNTS AND TERMS OF COMMITMENTS
  AND LOANS

  	
   

  	
  36

  
	
  2.1

  	
  Commitments; Making of Loans; the Register; Optional
  Notes

  	
   

  	
  36

  
	
  2.2

  	
  Interest on the Loans

  	
   

  	
  44

  
	
  2.3

  	
  Fees

  	
   

  	
  48

  
	
  2.4

  	
  Repayments, Prepayments and Reductions of Revolving
  Loan Commitment Amount; General Provisions Regarding Payments; Application of
  Proceeds of Collateral and Payments Under Guaranty

  	
   

  	
  50

  
	
  2.5

  	
  Use of Proceeds

  	
   

  	
  60

  
	
  2.6

  	
  Special Provisions Governing Eurodollar Rate Loans

  	
   

  	
  60

  
	
  2.7

  	
  Increased Costs; Taxes; Capital Adequacy

  	
   

  	
  62

  
	
  2.8

  	
  Statement of Lenders; Obligation of Lenders and
  Issuing Lenders to Mitigate

  	
   

  	
  67

  
	
  2.9

  	
  Replacement of a Lender

  	
   

  	
  67

  
	
  SECTION 3.

  	
  LETTERS OF CREDIT

  	
   

  	
  68

  
	
  3.1

  	
  Issuance of Letters of Credit and Lenders’ Purchase
  of Participations Therein

  	
   

  	
  68

  
	
  3.2

  	
  Letter of Credit Fees

  	
   

  	
  71

  
	
  3.3

  	
  Drawings and Reimbursement of Amounts Paid Under
  Letters of Credit

  	
   

  	
  72

  
	
  3.4

  	
  Obligations Absolute

  	
   

  	
  75

  
	
  3.5

  	
  Nature of Issuing Lenders’ Duties

  	
   

  	
  76

  
	
  SECTION 4.

  	
  CONDITIONS TO LOANS AND LETTERS
  OF CREDIT

  	
   

  	
  77

  
	
  4.1

  	
  Conditions to Effectiveness of Agreement

  	
   

  	
  77

  
	
  4.2

  	
  Conditions to Term Loans and Initial Revolving Loans
  and Swing Line Loans

  	
   

  	
  77

  
	
  4.3

  	
  Conditions to All Loans

  	
   

  	
  84

  
	
  4.4

  	
  Conditions to Letters of Credit

  	
   

  	
  85

  
					

 

i

 

	
  SECTION 5.

  	
  COMPANY’S REPRESENTATIONS AND
  WARRANTIES

  	
   

  	
  85

  
	
  5.1

  	
  Organization, Powers, Qualification, Good Standing,
  Business and Subsidiaries

  	
   

  	
  85

  
	
  5.2

  	
  Authorization of Borrowing, etc.

  	
   

  	
  86

  
	
  5.3

  	
  Financial Condition

  	
   

  	
  87

  
	
  5.4

  	
  No Material Adverse Change; No Restricted Junior
  Payments

  	
   

  	
  87

  
	
  5.5

  	
  Title to Properties; Liens; Real Property;
  Intellectual Property

  	
   

  	
  87

  
	
  5.6

  	
  Litigation; Adverse Facts

  	
   

  	
  88

  
	
  5.7

  	
  Payment of Taxes

  	
   

  	
  89

  
	
  5.8

  	
  Performance of Agreements

  	
   

  	
  89

  
	
  5.9

  	
  Governmental Regulation

  	
   

  	
  89

  
	
  5.10

  	
  Securities Activities

  	
   

  	
  89

  
	
  5.11

  	
  Employee Benefit Plans

  	
   

  	
  89

  
	
  5.12

  	
  Certain Fees

  	
   

  	
  90

  
	
  5.13

  	
  Environmental Protection

  	
   

  	
  90

  
	
  5.14

  	
  Employee Matters

  	
   

  	
  91

  
	
  5.15

  	
  Solvency

  	
   

  	
  91

  
	
  5.16

  	
  Matters Relating to Collateral

  	
   

  	
  91

  
	
  5.17

  	
  Disclosure

  	
   

  	
  92

  
	
  5.18

  	
  Subordinated Indebtedness

  	
   

  	
  93

  
	
  5.19

  	
  Related Agreements

  	
   

  	
  93

  
	
  5.20

  	
  Reporting to IRS

  	
   

  	
  93

  
	
  5.21

  	
  Foreign Assets Control Regulations, etc.

  	
   

  	
  93

  
	
  SECTION 6.

  	
  COMPANY’S AFFIRMATIVE COVENANTS

  	
   

  	
  94

  
	
  6.1

  	
  Financial Statements and Other Reports

  	
   

  	
  94

  
	
  6.2

  	
  Existence, etc.

  	
   

  	
  99

  
	
  6.3

  	
  Payment of Taxes and Claims; Tax

  	
   

  	
  99

  
	
  6.4

  	
  Maintenance of Properties; Insurance; Application of
  Net Insurance/ Condemnation Proceeds

  	
   

  	
  99

  
	
  6.5

  	
  Inspection Rights; Lender Meeting

  	
   

  	
  101

  
	
  6.6

  	
  Compliance with Laws, etc.

  	
   

  	
  101

  
	
  6.7

  	
  Environmental Matters

  	
   

  	
  101

  
					

 

ii

 

	
  6.8

  	
  Execution of Guaranty and Personal Property
  Collateral Documents After the Closing Date

  	
   

  	
  103

  
	
  6.9

  	
  Matters Relating to Additional Real Property
  Collateral

  	
   

  	
  104

  
	
  6.10

  	
  Interest Rate Protection

  	
   

  	
  104

  
	
  6.11

  	
  Other Post-Closing Matters

  	
   

  	
  105

  
	
  SECTION 7.

  	
  COMPANY’S NEGATIVE COVENANTS

  	
   

  	
  105

  
	
  7.1

  	
  Indebtedness

  	
   

  	
  105

  
	
  7.2

  	
  Liens and Related Matters

  	
   

  	
  107

  
	
  7.3

  	
  Investments; Acquisitions

  	
   

  	
  109

  
	
  7.4

  	
  Contingent Obligations

  	
   

  	
  112

  
	
  7.5

  	
  Restricted Junior Payments

  	
   

  	
  113

  
	
  7.6

  	
  Financial Covenants

  	
   

  	
  114

  
	
  7.7

  	
  Restriction on Fundamental Changes; Asset Sales

  	
   

  	
  116

  
	
  7.8

  	
  Consolidated Capital Expenditures

  	
   

  	
  118

  
	
  7.9

  	
  Transactions with Shareholders and Affiliates

  	
   

  	
  119

  
	
  7.10

  	
  Sales and Lease-Backs

  	
   

  	
  120

  
	
  7.11

  	
  Conduct of Business

  	
   

  	
  121

  
	
  7.12

  	
  Fiscal Year

  	
   

  	
  121

  
	
  SECTION 8.

  	
  EVENTS OF DEFAULT

  	
   

  	
  121

  
	
  8.1

  	
  Failure to Make Payments When Due

  	
   

  	
  121

  
	
  8.2

  	
  Default in Other Agreements

  	
   

  	
  121

  
	
  8.3

  	
  Breach of Certain Covenants

  	
   

  	
  122

  
	
  8.4

  	
  Breach of Warranty

  	
   

  	
  122

  
	
  8.5

  	
  Other Defaults Under Loan Documents

  	
   

  	
  122

  
	
  8.6

  	
  Involuntary Bankruptcy; Appointment of Receiver,
  etc.

  	
   

  	
  122

  
	
  8.7

  	
  Voluntary Bankruptcy; Appointment of Receiver, etc.

  	
   

  	
  123

  
	
  8.8

  	
  Judgments and Attachments

  	
   

  	
  123

  
	
  8.9

  	
  Dissolution

  	
   

  	
  123

  
	
  8.10

  	
  Employee Benefit Plans

  	
   

  	
  124

  
	
  8.11

  	
  Change in Control

  	
   

  	
  124

  
	
  8.12

  	
  Invalidity of Loan Documents; Failure of Security;
  Repudiation of Obligations

  	
   

  	
  124

  
					

 

iii

 

	
  8.13

  	
  Conduct of Business By Holdings

  	
   

  	
  124

  
	
  8.14

  	
  Conduct of Business By Dormant Subsidiaries

  	
   

  	
  124

  
	
  8.15

  	
  Failure to Consummate Acquisition or Merger

  	
   

  	
  125

  
	
  SECTION 9.

  	
  ADMINISTRATIVE AGENT

  	
   

  	
  125

  
	
  9.1

  	
  Appointment

  	
   

  	
  125

  
	
  9.2

  	
  Powers and Duties; General Immunity

  	
   

  	
  127

  
	
  9.3

  	
  Independent Investigation by Lenders; No
  Responsibility For Appraisal of Creditworthiness

  	
   

  	
  128

  
	
  9.4

  	
  Right to Indemnity

  	
   

  	
  129

  
	
  9.5

  	
  Resignation of Agents; Successor Administrative
  Agent and Swing Line Lender

  	
   

  	
  129

  
	
  9.6

  	
  Collateral Documents and Guaranties

  	
   

  	
  130

  
	
  9.7

  	
  Duties of Other Agents

  	
   

  	
  131

  
	
  9.8

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  131

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
   

  	
  132

  
	
  10.1

  	
  Successors and Assigns; Assignments and
  Participations in Loans and Letters of Credit

  	
   

  	
  132

  
	
  10.2

  	
  Expenses

  	
   

  	
  136

  
	
  10.3

  	
  Indemnity

  	
   

  	
  137

  
	
  10.4

  	
  Set-Off

  	
   

  	
  138

  
	
  10.5

  	
  Ratable Sharing

  	
   

  	
  139

  
	
  10.6

  	
  Amendments and Waivers

  	
   

  	
  139

  
	
  10.7

  	
  Independence of Covenants

  	
   

  	
  141

  
	
  10.8

  	
  Notices; Effectiveness of Signatures

  	
   

  	
  141

  
	
  10.9

  	
  Survival of Representations, Warranties and
  Agreements

  	
   

  	
  143

  
	
  10.10

  	
  Failure or Indulgence Not Waiver; Remedies
  Cumulative

  	
   

  	
  143

  
	
  10.11

  	
  Marshalling; Payments Set Aside

  	
   

  	
  143

  
	
  10.12

  	
  Severability

  	
   

  	
  144

  
	
  10.13

  	
  Obligations Several; Independent Nature of Lenders’
  Rights; Damage Waiver

  	
   

  	
  144

  
	
  10.14

  	
  Release of Security Interest or Guaranty

  	
   

  	
  144

  
	
  10.15

  	
  Applicable Law

  	
   

  	
  145

  
	
  10.16

  	
  Construction of Agreement; Nature of Relationship

  	
   

  	
  145

  
					

 

iv

 

	
  10.17

  	
  Consent to Jurisdiction and Service of Process

  	
   

  	
  145

  
	
  10.18

  	
  Waiver of Jury Trial

  	
   

  	
  146

  
	
  10.19

  	
  Confidentiality

  	
   

  	
  147

  
	
  10.20

  	
  Counterparts; Effectiveness

  	
   

  	
  148

  
	
   

  	
   

  	
   

  
	
  Signature pages

  	
   

  	
  S-1

  

 

v

 

EXHIBITS

 

	
  I

  	
  FORM OF NOTICE OF BORROWING

  
	
  II

  	
  FORM OF NOTICE OF CONVERSION/CONTINUATION

  
	
  III

  	
  FORM OF REQUEST FOR ISSUANCE

  
	
  IV

  	
  FORM OF TRANCHE A TERM NOTE

  
	
  V

  	
  FORM OF TRANCHE B TERM NOTE

  
	
  VI

  	
  FORM OF REVOLVING NOTE

  
	
  VII

  	
  FORM OF SWING LINE NOTE

  
	
  VIII

  	
  FORM OF COMPLIANCE CERTIFICATE

  
	
  IX

  	
  FORM OF OPINION OF COMPANY COUNSEL

  
	
  X

  	
  FORM OF ASSIGNMENT AGREEMENT

  
	
  XI

  	
  FORM OF FINANCIAL CONDITION CERTIFICATE

  
	
  XII

  	
  FORM OF GUARANTY

  
	
  XIII

  	
  FORM OF SECURITY AGREEMENT

  
	
  XIV

  	
  FORM OF MORTGAGE

  
	
  XV

  	
  FORM OF NOTICE OF PREPAYMENT

  

 

vi

 

SCHEDULES

 

	
  2.1

  	
  COMMITMENTS

  
	
  3.1

  	
  EXISTING LETTERS OF CREDIT

  
	
  4.2K

  	
  CLOSING DATE MORTGAGED PROPERTIES

  
	
  5.1

  	
  CORPORATE STRUCTURE

  
	
  5.5B

  	
  REAL PROPERTY

  
	
  5.5C

  	
  INTELLECTUAL PROPERTY

  
	
  5.6

  	
  LITIGATION

  
	
  5.11

  	
  CERTAIN EMPLOYEE BENEFIT PLANS

  
	
  7.1

  	
  CERTAIN EXISTING INDEBTEDNESS

  
	
  7.2

  	
  CERTAIN EXISTING LIENS

  
	
  7.3

  	
  CERTAIN EXISTING INVESTMENTS

  
	
  7.4

  	
  CERTAIN EXISTING CONTINGENT OBLIGATIONS

  

 

vii

 

UNOLA
CORP.

 

CREDIT
AGREEMENT

 

This CREDIT AGREEMENT (this “Agreement”) is
dated as of August 4, 2008 and entered into by and among UNOLA CORP., a Delaware corporation (“Acquisition
Sub”), THE FINANCIAL INSTITUTIONS
PARTY HERETO FROM TIME TO TIME (each individually referred to herein
as a “Lender” and collectively as “Lenders”), WELLS FARGO BANK, NATIONAL
ASSOCIATION, as sole lead arranger and sole book manager (in such
capacity, “Lead Arranger”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative
agent for Lenders (in such capacity, “Administrative Agent”).

 

RECITALS

 

WHEREAS, at the Effective Time (capitalized
terms used in these recitals without definition shall have the meanings
assigned to such terms in Section 1), FTD Group, Inc. (“FTD”) shall be merged with and into Acquisition Sub,
pursuant to the Merger Agreement, with FTD being the surviving corporation (the
“Merger”) and becoming an indirect
wholly-owned subsidiary of United Online, Inc. (“United
Online”);

 

WHEREAS, Lenders, at the request of Acquisition
Sub, have agreed to extend certain credit facilities to Acquisition Sub, the
proceeds of which will be used together with the Cash proceeds of a capital
contribution by Holdings, to (i) fund the Acquisition Financing
Requirements and (ii) provide financing for working capital and other
general corporate purposes of Company and its Subsidiaries;

 

WHEREAS, Company desires to secure all of the
Obligations hereunder and under the other Loan Documents by granting to
Administrative Agent, on behalf of Lenders, a First Priority Lien on
substantially all of its real, personal and mixed property, including a pledge
of all of the Capital Stock of its Domestic Subsidiaries and 66% of the Capital
Stock of its first tier Foreign Subsidiaries; and

 

WHEREAS, Holdings and Subsidiary Guarantors have
agreed to guarantee the Obligations hereunder and under the other Loan
Documents and to secure their guaranties by granting to Administrative Agent,
on behalf of Lenders, a First Priority Lien on substantially all of their real,
personal and mixed property, including a pledge of all of the Capital Stock of
their Domestic Subsidiaries and 66% of the Capital Stock of their first tier
Foreign Subsidiaries:

 

 

NOW,
THEREFORE, in
consideration of the premises and the agreements, provisions and covenants
herein contained, Company, Lenders, Lead Arranger and Administrative Agent
agree as follows:

 

Section 1.                                          DEFINITIONS

 

1.1                               Certain Defined Terms.

 

The following
terms used in this Agreement shall have the following meanings:

 

“Acquisition” means the transactions contemplated by the
Merger Agreement.

 

“Acquisition Financing Requirements” means the aggregate
amount of cash necessary to (i) finance the purchase price payable in
connection with the Acquisition, (ii) consummate the Refinancing, and (iii) pay
Transaction Costs.

 

“Acquisition Sub” has the meaning assigned to that term in
the introduction to this Agreement.

 

“Additional Contributions” means the proceeds of equity
issuances by Holdings and capital contributions by any direct or indirect
shareholder of Holdings, contributed to Company after the Closing Date.

 

“Additional Mortgaged Property” has the meaning assigned to
that term in subsection 6.9.

 

“Additional Mortgages” has the meaning assigned to that term
in subsection 6.9.

 

“Administrative Agent” has the meaning assigned to that term
in the introduction to this Agreement and also means and includes any successor
Administrative Agent appointed pursuant to subsection 9.5A.

 

“Affected Lender” has the meaning assigned to that term in
subsection 2.6C.

 

“Affected Loans” has the meaning assigned to that term in
subsection 2.6C.

 

“Affiliate,” as applied to any Person, means any other Person
directly or indirectly controlling, controlled by, or under common control
with, that Person.  For the purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of that Person, whether through
the ownership of voting securities or by contract or otherwise.

 

“Affiliated Funds” means Funds that are administered, advised
or managed by (i) a single entity or (ii) entities that are
Affiliates.

 

2

 

“Agents” means Administrative Agent and Lead Arranger.

 

“Aggregate Amounts Due” has the meaning assigned to that term
in subsection 10.5.

 

“Approved Fund” means a Fund that is administered, advised or
managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an
entity or an Affiliate of an entity that administers, advises or manages a
Lender.

 

“Asset Sale” means the sale by Company or any of its
Subsidiaries to any Person (other than Company or any of its wholly-owned
Subsidiaries) pursuant to subsection 7.7(iv) of (i) any of the stock
of any of Company’s Subsidiaries, (ii) substantially all of the assets of
any division or line of business of Company or any of its Subsidiaries, or (iii) any
other assets (whether tangible or intangible) of Company or any of its
Subsidiaries (other than (a) inventory sold in the ordinary course of
business, (b) Cash Equivalents, (c) sales, assignments, transfers or
dispositions of accounts in the ordinary course of business for purposes of
collection, and (d) any such other assets to the extent that the aggregate
value of such assets sold in any single transaction or related series of
transactions is equal to $1,000,000 or less).

 

“Assignment Agreement” means an Assignment and Assumption in
substantially the form of Exhibit X annexed hereto.

 

“Bankruptcy Code” means Title 11 of the United
States Code entitled “Bankruptcy,” as now and hereafter in effect, or any
successor statute.

 

“Base Rate” means, at any time, the higher of (i) the
Prime Rate or (ii) the rate which is 1/2 of 1% in excess of the Federal
Funds Effective Rate.  Any change in the
Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective on the effective date of such change.

 

“Base Rate Loans” means Loans bearing interest at rates
determined by reference to the Base Rate as provided in subsection 2.2A.

 

“Base Rate Margin” means the margin over the Base Rate used
in determining the rate of interest of Base Rate Loans pursuant to
subsection 2.2A.

 

“Beneficially Own” has the meaning assigned to that term in Rules 13d-3
and 13d-5 of the Exchange Act.  The term “Beneficial Owner” shall have a corresponding meaning.

 

“Business Day” means (i) for all purposes other than as
covered by clause (ii) below, any day excluding Saturday, Sunday and
any day which is a legal holiday under the laws of the State of California or
New York or is a day on which banking institutions located in such state are
authorized or required by law or other governmental action to close, and (ii) with
respect to all notices, determinations, fundings and payments in connection
with the Eurodollar Rate or any Eurodollar Rate Loans, any day that is a
Business Day described in 

 

3

 

clause (i) above and that is also a day for
trading by and between banks in Dollar deposits in the London interbank market.

 

“Capital Lease,” as applied to any Person, means any lease of
any property (whether real, personal or mixed) by that Person as lessee that,
in conformity with GAAP, is accounted for as a capital lease on the balance
sheet of that Person.

 

“Capital Stock” means the capital stock of or other equity
interests in a Person.

 

“Cash” means money, currency or a credit balance in a Deposit
Account.

 

“Cash Equivalents” means, as at any date of determination, (i) marketable
securities (a) issued or directly and unconditionally guaranteed or
insured as to interest and principal by the United States Government or any
agency or instrumentality thereof or (b) issued by any agency of the
United States the obligations of which are backed by the full faith and credit
of the United States, in each case maturing within one year after such date; (ii) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within two years after such date and having, at the time
of the acquisition thereof, the one of the two highest ratings obtainable from
either Standard & Poor’s Rating Services (“S&P”)
or Moody’s Investors Service, Inc. (“Moody’s”) (or
reasonably equivalent ratings of another internationally recognized rating
agency); (iii) commercial paper maturing no more than one year from the
date of creation thereof and having, at the time of the acquisition thereof, a
rating of at least A-2 from S&P or at least P-2 from Moody’s; (iv) demand
deposits, time deposits and certificates of deposit or bankers’ acceptances
maturing within one year after such date and issued or accepted by any Lender
or by any commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia that at the time of
investment (a) is at least “adequately capitalized” (as defined in the
regulations of its primary Federal banking regulator) and (b) has Tier 1
capital (as defined in such regulations) of not less than $100,000,000; (v) repurchase
agreements and reverse repurchase agreements with any Lender or any Affiliate
thereof relating to marketable securities meeting the criteria set forth in
clause (i) above; (vi) repurchase obligations with a term of not more
than 28 days for underlying securities of the types described in clauses (i) and
(v) above entered into with any financial institution meeting the
qualifications specified in clause (iv) above; (vii) shares of any
money market mutual fund that has at least 95% of its assets invested
continuously in the types of investments referred to in clauses (i) through
(vi) above; or (viii) with respect to Investments by any Foreign
Subsidiary, any demand deposit account or other Investment having credit
quality (in the reasonable judgment of Company) similar to the foregoing
(taking into account Investments available to such Foreign Subsidiary in the
jurisdiction in which such Foreign Subsidiary operates) and available for
investment in the jurisdiction where such Foreign Subsidiary operates.

 

“Cash Merger Consideration” has the meaning given to that
term in the Merger Agreement.

 

“Change in Control”
means the occurrence of any one of the following:

 

4

 

(i)            Holdings at any
time ceases to legally own and Beneficially Own and control 100% of the Voting
Stock of Company;

 

(ii)           prior to an IPO,
United Online ceases to Beneficially Own Voting Stock of Holdings representing
a majority of the voting power (in an election of members of the Governing Body
of Holdings) of the total outstanding Voting Stock of Holdings.;

 

(iii)          upon and following
an IPO, (i) United Online ceases to Beneficially Own Voting Stock of
Holdings representing more than 35% of the voting power (in an election of
members of the Governing Body of Holdings) of the total outstanding Voting
Stock of Holdings or (ii) any “person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act), other than United
Online and its wholly-owned Subsidiaries, is or becomes the Beneficial Owner of
Voting Stock of Holdings representing a higher percentage of the voting power
(in an election of members of the Governing Body of Holdings) of the total
outstanding Voting Stock of Holdings than is Beneficially Owned by United
Online and its wholly-owned Subsidiaries at such time; or

 

(iv)          upon and following
an IPO, during any period of two consecutive years, individuals who at the
beginning of such period constituted the Governing Body of Holdings (together
with any new members whose election to such Governing Body or whose nomination
for election was approved by a vote of a majority of the members of the
Governing Body of Holdings, which members comprising such majority are then
still in office and were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the Governing Body of Holdings.

 

For
purposes of this definition, a person shall not be deemed to have Beneficial
Ownership of Capital Stock subject to a stock purchase agreement, merger
agreement or similar agreement until the consummation of the transactions
contemplated by such agreement.

 

“Change in Law” means the occurrence, after the date of this
Agreement, of any of the following:  (i) the
adoption or taking effect of any law, rule, regulation, treaty or order, (ii) any
change in any law, rule, regulation or treaty or in the administration,
interpretation or application thereof by any Government Authority, (iii) any
determination of a court or other Government Authority or (iv) the making
or issuance of any request, guideline or directive (whether or not having the
force of law) by any Government Authority.

 

“Class,” as applied to Lenders, means each of the following
three classes of Lenders:  (i) Lenders
having Revolving Loan Exposure, (ii) Lenders having Tranche A Term Loan
Exposure and (iii) Lenders having Tranche B Term Loan Exposure.

 

“Closing Date” means the date on which the conditions
precedent set forth in subsection 4.2 are satisfied (or waived, as applicable)
and the initial Loans are made.

 

“Closing Date Certificate” means an Officer’s Certificate of
Company, substantially in the form of Exhibit XVI annexed hereto.

 

5

 

“Closing Date Consolidated Adjusted EBITDA”
means Consolidated Adjusted EBITDA; provided, however, that (i) the
elements thereof shall be determined in conformity with GAAP as in effect on April 30,
2008, (ii) the amount of Transaction Costs to be included shall not exceed
$10,000,000 in the aggregate, and (iii) the amount of (a) extraordinary
losses, charges and expenses and (b) unusual or non-recurring losses,
charges and expenses that would not be classified as unusual or non-recurring
under Item 10(e) of Regulation S-K to be included shall not exceed
$10,000,000 in the aggregate.

 

“Closing Date Mortgage Policies” has the meaning assigned to
that term in subsection 4.2K.

 

“Closing Date Mortgaged Property” has the meaning assigned to
that term in subsection 4.2K.

 

“Closing Date Mortgages” has the meaning assigned to that
term in subsection 4.2K.

 

“Collateral” means, collectively, all of the real, personal
and mixed property in which Liens are purported to be granted pursuant to the
Collateral Documents as security for the Obligations.

 

“Collateral Account” has the meaning assigned to that term in
the Security Agreement.

 

“Collateral Documents” means the Security Agreement, the
Foreign Pledge Agreements, the Mortgages and all other instruments or documents
delivered by any Loan Party pursuant to this Agreement or any of the other Loan
Documents in order to grant to Administrative Agent, on behalf of Lenders, a
Lien on any real, personal or mixed property of that Loan Party as security for
the Obligations.

 

“Commercial Letter of Credit” means any letter of credit or
similar instrument issued for the purpose of providing the primary payment
mechanism in connection with the purchase of any materials, goods or services
by Company or any of its Subsidiaries in the ordinary course of business of
Company or such Subsidiary.

 

“Commitment Letter” has the meaning assigned to that term in
subsection 4.2Q.

 

“Commitments” means the commitments of Lenders to make Loans
as set forth in subsections 2.1A and 3.3.

 

“Communications” has the meaning assigned to that term in
subsection 10.8.

 

“Company” means (i) prior to the Merger, Acquisition Sub
and (ii) upon consummation of the Merger, FTD.

 

“Company Effects” has the meaning assigned to that term in
the Merger Agreement.

 

6

 

“Company Material Adverse Effect” has the meaning assigned to
that term in the Merger Agreement.

 

“Compliance Certificate” means a certificate substantially in
the form of Exhibit VIII annexed hereto.

 

“Confidential Information Memorandum” means the Confidential
Information Memorandum dated June 2008 prepared by Lead Arranger relating
to the credit facilities evidenced by this Agreement.

 

“Consolidated Adjusted EBITDA” means,
for any period, the sum, without duplication, of the amounts for such period of
(i) Consolidated Net Income, (ii) Consolidated Interest Expense and
any amounts referred to in subsection 2.3 payable on or before the Closing
Date, (iii) provisions for Taxes based on income, (including provisions
recorded to the extent necessary to permit any corporate parent (or any
Affiliate of such corporate parent) to discharge the consolidated, combined or
other group Tax liabilities of such corporate parent and its Subsidiaries), (iv) total
depreciation expense, (v) total amortization expense, (vi) Transaction
Costs, (vii) management or employee retention or incentive expenses under
any Loan Party’s cliff bonus plan or any other bonus or incentive plan, (viii) any
foreign currency translation or transaction gains or losses (including gains or
losses related to currency remeasurements of indebtedness), (ix) all  extraordinary, unusual or non-recurring losses, charges or
expenses (minus any extraordinary, unusual or non-recurring gains (other than
the proceeds of business interruption insurance)) (it being understood and
agreed that Item 10(e) of Regulation S-K under the Securities Act of 1933
(“Regulation S-K”) shall not constitute a
limitation on any such determination and unusual or non-recurring losses,
charges, expenses or gains shall be determined by Company in good faith), (x) all
other non-Cash items, including, without limitation, non-Cash stock
compensation expenses for officers, directors, employees and consultants (other
than any such non-Cash item to the extent it represents an accrual of or
reserve for Cash expenditures in any future period), (xi) all expenses incurred
in connection with the prepayment, amendment or refinancing of Indebtedness,
and (xii) (A) any impairment charge or asset write-off or write-down, in
each case relating to an intangible asset, pursuant to Financial Accounting
Standards Board Statements No. 142 and No. 144, (B) the
amortization of intangible assets arising pursuant to Financial Accounting
Standards Board Statement No. 141, (C) the amortization or write-off
deferred financing fees and (D) the amortization of other intangible
assets, but only, in the case of clauses (ii) through (xii) above, to the
extent deducted in the calculation of Consolidated Net Income, less
non-Cash items added in the calculation of Consolidated Net Income (other than
any such non-Cash items to the extent expected to result in the receipt of Cash
payments in any future period), and all of the foregoing as determined on a
consolidated basis for Company and its Subsidiaries in conformity with GAAP (as
in effect on the Closing Date).  The
foregoing notwithstanding, for purposes of determining Consolidated Adjusted
EBITDA for any period that includes any of the months ended June 30, 2007,
July 31, 2007, August 31, 2007, September 30, 2007, October 31,
2007, November 30, 2007, December 31, 2007, January 31, 2008, February 29,
2008, March 31, 2008, April 30, 2008, and May 31, 2008,
Consolidated Adjusted EBITDA for such periods shall be deemed to be $6,900,000,
$6,500,000, $6,700,000, $8,200,000, $7,600,000, $6,500,000, $11,100,000,
$4,700,000, $11,300,000, $11,500,000, $6,700,000 and $17,300,000, respectively.
Other than for purposes of 

 

7

 

calculating Consolidated Excess Cash Flow and
Closing Date Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA shall
be calculated on a Pro Forma Basis.  For
periods prior to the Closing Date not referenced above, Consolidated Adjusted
EBITDA shall be the Consolidated Adjusted EBITDA of FTD and its Subsidiaries
for such period.

 

“Consolidated Capital Expenditures” means, for any period,
the sum of the aggregate of all expenditures (whether paid in Cash or other
consideration or accrued as a liability and including that portion of Capital
Leases which is capitalized on the consolidated balance sheet of Company and
its Subsidiaries) by Company and its Subsidiaries during that period that, in
conformity with GAAP, are included in “additions to property, plant or
equipment” or comparable items reflected in the consolidated statement of cash
flows of Company and its Subsidiaries minus the sum of the following to
the extent included in calculating Consolidated Capital Expenditures during
such period: (i) any Permitted Acquisition consummated during such period,
(ii) capital expenditures in respect of the reinvestment of Net Asset Sale
Proceeds in accordance with the terms of subsection 2.4B(iii)(a) during
such period, and (iii) capital expenditures in respect of the reinvestment
of Net Insurance/Condemnation Proceeds in accordance with the terms of
subsection 6.4C during such period.   For purposes of this definition, the purchase
price of equipment that is purchased simultaneously with the trade-in of
existing equipment or with insurance proceeds shall be included in Consolidated
Capital Expenditures only to the extent of the gross amount of such purchase
price less the credit granted by the seller of such equipment for the equipment
being traded in at such time or the amount of such proceeds, as the case may
be.

 

“Consolidated Cash Interest Expense” means, for any period,
Consolidated Interest Expense for such period (excluding, however,
any interest expense not payable in Cash (including amortization of discount
and amortization of debt issuance costs)).

 

“Consolidated Current Assets” means, as at any date of
determination, the total assets of Company and its Subsidiaries on a
consolidated basis which may properly be classified as current assets in
conformity with GAAP, excluding Cash and Cash Equivalents.

 

“Consolidated Current Liabilities” means, as at any date of
determination, the total liabilities of Company and its Subsidiaries on a
consolidated basis which may properly be classified as current liabilities in
conformity with GAAP, excluding the current portions of Capital Leases
and Indebtedness of Company and its Subsidiaries.

 

“Consolidated Excess Cash Flow” means, for any period, an
amount (if positive) equal to (i) the sum, without duplication, of the
amounts for such period of (a) Consolidated Adjusted EBITDA and (b) the
Consolidated Working Capital Adjustment minus (ii) the sum, without
duplication, of the amounts such period, of (a) Consolidated Cash Interest
Expense, (b) scheduled repayments of the Term Loans, (c) current
taxes based on income of Company and its Subsidiaries and paid in Cash with
respect to such period (including payments under a tax sharing agreement
entered into with an Affiliate of Company permitted by subsection 7.9), (d) Consolidated
Capital Expenditures (net of any proceeds of any related financings with
respect to such expenditure), (e) Permitted Acquisitions and other
Investments permitted by subsection 7.3 net of Additional Contributions
utilized for such purpose, (f) extraordinary Cash losses added in 

 

8

 

the calculations of Consolidated Adjusted EBITDA, (g) to
the extent expensed in a prior Fiscal Year, the amount, if any, of cliff bonus
payments made during such Fiscal Year, (h) other Cash expenses added in
the calculation of Consolidated Adjusted EBITDA, or (i) RSU Payments.

 

“Consolidated Fixed Charge Coverage Ratio” means, as of the
last day of any Fiscal Quarter, the ratio of (i) Consolidated Adjusted
EBITDA for the consecutive four Fiscal Quarters ending on such day minus the
sum of (a) current taxes based on income of Company and its Subsidiaries
and paid in Cash with respect to such period and (b) the greater of
Maintenance Consolidated Capital Expenditures (net of any proceeds of any
related financings with respect to such expenditures) for such period and
$8,000,000 to (ii) Consolidated Cash Interest Expense plus scheduled
payments of Indebtedness (as such scheduled payments of Indebtedness may be
reduced from time to time by voluntary and mandatory prepayments) for such
period; provided, however, that for purposes of determining the
Consolidated Fixed Charge Coverage Ratio as of the last day of the first three
Fiscal Quarters following the Closing Date, Consolidated Cash Interest Expense
and scheduled payments of Indebtedness shall be annualized by multiplying the
sum of actual Consolidated Cash Interest Expense and scheduled payments of
Indebtedness for the first Fiscal Quarter following the Closing Date by four,
actual Consolidated Cash Interest Expense and scheduled payments of
Indebtedness for the first two Fiscal Quarters following the Closing Date by
two, and actual Consolidated Cash Interest Expense and scheduled payments of
Indebtedness for the first three Fiscal Quarters following the Closing Date by
1.33.

 

“Consolidated Interest Expense” means,
for any period, total interest expense (including that portion attributable to
Capital Leases in accordance with GAAP and capitalized interest) of Company and
its Subsidiaries on a consolidated basis (after giving effect to all Interest
Rate Agreements and payments received or made thereunder with respect to all
outstanding Indebtedness of Company and its Subsidiaries, including all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing, and amounts referred to in
subsection 2.3 payable to Administrative Agent and Lenders that are considered
interest expense in accordance with GAAP, but excluding, however, any such
amounts referred to in subsection 2.3 payable on or before the Closing Date.

 

“Consolidated Leverage Ratio” means, as of the last day of
any Fiscal Quarter, the ratio of (i) as of such day (and without
duplication), all indebtedness of Company and its Subsidiaries for borrowed money
including but not limited to (a) senior bank Indebtedness, senior notes,
and Subordinated Indebtedness, (b) that portion of obligations with
respect to Capital Leases that is properly classified as a liability on a
balance sheet in conformity with GAAP, (c) issued and outstanding letters
of credit, (d) guarantees in respect of borrowed money, (e) any
obligation owed for all or any part of the deferred purchase price of property
or services (excluding any such obligations incurred under ERISA and any such
obligations subject to the satisfaction of a condition or contingency but only
to the extent of the portion of such obligations subject to such condition or
contingency and only as long as such condition or contingency has not been
satisfied), which purchase price is (1) due more than six months from the
date of incurrence of the obligation in respect thereof or (2) evidenced
by a note or similar written instrument, and (f) all Indebtedness secured
by any Lien on any property or asset owned or held by Company or any of its
Subsidiaries regardless of whether the Indebtedness secured thereby 

 

9

 

shall have been assumed by Company or such Subsidiary
or is nonrecourse to the credit of Company or such Subsidiary (excluding
insurance premium financing)  to (ii) Consolidated
Adjusted EBITDA for the consecutive four Fiscal Quarters ending on such
day.  Notwithstanding anything herein to
the contrary, the Subordinate Notes will not be deemed outstanding for the
purpose of determining the Consolidated Leverage Ratio at any time following
the legal or covenant defeasance of the Subordinated Notes.

 

“Consolidated Net Income” means, for any
period, the net income (or loss) of Company and its Subsidiaries on a
consolidated basis for such period taken as a single accounting period
determined in conformity with GAAP; provided that there shall be
excluded (i) the income (or loss) of any Person (other than a Subsidiary
of Company) in which any other Person (other than Company or any of its
Subsidiaries) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to Company or any of its
Subsidiaries by such Person during such period, (ii) the income (or loss)
of any Person accrued prior to the date it becomes a Subsidiary of Company or
is merged into or consolidated with Company or any of its Subsidiaries or that
Person’s assets are acquired by Company or any of its Subsidiaries (provided,
however, that the exclusion in this sub-clause (ii) shall not apply in
connection with the calculation of any financial ratio to the extent otherwise
provided in the related definitions), (iii) the income of any Subsidiary
of Company to the extent that the declaration or payment of dividends or similar
distributions by that Subsidiary of that income is not at the time permitted by
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
Subsidiary, (iv) any after-tax gains or losses attributable to Asset Sales
or returned surplus assets of any Employee Benefit Plan (other than a
Multiemployer Plan), (v) non-Cash gains and losses attributable to the
movement in the mark to market valuation of Hedging Obligations pursuant to
Financial Accounting Standards Board Statement No. 133) and (vi) (to
the extent not included in clauses (i) through (v) above) any net
extraordinary gains or net extraordinary losses.

 

“Consolidated Working Capital” means, as at any date of determination,
the excess (or deficit) of Consolidated Current Assets over Consolidated
Current Liabilities.

 

“Consolidated Working Capital Adjustment” means, for any
period on a consolidated basis, the amount (which may be a negative number) by
which Consolidated Working Capital as of the beginning of such period exceeds
(or is less than) Consolidated Working Capital as of the end of such period.

 

“Contingent Obligation,” as applied to any Person, means any
direct or indirect liability, contingent or otherwise, of that Person (i) with
respect to any Indebtedness, lease, dividend or other obligation of another if
the primary purpose or intent thereof by the Person incurring the Contingent
Obligation is to provide assurance to the obligee of such obligation of another
that such obligation of another will be paid or discharged, or that any
agreements relating thereto will be complied with, or that the holders of such
obligation will be protected (in whole or in part) against loss in respect
thereof, (ii) with respect to any letter of credit issued for the account
of that Person or as to which that Person is otherwise liable for reimbursement
of drawings, or (iii) under Hedge Agreements.  Contingent Obligations shall include (a) the
direct or indirect guaranty, endorsement (otherwise than for collection or
deposit in the ordinary course 

 

10

 

of business), co-making, discounting with recourse or
sale with recourse by such Person of the obligation of another, (b) the obligation
to make take-or-pay or similar payments if required regardless of
non-performance by any other party or parties to an agreement, and (c) any
liability of such Person for the obligation of another through any agreement
(contingent or otherwise) (1) to purchase, repurchase or otherwise acquire
such obligation or any security therefor, or to provide funds for the payment
or discharge of such obligation (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise) or (2) to maintain the
solvency or any balance sheet item, level of income or financial condition of
another if, in the case of any agreement described under clauses (1) or (2) of
this sentence, the primary purpose or intent thereof is as described in the
preceding sentence.  The amount of any
Contingent Obligation shall be equal to the principal amount of the obligation
so guaranteed or otherwise supported or, if less, the amount to which such
Contingent Obligation is specifically limited or, if not stated, the maximum
reasonably anticipated liability in respect thereof as determined by such
Person in good faith.

 

“Contractual Obligation,” as applied to any Person, means any
provision of any Security issued by that Person or of any material indenture,
mortgage, deed of trust, contract, undertaking, agreement or other instrument
to which that Person is a party or by which it or any of its properties is
bound or to which it or any of its properties is subject.

 

“Control Agreement” means an agreement, reasonably satisfactory
in form and substance to Administrative Agent and executed by the financial
institution or securities intermediary at which a Deposit Account or a
Securities Account, as the case may be, is maintained, pursuant to which such
financial institution or securities intermediary confirms and acknowledges
Administrative Agent’s security interest in such account, and agrees that the
financial institution or securities intermediary, as the case may be, will
comply with instructions or entitlement orders originated by Administrative
Agent as to disposition of funds in such account, without further consent by
Company or any Subsidiary.

 

“Currency Agreement” means any foreign exchange contract,
currency swap agreement, futures contract, option contract, synthetic cap or
other similar agreement or arrangement to which Company or any of its
Subsidiaries is a party.

 

“Defaulted Loans”  has the
meaning assigned to that term in subsection 2.1C.

 

“Defaulting Lender” has the meaning assigned to that term in
subsection 2.9.

 

“Deposit Account” means a demand, time, savings, passbook or
similar account maintained with a Person engaged in the business of banking,
including a savings bank, savings and loan association, credit union or trust
company.

 

“Dissenting Common Stock” has the meaning assigned to that
term in the Merger Agreement.

 

“Dollars” and the sign “$” mean the
lawful money of the United States of America.

 

11

 

“Domestic Subsidiary” means any Subsidiary of Company that is
incorporated or organized under the laws of the United States of America, any
state thereof or in the District of Columbia.

 

“Dormant Subsidiaries” means each of (i) FTD
International Corporation, a Delaware corporation, (ii) Value Network
Service, Inc., a Delaware corporation, (iii) Flowers USA, Inc.,
a Connecticut corporation, (iv) FTD Holdings, Incorporated, a Delaware
corporation and (v) Renaissance Greeting Cards, Inc., a Maine
corporation.

 

“Effective Time” has the meaning assigned to that term in the
Merger Agreement.

 

“Eligible Assignee” means (i) if the assignment includes
assignment of a Tranche A Term Loan or a Tranche B Term Loan, (a) any
Lender, (b) an Affiliate of any Lender, (c) an Approved Fund of any
Lender and (d) any other Person approved by Administrative Agent and (ii) if
the assignment includes assignment of a Revolving Loan Commitment, (a) any
Revolving Lender and (b) any other Person approved by Administrative
Agent, Issuing Bank, Swingline Lender and Company; provided that in each case,
no approval of Company shall be required during the continuance of an Event of
Default; provided further that none of Company, any Subsidiary of
Company or any Person acting at the direction of Company or any Subsidiary
shall be an Eligible Assignee.

 

“Employee Benefit Plan” means any “employee benefit plan” as
defined in Section 3(3) of ERISA which is or was maintained or
contributed to by Company, any of its Subsidiaries or any of their respective
ERISA Affiliates.

 

“Environmental Claim” means any investigation, notice, notice
of violation, claim, action, suit, proceeding, demand, abatement order or other
order or directive (conditional or otherwise), by any Government Authority or
any other Person, arising (i) pursuant to or in connection with any actual
or alleged violation of any Environmental Law, (ii) in connection with any
Hazardous Materials or any actual or alleged Hazardous Materials Activity, or (iii) in
connection with any actual or alleged damage, injury, threat or harm to health,
safety, natural resources or the environment.

 

“Environmental Laws” means any and all current or future
statutes, ordinances, orders, rules, regulations, guidance documents,
judgments, applicable Governmental Authorizations, or any other requirements of
any Government Authority relating to (i) environmental matters, including
those relating to any Hazardous Materials Activity, (ii) the generation,
use, storage, transportation or disposal of Hazardous Materials, or (iii) occupational
safety and health and industrial hygiene (as such matters related to Hazardous
Materials), land use or the protection of human, plant or animal health or
welfare, in any manner applicable to Company or any of its Subsidiaries or any
Facility.

 

“ERISA” means the Employee Retirement Income Security Act of
1974, as amended from time to time, and any successor thereto.

 

12

 

“ERISA Affiliate,” as applied to any Person, means (i) any
corporation that is a member of a controlled group of corporations within the
meaning of Section 414(b) of the Internal Revenue Code of which that
Person is a member; (ii) any trade or business (whether or not
incorporated) that is a member of a group of trades or businesses under common
control within the meaning of Section 414(c) of the Internal Revenue
Code of which that Person is a member; and (iii) any member of an
affiliated service group within the meaning of Section 414(m) or (o) of
the Internal Revenue Code of which that Person, any corporation described in
clause (i) above or any trade or business described in clause (ii) above
is a member.  Any former ERISA Affiliate
of a Person or any of its Subsidiaries shall continue to be considered an ERISA
Affiliate of such Person or such Subsidiary within the meaning of this
definition with respect to the period such entity was an ERISA Affiliate of
such Person or such Subsidiary and with respect to liabilities arising after
such period for which such Person or such Subsidiary could be liable under the
Internal Revenue Code or ERISA.

 

“ERISA Event” means (i) a “reportable event” within the
meaning of Section 4043 of ERISA and the regulations issued thereunder
with respect to any Pension Plan (excluding those for which the provision for
30-day notice to the PBGC has been waived by regulation); (ii) the failure
to meet the minimum funding standard of Section 412 of the Internal
Revenue Code with respect to any Pension Plan (whether or not waived in
accordance with Section 412(d) of the Internal Revenue Code) or the
failure to make by its due date a required installment under Section 412(m) of
the Internal Revenue Code with respect to any Pension Plan or the failure to
make any required contribution to a Multiemployer Plan; (iii) the
provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of
ERISA of a notice of intent to terminate such plan in a distress termination
described in Section 4041(c) of ERISA; (iv) the withdrawal by
Company, any of its Subsidiaries or any of their respective ERISA Affiliates
from any Pension Plan with two or more contributing sponsors or the termination
of any such Pension Plan resulting in liability pursuant to Section 4063
or 4064 of ERISA; (v) the institution by the PBGC of proceedings to
terminate any Pension Plan, or the occurrence of any event or condition which
might constitute grounds under ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan; (vi) the imposition of
liability on Company, any of its Subsidiaries or any of their respective ERISA
Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason
of the application of Section 4212(c) of ERISA; (vii) the
withdrawal of Company, any of its Subsidiaries or any of their respective ERISA
Affiliates in a complete or partial withdrawal (within the meaning of Sections
4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential
liability therefor, or the receipt by Company, any of its Subsidiaries or any
of their respective ERISA Affiliates of notice from any Multiemployer Plan that
it is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA, or that it intends to terminate or has terminated under Section 4041A
or 4042 of ERISA; (viii) the assertion of a material claim (other than
routine claims for benefits) against any Employee Benefit Plan other than a
Multiemployer Plan or the assets thereof, or against Company, any of its
Subsidiaries or any of their respective ERISA Affiliates in connection with any
Employee Benefit Plan; (ix) receipt from the Internal Revenue Service of
notice of the failure of any Pension Plan (or any other Employee Benefit Plan
intended to be qualified under Section 401(a) of the Internal Revenue
Code) to qualify under Section 401(a) of the Internal Revenue Code,
or the failure of any trust forming part of any Pension Plan to qualify for 

 

13

 

exemption from taxation under Section 501(a) of
the Internal Revenue Code; or (x) the imposition of a Lien pursuant to Section 401(a)(29)
or 412(n) of the Internal Revenue Code or pursuant to ERISA with respect
to any Pension Plan.

 

“Escrow” has the meaning given to that term in subsection
4.2N(iii).

 

“Escrowed Term Loans” has the meaning given to that term in
subsection 2.1C.

 

“Eurodollar Rate” means, for any Interest Rate Determination
Date, with respect to any Interest Period for a Eurodollar Rate Loan, the
greater of (i) 3.00% per annum and (ii) the rate per annum obtained
by dividing (a) the rate per annum determined by Administrative
Agent at approximately 11:00 a.m. (London time) on the date that is two
Business Days prior to the beginning of such Interest Period by reference to
the British Bankers’ Association Interest Settlement Rate for deposits in
Dollars (as set forth by any service selected by Administrative Agent which has
been nominated by the British Bankers’ Association as an authorized information
vendor for the purpose of displaying such rates) for a period equal to such
Interest Period; provided that, to the extent that an interest rate is
not ascertainable pursuant to the foregoing provisions of this definition the “Eurodollar
Rate” shall be the interest rate per annum determined by Administrative Agent
to be the average of the rates per annum at which deposits in Dollars are
offered for such Interest Period to major banks in the London interbank market
in London, England at approximately 11:00 a.m. (London time) on the date
that is two Business Days prior to the beginning of such Interest Period by (b) a
percentage equal to 100% minus the stated maximum rate of all reserve
requirements (including any marginal, emergency, supplemental, special or other
reserves) applicable on such Interest Rate Determination Date to any member
bank of the Federal Reserve System in respect of “Eurocurrency liabilities” as
defined in Regulation D (or any successor category of liabilities under
Regulation D).  Each determination by
Administrative Agent pursuant to this definition shall be conclusive absent
manifest error.

 

“Eurodollar Rate Loans” means Loans bearing interest at rates
determined by reference to the Eurodollar Rate as provided in
subsection 2.2A.

 

“Eurodollar Rate Margin”  means the
margin over the Eurodollar Rate used in determining the rate of interest of
Eurodollar Rate Loans pursuant to subsection 2.2A.

 

“Event of Default” means each of the events set forth in Section 8.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time, and any successor statute.

 

“Exchange Rate” means, as of any date of determination, the
nominal rate of exchange of Administrative Agent in the New York foreign
exchange market for the sale of the relevant currency in exchange for Dollars
at 12:00 noon (San Francisco time) one Business Day prior to such date,
expressed as a number of units of such currency per one Dollar.

 

14

 

“Excluded Assets” means (i) any equipment that is
covered by a certificate of title, (ii) any foreign intellectual property,
(iii) any deposit account or securities account of a Loan Party used
solely for payroll, payroll taxes and other employee wage and benefit payments,
or containing a principal balance of $2,000,000 or less, and (iv) any
other assets as to which Administrative Agent shall determine in its sole
discretion that the cost of obtaining or perfecting such lien on such assets is
excessive in relation to the benefits to the Lenders of the security afforded
thereby.

 

“Excluded Perfection Assets” means (i) any equipment
that is covered by a certificate of title, (ii) any foreign intellectual
property, (iii) any deposit account or securities account of a Loan Party
used solely for payroll, payroll taxes and other employee wage and benefit
payments, or containing a principal balance of $2,000,000 or less, (iv) any
assets, the perfection of which requires action other than the filing of a UCC
financing statement, and (v) any other assets as to which Administrative
Agent shall determine in its sole discretion that the cost of obtaining or
perfecting such lien on such assets is excessive in relation to the benefits to
the Lenders of the security afforded thereby.

 

“Excluded Taxes” means, with respect to Administrative Agent,
any Lender, or any other recipient of any payment to be made by or on account
of any obligation of Company hereunder (i) taxes that are imposed on the
overall net income (however denominated) and franchise taxes imposed in lieu
thereof (a) by the United States, (b) by any other Government
Authority under the laws of which such Lender is organized, has its principal
office, maintains its applicable lending office, or otherwise engages in
business, or (c) by any Government Authority solely as a result of a
present or former connection between such recipient and the jurisdiction of
such Government Authority (other than any such connection arising solely from
such recipient having executed, delivered or performed its obligations or
received a payment under, or enforced, any of the Loan Documents), (ii) any
branch profits taxes imposed by the United States or any similar tax imposed by
any other jurisdiction in which Company is located, and (iii) in the case
of a Lender (other than an assignee pursuant to a request of Company under
subsection 2.9), any withholding tax that (x) is imposed on amounts
payable to such Lender at the time it becomes a party hereto (or designates a
new lending office) or (y) is attributable to such Lender’s failure or
inability (other than as a result of a Change in Law) to comply with its
obligations under subsection 2.7B(iv), except to the extent that such
Lender (or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from Company with
respect to such withholding tax pursuant to subsection 2.7B.

 

“Existing Credit Agreement” means that certain First
Amended and Restated Credit Agreement dated as of August 7, 2006 among FTD, Inc.,
the lenders party thereto from time to time, Wells Fargo, as administrative
agent, Mizuho Corporate Bank, Ltd. and ING Capital LLC, as co-syndication
agents, and BMO Capital Markets, as documentation agent.

 

“Existing Letters of Credit” means those letters of credit
set forth on Schedule 3.1.

 

15

 

“Facilities” means any and all real property (including all
buildings, fixtures or other improvements located thereon) now, hereafter or
heretofore owned, leased, operated or used by Company or any of its
Subsidiaries or any of their respective predecessors or Affiliates.

 

“Federal Funds Effective Rate” means, for any period, a
fluctuating interest rate equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published for
such day (or, if such day is not a Business Day, for the next preceding
Business Day) by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day which is a Business Day, the average of the quotations
for such day on such transactions received by Administrative Agent from three
Federal funds brokers of recognized standing selected by Administrative Agent.

 

“Fee Letter” has the meaning assigned to that term in
subsection 4.2Q.

 

“Financial Officer” means the chief financial officer,
treasurer, assistant treasurer, controller or senior vice president of finance
of a corporation, partnership, trust or limited liability company.

 

“Financial Plan” has the meaning assigned to that term in
subsection 6.1(xiii).

 

“First Priority” means, with respect to any Lien purported to
be created in any Collateral pursuant to any Collateral Document, that (i) such
Lien is perfected and has priority over any other Lien on such Collateral
(other than Liens permitted pursuant to clauses (i)-(vi) of
subsection 7.2A) and (ii) such Lien is the only Lien (other than
Liens permitted pursuant to subsection 7.2A) to which such Collateral is
subject.

 

“Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

 

“Fiscal Year” means the fiscal year of Company and its
Subsidiaries ending on June 30 of each calendar year (or, if Company
changes its fiscal year, December 31 of each calendar year).  For purposes of this Agreement, any
particular Fiscal Year shall be designated by reference to the calendar year in
which such Fiscal Year ends.

 

“Flood Hazard Property” means a Closing Date Mortgaged Property
or an Additional Mortgaged Property located in an area designated by the
Federal Emergency Management Agency as having special flood or mud slide
hazards.

 

“Foreign Lender” means any Lender that is organized under the
laws of a jurisdiction other than that in which Company is resident for tax
purposes.  For purposes of this
definition, the United States, each state thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

 

“Foreign Plan” means any employee benefit plan maintained by
Company or any of its Subsidiaries that is mandated or governed by any law, rule or
regulation of any 

 

16

 

Government Authority other than the United States, any
state thereof or any other political subdivision thereof.

 

“Foreign Pledge Agreement” means each pledge agreement or
similar instrument governed by the laws of a country other than the United
States, executed on the Closing Date or from time to time thereafter in
accordance with subsection 6.8 by Company or any Subsidiary Guarantor that
owns Capital Stock of one or more Foreign Subsidiaries organized in such
country, in form and substance satisfactory to Administrative Agent.

 

“Foreign Subsidiary” means any Subsidiary of Company that is
not a Domestic Subsidiary.

 

“FTD” has the meaning assigned to that term in the recitals
of this Agreement.

 

“Fund” means any Person (other than a natural Person) that is
(or will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its
business.

 

“Funding and Payment Office” means (i) the office of
Administrative Agent and Swing Line Lender located at 201 Third Street, Eighth
Floor, MAC A0187-08A San Francisco, California 94103 or (ii) such other
office of Administrative Agent and Swing Line Lender as may from time to time
hereafter be designated as such in a written notice delivered by Administrative
Agent and Swing Line Lender to Company and each Lender.

 

“Funding Date” means the date of funding of a Loan.

 

“GAAP” means, subject to the limitations on the application
thereof set forth in subsection 1.2, accounting principles generally
accepted in the United States set forth in opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession, in each case as
the same are applicable to the circumstances as of the date of determination.

 

“Governing Body” means the board of directors or other body
having the power to direct or cause the direction of the management and policies
of a Person that is a corporation, partnership, trust or limited liability
company.

 

“Government Authority” means the government of the United
States or any other nation, or any state, regional or local political
subdivision or department thereof, and any other governmental or regulatory
agency, authority, body, commission, central bank, board, bureau, organ, court,
instrumentality or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government, in each case whether federal, state, local or foreign (including
supra-national bodies such as the European Union or the European Central Bank).

 

17

 

“Governmental Authorization” means any permit, license,
registration, authorization, plan, directive, accreditation, consent, order or
consent decree of or from, or notice to, any Government Authority.

 

“Granting Lender” has the meaning assigned to that term in
subsection 10.1B(iv).

 

“Guaranty” means the Guaranty substantially in the form of Exhibit XII
annexed hereto.

 

“Hazardous Materials” means: 
(i) any chemical, material or substance at any time defined as or
included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous
materials,” “extremely hazardous waste,” “acutely hazardous waste,” “radioactive
waste,” “biohazardous waste,” “pollutant,” “toxic pollutant,” “contaminant,” “restricted
hazardous waste,” “infectious waste,” “toxic substances,” or any other term or
expression intended to define, list or classify substances by reason of
properties harmful to health, safety or the indoor or outdoor environment
(including harmful properties such as ignitability, corrosivity, reactivity,
carcinogenicity, toxicity, reproductive toxicity, “TCLP toxicity” or “EP
toxicity” or words of similar import under any applicable Environmental Laws); (ii) any
oil, petroleum, petroleum fraction or petroleum derived substance; (iii) any
drilling fluids, produced waters and other wastes associated with the
exploration, development or production of crude oil, natural gas or geothermal
resources; (iv) any flammable substances or explosives; (v) any
radioactive materials; (vi) any asbestos-containing materials; (vii) urea
formaldehyde foam insulation; (viii) electrical equipment which contains
any oil or dielectric fluid containing polychlorinated biphenyls; (ix) pesticides;
and (x) any other chemical, material or substance, exposure to which is
prohibited, limited or regulated by any Government Authority.

 

“Hazardous Materials Activity” means any past, current,
proposed or threatened activity, event or occurrence involving any Hazardous
Materials, including the use, manufacture, possession, storage, holding,
location, Release, threatened Release, discharge, placement, generation,
transportation, processing, treatment, abatement, removal, remediation,
disposal, disposition or handling of any Hazardous Materials, and any
corrective action or response action with respect to any of the foregoing.

 

“Hedge Agreement” means an Interest Rate Agreement or a
Currency Agreement designed to hedge against fluctuations in interest rates or
currency values, respectively.

 

“Hedging Obligations”
means obligations under or with respect to Hedge Agreements.

 

“Holdings” means UNOL Intermediate, Inc., a Delaware
corporation.

 

“Indebtedness,” as applied to any Person, means (i) all
indebtedness for borrowed money, (ii) that portion of obligations with
respect to Capital Leases that is properly classified as a liability on a
balance sheet in conformity with GAAP, (iii) notes payable and 

 

18

 

drafts accepted representing extensions of credit
whether or not representing obligations for borrowed money (other than trade
payables in the ordinary course), (iv) any obligation owed for all or any
part of the deferred purchase price of property or services (excluding any such
obligations incurred under ERISA, trade payables or any such obligations which
are not reflected as a liability on Company’s balance sheet under GAAP), which
purchase price is (a) due more than six months from the date of incurrence
of the obligation in respect thereof or (b) evidenced by a note or similar
written instrument, (v) Synthetic Lease Obligations, and (vi) all
indebtedness secured by any Lien on any property or asset owned or held by that
Person regardless of whether the indebtedness secured thereby shall have been
assumed by that Person or is nonrecourse to the credit of that Person.  Obligations under Interest Rate Agreements
and Currency Agreements constitute (1) in the case of Hedge Agreements,
Contingent Obligations, and (2) in all other cases, Investments, and in
neither case constitute Indebtedness.

 

“Indemnified Liabilities” has the meaning assigned to that
term in subsection 10.3.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes.

 

“Indemnitee” has the meaning assigned to that term in
subsection 10.3.

 

“Intellectual Property” means all patents, trademarks,
tradenames, copyrights, technology, software, know-how and processes owned or
held by, or used in the conduct of the business of, Company or its
Subsidiaries.

 

“Interest Payment Date” means (i) with respect to any
Base Rate Loan, each March 31, June 30, September 30 and December 31
of each year, commencing on the first such date to occur after the Closing
Date, and (ii) with respect to any Eurodollar Rate Loan, the last day of
each Interest Period applicable to such Loan; provided that in the case
of each Interest Period of longer than three months “Interest Payment Date”
shall also include each date that is three months, or a multiple thereof, after
the commencement of such Interest Period.

 

“Interest Period” has the meaning assigned to that term in
subsection 2.2B.

 

“Interest Rate Agreement” means any interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement or other
similar agreement or arrangement to which Company or any of its Subsidiaries is
a party.

 

“Interest Rate Determination Date,” with respect to any
Interest Period, means the second Business Day prior to the first day of such
Interest Period.

 

“Internal Revenue Code” means the Internal Revenue Code of
1986, as amended to the date hereof and from time to time hereafter, and any
successor statute.

 

“Investment”
means (i) any direct or indirect purchase or other acquisition by Company
or any of its Subsidiaries of, or of a beneficial interest in, any Securities
of any other Person (including any Subsidiary of Company), (ii) any direct
or indirect loan, advance (other 

 

19

 

than advances to employees for moving, entertainment
and travel expenses, drawing accounts and similar expenditures in the ordinary
course of business) or capital contribution by Company or any of its
Subsidiaries to any other Person, including all indebtedness and accounts
receivable from that other Person that are not current assets or did not arise
from sales to that other Person in the ordinary course of business, or (iv) Interest
Rate Agreements or Currency Agreements not constituting Hedge Agreements; provided,
however, that Investment shall not include prepaid expenses of any
Person incurred and prepaid in the ordinary course of business.  The amount of any Investment shall be the
original cost of such Investment plus the cost of all additions thereto,
without any adjustments for increases or decreases in value, or write-ups,
write-downs or write-offs with respect to such Investment (but with deductions
for all amounts received in Cash or Cash Equivalents with respect to such
Investment, whether as principal, dividends, interest or otherwise).

 

“IP Collateral” means, collectively, the Intellectual
Property that constitutes Collateral under the Security Agreement.

 

“IP Filing Office” means the United States Patent and
Trademark Office, the United States Copyright Office or any successor or
substitute office in which filings are necessary or, in the opinion of
Administrative Agent, desirable in order to create or perfect Liens on, or
evidence the interest of Administrative Agent and Lenders in, any IP
Collateral.

 

“IPO” means
the first underwritten public offering by any Loan Party of its Capital Stock
after the Closing Date pursuant to a registration statement filed with the
Securities and Exchange Commission in accordance with the Securities Act.

 

“Issuing Lender,” with respect to any Letter of Credit, means
the Revolving Lender that agrees or is otherwise obligated to issue such Letter
of Credit, determined as provided in subsection 3.1B(ii) or, with
respect to Existing Letters of Credit, the applicable Revolving Lender that
issued such Existing Letter of Credit.

 

“Joint Venture” means a joint venture, partnership or other
similar arrangement, whether in corporate, partnership or other legal form.

 

“Lead Arranger” has the meaning given to that term in the
introductory paragraph of this Agreement.

 

“Leasehold Property” means any leasehold interest of any Loan
Party (other than a Foreign Subsidiary) as lessee under any lease of real property.

 

“Lender” and “Lenders” means
the Persons identified as “Lenders” and listed on the signature pages of
this Agreement, together with their successors and permitted assigns pursuant
to subsection 10.1, and the term “Lenders” shall include Swing Line Lender
unless the context otherwise requires; provided that the term “Lenders,”
when used in the context of a particular Commitment, shall mean Lenders having
that Commitment.

 

20

 

“Letter of Credit” or “Letters of Credit”
means (i) Commercial Letters of Credit and Standby Letters of Credit
issued or to be issued by Issuing Lenders for the account of Company pursuant
to subsection 3.1 and (ii) the Existing Letters of Credit.

 

“Letter of Credit Usage” means, as at any date of
determination, the sum of (i) the maximum aggregate amount which is or at
any time thereafter may become available for drawing under all Letters of
Credit then outstanding plus (ii) the aggregate amount of all
drawings under Letters of Credit honored by Issuing Lenders and not theretofore
reimbursed out of the proceeds of Revolving Loans pursuant to
subsection 3.3B or otherwise reimbursed by Company.  For purposes of this definition, any amount described
in clause (i) or (ii) of the preceding sentence which is denominated
in a currency other than Dollars shall be valued based on the applicable
Exchange Rate for such currency as of the applicable date of determination.

 

“Lien” means any lien, mortgage, pledge, assignment for
security, or security interest, charge or encumbrance intended for security
(including any conditional sale or other title retention agreement, any lease
in the nature thereof, and any agreement to give any security interest other
than in connection with the refinancing of all Obligations) and any trust or
other preferential arrangement having the practical effect of any of the
foregoing.

 

“Loan” or “Loans” means
one or more of the Loans made by Lenders to Company pursuant to
subsection 2.1A.

 

“Loan Documents” means this Agreement, the Notes, the Letters
of Credit (and any applications for, or reimbursement agreements or other
documents or certificates executed by Company in favor of an Issuing Lender
relating to, the Letters of Credit), the Guaranties and the Collateral Documents.

 

“Loan Party” means each of Holdings, Company and any of
Company’s Subsidiaries from time to time executing a Loan Document, and “Loan Parties” means all such Persons, collectively.

 

“Maintenance Consolidated Capital Expenditures” means any
Consolidated Capital Expenditures by Company or any of its Subsidiaries that
are made to maintain, repair or replace (with assets of the same general type,
quality and purpose), in the ordinary course of business, the condition or
usefulness of property of Company and its Subsidiaries, but that are not
properly chargeable to repairs and maintenance in accordance with GAAP, and
excluding any Consolidated Capital Expenditures which add to or improve the
value or usefulness of any such property.

 

“Margin Stock” has the meaning assigned to that term in
Regulation U of the Board of Governors of the Federal Reserve System as in
effect from time to time.

 

“Material Adverse Effect” means a material adverse effect (i) upon
the business operations, assets or financial condition of Holdings and its
Subsidiaries taken as a whole or (ii) upon the ability of any Loan Party
to satisfy, or of Administrative Agent or Lenders to enforce, the Obligations.

 

21

 

“Maximum Consolidated Capital Expenditures Amount” has the
meaning assigned to that term in subsection 7.8.

 

“Merger” has the meaning assigned to that term in the
recitals to this Agreement.

 

“Merger Agreement” means that certain Agreement and Plan of
Merger dated as of April 30, 2008, by and among United Online, Acquisition
Sub and FTD.

 

“Mortgage” means (i) a security instrument (whether
designated as a deed of trust or a mortgage or by any similar title) executed
and delivered by any Loan Party, substantially in the form of Exhibit XIV
annexed hereto or in such other form as may be approved by Administrative Agent
in its reasonable discretion, in each case with such reasonable changes thereto
as may be recommended by Administrative Agent’s local counsel based on local
laws or customary local mortgage or deed of trust practices, or (ii) at
Administrative Agent’s option, in the case of an Additional Mortgaged Property,
an amendment to an existing Mortgage, in form reasonably satisfactory to
Administrative Agent, adding such Additional Mortgaged Property to the Real
Property Assets encumbered by such existing Mortgage.

 

“Mortgages” means all such instruments, including the Closing
Date Mortgages and any Additional Mortgages, collectively.

 

“Multiemployer Plan” means any Employee Benefit Plan that is
a “multiemployer plan” as defined in Section 3(37) of ERISA.

 

“Net Asset Sale Proceeds,” with respect to any Asset Sale,
means Cash payments (including any Cash received by way of deferred payment
pursuant to, or by monetization of, a note receivable or otherwise, but only as
and when so received) received from such Asset Sale, net of any bona fide costs
incurred in connection with such Asset Sale, including (i) taxes
reasonably paid or estimated to be actually payable within two years of the
date of such Asset Sale (whether by Company, any Subsidiary of Company or any
parent of Company or pursuant to a tax sharing agreement entered into with an
Affiliate of Company permitted by subsection 7.9) as a result of any gain
recognized in connection with such Asset Sale, (ii) legal, consulting or
other fees incurred or sales or use taxes paid or payable in connection with
such Asset Sale, (iii) payment of the outstanding principal amount of,
premium or penalty, if any, and interest on any Indebtedness (other than the
Loans) that is (a) secured by a Lien on the stock or assets in question
and that is required to be repaid under the terms thereof as a result of such
Asset Sale and (b) actually paid at or within 30 days of the time of
receipt of such Cash payment to a Person that is not an Affiliate of any Loan
Party or of any Affiliate of a Loan Party, and (iv) a reasonable reserve
for any indemnification payments (fixed or contingent) attributable to the
seller’s indemnities and representations and warranties to the purchaser in
respect of such Asset Sale undertaken by Holdings or any of its Subsidiaries in
connection with such Asset Sale; provided, however, that Net Asset Sale
Proceeds shall not include any Cash payments received from any Asset Sale by a
Foreign Subsidiary unless such proceeds may be repatriated (by reason of a
repayment of an intercompany note or otherwise) to the United States without
(in the reasonable judgment of Company) resulting in a material Tax liability
to Company.

 

22

 

“Net Insurance/Condemnation Proceeds” means any Cash payments
or proceeds received by Company or any of its Domestic Subsidiaries (i) under
any business interruption or casualty insurance policy in respect of a covered
loss thereunder or (ii) as a result of the taking of any assets of Company
or any of its Subsidiaries by any Person pursuant to the power of eminent
domain, condemnation or otherwise, or pursuant to a sale of any such assets to
a purchaser with such power under threat of such a taking, in each case net of
any taxes paid or estimated to be actually payable within two years of the date
of such event (whether by Company, any Subsidiary of Company or any parent of
Company or pursuant to a tax sharing agreement entered into with an Affiliate
of Company permitted by subsection 7.9) as a result of any gain recognized in
connection with such event and actual and reasonable documented costs and
expenses incurred by Company or any of its Subsidiaries in connection with the
adjustment or settlement of any claims of Company or such Subsidiary in respect
thereof.

 

“Net Securities Proceeds” means the Cash proceeds (net of
underwriting discounts and commissions and other costs and expenses associated
therewith, including reasonable legal fees and expenses and taxes paid or
payable) from the (i) issuance of Capital Stock of or incurrence of
Indebtedness by Holdings, Company or any of its Subsidiaries and (ii) capital
contributions made by a holder of Capital Stock of Holdings.

 

“Non-Consenting Lender” has the meaning assigned to that term
in subsection 2.9.

 

“Non-Pro Rata Basket”  has the
meaning assigned to that term in subsection 2.4B(iv)(a).

 

“Notes” means one or more of the Tranche A Term Notes,
Tranche B Term Notes, Revolving Notes or Swing Line Note or any combination
thereof.

 

“Notice of Borrowing” means a notice substantially in the
form of Exhibit I annexed hereto.

 

“Notice of Conversion/Continuation” means a notice
substantially in the form of Exhibit II annexed hereto.

 

“Notice of Prepayment” means a notice substantially in the
form of Exhibit XV annexed hereto.

 

“Obligations” means all obligations of every nature of each
Loan Party from time to time owed to Administrative Agent, Lenders or any of
them under the Loan Documents, whether for principal, interest, reimbursement
of amounts drawn under Letters of Credit, fees, expenses, indemnification or
otherwise, including post-petition interest on such amounts accruing subsequent
to, and interest that would have accrued but for the commencement of a proceeding
under the Bankruptcy Code (whether or not such interest is allowed as a claim
in such proceeding).

 

23

 

“Officer’s Certificate,” as applied to any Person that is a
corporation, partnership, trust or limited liability company, means a
certificate executed on behalf of such Person by one or more Responsible
Officers of such Person or one or more Responsible Officers of a general
partner or a managing member if such general partner or managing member is a
corporation, partnership, trust or limited liability company.

 

“Operating Lease,” as applied to any Person, means any lease
(including leases that may be terminated by the lessee at any time) of any
property (whether real, personal or mixed) that is not a Capital Lease other
than any such lease under which that Person is the lessor.

 

“Organizational Documents” means the documents (including
Bylaws, if applicable) pursuant to which a Person that is a corporation,
partnership, trust or limited liability company is organized.

 

“Other Taxes” means all present or future stamp or
documentary taxes or any other excise or property taxes, charges, fees,
expenses or similar levies arising from any payment made hereunder or under any
other Loan Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Loan Document.

 

“Participant” means a purchaser of a participation in the
rights and obligations under this Agreement pursuant to subsection 10.1C.

 

“Patriot Act” means the Uniting and Strengthening America By
Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA
Patriot Act) Act of 2001.

 

“PBGC” means the Pension Benefit Guaranty Corporation or any
successor thereto.

 

“Pension Plan” means any Employee Benefit Plan, other than a
Multiemployer Plan, that is subject to Section 412 of the Internal Revenue
Code or Section 302 of ERISA, and, for purposes of subsection 8.10,
any Foreign Plan.

 

“Permitted Acquisition” means the acquisition of all or
substantially all of the assets of any Person, all or substantially all of a
division or line of business of any Person or more than 50% of the Capital
Stock of any Person, in each case, excluding the Acquisition.

 

“Permitted Encumbrances” means the following types of Liens
(excluding any such Lien imposed pursuant to Section 401(a)(29) or 412(n) of
the Internal Revenue Code or by ERISA, any such Lien imposed by a Government
Authority in connection with any Foreign Plan, any such Lien relating to or
imposed in connection with any Environmental Claim, and any such Lien expressly
prohibited by any applicable terms of any of the Collateral Documents):

 

(i)            Liens
for taxes, fees, assessments or governmental charges or claims the payment of
which is not, at the time, required by subsection 6.3;

 

24

 

(ii)           Liens
of landlords for unpaid rent, Liens of collecting banks under the UCC on items
in the course of collection, statutory Liens and rights of set-off of banks, statutory
Liens of carriers, warehousemen, mechanics, repairmen, workmen and materialmen
(and similar contractual Liens of such Persons), and other Liens imposed by
law, in each case incurred in the ordinary course of business (a) for
amounts not yet overdue or (b) for amounts that are overdue and that (in
the case of any such amounts overdue for a period in excess of five days) are
being contested in good faith by appropriate proceedings, so long as (1) such
reserves or other appropriate provisions, if any, as shall be required by GAAP
shall have been made for any such contested amounts, and (2) in the case
of a Lien with respect to any material portion of the Collateral, such contest
proceedings conclusively operate to stay the sale of any material portion of
the Collateral on account of such Lien;

 

(iii)          Liens
incurred on or deposits of Cash or Cash Equivalents made in the ordinary course
of business in connection with (or to secure letters of credit or bankers
acceptances issued in connection with) workers’ compensation, unemployment
insurance and other types of social security, or to secure the performance of
statutory obligations, bids, leases, government contracts, trade contracts, and
other similar obligations (exclusive of obligations for the payment of borrowed
money), so long as no foreclosure, sale or similar proceedings have been
commenced with respect to any material portion of the Collateral on account
thereof;

 

(iv)          any
attachment or judgment Lien not constituting an Event of Default under subsection 8.8;

 

(v)           licenses
(with respect to Intellectual Property and other property), leases or subleases
granted to third parties in accordance with any applicable terms of the
Collateral Documents and not interfering in any material respect with the
ordinary conduct of the business of Company or any of its Subsidiaries or
resulting in a material diminution in the value of the Collateral as security
for the Obligations;

 

(vi)          easements,
rights-of-way, restrictions, access agreements, licenses, encroachments, and
other exceptions to and/or defects or irregularities in title, in each case
which do not and will not interfere in any material respect with the ordinary
conduct of the business of Company or any of its Subsidiaries or result in a
material diminution in the value of any Collateral as security for the
Obligations;

 

(vii)         any
(a) interest or title of a lessor or sublessor under any lease not
prohibited by this Agreement, (b) Lien or restriction that the interest or
title of such lessor or sublessor may be subject to, or (c) subordination
of the interest of the lessee or sublessee under such lease to any Lien or
restriction referred to in the preceding clause (b), so long as the holder of
such Lien or restriction agrees to recognize the rights of such lessee or
sublessee under such lease;

 

(viii)        Liens
arising from filing UCC financing statements relating solely to leases not
prohibited by this Agreement and, subject to subsection 6.11, UCC financing 

 

25

 

statements previously filed and not yet terminated in
connection with Indebtedness that has been repaid;

 

(ix)           Liens
in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

 

(x)            any
zoning or similar law or right reserved to or vested in any Government
Authority to control or regulate the use of any real property;

 

(xi)           Liens
granted pursuant to the Collateral Documents;

 

(xii)          Liens
securing obligations (other than obligations representing Indebtedness for
borrowed money) under operating, reciprocal easement or similar agreements
entered into in the ordinary course of business of Company and its
Subsidiaries;

 

(xiii)         Liens
incurred in the ordinary course of business on Securities to secure repurchase
and reverse repurchase obligations in respect of such Securities;

 

(xiv)         exceptions
to title disclosed by a title policy, preliminary title report or certificate
of title delivered to Administrative Agent other than Liens securing
Indebtedness prohibited by subsection 7.1 or Contingent Obligations prohibited
by subsection 7.4;

 

(xv)          Liens
arising by virtue of deposits made in the ordinary course of business to secure
liability for premiums to insurance carriers and Liens on insurance policies or
proceeds thereof securing obligations relating to the financing of insurance
premiums;

 

(xvi)         Liens
on any cash earnest money deposits made by Company or any of its Subsidiaries
in connection with any letter of intent or purchase agreement permitted by
subsection 7.3;

 

(xvii)        the
existence of an “equal and ratable” clause in any Subordinated Indebtedness
(but not any security interests granted pursuant thereto);

 

(xviii)       Liens
on amounts deposited to defease the Subordinated Notes or amounts held by the
paying agent in connection with the tender for the Subordinated Notes; and

 

(xiv)         Liens securing Indebtedness in respect
of sale and lease-back transactions permitted by subsection 7.10.

 

“Person” means and includes natural persons, corporations,
limited partnerships, general partnerships, limited liability companies,
limited liability partnerships, joint stock companies, Joint Ventures,
associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and Government
Authorities.

 

26

 

“Platform” means an electronic delivery system,
such as IntraLinks or a substantially similar electronic system.

 

“Pledged Collateral” means, collectively, the “Pledged
Collateral” as defined in the Security Agreement and any Foreign Pledge
Agreement.

 

“Potential Event of Default” means a condition or event that,
after notice or lapse of time or both, would constitute an Event of Default.

 

“Pricing Certificate” means an Officer’s Certificate of
Company certifying the Consolidated Leverage Ratio as at the last day of any
Fiscal Quarter and setting forth the calculation of such Consolidated Leverage
Ratio in reasonable detail.

 

“Prime Rate” means the rate that Wells Fargo announces from
time to time as its prime lending rate, as in effect from time to time. The
Prime Rate is a reference rate and does not necessarily represent the lowest or
best rate actually charged to any customer. 
Wells Fargo or any other Lender may make commercial loans or other loans
at rates of interest at, above or below the Prime Rate.

 

“Proceedings” means any action, suit, proceeding (whether
administrative, judicial or otherwise), governmental investigation or arbitration.

 

“Pro Forma Basis” means, with respect to compliance with any
test or covenant hereunder, compliance with such test or covenant after giving
effect to (i) any proposed Permitted Acquisition, (ii) any Asset Sale
of a Subsidiary or operating entity for which historical financial statements
for the relevant period are available or (iii) any incurrence of
Indebtedness to the extent such incurrence is for the purpose of financing any
proposed Permitted Acquisition (including pro forma adjustments arising out of
events which are directly attributable to the proposed Permitted Acquisition,
Asset Sale or incurrence of Indebtedness, are factually supportable and are
expected to have a continuing impact, in each case as determined on a basis
consistent with Article 11 of Regulation S-X of the Securities Act, as
interpreted by the Staff of the Securities and Exchange Commission, and such
other adjustments as are reasonably satisfactory to Administrative Agent and
Company, in each case as certified by a Financial Officer of Company) using,
for purposes of determining such compliance, the historical financial
statements of all entities or assets so acquired or sold and the consolidated
financial statements of Company and its Subsidiaries, which shall be reformulated
as if such Permitted Acquisitions or Asset Sale, and all other Permitted
Acquisitions or Asset Sales that have been consummated during the period, and
any Indebtedness or other liabilities to be incurred or repaid in connection
therewith had been consummated and incurred or repaid at the beginning of such
period (and assuming that such Indebtedness to be incurred bears interest
during any portion of the applicable measurement period prior to the relevant
acquisition at the weighted average of the interest rates applicable to
outstanding Loans incurred during such period).

 

“Pro Forma Compliance” means, at any date of determination,
that Company shall be in pro forma compliance with any or all of the covenants
set forth in subsections 7.6A and 7.6B as applicable, as of the date of such
determination or the last day of the most recently 

 

27

 

completed Fiscal Quarter, as the case may be (computed
on the basis of (i) balance sheet amounts as of such date and (ii) income
statement amounts for the most recently completed period of four consecutive
Fiscal Quarters for which financial statements shall have been delivered to
Administrative Agent and calculated on a Pro Forma Basis in respect of the
event giving rise to such determination).

 

“Pro Rata Share” means (i) with respect to all payments,
computations and other matters relating to the Tranche A Term Loan Commitment
or the Tranche A Term Loan of any Lender, the percentage obtained by dividing
(x) the Tranche A Term Loan Exposure of that Lender by (y) the
aggregate Tranche A Term Loan Exposure of all Lenders, (ii) with respect
to all payments, computations and other matters relating to the Tranche B Term
Loan Commitment or the Tranche B Term Loan of any Lender, the percentage
obtained by dividing (x) the Tranche B Term Loan Exposure of that
Lender by (y) the aggregate Tranche B Term Loan Exposure of all
Lenders, (iii) with respect to all payments, computations and other
matters relating to the Revolving Loan Commitment or the Revolving Loans of any
Lender or any Letters of Credit issued or participations therein deemed
purchased by any Lender or any assignments of any Swing Line Loans deemed
purchased by any Lender, the percentage obtained by dividing (x) the
Revolving Loan Exposure of that Lender by (y) the aggregate
Revolving Loan Exposure of all Lenders, and (iv) for all other purposes
with respect to each Lender, the percentage obtained by dividing (x) the
sum of the Tranche A Term Loan Exposure of that Lender plus the Tranche
B Term Loan Exposure of that Lender plus the Revolving Loan Exposure of
that Lender by (y) the sum of the aggregate Tranche A Term Loan
Exposure of all Lenders plus the aggregate Tranche B Term Loan Exposure
of all Lenders plus the aggregate Revolving Loan Exposure of all
Lenders, in any such case as the applicable percentage may be adjusted by
assignments permitted pursuant to subsection 10.1.  The initial Pro Rata Share of each Lender for
purposes of each of clauses (i), (ii), (iii) and (iv) of the
preceding sentence is, as of the Signing Date, set forth opposite the name of
that Lender in Schedule 2.1 annexed hereto.

 

“Real Property Asset” means, at any time of determination,
any interest then owned by any Loan Party (other than any Foreign Subsidiary)
in any real property.

 

“Refinancing” means (i) the repayment of all amounts
outstanding under the Existing Credit Agreement (except for the Existing
Letters of Credit) and (ii) the acquisition by Company of its 7.75% senior
subordinated notes pursuant to a tender offer and consent solicitation and the
legal or covenant defeasance of any such notes not so acquired in such tender
offer.

 

“Refunded Swing Line Loans” has the meaning assigned to that
term in subsection 2.1A(iv).

 

“Register” has the meaning assigned to that term in
subsection 2.1D.

 

“Regulation D” means Regulation D of the Board of
Governors of the Federal Reserve System, as in effect from time to time.

 

28

 

“Reimbursement Date” has the meaning assigned to that term in
subsection 3.3B.

 

“Release” means any release, spill, emission, leaking,
pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal,
dumping, leaching or migration of Hazardous Materials into the indoor or
outdoor environment (including the abandonment or disposal of any barrels,
containers or other closed receptacles containing any Hazardous Materials),
including the movement of any Hazardous Materials through the air, soil,
surface water or groundwater.

 

“Request for Issuance” means a request substantially in the
form of Exhibit III annexed hereto.

 

“Requisite Class Lenders” means, at any time of
determination (i) for the Class of Lenders having Revolving Loan
Exposure, Lenders having or holding more than 50% of the aggregate Revolving
Loan Exposure of all Lenders, (ii) for the Class of Lenders having
Tranche A Term Loan Exposure, Lenders having or holding more than 50% of the
aggregate Tranche A Term Loan Exposure of all Lenders, and (iii) for the Class of
Lenders having Tranche B Term Loan Exposure, Lenders having or holding more
than 50% of the aggregate Tranche B Term Loan Exposure of all Lenders.

 

“Requisite Lenders” means Lenders having or holding more than
50% of the sum of the aggregate Tranche A Term Loan Exposure of all Lenders plus
the aggregate Tranche B Term Loan Exposure of all Lenders plus the
aggregate Revolving Loan Exposure of all Lenders.

 

“Responsible Officer” means the president, chief executive
officer, chief financial officer, treasurer, general partner (if an
individual), managing member (if an individual) or other individual appointed
by the Governing Body or the Organizational Documents of a corporation,
partnership, trust or limited liability company to serve in a similar capacity
as the foregoing.

 

“Restricted Junior Payment” means (i) any dividend or
other distribution, direct or indirect, on account of any shares of any class
of stock of Company or Holdings now or hereafter outstanding, except a dividend
payable solely in shares of that class of stock to the holders of that class, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of stock
of Company or Holdings now or hereafter outstanding, (iii) any payment
made to retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire shares of any class of stock of Company or
Holdings now or hereafter outstanding, and (iv) any payment or prepayment
of principal of, premium, if any, or interest on, or redemption, purchase,
retirement, defeasance (including in-substance or legal defeasance), sinking
fund or similar payment with respect to, any Subordinated Indebtedness.

 

“Revolving Lender” means a Lender that has a Revolving Loan
Commitment and/or that has an outstanding Revolving Loan.

 

29

 

“Revolving Loan Commitment” means the commitment of a
Revolving Lender to make Revolving Loans to Company pursuant to
subsection 2.1A(iii), and “Revolving Loan Commitments”
means such commitments of all Revolving Lenders in the aggregate.

 

“Revolving Loan Commitment Amount” means, at any date, the
aggregate amount of the Revolving Loan Commitments of all Revolving Lenders.

 

“Revolving Loan Commitment Termination Date” means the fifth
anniversary of the Closing Date.

 

“Revolving Loan Exposure,” with respect to any Revolving
Lender, means, as of any date of determination (i) prior to the
termination of the Revolving Loan Commitments, the amount of that Lender’s
Revolving Loan Commitment, and (ii) after the termination of the Revolving
Loan Commitments, the sum of (a) the aggregate outstanding principal
amount of the Revolving Loans of that Lender plus (b) in the event
that Lender is an Issuing Lender, the aggregate Letter of Credit Usage in
respect of all Letters of Credit issued by that Lender (in each case net of any
participations purchased by other Lenders in such Letters of Credit or in any
unreimbursed drawings thereunder) plus (c) the aggregate amount of
all participations purchased by that Lender in any outstanding Letters of
Credit or any unreimbursed drawings under any Letters of Credit plus (d) in
the case of Swing Line Lender, the aggregate outstanding principal amount of
all Swing Line Loans (net of any assignments thereof deemed purchased by other
Revolving Lenders) plus (e) the aggregate amount of all assignments
deemed purchased by that Lender in any outstanding Swing Line Loans.

 

“Revolving Loans” means the Loans made by Revolving Lenders
to Company pursuant to subsection 2.1A(iii).

 

“Revolving Notes” means any promissory notes of Company
issued pursuant to subsection 2.1E to evidence the Revolving Loans of any
Revolving Lenders, substantially in the form of Exhibit VI annexed
hereto.

 

“RSU Payments” means payments by Company or Restricted Junior
Payments made by Company to Holdings (i) to reimburse United Online for
the purchase of, or for Holdings to purchase, restricted stock or restricted
stock units of United Online granted to employees, directors and officers of
Holdings, Company and its Subsidiaries for the purpose of satisfying
withholding tax obligations related to the vesting of restricted stock or
restricted stock units of such employees, directors and officers in an
aggregate amount not to exceed $2,500,000 per calendar year and (ii) with
respect to (or to reimburse United Online for) dividends and distributions (and
similar payments) paid in respect of restricted stock or restricted stock units
(and payments to satisfy withholding tax obligations related thereto) of United
Online granted to officers, directors or employees of Holdings, Company and its
Subsidiaries in an aggregate amount not to exceed $2,500,000 per calendar year.

 

“Securities” means any stock, shares, partnership interests,
voting trust certificates, certificates of interest or participation in any
profit-sharing agreement or arrangement, options, warrants, bonds, debentures,
notes, or other evidences of indebtedness, 

 

30

 

secured or unsecured, convertible, subordinated,
certificated or uncertificated, or otherwise, or in general any instruments
commonly known as “securities” or any certificates of interest, shares or
participations in temporary or interim certificates for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire, any of the
foregoing.

 

“Securities Account” means an account to which a financial
asset is or may be credited in accordance with an agreement under which the
Person maintaining the account undertakes to treat the Person for whom the
account is maintained as entitled to exercise the rights that comprise the
financial asset.

 

“Securities Act” means the Securities Act of 1933, as amended
from time to time, and any successor statute.

 

“Security Agreement” means the Security Agreement executed
and delivered on the Closing Date, substantially in the form of Exhibit XIII
annexed hereto.

 

“Significant Subsidiary”
means any Subsidiary now existing or hereafter acquired or formed by Company
which, on a consolidated basis for such Subsidiary and its Subsidiaries, (i) for
the most recent Fiscal Year accounted for more than 5% of the consolidated
revenues of Company and its Subsidiaries or (ii) as at the end of such
Fiscal Year, was the owner of more than 5% of the consolidated assets of
Company and its Subsidiaries.

 

“Signing Date” means August 4, 2008.

 

“Solvent,” with respect to any Person, means that as of the
date of determination both (i)(a) the then fair saleable value of the
property of such Person is (1) greater than the total amount of
liabilities (including contingent liabilities) of such Person and (2) not
less than the amount that will be required to pay the probable liabilities on
such Person’s then existing debts as they become absolute and due considering
all financing alternatives and potential asset sales reasonably available to
such Person; (b) such Person’s capital is not unreasonably small in
relation to its business or any contemplated or undertaken transaction; and (c) such
Person does not intend to incur, or believe (nor should it reasonably believe)
that it will incur, debts beyond its ability to pay such debts as they become
due; and (ii) such Person is “solvent” within the meaning given that term
and similar terms under applicable laws relating to fraudulent transfers and
conveyances.  For purposes of this
definition, the amount of any contingent liability at any time shall be
computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

 

“SPC”  has the
meaning assigned to that term in subsection 10.1B(iv).

 

“Specified Representations” means (i) the representations
set forth in subsections 5.1A, 5.2A, 5.2D, 5.10 and 5.16A, (ii) the
representation that all written information, other than the Projections,
forward looking information and information of a general economic or industry
nature, which has been made available to Administrative Agent or Lenders by
United Online or any of its representatives in connection with the Transactions
is, when taken as a 

 

31

 

whole, complete and correct in all material respects
and does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements contained therein not materially
misleading in light of the circumstances under which such statements were made,
and (iii) the representation that all financial projections concerning FTD
and its Subsidiaries that have been made available to Administrative Agent or
Lenders by United Online or any of its representatives in connection with the
Transactions (the “Projections”)
have been prepared in good faith based upon assumptions that were believed by
the preparer thereof to be reasonable at the time made, it being understood and
agreed that the Projections are not a guarantee of financial performance and
actual results may differ from the Projections and such differences may be
material.

 

“Standby Letter of Credit” means any letter of credit or
similar instrument other than a Commercial Letter of Credit.

 

“Subject Lender” has the meaning assigned to that term in
subsection 2.9.

 

“Subordinated Indebtedness” means (i) the Subordinated
Notes and (ii) any Indebtedness of Company incurred from time to time and
subordinated in right of payment to the Obligations.

 

“Subordinated Note Indenture” means the indenture, pursuant
to which the Subordinated Notes were issued.

 

“Subordinated Notes” means the 7.75% Senior Subordinated
Notes due 2014 issued pursuant to the Subordinated Note Indenture.

 

“Subsidiary,” with respect to any Person, means any
corporation, partnership, trust, limited liability company, association, Joint
Venture or other business entity of which more than 50% of the total voting
power of shares of stock or other ownership interests entitled (without regard
to the occurrence of any contingency) to vote in the election of the members of
the Governing Body is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person or a
combination thereof.

 

“Subsidiary Guarantor” means any Subsidiary of Company that
executes and delivers a counterpart of the Guaranty on the Closing Date or from
time to time thereafter pursuant to subsection 6.8.  For the avoidance of doubt, in no event shall
any Dormant Subsidiary or Interflora, Inc. be a Subsidiary Guarantor.

 

“Supplemental Collateral Agent” has the meaning assigned to
that term in subsection 9.1B.

 

“Swap Counterparty” means any person that was a Lender or an
Affiliate of a Lender at the time that it entered into a Hedge Agreement with
Company or one of its Subsidiaries, the obligations under which are secured
pursuant to the Collateral Documents and guarantied pursuant to the Guaranty.

 

32

 

“Swing Line Lender” means Wells Fargo, or any Person serving
as a successor Administrative Agent hereunder, in its capacity as Swing Line
Lender hereunder.

 

“Swing Line Loan Commitment” means the commitment of Swing
Line Lender to make Swing Line Loans to Company pursuant to
subsection 2.1A(iv).

 

“Swing Line Loans” means the Loans made by Swing Line Lender
to Company pursuant to subsection 2.1A(iv).

 

“Swing Line Note” means any promissory note of Company issued
pursuant to subsection 2.1E to evidence the Swing Line Loans of Swing Line
Lender, substantially in the form of Exhibit VII annexed hereto.

 

“Synthetic Lease Obligation” means the monetary obligation of
a Person under (i) a so-called synthetic, off-balance sheet or tax
retention lease, or (ii) an agreement for the use or possession of
property creating obligations that do not appear on the balance sheet of such
Person but which, upon the insolvency or bankruptcy of such Person, would be
characterized as the indebtedness of such Person (without regard to accounting
treatment).

 

“Tax” or “Taxes” means
any present or future tax, levy, impost, duty, fee, assessment, deduction,
withholding or other charge imposed, levied, collected, withheld or assessed by
any Government Authority, including interest, penalties, additions to tax and
any similar liabilities with respect thereto.

 

“Term Loans” means, collectively, the Tranche A Term Loans
and the Tranche B Term Loans.

 

“Title Company” means one or more title insurance companies
reasonably satisfactory to Administrative Agent.

 

“Total Utilization of Revolving Loan Commitments” means, as
at any date of determination, the sum of (i) the aggregate principal
amount of all outstanding Revolving Loans plus (ii) the aggregate
principal amount of all outstanding Swing Line Loans plus (iii) the
Letter of Credit Usage.

 

“Tranche A Term Loan Commitment” means the commitment of a
Lender to make a Tranche A Term Loan to Company pursuant to
subsection 2.1A(i), and “Tranche A Term Loan
Commitments” means such commitments of all Lenders in the aggregate.

 

“Tranche A Term Loan Exposure,” with respect to any Lender,
means, as of any date of determination (i) prior to the funding of the
Tranche A Term Loans, the amount of that Lender’s Tranche A Term Loan
Commitment, and (ii), after the funding of the Tranche A Term Loans, the
outstanding principal amount of the Tranche A Term Loan of that Lender.

 

“Tranche A Term Loan Maturity Date” means the fifth
anniversary of the Closing Date.

 

33

 

“Tranche A Term Loans” means the Loans made by Lenders to
Company pursuant to subsection 2.1A(i).

 

“Tranche A Term Notes” means any promissory notes of Company
issued pursuant to subsection 2.1E to evidence the Tranche A Term Loans of
any Lenders, substantially in the form of Exhibit IV annexed
hereto.

 

“Tranche B Term Loan Commitment” means the commitment of a
Lender to make a Tranche B Term Loan to Company pursuant to
subsection 2.1A(ii), and “Tranche B Term Loan
Commitments” means such commitments of all Lenders in the aggregate.

 

“Tranche B Term Loan Exposure,” with respect to any Lender,
means, as of any date of determination (i) prior to the funding of the
Tranche B Term Loans, the amount of that Lender’s Tranche B Term Loan
Commitment and (ii) after the funding of the Tranche B Term Loans, the
outstanding principal amount of the Tranche B Term Loan of that Lender.

 

“Tranche B Term Loan Maturity Date” means the sixth
anniversary of the Closing Date.

 

“Tranche B Term Loans” means the Loans made by Lenders to
Company pursuant to subsection 2.1A(ii).

 

“Tranche B Term Notes” means any promissory notes of Company
issued pursuant to subsection 2.1E to evidence the Tranche B Term Loans of
any Lenders, substantially in the form of Exhibit V annexed hereto.

 

“Transaction” means the Acquisition, Merger, refinancing of
all Indebtedness outstanding under the Existing Credit Agreement and other
related transactions.

 

“Transaction Costs” means the fees, costs and expenses
payable by Holdings or any of its Subsidiaries in connection with the
Transaction.

 

“UCC” means the Uniform Commercial Code as in effect in any
applicable jurisdiction.

 

“Unasserted Obligations” means, at any time, Obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities
(except for (i) the principal of and interest on, and fees relating to,
any Indebtedness and (ii) contingent reimbursement obligations in respect
of amounts that may be drawn under Letters of Credit) in respect of which no
claim or demand for payment has been made (or, in the case of Obligations for
indemnification, no notice for indemnification has been issued by the
Indemnitee) at such time.

 

“United Online” means United Online, Inc., a Delaware
corporation.

 

“Voting Stock”
means, with respect to any Person, any issued and outstanding shares of Capital
Stock of such Person entitled (without regard to the occurrence of any
contingency) to vote for the election of members of the Governing Body of such
Person.

 

34

 

“Wells Fargo” means Wells Fargo Bank, National Association.

 

1.2          Accounting Terms;
Utilization of GAAP for Purposes of Calculations Under Agreement.

 

Except
as otherwise expressly provided in this Agreement, all accounting terms not
otherwise defined herein shall have the meanings assigned to them in conformity
with GAAP.  Financial statements and
other information required to be delivered by Company to Lenders pursuant to
clauses (ii), (iii), (iv) and (xiii) of subsection 6.1 shall be
prepared in accordance with GAAP as in effect at the time of such preparation
(and delivered together with the reconciliation statements provided for in
subsection 6.1(vi)).  Calculations
in connection with the definitions, covenants and other provisions of this
Agreement shall utilize GAAP as in effect on the date of determination, applied
in a manner consistent with that used in preparing the financial statements
referred to in subsection 5.3.  If
Company elects to change its accounting practices during the term of this
Agreement, or if at any time any change in GAAP would affect the computation of
any financial ratio or requirement set forth in any Loan Document, and Company,
Administrative Agent or Requisite Lenders shall so request, Administrative
Agent, Lenders and Company shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
accounting practices or GAAP (subject to the approval of Requisite Lenders),
provided that, until so amended, such ratio or requirement shall continue to be
computed in accordance with GAAP or such accounting practices prior to such
change therein and Company shall provide to Administrative Agent and Lenders
reconciliation statements provided for in subsection 6.1(vi).

 

1.3          Other Definitional
Provisions and Rules of Construction.

 

A.            Any of the terms defined herein may, unless the
context otherwise requires, be used in the singular or the plural, depending on
the reference.

 

B.            References to “Sections” and “subsections” shall be to
Sections and subsections, respectively, of this Agreement unless otherwise
specifically provided.  Section and
subsection headings in this Agreement are included herein for convenience
of reference only and shall not constitute a part of this Agreement for any
other purpose or be given any substantive effect.

 

C.            The use in any of the Loan Documents of the word “include”
or “including,” when following any general statement, term or matter, shall not
be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or
matters, whether or not nonlimiting language (such as “without limitation” or “but
not limited to” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that fall within
the broadest possible scope of such general statement, term or matter.

 

D.            References to any Person shall mean such Person and
its successors and assigns.

 

35

 

E.             Unless otherwise expressly provided herein, references
to Organizational Documents, agreements (including the Loan Documents) and
other contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto.

 

F.             For purposes of this Agreement and the other Loan
Documents, where the permissibility of a transaction or determination of
required actions or circumstances depends upon compliance with, or is
determined by reference to, amounts stated in Dollars, any requisite currency
translation shall be based on the applicable Exchange Rate with respect to the
date of such transaction or determination or the date Company or any of its
Subsidiaries enters into a definitive agreement with respect to a transaction
(as determined by Company) and shall not be affected by subsequent fluctuations
in the Exchange Rate.  For purposes of
determining compliance with any Dollar denominated restriction on the
incurrence of Indebtedness, the Dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
applicable Exchange Rate with respect to the date such Indebtedness was
incurred, in the case of term debt, or first committed or first incurred
(whichever yields the lower Dollar-equivalent ), in the case of revolving
credit debt; provided that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing
would cause the applicable Dollar-denominated restriction to be exceeded if
calculated based on the applicable Exchange Rate with respect to the date of
such refinancing, such Dollar-denominated restriction shall be deemed not to
have been exceeded so long as the Dollar- equivalent principal amount of such
refinancing Indebtedness does not exceed the Dollar-equivalent principal amount
of such Indebtedness being refinanced (plus the amount of interest, fees
and expenses associated therewith). 
Notwithstanding any other provision of this Agreement, (i) the
maximum amount of Indebtedness that Company or any Subsidiary may incur shall
not be deemed to be exceeded solely as a result of fluctuations in the Exchange
Rate, (ii) this provision shall not apply to the calculation of the
Consolidated Leverage Ratio, and (iii) in the event that the
Dollar-equivalent principal amount of Indebtedness that Company and its
Subsidiaries has incurred exceeds the maximum amount of permitted Indebtedness
under any clause of subsection 7.1 at any time as a result of fluctuations in
the applicable Exchange Rate, no additional Indebtedness (other than the
refinancing of existing Indebtedness as provided above) may be incurred under
such clause until such maximum amount is no longer exceeded.

 

Section 2.              AMOUNTS AND TERMS OF COMMITMENTS
AND LOANS

 

2.1          Commitments; Making of
Loans; the Register; Optional Notes.

 

A.            Commitments. 
Subject to the terms and conditions of this Agreement and in reliance
upon the representations and warranties of Company herein set forth, each
Lender hereby severally agrees to make the Loans as described in subsections
2.1A(i), 2.1A(ii) and 2.1A(iii) and Swing Line Lender hereby agrees
to make the Swing Line Loans as described in subsection 2.1A(iv).

 

(i)            Tranche A Term Loans. 
Each Lender that has a Tranche A Term Loan Commitment severally agrees
to lend to Company on the Closing Date an amount not exceeding its Pro Rata
Share of the aggregate amount of the Tranche A Term Loan 

 

36

 

Commitments
to be used for the purposes identified in subsection 2.5A.  The amount of each Lender’s Tranche A Term
Loan Commitment, as of the Signing Date, is set forth opposite its name on Schedule
2.1 annexed hereto and the aggregate amount of the Tranche A Term Loan
Commitments is $75,000,000; provided that the amount of the Tranche A
Term Loan Commitment of each Lender shall be adjusted to give effect to any
assignment of such Tranche A Term Loan Commitment pursuant to
subsection 10.1B.  Each Lender’s
Tranche A Term Loan Commitment shall expire immediately and without further
action at 4:30 p.m. (New York time), on October 30, 2008 if the
Tranche A Term Loans are not made on or before that date.  Company may make only one borrowing under the
Tranche A Term Loan Commitments.  Amounts
borrowed under this subsection 2.1A(i) and subsequently repaid or
prepaid may not be reborrowed.

 

(ii)           Tranche B Term Loans. 
Each Lender that has a Tranche B Term Loan Commitment severally agrees
to lend to Company on the Closing Date an amount not exceeding its Pro Rata
Share of the aggregate amount of the Tranche B Term Loan Commitments to be used
for the purposes identified in subsection 2.5A.  The amount of each Lender’s Tranche B Term Loan
Commitment, as of the Signing Date, is set forth opposite its name on Schedule
2.1 annexed hereto and the aggregate amount of the Tranche B Term Loan
Commitments is $300,000,000; provided that the amount of the Tranche B
Term Loan Commitment of each Lender shall be adjusted to give effect to any
assignment of such Tranche B Term Loan Commitment pursuant to
subsection 10.1B.  Each Lender’s
Tranche B Term Loan Commitment shall expire immediately and without further
action on at 4:30 p.m. (New York time), October 30, 2008 if the
Tranche B Term Loans are not made on or before that date.  Company may make only one borrowing under the
Tranche B Term Loan Commitments.  Amounts
borrowed under this subsection 2.1A(ii) and subsequently repaid or
prepaid may not be reborrowed.

 

(iii)          Revolving
Loans.  Each Revolving Lender severally agrees,
subject to the limitations set forth below with respect to the maximum amount
of Revolving Loans permitted to be outstanding from time to time, to lend to
Company from time to time during the period from the Closing Date to but
excluding the Revolving Loan Commitment Termination Date an aggregate amount
not exceeding its Pro Rata Share of the aggregate amount of the Revolving Loan
Commitments to be used for the purposes identified in
subsection 2.5B.  The original
amount of each Revolving Lender’s Revolving Loan Commitment, as of the Signing
Date, is set forth opposite its name on Schedule 2.1 annexed hereto and
the original Revolving Loan Commitment Amount is $50,000,000; provided
that the amount of the Revolving Loan Commitment of each Revolving Lender shall
be adjusted to give effect to any assignment of such Revolving Loan Commitment
pursuant to subsection 10.1B and shall be reduced from time to time by the
amount of any reductions thereto made pursuant to subsection 2.4.  Each Revolving Lender’s Revolving Loan
Commitment shall expire on the Revolving Loan Commitment Termination Date and
all Revolving Loans and all other amounts owed hereunder with respect to the
Revolving Loans and the Revolving Loan 

 

37

 

Commitments
shall be paid in full no later than that date; provided that each
Revolving Lender’s Revolving Loan Commitment shall expire immediately and
without further action at 4:30 p.m. (New York time), on October 30,
2008 if the Term Loans are not made on or before that date.  Amounts borrowed under this
subsection 2.1A(iii) may be repaid and reborrowed to but excluding
the Revolving Loan Commitment Termination Date.

 

Anything contained in this Agreement to the contrary
notwithstanding, the Revolving Loans and the Revolving Loan Commitments shall
be subject to the limitation that in no event shall the Total Utilization of
Revolving Loan Commitments at any time exceed the Revolving Loan Commitment
Amount then in effect.

 

(iv)          Swing Line Loans.

 

(a)           General Provisions. 
Swing Line Lender hereby agrees, subject to the limitations set forth in
the last paragraph of subsection 2.1A(iii) and set forth below with
respect to the maximum amount of Swing Line Loans permitted to be outstanding
from time to time, to make a portion of the Revolving Loan Commitments
available to Company from time to time during the period from the Closing Date
to but excluding the Revolving Loan Commitment Termination Date by making Swing
Line Loans to Company in an aggregate amount not exceeding the amount of the
Swing Line Loan Commitment to be used for the purposes identified in
subsection 2.5B, notwithstanding the fact that such Swing Line Loans, when
aggregated with Swing Line Lender’s outstanding Revolving Loans and Swing Line
Lender’s Pro Rata Share of the Letter of Credit Usage then in effect, may
exceed Swing Line Lender’s Revolving Loan Commitment.  The original amount of the Swing Line Loan
Commitment is $5,000,000; provided that any reduction of the Revolving
Loan Commitment Amount made pursuant to subsection 2.4 that reduces the
Revolving Loan Commitment Amount to an amount less than the then current amount
of the Swing Line Loan Commitment shall result in an automatic corresponding
reduction of the amount of the Swing Line Loan Commitment to the amount of the
Revolving Loan Commitment Amount, as so reduced, without any further action on
the part of Company, Administrative Agent or Swing Line Lender.  The Swing Line Loan Commitment shall expire
on the Revolving Loan Commitment Termination Date and all Swing Line Loans and
all other amounts owed hereunder with respect to the Swing Line Loans shall be
paid in full no later than that date; provided that the Swing Line Loan
Commitment shall expire immediately and without further action on at 4:30 p.m.
(New York time), October 30, 2008 if the Term Loans are not made on or
before that date.  Amounts borrowed under
this subsection 2.1A(iv) may be repaid and reborrowed to but
excluding the Revolving Loan Commitment Termination Date.

 

(b)           Swing Line Loan Prepayment with Proceeds
of Revolving Loans.  With respect to any Swing Line Loans that
have not been voluntarily prepaid by Company pursuant to subsection 2.4B(i),
Swing Line Lender may, at any time in 

 

38

 

its sole and
absolute discretion, deliver to Administrative Agent (with a copy to Company),
no later than 10:00 a.m. (San Francisco time) on the first Business Day in
advance of the proposed Funding Date, a notice requesting Revolving Lenders to
make Revolving Loans that are Base Rate Loans on such Funding Date in an amount
equal to the amount of such Swing Line Loans (the “Refunded
Swing Line Loans”) outstanding on the date such notice is
given.  Company hereby authorizes the
giving of any such notice and the making of any such Revolving Loans.  Anything contained in this Agreement to the
contrary notwithstanding, (1) the proceeds of such Revolving Loans made by
Revolving Lenders other than Swing Line Lender shall be immediately delivered
by Administrative Agent to Swing Line Lender (and not to Company) and applied
to repay a corresponding portion of the Refunded Swing Line Loans and (2) on
the day such Revolving Loans are made, Swing Line Lender’s Pro Rata Share of
the Refunded Swing Line Loans shall be deemed to be paid with the proceeds of a
Revolving Loan made by Swing Line Lender, and such portion of the Swing Line
Loans deemed to be so paid shall no longer be outstanding as Swing Line Loans
and shall no longer be due under the Swing Line Note, if any, of Swing Line
Lender but shall instead constitute part of Swing Line Lender’s outstanding
Revolving Loans and shall be due under the Revolving Note, if any, of Swing
Line Lender.  Company hereby authorizes
Administrative Agent and Swing Line Lender to charge Company’s accounts with
Administrative Agent and Swing Line Lender (up to the amount available in each
such account) in order to immediately pay Swing Line Lender the amount of the
Refunded Swing Line Loans to the extent the proceeds of such Revolving Loans
made by Revolving Lenders, including the Revolving Loan deemed to be made by
Swing Line Lender, are not sufficient to repay in full the Refunded Swing Line
Loans.  If any portion of any such amount
paid (or deemed to be paid) to Swing Line Lender should be recovered by or on
behalf of Company from Swing Line Lender in any bankruptcy proceeding, in any
assignment for the benefit of creditors or otherwise, the loss of the amount so
recovered shall be ratably shared among all Lenders in the manner contemplated
by subsection 10.5.

 

(c)           Swing Line Loan Assignments. 
On the Funding Date of each Swing Line Loan, each Revolving Lender shall
be deemed to, and hereby agrees to, purchase an assignment of such Swing Line
Loan in an amount equal to its Pro Rata Share. 
If for any reason (1) Revolving Loans are not made upon the request
of Swing Line Lender as provided in the immediately preceding paragraph in an
amount sufficient to repay any amounts owed to Swing Line Lender in respect of
such Swing Line Loan or (2) the Revolving Loan Commitments are terminated
at a time when such Swing Line Loan is outstanding, upon notice from Swing Line
Lender as provided below, each Revolving Lender shall fund the purchase of such
assignment in an amount equal to its Pro Rata Share (calculated, in the case of
the foregoing clause (2), immediately prior to such termination of the
Revolving Loan Commitments) of the unpaid amount of such Swing Line Loan
together with accrued interest thereon. 
Upon one Business Day’s notice from Swing Line 

 

39

 

Lender, each
Revolving Lender shall deliver to Swing Line Lender such amount in same day
funds at the Funding and Payment Office. 
In order to further evidence such assignment (and without prejudice to
the effectiveness of the assignment provisions set forth above), each Revolving
Lender agrees to enter into an Assignment Agreement at the request of Swing
Line Lender in form and substance reasonably satisfactory to Swing Line
Lender.  In the event any Revolving
Lender fails to make available to Swing Line Lender any amount as provided in
this paragraph, Swing Line Lender shall be entitled to recover such amount on
demand from such Revolving Lender together with interest thereon at the rate
customarily used by Swing Line Lender for the correction of errors among banks
for three Business Days and thereafter at the Base Rate.  In the event Swing Line Lender receives a
payment of any amount with respect to which other Revolving Lenders have funded
the purchase of assignments as provided in this paragraph, Swing Line Lender
shall promptly distribute to each such other Revolving Lender its Pro Rata
Share of such payment.

 

(d)           Revolving Lenders’ Obligations. 
Anything contained herein to the contrary notwithstanding, each
Revolving Lender’s obligation to make Revolving Loans for the purpose of
repaying any Refunded Swing Line Loans pursuant to subsection 2.1A(iv)(b) and
each Revolving Lender’s obligation to purchase an assignment of any unpaid
Swing Line Loans pursuant to the immediately preceding paragraph shall be
absolute and unconditional and shall not be affected by any circumstance,
including (1) any set-off, counterclaim, recoupment, defense or other
right which such Revolving Lender may have against Swing Line Lender, Company
or any other Person for any reason whatsoever; (2) the occurrence or
continuation of an Event of Default or a Potential Event of Default; (3) any
adverse change in the business, operations, properties, assets, condition
(financial or otherwise) or prospects of Company or any of its Subsidiaries; (4) any
breach of this Agreement or any other Loan Document by any party thereto; or (5) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing; provided that such obligations of each Revolving
Lender are subject to the condition that (x) Swing Line Lender believed in
good faith that all conditions under Section 4 to the making of the
applicable Refunded Swing Line Loans or other unpaid Swing Line Loans, as the
case may be, were satisfied at the time such Refunded Swing Line Loans or
unpaid Swing Line Loans were made or (y) the satisfaction of any such condition
not satisfied had been waived in accordance with subsection 10.6 prior to
or at the time such Refunded Swing Line Loans or other unpaid Swing Line Loans
were made.

 

B.         Borrowing Mechanics.  Loans made on
any Funding Date (other than Swing Line Loans, Revolving Loans made pursuant to
a request by Swing Line Lender pursuant to subsection 2.1A(iv) or
Revolving Loans made pursuant to subsection 3.3B) shall be in an aggregate
minimum amount of $1,000,000 and multiples of $100,000 in excess of that amount;
provided that Loans made as Eurodollar Rate Loans shall be in an
aggregate minimum amount of $2,000,000 and multiples of $100,000 in excess of
that amount.  Swing Line Loans made on
any 

 

40

 

Funding Date shall be in an aggregate minimum amount
of $500,000 and multiples of $100,000 in excess of that amount.  Whenever Company desires that Lenders make
Term Loans or Revolving Loans it shall deliver to Administrative Agent a duly
executed Notice of Borrowing no later than 11:00 a.m. (San Francisco time)
at least three Business Days in advance of the proposed Funding Date (in the
case of a Eurodollar Rate Loan) or at least one Business Day in advance of the
proposed Funding Date (in the case of a Base Rate Loan).  Whenever Company desires that Swing Line
Lender make a Swing Line Loan, it shall deliver to Administrative Agent a duly
executed Notice of Borrowing no later than 12:00 noon (San Francisco time)
on the proposed Funding Date.  Term Loans
and Revolving Loans may be continued as or converted into Base Rate Loans and
Eurodollar Rate Loans in the manner provided in subsection 2.2D.  In lieu of delivering a Notice of Borrowing,
Company may give Administrative Agent telephonic notice by the required time of
any proposed borrowing under this subsection 2.1B; provided that
such notice shall be promptly confirmed in writing by delivery of a duly
executed Notice of Borrowing to Administrative Agent on or before the
applicable Funding Date.

 

Neither
Administrative Agent nor any Lender shall incur any liability to Company in
acting upon any telephonic notice referred to above that Administrative Agent
believes in good faith to have been given by an Responsible Officer or other
person authorized to borrow on behalf of Company or for otherwise acting in
good faith under this subsection 2.1B or under subsection 2.2D, and
upon funding of Loans by Lenders, and upon conversion or continuation of the
applicable basis for determining the interest rate with respect to any Loans pursuant
to subsection 2.2D, in each case in accordance with this Agreement,
pursuant to any such telephonic notice Company shall have effected Loans or a
conversion or continuation, as the case may be, hereunder.

 

Company
shall notify Administrative Agent prior to the funding of any Loans in the
event that any of the matters to which Company is required to certify in the
applicable Notice of Borrowing is no longer true and correct as of the
applicable Funding Date, and the acceptance by Company of the proceeds of any
Loans shall constitute a re-certification by Company, as of the applicable
Funding Date, as to the matters to which Company is required to certify in the
applicable Notice of Borrowing.

 

Except
as otherwise provided in subsections 2.6B, 2.6C and 2.6G, a Notice of Borrowing
for, or a Notice of Conversion/Continuation for conversion to, or continuation
of, a Eurodollar Rate Loan (or telephonic notice in lieu thereof) shall be
irrevocable on and after the related Interest Rate Determination Date, and
Company shall be bound to make a borrowing or to effect a conversion or
continuation in accordance therewith.

 

Notwithstanding
the foregoing provisions of this subsection 2.1B, if Administrative Agent
receives a duly executed Notice of Borrowing at least three Business Days in
advance of the Closing Date, all Loans made on the Closing Date shall be
Eurodollar Rate Loans.  If Administrative
Agent does not receive a duly executed Notice of Borrowing at least three Business
Days in advance of the Closing Date, all Loans made on the Closing Date shall
be Base Rate Loans that may not be converted into a Eurodollar Rate Loan until
the earlier of the fifteenth day after the Closing Date and the date specified
by Administrative Agent to Company on which the primary syndication of the
Loans has been completed.

 

41

 

C.            Disbursement of Funds. 
All Term Loans and Revolving Loans shall be made by Lenders
simultaneously and proportionately to their respective Pro Rata Shares, it
being understood that, except as provided in the succeeding sentence, (i) neither
Administrative Agent nor any Lender shall be responsible for any default by any
other Lender in that other Lender’s obligation to make a Loan requested
hereunder nor (ii) shall the amount of the Commitment of any Lender to
make the particular type of Loan requested be increased or decreased as a
result of a default by any other Lender in that other Lender’s obligation to
make a Loan requested hereunder. 
Anything to the contrary herein notwithstanding, if the conditions set
forth in subsection 4.2 have been satisfied or waived and any Lender fails to
timely make its Pro Rata Share of the Loans requested by Company to be made on
the date on which the Merger is scheduled to occur (such Loans, the “Defaulted Loans”), Wells Fargo shall make Loans to Company
in an amount equal to the Defaulted Loans. 
In such event, such Lender which has failed to fund its Loans shall be
deemed to have assigned its Commitments to Wells Fargo.  No such funding of Defaulted Loans by Wells
Fargo shall relieve any Lender that has failed to fund its Loans from liability
to Company or Wells Fargo.  Promptly
after receipt by Administrative Agent of a Notice of Borrowing pursuant to
subsection 2.1B (or telephonic notice in lieu thereof), Administrative
Agent shall notify each Lender for that type of Loan or Swing Line Lender, as
the case may be, of the proposed borrowing. 
Each such Lender (other than Swing Line Lender) shall make the amount of
its Loan available to Administrative Agent not later than 1:00 p.m. (San
Francisco time) on the applicable Funding Date (provided that with
respect to Loans made on the Closing Date, such time shall be 10:00 a.m.
(San Francisco time), and Swing Line Lender shall make the amount of its Swing
Line Loan available to Administrative Agent not later than 2:00 p.m. (San
Francisco time) on the applicable Funding Date, in each case in same day funds
in Dollars, at the Funding and Payment Office. 
Except as provided in subsection 2.1A(iv) and
subsection 3.3B with respect to Revolving Loans used to repay Refunded
Swing Line Loans or to reimburse any Issuing Lender for the amount of a drawing
under a Letter of Credit issued by it, upon satisfaction or waiver of the
conditions precedent specified in subsections 4.2 (in the case of Loans made on
the Closing Date) and 4.3 (in the case of all Loans other than Loans made on
the Closing Date), Administrative Agent shall make the proceeds of such Loans
available to Company on the applicable Funding Date by causing an amount of
same day funds in Dollars equal to the proceeds of all such Loans received by
Administrative Agent from Lenders (and all Loans required to be made by Wells
Fargo on the Closing Date as a result of Defaulted Loans) to be credited to the
account of Company at the Funding and Payment Office; provided, however,
that if an Escrow is established pursuant to subsection 4.2N(iii),
Administrative Agent, shall deposit in the Escrow proceeds of the Tranche B
Term Loans made on the Closing Date in an amount equal to the Cash Merger
Consideration that would have been payable in respect of all Dissenting Common
Stock (the “Escrowed Term Loans”).  The Escrowed Term Loans shall be released
from the Escrow on the earlier of (i) the settlement or resolution of the
appraisal proceedings with respect to any particular holder of Dissenting
Common Stock in proportion to the amount of Dissenting Common Stock for which
such resolution or settlement relates and (ii) the one year anniversary of
the Closing Date.

 

Unless
Administrative Agent shall have been notified by any Lender prior to a Funding
Date that such Lender does not intend to make available to Administrative Agent
the amount of such Lender’s Loan requested on such Funding Date, Administrative
Agent may 

 

42

 

assume that such Lender has made such amount available
to Administrative Agent on such Funding Date and Administrative Agent may, in
its sole discretion, but, except in the case of Defaulted Loans, shall not be
obligated to, make available to Company a corresponding amount on such Funding
Date.  If such corresponding amount is
not in fact made available to Administrative Agent by such Lender, Administrative
Agent shall be entitled to recover such corresponding amount on demand from
such Lender together with interest thereon, for each day from such Funding Date
until the date such amount is paid to Administrative Agent, at the customary
rate set by Administrative Agent for the correction of errors among banks for
three Business Days and thereafter at the Base Rate.  If such Lender does not pay such
corresponding amount forthwith upon Administrative Agent’s demand therefor,
Administrative Agent shall promptly notify Company and Company shall
immediately pay such corresponding amount to Administrative Agent together with
interest thereon, for each day from such Funding Date until the date such
amount is paid to Administrative Agent, at the rate payable under this
Agreement for Base Rate Loans; provided that this sentence shall not
apply to Defaulted Loans.  Nothing in
this subsection 2.1C shall be deemed to relieve any Lender from its
obligation to fulfill its Commitments hereunder or to prejudice any rights that
Company may have against any Lender as a result of any default by such Lender
hereunder.

 

D.            The Register. 
Administrative Agent, acting for these purposes solely as an agent of
Company (it being acknowledged that Administrative Agent, in such capacity, and
its officers, directors, employees, agent and affiliates shall constitute
Indemnitees under subsection 10.3), shall maintain (and make available for
inspection by Company and Lenders upon reasonable prior notice at reasonable
times) at its address referred to in subsection 10.8 a register for the
recordation of, and shall record, the names and addresses of Lenders and, to
the extent Administrative Agent has received notice of participation,
Participants and the respective amounts of the Tranche A Term Loan Commitment,
Tranche B Term Loan Commitment, Revolving Loan Commitment, Swing Line Loan
Commitment, Tranche A Term Loan, Tranche B Term Loan, Revolving Loans and Swing
Line Loans of each Lender and, to the extent Administrative Agent has received
notice of participation, Participant from time to time (the “Register”).  Company,
Administrative Agent and Lenders shall, absent manifest error, deem and treat
the Persons listed as Lenders in the Register as the holders and owners of the
corresponding Commitments and Loans listed therein for all purposes hereof; all
amounts owed with respect to any Commitment or Loan shall be owed to the Lender
listed in the Register as the owner thereof; and any request, authority or
consent of any Person who, at the time of making such request or giving such
authority or consent, is listed in the Register as a Lender shall be conclusive
and binding on any subsequent holder, assignee or transferee of the
corresponding Commitments or Loans.  Each
Lender shall record on its internal records the amount of its Loans and
Commitments and each payment in respect hereof, and any such recordation shall
be conclusive and binding on Company, absent manifest error, subject to the
entries in the Register, which shall, absent manifest error, govern in the
event of any inconsistency with any Lender’s records.  Failure to make any recordation in the
Register or in any Lender’s records, or any error in such recordation, shall
not affect any Loans or Commitments or any Obligations in respect of any Loans.

 

43

 

E.             Optional Notes. 
If so requested by any Lender by written notice to Company (with a copy
to Administrative Agent) at least two Business Days prior to the Closing Date
or at any time thereafter, Company shall execute and deliver to such Lender
(and/or, if applicable and if so specified in such notice, to any Person who is
an assignee of such Lender pursuant to subsection 10.1) on the Closing
Date (or, if such notice is delivered after the Closing Date, promptly after
Company’s receipt of such notice) a promissory note or promissory notes to
evidence such Lender’s Tranche A Term Loan, Tranche B Term Loan, Revolving
Loans or Swing Line Loans, substantially in the form of Exhibit IV,
Exhibit V, Exhibit VI or Exhibit VII
annexed hereto, respectively, with appropriate insertions.

 

2.2          Interest on the Loans.

 

A.            Rate of Interest. 
Subject to the provisions of subsections 2.6 and 2.7, each Term Loan and
each Revolving Loan shall bear interest on the unpaid principal amount thereof
from the date made through maturity (whether by acceleration or otherwise) at a
rate determined by reference to the Base Rate or the Eurodollar Rate.  Subject to the provisions of
subsection 2.7, each Swing Line Loan shall bear interest on the unpaid
principal amount thereof from the date made through maturity (whether by
acceleration or otherwise) at a rate determined by reference to the Base
Rate.  The applicable basis for
determining the rate of interest with respect to any Term Loan or any Revolving
Loan shall be selected by Company initially at the time a Notice of Borrowing
is given with respect to such Loan pursuant to subsection 2.1B (subject to
the last sentence of subsection 2.1B), and the basis for determining the
interest rate with respect to any Term Loan or any Revolving Loan may be
changed from time to time pursuant to subsection 2.2D (subject to the last
sentence of subsection 2.1B).  If on any
day a Term Loan or Revolving Loan is outstanding with respect to which notice
has not been delivered to Administrative Agent in accordance with the terms of
this Agreement specifying the applicable basis for determining the rate of
interest, then for that day that Loan shall bear interest determined by
reference to the Base Rate.

 

(i)            Subject to the provisions of subsections
2.2E, 2.2G and 2.7, the Tranche A Term Loans and the Revolving Loans shall bear
interest through maturity as follows:

 

(a)           if a Base Rate Loan, then at the sum of
the Base Rate plus the Base Rate Margin set forth in the table below
opposite the applicable Consolidated Leverage Ratio for the four Fiscal Quarter
period for which the applicable Pricing Certificate has been delivered pursuant
to subsection 6.1(v); or

 

(b)           if a Eurodollar Rate Loan, then at the
sum of the Eurodollar Rate plus the Eurodollar Rate Margin set forth in
the table below opposite the applicable Consolidated Leverage Ratio for the
four Fiscal Quarter period for which the applicable Pricing Certificate has
been delivered pursuant to subsection 6.1(v):

 

44

 

	
   

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  	
  Eurodollar Rate

  Margin

  	
   

  	
  Base

  Rate Margin

  	
   

  
	
  Greater than

  	
   

  	
  3.25:1.00

  	
   

  	
  3.50

  	
  %

  	
  2.50

  	
  %

  
	
  Greater than but
  less than or equal to

  	
   

  	
  2.25:1.00

  3.25:1.00

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  Greater than but
  less than or equal to

  	
   

  	
  1.75:1.00

  2.25:1.00

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  
	
  Less than

  	
   

  	
  1.75:1.00

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  

 

provided that, for the first two full Fiscal Quarters after
the Closing Date, the applicable margin for Tranche A Term Loans and Revolving
Loans that are Eurodollar Rate Loans shall be 3.50% per annum and for Tranche A
Term Loans and Revolving Loans that are Base Rate Loans shall be 2.50% per
annum.

 

(ii)           Subject to the provisions of subsections
2.2E, 2.2G and 2.7, the Tranche B Term Loans shall bear interest through
maturity as follows:

 

(a)           if a Base Rate Loan, then at the sum of
the Base Rate plus the Base Rate Margin set forth in the table below
opposite the applicable Consolidated Leverage Ratio for the four Fiscal Quarter
period for which the applicable Pricing Certificate has been delivered pursuant
to subsection 6.1(v); or

 

(b)           if a Eurodollar Rate Loan, then at the
sum of the Eurodollar Rate plus the Eurodollar Rate Margin set forth in
the table below opposite the applicable Consolidated Leverage Ratio for the
four Fiscal Quarter period for which the applicable Pricing Certificate has
been delivered pursuant to subsection 6.1(v):

 

	
   

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  	
  Eurodollar Rate

  Margin

  	
   

  	
  Base

  Rate Margin

  	
   

  
	
  Greater than or
  equal to

  	
   

  	
  2.50:1.00

  	
   

  	
  4.50

  	
  %

  	
  3.50

  	
  %

  
	
  Less than

  	
   

  	
  2.50:1.00

  	
   

  	
  4.25

  	
  %

  	
  3.25

  	
  %

  

 

provided that, for the first two full Fiscal Quarters after
the Closing Date, the applicable margin for Tranche B Term Loans that are
Eurodollar Rate Loans shall be 4.50% per annum and for Tranche B Term Loans
that are Base Rate Loans shall be 3.50% per annum.

 

(iii)          Upon delivery of the Pricing Certificate
by Company to Administrative Agent pursuant to subsection 6.1(v), the Base
Rate Margin and the Eurodollar Rate 

 

45

 

Margin shall
automatically be adjusted, such adjustment to become effective on the third
succeeding Business Day following the receipt by Administrative Agent of such
Pricing Certificate (subject to the provisions of the foregoing clauses (i) and
(ii)); provided that, if at any time a Pricing Certificate is not
delivered at the time required pursuant to subsection 6.1(v), from the
time such Pricing Certificate was required to be delivered until the third
Business Day succeeding delivery of such Pricing Certificate, the applicable
margins shall be the maximum percentage amount for the relevant Loan set forth
above.

 

(iv)          Subject to the provisions of subsections
2.2E, 2.2G and 2.7, the Swing Line Loans shall bear interest through maturity
at the sum of the Base Rate plus the applicable Base Rate Margin for
Revolving Loans minus a rate equal to the commitment fee percentage then
in effect as determined pursuant to subsection 2.3A.

 

B.            Interest Periods. 
In connection with each Eurodollar Rate Loan, Company may, pursuant to
the applicable Notice of Borrowing or Notice of Conversion/Continuation, as the
case may be, select an interest period (each an “Interest
Period”) to be applicable to such Loan, which Interest Period shall
be, at Company’s option, a one, two, three or six month period; provided
that:

 

(i)            the initial Interest Period for any
Eurodollar Rate Loan shall commence on the Funding Date in respect of such
Loan, in the case of a Loan initially made as a Eurodollar Rate Loan, or on the
date specified in the applicable Notice of Conversion/Continuation, in the case
of a Loan converted to a Eurodollar Rate Loan;

 

(ii)           in the case of immediately successive
Interest Periods applicable to a Eurodollar Rate Loan continued as such
pursuant to a Notice of Conversion/Continuation, each successive Interest
Period shall commence on the day on which the next preceding Interest Period
expires;

 

(iii)          if
an Interest Period would otherwise expire on a day that is not a Business Day,
such Interest Period shall expire on the next succeeding Business Day; provided
that, if any Interest Period would otherwise expire on a day that is not a
Business Day but is a day of the month after which no further Business Day
occurs in such month, such Interest Period shall expire on the next preceding
Business Day;

 

(iv)          any Interest Period that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall, subject to clause (v) of this subsection 2.2B, end on
the last Business Day of a calendar month;

 

(v)           no Interest Period with respect to any
portion of the Tranche A Term Loans shall extend beyond the Tranche A Term Loan
Maturity Date, no Interest Period with respect to any portion of the Tranche B
Term Loans shall extend beyond the Tranche B Term Loan Maturity Date, and no
Interest Period with respect to any portion 

 

46

 

of
the Revolving Loans shall extend beyond the Revolving Loan Commitment
Termination Date;

 

(vi)          no Interest Period with respect to any
type of Term Loans shall extend beyond a date on which Company is required to
make a scheduled payment of principal of such type of Term Loans, unless the
sum of (a) the aggregate principal amount of such type of Term Loans that
are Base Rate Loans plus (b) the aggregate principal amount of such
type of Term Loans that are Eurodollar Rate Loans with Interest Periods
expiring on or before such date equals or exceeds the principal amount required
to be paid on such type of Term Loans on such date;

 

(vii)         there
shall be no more than ten Interest Periods outstanding at any time; and

 

(viii)        in
the event Company fails to specify an Interest Period for any Eurodollar Rate
Loan in the applicable Notice of Borrowing or Notice of
Conversion/Continuation, Company shall be deemed to have selected an Interest
Period of one month.

 

C.            Interest Payments. 
Subject to the provisions of subsection 2.2E, interest on each Loan
shall be payable in arrears on and to each Interest Payment Date applicable to
that Loan, upon any prepayment of that Loan (to the extent accrued on the
amount being prepaid) and at maturity of that Loan (including final maturity of
that Loan); provided that, in the event any Swing Line Loans or any
Revolving Loans that are Base Rate Loans are prepaid pursuant to
subsection 2.4B(i), interest accrued on such Loans through the date of
such prepayment shall be payable on the next succeeding Interest Payment Date
applicable to Base Rate Loans (or, if earlier, at final maturity).

 

D.            Conversion or Continuation. 
Subject to the provisions of subsection 2.6, Company shall have the
option (i) to convert at any time all or any part of its outstanding Term
Loans or Revolving Loans equal to $2,000,000 and multiples of $100,000 in
excess of that amount from Loans bearing interest at a rate determined by
reference to one basis to Loans bearing interest at a rate determined by
reference to an alternative basis or (ii) upon the expiration of any
Interest Period applicable to a Eurodollar Rate Loan, to continue all or any
portion of such Loan equal to $2,000,000 and multiples of $100,000 in excess of
that amount as a Eurodollar Rate Loan; provided,  however, that a
Eurodollar Rate Loan may only be converted into a Base Rate Loan on the
expiration date of an Interest Period applicable thereto.

 

Company
shall deliver a duly executed Notice of Conversion/Continuation to
Administrative Agent no later than 11:00 a.m. (San Francisco time) at
least one Business Day in advance of the proposed conversion date (in the case
of a conversion to a Base Rate Loan) and at least three Business Days in
advance of the proposed conversion/continuation date (in the case of a
conversion to, or a continuation of, a Eurodollar Rate Loan).  In lieu of delivering a Notice of
Conversion/Continuation, Company may give Administrative Agent telephonic
notice by the required time of any proposed conversion/continuation under this
subsection 2.2D; provided that such notice shall be promptly
confirmed in writing by delivery of a duly executed Notice of 

 

47

 

Conversion/Continuation to Administrative Agent on or
before the proposed conversion/continuation date.  Administrative Agent shall notify each Lender
of any Loan subject to a Notice of Conversion/Continuation.

 

E.             Default Rate. 
From and after the occurrence and during the continuation of any Event
of Default under subsection 8.1, 8.3 (with respect to failure of Company to
perform or comply with any term or condition contained in Section 7 of
this Agreement), 8.6 or 8.7, upon election by Administrative Agent or Requisite
Lenders, the outstanding principal amount of all Loans and, to the extent
permitted by applicable law, any interest payments thereon not paid when due and
any fees and other amounts then due and payable hereunder, shall, commencing
with the date of the occurrence of such Event of Default, bear interest
(including post-petition interest in any proceeding under the Bankruptcy Code
or other applicable bankruptcy laws) payable upon demand by Administrative
Agent at a rate that is 2% per annum in excess of the interest rate otherwise
payable under this Agreement with respect to the applicable Loans (or, in the
case of any such fees and other amounts, at a rate which is 2% per annum in
excess of the interest rate otherwise payable under this Agreement for Base
Rate Loans that are Revolving Loans); provided that, in the case of
Eurodollar Rate Loans, upon the expiration of the Interest Period in effect at
the time any such increase in interest rate is effective such Eurodollar Rate
Loans shall thereupon become Base Rate Loans and shall thereafter bear interest
payable upon demand at a rate which is 2% per annum in excess of the interest
rate otherwise payable under this Agreement for Base Rate Loans.  Payment or acceptance of the increased rates
of interest provided for in this subsection 2.2E is not a permitted
alternative to timely payment and shall not constitute a waiver of any Event of
Default or otherwise prejudice or limit any rights or remedies of
Administrative Agent or any Lender.

 

F.             Computation of Interest. 
Interest on the Loans shall be computed (i) in the case of Base
Rate Loans, on the basis of a 365-day or 366-day year, as the case may be, and (ii) in
the case of Eurodollar Rate Loans, on the basis of a 360-day year, in each case
for the actual number of days elapsed in the period during which it
accrues.  In computing interest on any
Loan, the date of the making of such Loan or the first day of an Interest
Period applicable to such Loan or, with respect to a Base Rate Loan being
converted from a Eurodollar Rate Loan, the date of conversion of such
Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall be
included, and the date of payment of such Loan or the expiration date of an
Interest Period applicable to such Loan or, with respect to a Base Rate Loan
being converted to a Eurodollar Rate Loan, the date of conversion of such Base
Rate Loan to such Eurodollar Rate Loan, as the case may be, shall be excluded; provided
that if a Loan is repaid on the same day on which it is made, one day’s
interest shall be paid on that Loan.

 

G.            Maximum Rate. 
Notwithstanding the foregoing provisions of this subsection 2.2, in
no event shall the rate of interest payable by Company with respect to any Loan
exceed the maximum rate of interest permitted to be charged under applicable
law.

 

2.3        Fees.

 

A.            Commitment Fees. 
Company agrees to pay to Administrative Agent, for distribution to each
Revolving Lender in proportion to that Lender’s Pro Rata Share, 

 

48

 

commitment fees for the period from and including the
Closing Date to and excluding the Revolving Loan Commitment Termination Date
equal to the average of the daily excess of the Revolving Loan Commitment
Amount over the sum of (i) the aggregate principal amount of outstanding
Revolving Loans (but not any outstanding Swing Line Loans) plus (ii) the
Letter of Credit Usage multiplied by a rate per annum equal to the
percentage set forth in the table below opposite the Consolidated Leverage
Ratio for the four Fiscal Quarter period for which the applicable Pricing
Certificate has been delivered pursuant to subsection 6.1(v):

 

	
   

  	
   

  	
  Consolidated
  Leverage Ratio

  	
   

  	
  Commitment Fee

  Percentage

  	
   

  
	
  Greater than

  	
   

  	
  3.25:1.00

  	
   

  	
  0.50

  	
  %

  
	
  Greater than but
  less than or equal to

  	
   

  	
  2.25:1.00 

  3.25:1.00

  	
   

  	
  0.40

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than but
  less than or equal to

  	
   

  	
  1.75:1.00 

  2.25:1.00

  	
   

  	
  0.30

  	
  %

  
	
  Less than

  	
   

  	
  1.75:1.00

  	
   

  	
  0.25

  	
  %

  

 

such commitment fees to be calculated on the basis of
a 360-day year and the actual number of days elapsed and to be payable
quarterly in arrears on March 31, June 30, September 30 and December 31
of each year, commencing on the first such date to occur after the Closing
Date, and on the Revolving Loan Commitment Termination Date; provided
that for the first two full Fiscal Quarters after the Closing Date, the
applicable commitment fee percentage shall be 0.50% per annum.  Upon delivery of the Pricing Certificate by
Company to Administrative Agent pursuant to subsection 6.1(v), the
applicable commitment fee percentage shall automatically be adjusted, such
adjustment to become effective on the third succeeding Business Day following
the receipt by Administrative Agent of such Pricing Certificate; provided
that, if at any time a Pricing Certificate is not delivered at the time
required pursuant to subsection 6.1(v), from the time such Pricing
Certificate was required to be delivered until delivery of such Pricing
Certificate, the applicable commitment fee percentage shall be the maximum
percentage amount set forth above.

 

B.            Other Fees. 
Company agrees to pay to Administrative Agent such fees in the amounts
and at the times separately agreed upon between Company and Administrative Agent.

 

49

 

2.4          Repayments, Prepayments
and Reductions of Revolving Loan Commitment Amount; General Provisions
Regarding Payments; Application of Proceeds of Collateral and Payments Under
Guaranty.

 

A.            Scheduled Payments of Term Loans.

 

(i)            Scheduled Payments of Tranche A Term
Loans.  Company shall make principal payments on the
Tranche A Term Loans in installments on the dates and in the amounts set forth
below:

 

 

	
  Date

  	
   

  	
  Scheduled Repayment

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2008 

  	
   

  	
  $

  	
  937,500 

  	
   

  
	
  March 31,
  2009 

  	
   

  	
  $

  	
  937,500 

  	
   

  
	
  June 30,
  2009 

  	
   

  	
  $

  	
  937,500 

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  937,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2009 

  	
   

  	
  $

  	
  1,406,250 

  	
   

  
	
  March 31,
  2010 

  	
   

  	
  $

  	
  1,406,250 

  	
   

  
	
  June 30,
  2010

  	
   

  	
  $

  	
  1,406,250

  	
   

  
	
  September 30,
  2010

  	
   

  	
  $

  	
  1,406,250

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2010 

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  March 31,
  2011 

  	
   

  	
  $

  	
  1,875,000 

  	
   

  
	
  June 30,
  2011 

  	
   

  	
  $

  	
  1,875,000 

  	
   

  
	
  September 30,
  2011

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2011

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  March 31,
  2012 

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  June 30,
  2012 

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  September 30,
  2012

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2012 

  	
   

  	
  $

  	
  2,343,750

  	
   

  
	
  March 31,
  2013 

  	
   

  	
  $

  	
  2,343,750

  	
   

  
	
  June 30,
  2013

  	
   

  	
  $

  	
  2,343,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tranche A Term
  Loan Maturity Date

  	
   

  	
  $

  	
  43,593,750

  	
   

  

 

provided that the scheduled installments of
principal of the Tranche A Term Loans set forth above shall be reduced in
connection with any voluntary or mandatory prepayments of the Tranche A Term
Loans in accordance with subsection 2.4B(iv); and provided, further
that the Tranche A Term Loans and all other amounts owed hereunder with respect
to the Tranche A Term Loans shall be paid in full no later than the Tranche A
Term Loan Maturity Date, and the final installment payable by Company in
respect of the 

 

 

50

 

Tranche A Term
Loans on such date shall be in an amount, if such amount is different from that
specified above, sufficient to repay all amounts owing by Company under this
Agreement with respect to the Tranche A Term Loans.

 

(ii)           Scheduled Payments of Tranche B Term
Loans.  Company shall make principal payments on the
Tranche B Term Loans in installments on the dates and in the amounts set forth
below:

 

51

 

	
  Date

  	
   

  	
  Scheduled Repayment

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2008 

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  March 31,
  2009 

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  June 30,
  2009 

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2009 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  March 31,
  2010 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  June 30,
  2010

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  September 30,
  2010

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2010 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  March 31,
  2011 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  June 30,
  2011 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  September 30,
  2011

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2011 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  March 31,
  2012 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  June 30,
  2012 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  September 30,
  2012

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2012 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  March 31,
  2013 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  June 30,
  2013 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  September 30,
  2013

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2013 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  March 31,
  2014 

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
  June 30,
  2014

  	
   

  	
  $

  	
  750,000 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tranche B Term
  Loan Maturity Date

  	
   

  	
  $

  	
  282,750,000

  	
   

  

 

provided that the scheduled installments of
principal of the Tranche B Term Loans set forth above shall be reduced in
connection with any voluntary or mandatory prepayments of the Tranche B Term
Loans in accordance with subsection 2.4B(iv); and provided, further
that the Tranche B Term Loans and all other amounts owed hereunder with 

 

52

 

respect to the
Tranche B Term Loans shall be paid in full no later than the Tranche B Term
Loan Maturity Date, and the final installment payable by Company in respect of
the Tranche B Term Loans on such date shall be in an amount, if such amount is
different from that specified above, sufficient to repay all amounts owing by
Company under this Agreement with respect to the Tranche B Term Loans.

 

B.            Prepayments and Unscheduled
Reductions in Revolving Loan Commitment Amount.

 

(i)            Voluntary Prepayments. 
Company may, upon written or telephonic notice to Administrative Agent
on or prior to 11:00 a.m. (San Francisco time) on the date of prepayment,
which notice, if telephonic, shall be promptly confirmed in writing, at any
time and from time to time prepay any Swing Line Loan on any Business Day in
whole or in part in an aggregate minimum amount of $500,000 and multiples of
$100,000 in excess of that amount. 
Company may, upon not less than one Business Day’s prior written or
telephonic notice, in the case of Base Rate Loans, and three Business Days’
prior written or telephonic notice, in the case of Eurodollar Rate Loans, in
each case given to Administrative Agent by 11:00 a.m. (San Francisco time)
on the date required and, if given by telephone, promptly confirmed in writing
to Administrative Agent, who will promptly notify each Lender whose Loans are
to be prepaid of such prepayment, at any time and from time to time prepay any
Term Loans or Revolving Loans on any Business Day in whole or in part in an
aggregate minimum amount of $1,000,000 and multiples of $100,000 in excess of
that amount.  All written notices
delivered pursuant to this subsection 2.4B(i) shall be in the form of a
Notice of Prepayment and all notices whether written or telephonic delivered
pursuant to this subsection 2.4B(i) shall be irrevocable, and once given
as aforesaid, the principal amount of the Loans specified in such notice shall
become due and payable on the prepayment date specified therein.  Any such voluntary prepayment shall be
applied as specified in subsection 2.4B(iv).

 

(ii)           Loan Call Protection. 
In the event that the Tranche B Term Loans are repaid or prepaid in
whole or in part on or prior to the second anniversary of the Closing Date,
other than prepayments pursuant to subsections 2.4B(iv)(a), (b), (c) and
(e), Company shall pay to Lenders having any Tranche B Term Loan Exposure a
prepayment premium on the amount repaid or prepaid as follows:

 

	
  Relevant Period

  	
   

  	
  Prepayment premium as a percentage of the

  amount so repaid or prepaid

  	
   

  
	
  On or prior to
  the first anniversary of the Closing Date

  	
   

  	
  2

  	
  %

  
	
  On or prior to
  the second anniversary of the Closing Date

  	
   

  	
  1

  	
  %

  

 

53

 

(iii)          Voluntary
Reductions of Revolving Loan Commitments. 
Company may, upon not less than three Business Days’ prior written or
telephonic notice confirmed in writing to Administrative Agent, or upon such
lesser number of days’ prior written or telephonic notice, as determined by
Administrative Agent in its sole discretion, at any time and from time to time,
terminate in whole or permanently reduce in part, without premium or penalty,
the Revolving Loan Commitment Amount in an amount up to the amount by which the
Revolving Loan Commitment Amount exceeds the Total Utilization of Revolving
Loan Commitments at the time of such proposed termination or reduction; provided
that any such partial reduction of the Revolving Loan Commitment Amount shall
be in an aggregate minimum amount of $3,000,000 and multiples of $1,000,000 in
excess of that amount.  Company’s notice
to Administrative Agent (who will promptly notify each Revolving Lender of such
notice) shall designate the date (which shall be a Business Day) of such
termination or reduction and the amount of any partial reduction, and such
termination or reduction shall be effective on the date specified in Company’s
notice and shall reduce the amount of the Revolving Loan Commitment of each
Revolving Lender proportionately to its Pro Rata Share.  Any such voluntary reduction of the Revolving
Loan Commitment Amount shall be applied as specified in
subsection 2.4B(iv).

 

(iv)          Mandatory
Prepayments and Mandatory Reductions of Revolving Loan Commitments.  The Loans shall be prepaid and/or the
Revolving Loan Commitment Amount shall be permanently reduced in the amounts
and under the circumstances set forth below, all such prepayments and/or
reductions to be applied as set forth below or as more specifically provided in
subsection 2.4B(v) and subsection 2.4D:

 

(a)           Prepayments
and Reductions From Net Asset Sale Proceeds.  No later than the fifth Business Day
following the date of receipt by Company or any Subsidiary Guarantor of any Net
Asset Sale Proceeds in respect of any Asset Sale, Company shall either (1) prepay
the Loans and/or the Revolving Loan Commitment Amount shall be permanently
reduced in an aggregate amount equal to such Net Asset Sale Proceeds or (2), so
long as no Event of Default shall have occurred and be continuing, deliver to
Administrative Agent an Officer’s Certificate setting forth that portion
of such Net Asset Sale Proceeds that, subject to subsection 7.3, Company or
such Subsidiary intends to reinvest in equipment or other productive assets
(directly or through the acquisition of Capital Stock of a Person that owns
such assets) within 360 days of such date of receipt, and Company shall, or
shall cause one or more of its Subsidiaries to (A) apply such portion to
such reinvestment purposes or (B) no later than 360 days after receipt of
such Net Asset Sale Proceeds make a prepayment of the Loans (and/or the
Revolving Loan Commitment Amount shall be permanently reduced) in an amount
equal to such Net Asset Sale Proceeds that are not so reinvested.

 

(b)           Prepayments
and Reductions from Net Insurance/Condemnation Proceeds.  No later than the fifth Business Day
following the following the date of receipt by Administrative Agent or by
Company or any Subsidiary Guarantor of any Net Insurance/Condemnation Proceeds
that are required to be applied to 

 

54

 

prepay the Loans
and/or reduce the Revolving Loan Commitment Amount pursuant to the provisions
of subsection 6.4C, Company shall prepay the Loans and/or the Revolving
Loan Commitment Amount shall be permanently reduced in an aggregate amount
equal to the amount of such Net Insurance/Condemnation Proceeds.

 

(c)           Prepayments
and Reductions Due to Issuance of Equity Securities.  No later than the fifth Business Day following
the date of receipt of the Net Securities Proceeds from the issuance of any
Capital Stock of Holdings, Company or any Domestic Subsidiary of Company after
the Closing Date (excluding the issuance of any such Capital Stock to United
Online or its Subsidiaries or to any Loan Party or to management, directors or
employees of Company or Holdings or any capital contributions to Company,
Holdings or Subsidiaries of Company by any holder of Capital Stock thereof
after the Closing Date), Company shall prepay the Loans and/or the Revolving
Loan Commitment Amount shall be permanently reduced in an aggregate amount
equal to 50% of such Net Securities Proceeds.

 

(d)           Prepayments
and Reductions Due to Issuance of Indebtedness.  On the date of receipt of the Net Securities
Proceeds from the issuance of any Indebtedness of Holdings, Company or any
Subsidiary Guarantor after the Closing Date, other than Indebtedness permitted
pursuant to subsection 7.1, Company shall prepay the Loans and/or the
Revolving Loan Commitment Amount shall be permanently reduced in an aggregate
amount equal to such Net Securities Proceeds.

 

(e)           Prepayments
and Reductions from Consolidated Excess Cash Flow.  In the event that there shall be Consolidated
Excess Cash Flow for any Fiscal Year (commencing with Fiscal Year 2009 (which,
for the avoidance of doubt, shall be the year ended December 31, 2009 if
Company changes its Fiscal Year end from June 30)), Company shall, no
later than 105 days after the end of such Fiscal Year, prepay the Loans and/or
the Revolving Loan Commitment Amount shall be permanently reduced in an
aggregate amount equal to (i) 75% of such Consolidated Excess Cash Flow minus
(ii) voluntary prepayments of the Loans (excluding repayments of Revolving
Loans or Swingline Loans, except to the extent the Revolving Commitments are
permanently reduced in connection with such repayments); provided that
for any Fiscal Year in which the Consolidated Leverage Ratio as of the last day
of such Fiscal Year is less than 3.00:1.00, the amount in clause (i) shall
be reduced to 50%; provided  further that for any Fiscal Year in
which the Consolidated Leverage Ratio as of the last day of such Fiscal Year is
less than 2.00:1.00, no prepayment shall be required under this subsection
2.4B(iii)(e).

 

(f)            Calculations
of Net Proceeds Amounts; Additional Prepayments and Reductions Based on
Subsequent Calculations. 
Concurrently with any prepayment of the Loans and/or reduction of the
Revolving Loan Commitment Amount pursuant to subsections 2.4B(iii)(a)-(e),
Company shall deliver to 

 

55

 

Administrative
Agent an Officer’s Certificate demonstrating the calculation of the amount of
the applicable Net Asset Sale Proceeds, Net Insurance/Condemnation Proceeds,
Net Securities Proceeds, or Consolidated Excess Cash Flow, as the case may be,
that gave rise to such prepayment and/or reduction.  In the event that Company shall subsequently
determine that the actual amount was greater than the amount set forth in such
Officer’s Certificate, Company shall promptly make an additional prepayment of
the Loans (and/or, if applicable, the Revolving Loan Commitment Amount shall be
permanently reduced) in an amount equal to the amount of such excess, and
Company shall concurrently therewith deliver to Administrative Agent an Officer’s
Certificate demonstrating the derivation of the additional amount resulting in
such excess.

 

(g)           Prepayments
Due to Reductions or Restrictions of Revolving Loan Commitment Amount.  Company shall from time to time prepay first
the Swing Line Loans and second the Revolving Loans (and, after
prepaying all Revolving Loans, Cash collateralize any outstanding Letters of
Credit by depositing the requisite amount in the Collateral Account) to the
extent necessary so that the Total Utilization of Revolving Loan Commitments
shall not at any time exceed the Revolving Loan Commitment Amount then in
effect.  At such time as the Total
Utilization of Revolving Loan Commitments shall be equal to or less than the
Revolving Loan Commitment Amount, if no Event of Default has occurred and is
continuing, to the extent any Cash collateral was provided by Company and has
not been applied to any Obligations as provided in the Security Agreement, such
amount may, at the request of Company, be released to Company.

 

(v)           Application
of Prepayments and Unscheduled Reductions of Revolving Loan Commitment Amount.

 

(a)           Application
of Voluntary Prepayments by Type of Loans and Order of Maturity.  Any voluntary prepayments pursuant to subsection 2.4B(i) shall
be applied as specified by Company in the applicable Notice of Prepayment; provided,
however, that voluntary prepayments applied exclusively to the Tranche A
Term Loans or among the Tranche A Term Loans and the Tranche B Term Loans on a
non-pro rata basis shall not exceed $5,000,000 during any Fiscal Year (the “Non-Pro Rata Basket”) (with the unused amount of the Non-Pro
Rata Basket in any Fiscal Year being available for use in succeeding Fiscal
Years in an amount not to exceed $15,000,000 in the aggregate for all such
amounts carried forward (it being understood that, if $15,000,000 were carried
forward to any Fiscal Year, $20,000,000 would be available in the Non-Pro Rata
Basket in such Fiscal Year)).  In the
event Company fails to specify the Loans to which any such prepayment shall be
applied, such prepayment shall be applied first to repay outstanding
Swing Line Loans to the full extent thereof, second to repay outstanding
Revolving Loans to the full extent thereof, and third to repay
outstanding Term Loans to the full extent thereof and to prepay the Tranche A
Term Loans and the Tranche B Term Loans on a pro rata basis (in accordance with
the respective outstanding principal 

 

56

 

amounts
thereof).  Any voluntary prepayments of
the Term Loans pursuant to subsection 2.4B(i) shall be applied to
reduce the scheduled installments of principal thereof set forth in
subsection 2.4A(i) or 2.4A(ii), as the case may be, (i) first,
in forward chronological order for the next succeeding 12 months and (ii) thereafter,
on a pro rata basis (in accordance with the respective outstanding principal
amounts thereof).

 

(b)           Application
of Mandatory Prepayments by Type of Loans. 
Except as provided in subsection 2.4D, any amount required to be
applied as a mandatory prepayment of the Loans and/or a reduction of the
Revolving Loan Commitment Amount pursuant to subsections 2.4B(iv)(a)-(f) shall
be applied first to prepay the Term Loans to the full extent thereof, second,
to the extent of any remaining portion of such amount, to prepay the Swing Line
Loans to the full extent thereof and to permanently reduce the Revolving Loan
Commitment Amount by the amount of such prepayment, third, to the extent
of any remaining portion of such amount, to prepay the Revolving Loans to the
full extent thereof and to further permanently reduce the Revolving Loan
Commitment Amount by the amount of such prepayment, and fourth, to the
extent of any remaining portion of such amount, to further permanently reduce
the Revolving Loan Commitment Amount to the full extent thereof, provided that
to the extent any such reduction of the Revolving Loan Commitment Amount would
result in the Total Utilization of Revolving Loan Commitments exceeding the
Revolving Loan Commitment Amount, Company promptly shall Cash collateralize
outstanding Letters of Credit by depositing the requisite amount in the
Collateral Account.  Any mandatory
reduction of the Revolving Loan Commitment Amount pursuant to this subsection 2.4B
shall be in proportion to each Revolving Lender’s Pro Rata Share.

 

(c)           Application
of Mandatory Prepayments of Term Loans to Tranche A Term Loans and Tranche B
Term Loans and the Scheduled Installments of Principal Thereof.  Except as provided in subsection 2.4D,
any mandatory prepayments of the Term Loans pursuant to subsection 2.4B(iii) shall
be applied to prepay the Tranche A Term Loans and the Tranche B Term Loans on a
pro rata basis (in accordance with the respective outstanding principal amounts
thereof) and shall be applied on a pro rata basis (in accordance with the
respective outstanding principal amounts thereof) to each scheduled installment
of principal of the Tranche A Term Loans or the Tranche B Term Loans, as the
case may be, set forth in subsection 2.4A(i) or 2.4A(ii) that is
unpaid at the time of such prepayment.  
Notwithstanding the foregoing, in the case of any mandatory prepayment
of the Tranche B Term Loans, so long as there are Tranche A Term Loans
outstanding, Lenders of the Tranche B Term Loans may waive the right to receive
the amount of such mandatory prepayment of the Tranche B Term Loans.  If any Lender or Lenders elect to waive the
right to receive the amount of such mandatory prepayment, all of the amount
that otherwise would have been applied to mandatorily prepay the Tranche B Term
Loans of such Lender or Lenders shall 

 

57

 

be applied instead
to the further prepayment of the Tranche A Term Loans and any amount remaining
after such further prepayment of the Tranche A Term Loans may be retained by
Company.

 

(d)           Application
of Prepayments to Base Rate Loans and Eurodollar Rate Loans.  Considering Tranche A Term Loans, Tranche B
Term Loans and Revolving Loans being prepaid separately, any prepayment thereof
shall be applied first to Base Rate Loans to the full extent thereof before
application to Eurodollar Rate Loans, in each case in a manner that minimizes
the amount of any payments required to be made by Company pursuant to
subsection 2.6D.

 

C.            General Provisions Regarding Payments.

 

(i)            Manner
and Time of Payment.  All payments by
Company of principal, interest, fees and other Obligations shall be made in
Dollars in same day funds, without defense, setoff or counterclaim, free of any
restriction or condition, and delivered to Administrative Agent not later than
12:00 noon (San Francisco time) on the date due at the Funding and Payment
Office for the account of Lenders; funds received by Administrative Agent after
that time on such due date shall be deemed to have been paid by Company on the
next succeeding Business Day.  Company
hereby authorizes Administrative Agent to charge its accounts with
Administrative Agent in order to cause timely payment to be made to Administrative
Agent of all principal, interest, fees and expenses due hereunder (subject to
sufficient funds being available in its accounts for that purpose).

 

(ii)           Application
of Payments to Principal and Interest. 
Except as provided in subsection 2.2C, all payments in respect of
the principal amount of any Loan shall include payment of accrued interest on
the principal amount being repaid or prepaid, and all such payments shall be
applied to the payment of interest before application to principal.

 

(iii)          Apportionment
of Payments.  Aggregate payments of
principal and interest shall be apportioned among all outstanding Loans to
which such payments relate, in each case proportionately to Lenders’ respective
Pro Rata Shares.  Administrative Agent
shall promptly distribute to each Lender, at the account specified in the
payment instructions delivered to Administrative Agent by such Lender, its Pro
Rata Share of all such payments received by Administrative Agent and the
commitment fees and letter of credit fees of such Lender, if any, when received
by Administrative Agent pursuant to subsections 2.3 and 3.2.  Notwithstanding the foregoing provisions of
this subsection 2.4C(iii), if, pursuant to the provisions of subsection 2.6C,
any Notice of Conversion/Continuation is withdrawn as to any Affected Lender or
if any Affected Lender makes Base Rate Loans in lieu of its Pro Rata Share of
any Eurodollar Rate Loans, Administrative Agent shall give effect thereto in
apportioning interest payments received thereafter.

 

58

 

(iv)          Payments
on Business Days.  Whenever any
payment to be made hereunder shall be stated to be due on a day that is not a
Business Day, such payment shall be made on the next succeeding Business Day
and such extension of time shall be included in the computation of the payment
of interest hereunder or of the commitment fees hereunder, as the case may be.

 

(v)           Notation
of Payment.  Each Lender agrees that
before disposing of any Note held by it, or any part thereof (other than by
granting participations therein), that Lender will make a notation thereon of
all Loans evidenced by that Note and all principal payments previously made
thereon and of the date to which interest thereon has been paid; provided
that the failure to make (or any error in the making of) a notation of any Loan
made under such Note shall not limit or otherwise affect the obligations of
Company hereunder or under such Note with respect to any Loan or any payments
of principal or interest on such Note.

 

D.            Application of Proceeds of Collateral and Payments after
Event of Default.  Upon
the occurrence and during the continuation of an Event of Default, if requested
by Requisite Lenders, or upon acceleration of the Obligations pursuant to Section 8,
(a) all payments received by Administrative Agent, whether from Company,
Holdings or any Subsidiary Guarantor or otherwise, and (b) all proceeds
received by Administrative Agent in respect of any sale of, collection from, or
other realization upon all or any part of the Collateral under any Collateral
Document may, in the discretion of Administrative Agent, be held by
Administrative Agent as Collateral for, and/or (then or at any time thereafter)
applied in full or in part by Administrative Agent, in each case in the
following order of priority:

 

(i)            to
the payment of all costs and expenses of such sale, collection or other
realization, all other expenses, liabilities and advances made or incurred by
Administrative Agent in connection therewith, and all amounts for which
Administrative Agent is entitled to compensation (including the fees described
in subsection 2.3), reimbursement and indemnification under any Loan
Document and all advances made by Administrative Agent thereunder for the
account of the applicable Loan Party, and to the payment of all costs and
expenses paid or incurred by Administrative Agent in connection with the Loan
Documents, all in accordance with subsections 9.4, 10.2 and 10.3 and the other
terms of this Agreement and the Loan Documents;

 

(ii)           thereafter,
to the payment of all other Obligations and obligations of Loan Parties under
any Hedge Agreement between a Loan Party and a Swap Counterparty for the
ratable benefit of the holders thereof (subject to the provisions of
subsection 2.4C(ii) hereof); and

 

(iii)          thereafter,
to the payment to or upon the order of such Loan Party or to whosoever may be
lawfully entitled to receive the same or as a court of competent jurisdiction
may direct.

 

59

 

2.5                               Use
of Proceeds.

 

A.            Term Loans.  The proceeds of the Term Loans shall be
applied by Company to fund the Acquisition Financing Requirements.

 

B.            Revolving Loans; Swing Line Loans.  The proceeds of any Revolving Loans and any
Swing Line Loans shall be applied by Company for working capital and other
general corporate purposes (including Permitted Acquisitions and any other
Investments permitted hereunder), which may include the making of intercompany
loans to any of Company’s wholly-owned Subsidiaries, in accordance with
subsection 7.1(iv), for their own general corporate purposes.

 

C.            Margin Regulations.  No portion of the proceeds of any borrowing
under this Agreement shall be used by Company or any of its Subsidiaries in any
manner that might cause the borrowing or the application of such proceeds to
violate Regulation U or Regulation X of the Board of Governors of the
Federal Reserve System or any other regulation of such Board or to violate the
Exchange Act, in each case as in effect on the date or dates of such borrowing
and such use of proceeds.

 

2.6                               Special
Provisions Governing Eurodollar Rate Loans.

 

Notwithstanding
any other provision of this Agreement to the contrary, the following provisions
shall govern with respect to Eurodollar Rate Loans as to the matters covered:

 

A.            Determination of Applicable Interest Rate.  On each Interest Rate Determination Date,
Administrative Agent shall determine in accordance with the terms of this
Agreement (which determination shall, absent manifest error, be conclusive and
binding upon all parties) the interest rate that shall apply to the Eurodollar
Rate Loans for which an interest rate is then being determined for the
applicable Interest Period and shall promptly give notice thereof (in writing
or by telephone confirmed in writing) to Company and each applicable Lender.

 

B.            Inability to Determine Applicable Interest Rate.  In the event that Administrative Agent shall
have determined (which determination shall be conclusive and binding upon all
parties hereto), on any Interest Rate Determination Date that by reason of
circumstances affecting the London interbank market adequate and fair means do
not exist for ascertaining the interest rate applicable to such Loans on the
basis provided for in the definition of Eurodollar Rate, Administrative Agent
shall on such date give notice (by telefacsimile or by telephone confirmed in
writing) to Company and each Lender of such determination, whereupon (i) no
Loans may be made as, or converted to, Eurodollar Rate Loans until such time as
Administrative Agent notifies Company and Lenders that the circumstances giving
rise to such notice no longer exist and (ii) any Notice of Borrowing or
Notice of Conversion/Continuation given by Company with respect to the Loans in
respect of which such determination was made shall be deemed to be for a Base
Rate Loan.

 

60

 

C.            Illegality or Impracticability of Eurodollar Rate Loans.  In the event that on any date any Lender
shall have determined (which determination shall be conclusive and binding upon
all parties hereto but shall be made only after consultation with Company and
Administrative Agent) that the making, maintaining or continuation of its
Eurodollar Rate Loans (i) has become unlawful as a result of compliance by
such Lender in good faith with any law, treaty, governmental rule, regulation,
guideline or order (or would conflict with any such treaty, governmental rule,
regulation, guideline or order not having the force of law even though the
failure to comply therewith would not be unlawful) or (ii) has become
impracticable, or would cause such Lender material hardship, as a result of
contingencies occurring after the date of this Agreement which materially and
adversely affect the London interbank market or the position of such Lender in
that market, then, and in any such event, such Lender shall be an “Affected Lender” and it shall on that day give notice (by
telefacsimile or by telephone confirmed in writing) to Company and Administrative
Agent of such determination. 
Administrative Agent shall promptly notify each other Lender of the
receipt of such notice.  Thereafter (a) the
obligation of the Affected Lender to make Loans as, or to convert Loans to,
Eurodollar Rate Loans shall be suspended until such notice shall be withdrawn
by the Affected Lender, (b) to the extent such determination by the
Affected Lender relates to a Eurodollar Rate Loan then being requested by
Company pursuant to a Notice of Borrowing or a Notice of Conversion/Continuation,
the Affected Lender shall make such Loan as (or convert such Loan to, as the
case may be) a Base Rate Loan, (c) the Affected Lender’s obligation to
maintain its outstanding Eurodollar Rate Loans (the “Affected
Loans”) shall be terminated at the earlier to occur of the
expiration of the Interest Period then in effect with respect to the Affected
Loans or when required by law, and (d) the Affected Loans shall
automatically convert into Base Rate Loans on the date of such
termination.  Notwithstanding the
foregoing, to the extent a determination by an Affected Lender as described
above relates to a Eurodollar Rate Loan then being requested by Company
pursuant to a Notice of Borrowing or a Notice of Conversion/Continuation,
Company shall have the option, subject to the provisions of
subsection 2.6D, to rescind such Notice of Borrowing or Notice of
Conversion/Continuation as to all Lenders by giving notice (by telefacsimile or
by telephone confirmed in writing) to Administrative Agent of such rescission
on the date on which the Affected Lender gives notice of its determination as
described above.  Administrative Agent
shall promptly notify each other Lender of the receipt of such notice.  Except as provided in the immediately
preceding sentence, nothing in this subsection 2.6C shall affect the
obligation of any Lender other than an Affected Lender to make or maintain
Loans as, or to convert Loans to, Eurodollar Rate Loans in accordance with the
terms of this Agreement.

 

D.            Compensation For Breakage or Non-Commencement of Interest
Periods.  Company shall
compensate each Lender, upon written request by that Lender pursuant to
subsection 2.8, for all reasonable losses, expenses and liabilities
(including any interest paid by that Lender to lenders of funds borrowed by it
to make or carry its Eurodollar Rate Loans and any loss, expense or liability
sustained by that Lender in connection with the liquidation or re-employment of
such funds but excluding loss of anticipated profit) which that Lender has
sustained: (i) if for any reason (other than a default by that Lender) a
borrowing of any Eurodollar Rate Loan does not occur on a date specified
therefor in a Notice of Borrowing or a telephonic request therefor, or a
conversion to or continuation of any Eurodollar Rate Loan does 

 

61

 

not occur on a date specified therefor in a Notice of
Conversion/Continuation or a telephonic request therefor; (ii) if any
prepayment or other principal payment or any conversion of any of its
Eurodollar Rate Loans (including any prepayment or conversion occasioned by the
circumstances described in subsection 2.6C) occurs on a date prior to the
last day of an Interest Period applicable to that Loan; (iii) if any
prepayment of any of its Eurodollar Rate Loans is not made on any date
specified in a Notice of Prepayment given by Company; or (iv) as a
consequence of any other default by Company in the repayment of its Eurodollar
Rate Loans when required by the terms of this Agreement.

 

E.             Booking of Eurodollar Rate Loans.  Any Lender may make, carry or transfer
Eurodollar Rate Loans at, to, or for the account of any of its branch offices
or the office of an Affiliate of that Lender.

 

F.             Assumptions Concerning Funding of Eurodollar Rate Loans.  Calculation of all amounts payable to a
Lender under this subsection 2.6 and under subsection 2.7A shall be
made as though that Lender had funded each of its Eurodollar Rate Loans through
the purchase of a Eurodollar deposit bearing interest at the rate obtained
pursuant to clause (i) of the definition of Eurodollar Rate in an amount
equal to the amount of such Eurodollar Rate Loan and having a maturity
comparable to the relevant Interest Period, whether or not its Eurodollar Rate
Loans had been funded in such manner.

 

G.            Eurodollar Rate Loans After Default.  From and after the occurrence and during the
continuation of any Event of Default, upon election by Administrative Agent or
Requisite Lenders, (i) Company may not elect to have a Loan be made or maintained
as, or converted to, a Eurodollar Rate Loan after the expiration of any
Interest Period then in effect for that Loan and (ii) subject to the
provisions of subsection 2.6D, any Notice of Borrowing or Notice of
Conversion/Continuation given by Company with respect to a requested borrowing
or conversion/continuation that has not yet occurred shall be deemed to be for
a Base Rate Loan or, if the conditions to making a Loan set forth in
subsection 4.2 cannot then be satisfied, to be rescinded by Company.

 

2.7                               Increased
Costs; Capital Adequacy.

 

A.            Compensation for Increased Costs.  Subject to the provisions of
subsection 2.7B (which shall be controlling with respect to the matters
covered thereby), in the event that any Lender (including any Issuing Lender)
shall determine (which determination shall, absent manifest error, be final and
conclusive and binding upon all parties hereto) that any Change in Law:

 

(i)            subjects
such Lender to any additional tax of any kind whatsoever with respect to this
Agreement or any of its obligations hereunder (including with respect to
issuing or maintaining any Letters of Credit or purchasing or maintaining any
participations therein or maintaining any Commitment hereunder) or any payments
to such Lender of principal, interest, fees or any other amount payable
hereunder (except for the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender);

 

62

 

(ii)           imposes,
modifies or holds applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets held by, or deposits or
other liabilities in or for the account of, or advances or loans by, or other
credit extended by, or any other acquisition of funds by, any office of such
Lender (other than any such reserve or other requirements with respect to
Eurodollar Rate Loans that are reflected in the definition of Eurodollar Rate);
or

 

(iii)          imposes any other condition (other than with
respect to Taxes, which shall be governed solely by subsection 2.7B) on or
affecting such Lender or its obligations hereunder or the London interbank
market;

 

and the result of any of the foregoing is to increase the cost to such
Lender of agreeing to make, making or maintaining its Loans or Commitments or
agreeing to issue, issuing or maintaining any Letter of Credit or agreeing to
purchase, purchasing or maintaining any participation therein or to reduce any
amount received or receivable by such Lender with respect thereto; then, in any
such case, Company shall promptly pay to such Lender, upon receipt of the
statement referred to in subsection 2.8A, such additional amount or
amounts (in the form of an increased rate of, or a different method of
calculating, interest or otherwise as such Lender in its sole discretion shall
determine) as may be necessary to compensate such Lender for any such increased
cost or reduction in amounts received or receivable hereunder.

 

B.            Taxes.

 

(i)            Payments
to Be Free and Clear.  Any and all
payments by or on account of any obligation of Company under this Agreement and
the other Loan Documents shall be made free and clear of, and without any
deduction or withholding on account of, any Indemnified Taxes or Other Taxes.

 

(ii)           Grossing-up
of Payments.  If Company is required
by law to make any deduction or withholding on account of any Tax from any sum
paid or payable by Company to Administrative Agent or any Lender under any of
the Loan Documents:

 

(a)           Company
shall notify Administrative Agent of any such requirement or any change in any
such requirement as soon as Company becomes aware of it;

 

(b)           Company
shall timely pay any such Tax to the relevant Government Authority when such
Tax is due, in accordance with applicable law;

 

(c)           unless
such Tax is an Excluded Tax, the sum payable by Company shall be increased to
the extent necessary to ensure that, after making the required deductions
(including deductions applicable to additional sums payable under this subsection 2.7B(ii)),
Administrative Agent or such Lender, as the case may be, receives on the due
date a net sum equal to the sum it would have received had no such deduction
been required or made; and

 

63

 

(d)           within
30 days after paying any sum from which it is required by law to make any such
deduction, and within 30 days after the due date of payment of any Tax which it
is required by clause (b) above to pay, Company shall, upon the written
request of Administrative Agent, deliver to Administrative Agent documentation
reasonably satisfactory to the other affected parties to evidence the payment
and its remittance to the relevant Government Authority.

 

(iii)          Indemnification by Company.  Company shall indemnify Administrative Agent
and each Lender, within 10 days after demand therefor, for the full amount of
any Indemnified Taxes or Other Taxes (including for the full amount of any
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this subsection 2.7B(iii)) paid by Administrative Agent or
such Lender, as the case may be, and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto.  With respect to any such payments made by
Administrative Agent or such Lender paid pursuant to an assessment by a
Government Authority, such indemnification shall be made within such period,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Government Authority, and a certificate as
to the amount of such payment or liability delivered to Company by a Lender
(with a copy to Administrative Agent), or by Administrative Agent on its own
behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(iv)          Tax
Status of Lenders.

 

(a)           Any
Lender, if requested by Company or Administrative Agent, shall deliver such
forms or other documentation prescribed by applicable law or reasonably
requested by Company or Administrative Agent as will enable Company or
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements;

 

(b)           Any
Foreign Lender that is entitled to an exemption from or reduction of any Tax
with respect to payments hereunder or under any other Loan Document shall
deliver to Company and Administrative Agent, on or prior to the date on which
such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter, as may be necessary in the determination of Company or
Administrative Agent, each in the reasonable exercise of its discretion), such
properly completed and duly executed forms or other documentation prescribed by
applicable law as will permit such payments to be made without withholding or
at a reduced rate of withholding;

 

(c)           Without
limiting the generality of the foregoing, in the event that Company is resident
for tax purposes in the United States, any Foreign Lender, to the extent it is
legally entitled to do so, shall deliver to Company and Administrative Agent
(in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter, as may be necessary in 

 

64

 

the determination
of Company or Administrative Agent, each in the reasonable exercise of its
discretion), whichever of the following is applicable:

 

(1)           properly
completed and duly executed copies of Internal Revenue Service Form W-8BEN
claiming eligibility for benefits of an income tax treaty to which the United
States is a party,

 

(2)           properly
completed and duly executed copies of Internal Revenue Service Form W-8ECI,

 

(3)           in
the case of a Foreign Lender claiming the benefits of the exemption “portfolio
interest” under Section 881(c) of the Internal Revenue Code, (a) a
duly executed certificate to the effect that such Foreign Lender is not (i) a
“bank” within the meaning of Section 881(c)(3)(a) of the Internal
Revenue Code, (ii) a ten-percent shareholder (within the meaning of Section 881(c)(3)(b) of
the Internal Revenue Code) of Company or Holdings or (iii) a controlled
foreign corporation described in Section 881(c)(3)(c) of the Internal
Revenue Code and (b) properly completed and duly executed copies of
Internal Revenue Service Form W-8BEN,

 

(4)           properly
completed and duly executed copies of any other form prescribed by applicable
law as a basis for claiming exemption from or a reduction in any Tax,

 

in each case together
with such supplementary documentation as may be prescribed by applicable law to
permit Company and Administrative Agent to determine the withholding or
deduction required to be made, if any;

 

(d)           without
limiting the generality of the foregoing, in the event that Company is resident
for tax purposes in the United States, any Foreign Lender that does not act or
ceases to act for its own account with respect to any portion of any sums paid
or payable to such Lender under any of the Loan Documents (for example, in the
case of a typical participation by such Lender) shall deliver to Administrative
Agent and Company (in such number of copies as shall be requested by the
recipient), on or prior to the date such Foreign Lender becomes a Lender, or on
such later date when such Foreign Lender ceases to act for its own account with
respect to any portion of any such sums paid or payable, and from time to time
thereafter, as may be necessary in the determination of Company or
Administrative Agent (each in the reasonable exercise of its discretion):

 

(1)           duly
executed and properly completed copies of the forms and statements required to
be provided by such Foreign Lender under clause (c) of
subsection 2.7B(iv), to establish the portion of any such sums paid or
payable with respect to which such Lender acts for its own account 

 

65

 

and may be
entitled to an exemption from or a reduction of the applicable Tax, and

 

(2)           duly
executed and properly completed copies of Internal Revenue Service Form W-8IMY
(or any successor forms) properly completed and duly executed by such Foreign
Lender, together with any information, if any, such Foreign Lender chooses to
transmit with such form, and any other certificate or statement of exemption
required under the Internal Revenue Code or the regulations thereunder, to
establish that such Foreign Lender is not acting for its own account with
respect to a portion of any such sums payable to such Foreign Lender;

 

(e)           without
limiting the generality of the foregoing, in the event that Company is resident
for tax purposes in the United States, any Lender that is not a Foreign Lender
and has not otherwise established to the reasonable satisfaction of Company and
Administrative Agent that it is an exempt recipient (as defined in Section 6049(b)(4) of
the Internal Revenue Code and the United States Treasury Regulations
thereunder) shall deliver to Company and Administrative Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on
which such Lender becomes a Lender under this Agreement (and from time to time
thereafter as prescribed by applicable law or upon the request of Company or
Administrative Agent), duly executed and properly completed copies of Internal
Revenue Service Form W-9; and

 

(f)            without
limiting the generality of the foregoing, each Lender hereby agrees, from time
to time after the initial delivery by such Lender of such forms, whenever a
lapse in time or change in circumstances renders such forms, certificates or
other evidence so delivered obsolete or inaccurate in any material respect,
that such Lender shall promptly (1) deliver to Administrative Agent and
Company two original copies of renewals, amendments or additional or successor
forms, properly completed and duly executed by such Lender, together with any
other certificate or statement of exemption required in order to confirm or
establish that such Lender is entitled to an exemption from or reduction of any
Tax with respect to payments to such Lender under the Loan Documents and, if
applicable, that such Lender does not act for its own account with respect to
any portion of such payment, or (2) notify Administrative Agent and
Company of its inability to deliver any such forms, certificates or other
evidence.

 

C.            Capital Adequacy
Adjustment.  If any Lender shall have
determined that any Change in Law regarding capital adequacy has the effect of
reducing the rate of return on the capital of such Lender or any corporation
controlling such Lender as a consequence of, or with reference to, such Lender’s
Loans or Commitments or Letters of Credit or participations therein or other
obligations hereunder with respect to the Loans or the Letters of Credit to a
level below that which such Lender or such controlling corporation could have
achieved but for such Change in Law (taking into consideration the policies of
such Lender or such controlling corporation with regard to capital adequacy),
then from time to time, within five Business Days after receipt 

 

66

 

by Company from such Lender of the statement referred
to in subsection 2.8A, Company shall pay to such Lender such additional
amount or amounts as will compensate such Lender or such controlling
corporation for such reduction.

 

2.8          Statement
of Lenders; Obligation of Lenders and Issuing Lenders to Mitigate.

 

A.            Statements.  Each Lender claiming compensation or
reimbursement pursuant to subsection 2.6D, 2.7 or 2.8B shall deliver to
Company (with a copy to Administrative Agent) a written statement, setting
forth in reasonable detail the basis of the calculation of such compensation or
reimbursement, which statement shall be conclusive and binding upon all parties
hereto absent manifest error; provided, however, that Company
shall  not be required to compensate a
Lender pursuant to subsection 2.7A or 2.7C in respect of any period occurring
more than nine months prior to the date on which such Lender delivers such
written statement, except that if a Change in Law is retroactive, no such time
limitation shall apply so long as such Lender delivers such written notice
within nine months after the date on which the applicable Governmental
Authority informed such Lender of such Change in Law.

 

B.            Mitigation.  Each Lender and Issuing Lender agrees that,
as promptly as practicable after the officer of such Lender or Issuing Lender
responsible for administering the Loans or Letters of Credit of such Lender or
Issuing Lender, as the case may be, becomes aware of the occurrence of an event
or the existence of a condition that would cause such Lender to become an
Affected Lender or that would entitle such Lender or Issuing Lender to receive
payments under subsection 2.7, it will use reasonable efforts to make,
issue, fund or maintain the Commitments of such Lender or the Loans or Letters
of Credit of such Lender or Issuing Lender through another lending or letter of
credit office of such Lender or Issuing Lender, if (i) as a result thereof
the circumstances which would cause such Lender to be an Affected Lender would
cease to exist or the additional amounts which would otherwise be required to
be paid to such Lender or Issuing Lender pursuant to subsection 2.7 would
be materially reduced and (ii) as determined by such Lender or Issuing
Lender in its sole discretion, such action would not otherwise be
disadvantageous to such Lender or Issuing Lender; provided that such
Lender or Issuing Lender will not be obligated to utilize such other lending or
letter of credit office pursuant to this subsection 2.8B unless Company
agrees to pay all incremental expenses incurred by such Lender or Issuing
Lender as a result of utilizing such other lending or letter of credit office
as described above.

 

2.9          Replacement
of a Lender.

 

If
Company receives a statement of amounts due pursuant to subsection 2.8A
from a Lender, a Lender defaults in its obligations to fund a Loan pursuant to
this Agreement (a “Defaulting Lender”),
a Lender (a “Non-Consenting Lender”) refuses to
consent to an amendment, modification or waiver of this Agreement that,
pursuant to subsection 10.6, requires consent of 100% of Lenders or 100%
of Lenders with Obligations directly affected and consent of at least Requisite
Lenders or a majority of Lenders with Obligations directly affected, as the
case may be, has been obtained or a Lender becomes an Affected Lender (any such
Lender, a “Subject Lender”), so long as (i) Company
has obtained a commitment from another Lender or 

 

67

 

an Eligible Assignee to purchase at par the Subject
Lender’s Loans and assume the Subject Lender’s Commitments and all other
obligations of the Subject Lender hereunder, (ii) such Lender is not an
Issuing Lender with respect to any Letters of Credit outstanding (unless all
such Letters of Credit are terminated or arrangements acceptable to such
Issuing Lender (such as a “back-to-back” letter of credit) are made) and (iii),
if applicable, the Subject Lender is unwilling to withdraw the notice delivered
to Company pursuant to subsection 2.8 and/or is unwilling to remedy its
default upon two Business Days prior written notice to the Subject Lender and
Administrative Agent, Company may require the Subject Lender to assign all of
its Loans and Commitments to such other Lender, Lenders, Eligible Assignee or
Eligible Assignees pursuant to the provisions of subsection 10.1B; provided
that, prior to or concurrently with such replacement, (1) the Subject
Lender shall have received payment in full of all principal, interest, fees and
other amounts (including all amounts under subsections 2.6D, 2.7 and/or 2.8B
(if applicable)) through such date of replacement and a release from its
obligations under the Loan Documents (excluding any claims against such Subject
Lender if it is a Defaulting Lender), (2) the processing fee required to
be paid by subsection 10.1B(i) shall have been paid to Administrative
Agent, (3) all of the requirements for such assignment contained in
subsection 10.1B, including, without limitation, the consent of
Administrative Agent (if required) and the receipt by Administrative Agent of
an Assignment Agreement executed by the assignee (Administrative Agent being
hereby authorized to execute any Assignment Agreement on behalf of a Subject Lender
relating to the assignment of Loans and/or Commitments of such Subject Lender)
and other supporting documents, have been fulfilled, and (4) in the event
such Subject Lender is a Non-Consenting Lender, each assignee shall consent, at
the time of such assignment, to each matter in respect of which such Subject
Lender was a Non-Consenting Lender.  For
the avoidance of doubt, if a Lender is a Non-Consenting Lender solely because
it refused to consent to an amendment, modification or waiver that required the
consent of 100% of Lenders with Obligations directly affected thereby (which
amendment, modification or waiver did not accordingly require the consent of
100% of all Lenders), the Loans and Commitments of such Non-Consenting Lender
that are subject to the assignments required by this subsection 2.9 shall
include only those Loans and Commitments that constitute the Obligations
directly affected by the amendment, modification or waiver to which such
Non-Consenting Lender refused to provide its consent.

 

Section 3.              LETTERS OF CREDIT

 

3.1          Issuance
of Letters of Credit and Lenders’ Purchase of Participations Therein.

 

A.            Letters of Credit.  Company may request, in accordance with the
provisions of this subsection 3.1, from time to time during the period
from and including the Closing Date to but excluding the 30th day prior to the Revolving Loan Commitment
Termination Date, that one or more Revolving Lenders issue Letters of Credit
payable on a sight basis for the account of Company for the general corporate
purposes of Company or a Subsidiary of Company. 
Subject to the terms and conditions of this Agreement and in reliance
upon the representations and warranties of Company herein set forth, any one or
more Revolving Lenders may, but (except as provided in subsection 3.1B(ii))
shall not be obligated to, issue such Letters 

 

68

 

of Credit in accordance with the provisions of this
subsection 3.1; provided that Company shall not request that any
Revolving Lender issue (and no Revolving Lender shall issue):

 

(i)            any
Letter of Credit if, after giving effect to such issuance, the Total
Utilization of Revolving Loan Commitments would exceed the Revolving Loan
Commitment Amount then in effect;

 

(ii)           any
Letter of Credit if, after giving effect to such issuance, the Letter of Credit
Usage would exceed $15,000,000;

 

(iii)          any Standby Letter of Credit having an
expiration date later than the earlier of (a) ten days prior to the
Revolving Loan Commitment Termination Date and (b) the date which is one
year from the date of issuance of such Standby Letter of Credit; provided
that the immediately preceding clause (b) shall not prevent any Issuing
Lender from agreeing that a Standby Letter of Credit will automatically be
extended for one or more successive periods not to exceed one year each unless
such Issuing Lender elects not to extend for any such additional period; and provided,
further that such Issuing Lender shall elect not to extend such Standby
Letter of Credit if it has knowledge that an Event of Default has occurred and
is continuing (and has not been waived in accordance with subsection 10.6)
at the time such Issuing Lender must elect whether or not to allow such
extension;

 

(iv)          any
Standby Letter of Credit issued for the purpose of supporting (a) trade
payables or (b) any Indebtedness constituting “antecedent debt” (as that
term is used in Section 547 of the Bankruptcy Code);

 

(v)           any
Commercial Letter of Credit having an expiration date (a) later than the
earlier of (1) the date which is 30 days prior to the Revolving Loan
Commitment Termination Date and (2) the date which is 180 days from the
date of issuance of such Commercial Letter of Credit or (b) that is
otherwise unacceptable to the applicable Issuing Lender in its reasonable
discretion; or

 

(vi)          any
Letter of Credit denominated in a currency other than Dollars that in the
judgment of Administrative Agent or the applicable Issuing Lender is not
readily and freely available.

 

B.            Mechanics of Issuance.

 

(i)            Request
for Issuance.  Whenever Company
desires the issuance of a Letter of Credit, it shall deliver to the proposed
Issuing Lender (with a copy to Administrative Agent if Administrative Agent is
not the proposed Issuing Lender) a Request for Issuance no later than 12:00
noon (San Francisco time) at least three Business Days (in the case of Standby
Letters of Credit) or five Business Days (in the case of Commercial Letters of
Credit), or in each case such shorter period as may be agreed to by the Issuing
Lender in any particular instance, in advance of the proposed date of
issuance.  The Issuing Lender, in its
reasonable discretion, may require changes 

 

69

 

in
the text of the proposed Letter of Credit or any documents described in or
attached to the Request for Issuance.  In
furtherance of the provisions of subsection 10.8, and not in limitation
thereof, Company may submit Requests for Issuance by telefacsimile and
Administrative Agent and Issuing Lenders may rely and act upon any such Request
for Issuance without receiving an original signed copy thereof.  No Letter of Credit shall require payment
against a conforming demand for payment to be made thereunder on the same
business day (under the laws of the jurisdiction in which the office of the
Issuing Lender to which such demand for payment is required to be presented is
located) on which such demand for payment is presented if such presentation is
made after 10:00 A.M. (in the time zone of such office of the Issuing Lender)
on such business day.

 

Company shall notify the applicable Issuing Lender
(and Administrative Agent, if Administrative Agent is not such Issuing Lender)
prior to the issuance of any Letter of Credit in the event that any of the
matters to which Company is required to certify in the applicable Request for
Issuance is no longer true and correct as of the proposed date of issuance of
such Letter of Credit, and upon the issuance of any Letter of Credit Company
shall be deemed to have re-certified, as of the date of such issuance, as to
the matters to which Company is required to certify in the applicable Request
for Issuance.

 

Notwithstanding the foregoing, the Existing Letters of
Credit shall be deemed issued on the Closing Date and shall be subject to the terms
and conditions of this Agreement.

 

(ii)           Determination
of Issuing Lender.  Upon receipt by a
proposed Issuing Lender of a Request for Issuance pursuant to
subsection 3.1B(i) requesting the issuance of a Letter of Credit, (a) in
the event Administrative Agent is the proposed Issuing Lender, Administrative
Agent shall be the Issuing Lender with respect to such Letter of Credit,
notwithstanding the fact that the Letter of Credit Usage with respect to such
Letter of Credit and with respect to all other Letters of Credit issued by
Administrative Agent, when aggregated with Administrative Agent’s outstanding
Revolving Loans and Swing Line Loans, may exceed the amount of Administrative
Agent’s Revolving Loan Commitment then in effect; and (b) in the event any
other Revolving Lender is the proposed Issuing Lender, such Revolving Lender
shall promptly notify Company and Administrative Agent whether or not, in its
sole discretion, it has elected to issue such Letter of Credit, and (1) if
such Revolving Lender so elects to issue such Letter of Credit it shall be the
Issuing Lender with respect thereto and (2) if such Revolving Lender fails
to so promptly notify Company and Administrative Agent or declines to issue
such Letter of Credit, Company may request Administrative Agent or another
Revolving Lender to be the Issuing Lender with respect to such Letter of Credit
in accordance with the provisions of this subsection 3.1B.

 

(iii)          Issuance of Letter of Credit.  Upon satisfaction or waiver (in accordance
with subsection 10.6) of the conditions set forth in subsection 4.3,
the Issuing Lender shall issue the requested Letter of Credit in accordance
with the Issuing Lender’s standard operating procedures.

 

70

 

(iv)          Notification
to Revolving Lenders.  Upon the
issuance of or amendment to any Standby Letter of Credit the applicable Issuing
Lender shall promptly notify Administrative Agent and Company of such issuance
or amendment in writing and such notice shall be accompanied by a copy of such
Letter of Credit or amendment.  Upon
receipt of such notice (or, if Administrative Agent is the Issuing Lender,
together with such notice), Administrative Agent shall notify each Revolving
Lender in writing of such issuance or amendment and the amount of such
Revolving Lender’s respective participation in such Standby Letter of Credit or
amendment, and, if so requested by a Revolving Lender, Administrative Agent
shall provide such Lender with a copy of such Letter of Credit or
amendment.  In the case of Commercial
Letters of Credit, in the event that Issuing Lender is other than
Administrative Agent, such Issuing Lender will send by facsimile transmission
to Administrative Agent, promptly upon the first Business Day of each week, a
report of its daily aggregate maximum amount available for drawing under
Commercial Letters of Credit for the previous week.  Upon receipt of such report, Administrative
Agent shall notify each Revolving Lender in writing of the contents thereof.

 

C.            Revolving Lenders’
Purchase of Participations in Letters of Credit.  Immediately upon the issuance of each Letter
of Credit, each Revolving Lender shall be deemed to, and hereby agrees to, have
irrevocably purchased from the Issuing Lender a participation in such Letter of
Credit and any drawings honored thereunder in an amount equal to such Revolving
Lender’s Pro Rata Share of the maximum amount that is or at any time may become
available to be drawn thereunder.

 

3.2          Letter
of Credit Fees.

 

Company
agrees to pay the following amounts with respect to Letters of Credit issued
hereunder:

 

(i)            with
respect to each Standby Letter of Credit, (a) a fronting fee, payable
directly to the applicable Issuing Lender for its own account, equal to the
greater of (x) $500 and (y) 0.25% per annum of the daily amount
available to be drawn under such Standby Letter of Credit and (b) a letter
of credit fee, payable to Administrative Agent for the account of Revolving
Lenders, equal to the applicable Eurodollar Rate Margin for Revolving Loans plus,
upon the application of increased rates of interest pursuant to
subsection 2.2E, 2% per annum, multiplied by the daily amount
available to be drawn under such Standby Letter of Credit, each such fronting
fee or letter of credit fee to be payable in arrears on and to (but excluding)
each March 31, June 30, September 30 and December 31 of
each year and computed on the basis of a 360-day year for the actual number of
days elapsed;

 

(ii)           with
respect to each Commercial Letter of Credit, (a) a fronting fee, payable
directly to the applicable Issuing Lender for its own account, equal to the
greater of (x) $500 and (y) 0.25% per annum of the daily amount
available to be drawn under such Commercial Letter of Credit and (b) a
letter of credit fee, payable to Administrative Agent for the account of
Revolving Lenders, equal to the applicable 

 

71

 

Eurodollar
Rate Margin for Revolving Loans plus, upon the application of increased
rates of interest pursuant to subsection 2.2E, 2% per annum, multiplied
by the daily amount available to be drawn under such Commercial Letter of
Credit, each such fronting fee or letter of credit fee to be payable in arrears
on and to (but excluding) each March 31, June 30, September 30
and December 31 of each year and computed on the basis of a 360-day year
for the actual number of days elapsed; and

 

(iii)          with respect to the issuance, amendment or
transfer of each Letter of Credit and each payment of a drawing made thereunder
(without duplication of the fees payable under clauses (i) and (ii) above),
documentary and processing charges payable directly to the applicable Issuing
Lender for its own account in accordance with such Issuing Lender’s standard
schedule for such charges in effect at the time of such issuance, amendment,
transfer or payment, as the case may be.

 

For purposes of calculating any fees payable under clauses (i) and
(ii) of this subsection 3.2, (1) the daily amount available to
be drawn under any Letter of Credit shall be determined as of the close of
business on any date of determination and (2) any amount described in such
clauses that is denominated in a currency other than Dollars shall be valued
weekly based on the applicable Exchange Rate for such currency as of the applicable
date of determination.

 

3.3          Drawings
and Reimbursement of Amounts Paid Under Letters of Credit.

 

A.            Responsibility of
Issuing Lender With Respect to Drawings. 
In determining whether to honor any drawing under any Letter of Credit
by the beneficiary thereof, the Issuing Lender shall be responsible only to
examine the documents delivered under such Letter of Credit with reasonable
care so as to ascertain whether they appear on their face to be in accordance
with the terms and conditions of such Letter of Credit.

 

B.            Reimbursement by
Company of Amounts Paid Under Letters of Credit.  In the event an Issuing Lender has determined
to honor a drawing under a Letter of Credit issued by it, such Issuing Lender
shall immediately notify Company and Administrative Agent, and Company shall
reimburse such Issuing Lender on or before the Business Day immediately
following the date on which such drawing is honored (the “Reimbursement
Date”) in an amount in Dollars (which amount, in the case of a
payment under a Letter of Credit which is denominated in a currency other than
Dollars, shall be calculated by reference to the applicable Exchange Rate) or,
at the option of such Issuing Lender, in the case of a Letter of Credit
denominated in a currency other than Dollars, in such other currency and in
same day funds equal to the amount of such payment; provided that,
anything contained in this Agreement to the contrary notwithstanding, (i) unless
Company shall have notified Administrative Agent and such Issuing Lender prior
to 12:00 noon (San Francisco time) on the date such drawing is honored that
Company intends to reimburse such Issuing Lender for the amount of such payment
with funds other than the proceeds of Revolving Loans, Company shall be deemed
to have given a timely Notice of Borrowing to Administrative Agent requesting
Revolving Lenders to make Revolving Loans that are Base Rate Loans on the
Reimbursement Date in an amount in Dollars (which amount, in the case of a
payment under a Letter of Credit which is denominated in a currency other than
Dollars, shall be calculated by reference to the applicable Exchange Rate)
equal to the 

 

72

 

amount of such payment and (ii) subject to
satisfaction or waiver of the conditions specified in subsection 4.2B,
Revolving Lenders shall, on the Reimbursement Date, make Revolving Loans that
are Base Rate Loans in the amount of such payment, the proceeds of which shall
be applied directly by Administrative Agent to reimburse such Issuing Lender
for the amount of such payment; and provided, further that if for
any reason proceeds of Revolving Loans are not received by such Issuing Lender
on the Reimbursement Date in an amount equal to the amount of such payment,
Company shall reimburse such Issuing Lender, on demand, in an amount in same
day funds equal to the excess of the amount of such payment over the aggregate
amount of such Revolving Loans, if any, which are so received.  Nothing in this subsection 3.3B shall be
deemed to relieve any Revolving Lender from its obligation to make Revolving
Loans on the terms and conditions set forth in this Agreement, and Company
shall retain any and all rights it may have against any Revolving Lender
resulting from the failure of such Revolving Lender to make such Revolving
Loans under this subsection 3.3B.

 

C.            Payment by Lenders of
Unreimbursed Amounts Paid Under Letters of Credit.

 

(i)            Payment
by Revolving Lenders.  In the event
that Company shall fail for any reason to reimburse any Issuing Lender as
provided in subsection 3.3B in an amount (calculated, in the case of a
payment under a Letter of Credit denominated in a currency other than Dollars,
by reference to the applicable Exchange Rate) equal to the amount of any
payment by such Issuing Lender under a Letter of Credit issued by it, such
Issuing Lender shall promptly notify Administrative Agent, who shall promptly
notify each Revolving Lender of the unreimbursed amount of such honored drawing
and of such Revolving Lender’s respective participation therein based on such
Revolving Lender’s Pro Rata Share.  Each
Revolving Lender (other than such Issuing Lender) shall make available to
Administrative Agent an amount equal to its respective participation, in
Dollars, in same day funds, at the Funding and Payment Office, not later than
12:00 noon (San Francisco time) on the first Business Day after the date
notified by Administrative Agent, and Administrative Agent shall make available
to such Issuing Lender in Dollars, in same day funds, at the office of such
Issuing Lender on such Business Day the aggregate amount of the payments so
received by Administrative Agent.  In the
event that any Revolving Lender fails to make available to Administrative Agent
on such Business Day the amount of such Revolving Lender’s participation in
such Letter of Credit as provided in this subsection 3.3C, such Issuing
Lender shall be entitled to recover such amount on demand from such Revolving
Lender together with interest thereon at the rate customarily used by such
Issuing Lender for the correction of errors among banks for three Business Days
and thereafter at the Base Rate.  Nothing
in this subsection 3.3C shall be deemed to prejudice the right of
Administrative Agent to recover, for the benefit of Revolving Lenders, from any
Issuing Lender any amounts made available to such Issuing Lender pursuant to
this subsection 3.3C in the event that it is determined by the final
judgment of a court of competent jurisdiction that the payment with respect to
a Letter of Credit by such Issuing Lender in respect of which payments were
made by Revolving Lenders constituted gross negligence or willful misconduct on
the part of such Issuing Lender.

 

73

 

(ii)           Distribution
to Lenders of Reimbursements Received From Company.  In the event any Issuing Lender shall
have been reimbursed by other Revolving Lenders pursuant to
subsection 3.3C(i) for all or any portion of any payment by such
Issuing Lender under a Letter of Credit issued by it, and Administrative Agent
or such Issuing Lender thereafter receives any payments from Company in
reimbursement of such payment under the Letter of Credit, to the extent any
such payment is received by such Issuing Lender, it shall distribute such
payment to Administrative Agent, and Administrative Agent shall distribute to
each other Revolving Lender that has paid all amounts payable by it under
subsection 3.3C(i) with respect to such payment such Revolving Lender’s
Pro Rata Share of all payments subsequently received by Administrative Agent or
by such Issuing Lender from Company.  Any
such distribution shall be made to a Revolving Lender at the account specified
in subsection 2.4C(iii).

 

D.            Interest on Amounts Paid Under Letters of Credit.

 

(i)            Payment
of Interest by Company.  Company
agrees to pay to Administrative Agent, with respect to payments under any
Letters of Credit issued by any Issuing Lender, interest on the amount paid by
such Issuing Lender in respect of each such payment from the date a drawing is
honored to but excluding the date such amount is reimbursed by Company
(including any such reimbursement out of the proceeds of Revolving Loans
pursuant to subsection 3.3B) at a rate equal to (a) for the period
from the date such drawing is honored to but excluding the Reimbursement Date,
the rate then in effect under this Agreement with respect to Revolving Loans
that are Base Rate Loans and (b) thereafter, a rate which is 2% per annum
in excess of the rate of interest otherwise payable under this Agreement with
respect to Revolving Loans that are Base Rate Loans.  Interest payable pursuant to this
subsection 3.3D(i) shall be computed on the basis of a 360-day year
for the actual number of days elapsed in the period during which it accrues and
shall be payable on demand or, if no demand is made, on the date on which the
related drawing under a Letter of Credit is reimbursed in full.

 

(ii)           Distribution
of Interest Payments by Administrative Agent.  Promptly upon receipt by Administrative Agent
of any payment of interest pursuant to subsection 3.3D(i) with
respect to a payment under a Letter of Credit, (a) Administrative Agent
shall distribute to (x) each Revolving Lender (including the Issuing
Lender) out of the interest received by Administrative Agent in respect of the
period from the date such drawing is honored to but excluding the date on which
the applicable Issuing Lender is reimbursed for the amount of such payment
(including any such reimbursement out of the proceeds of Revolving Loans
pursuant to subsection 3.3B), the amount that such Revolving Lender would
have been entitled to receive in respect of the letter of credit fee that would
have been payable in respect of such Letter of Credit for such period pursuant
to subsection 3.2 if no drawing had been honored under such Letter of
Credit, and (y) such Issuing Lender the amount, if any, remaining after payment
of the amounts applied pursuant to clause (x), and (b) in the event such
Issuing Lender shall have been reimbursed by other Revolving Lenders pursuant
to subsection 3.3C(i) for all or any portion of such payment,
Administrative Agent shall 

 

74

 

distribute
to each Revolving Lender (including such Issuing Lender) that has paid all
amounts payable by it under subsection 3.3C(i) with respect to such
payment such Revolving Lender’s Pro Rata Share of any interest received by
Administrative Agent in respect of that portion of such payment so made by
Revolving Lenders for the period from the date on which such Issuing Lender was
so reimbursed to but excluding the date on which such portion of such payment
is reimbursed by Company.  Any such
distribution shall be made to a Revolving Lender at the account specified in subsection 2.4C(iii).

 

E.             Cash Collateralization.  If Administrative Agent notifies Company at
any time that, due to a fluctuation in the applicable Exchange Rate or
otherwise, the Letter of Credit Usage at such time exceeds 105% of the sublimit
for Letters of Credit specified in subsection 3.1A(ii), then, within two
Business Days after receipt of such notice, Company shall deposit in the
Collateral Account established pursuant to the Security Agreement an amount
equal to the amount by which the Letter of Credit Usage exceeds such sublimit,
which amount shall constitute Collateral and be subject to the provisions of
the Security Agreement.  At such time as
the Letter of Credit Usage shall be equal to or less than such sublimit, if no
Event of Default has occurred and is continuing, such amount shall, at the
request of Company, be released to Company.

 

3.4                               Obligations
Absolute.

 

The
obligation of Company to reimburse each Issuing Lender for payments under the
Letters of Credit issued by it and to repay any Revolving Loans made by
Revolving Lenders pursuant to subsection 3.3B and the obligations of
Revolving Lenders under subsection 3.3C(i) shall be unconditional and
irrevocable and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances including any of the following circumstances:

 

(i)            any
lack of validity or enforceability of any Letter of Credit;

 

(ii)           the
existence of any claim, set-off, defense or other right which Company or any
Lender may have at any time against a beneficiary or any transferee of any
Letter of Credit (or any Persons for whom any such transferee may be acting),
any Issuing Lender or other Revolving Lender or any other Person or, in the
case of a Revolving Lender, against Company, whether in connection with this
Agreement, the transactions contemplated herein or any unrelated transaction
(including any underlying transaction between Company or one of its
Subsidiaries and the beneficiary for which any Letter of Credit was procured);

 

(iii)          any
draft or other document presented under any Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

 

75

 

(iv)          payment
by the applicable Issuing Lender under any Letter of Credit against
presentation of a draft or other document which does not substantially comply
with the terms of such Letter of Credit;

 

(v)           any
Material Adverse Effect on Company or any of its Subsidiaries;

 

(vi)          any
breach of this Agreement or any other Loan Document by any party thereto;

 

(vii)         any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing; or

 

(viii)        the
fact that an Event of Default or a Potential Event of Default shall have
occurred and be continuing;

 

provided, in each case, that payment
by the applicable Issuing Lender under the applicable Letter of Credit shall
not have constituted gross negligence or willful misconduct of such Issuing
Lender under the circumstances in question (as determined by a final judgment
of a court of competent jurisdiction).

 

3.5                               Nature
of Issuing Lenders’ Duties.

 

As between Company and
any Issuing Lender, Company assumes all risks of the acts and omissions of, or
misuse of the Letters of Credit issued by such Issuing Lender by, the
respective beneficiaries of such Letters of Credit.  In furtherance and not in limitation of the
foregoing, such Issuing Lender shall not be responsible for:  (i) the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any party in
connection with the application for and issuance of any such Letter of Credit,
even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any such Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) failure of the beneficiary of
any such Letter of Credit to comply substantially with any conditions required
in order to draw upon such Letter of Credit; (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors
in interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences
arising from causes beyond the control of such Issuing Lender, including any
act or omission by a Government Authority, and none of the above shall affect
or impair, or prevent the vesting of, any of such Issuing Lender’s rights or
powers hereunder.

 

In
furtherance and extension and not in limitation of the specific provisions set
forth in the first paragraph of this subsection 3.5, any action taken or
omitted by any Issuing Lender under or in connection with the Letters of Credit
issued by it or any documents and 

 

76

 

certificates delivered thereunder, if taken or omitted
in good faith, shall not put such Issuing Lender under any resulting liability
to Company.

 

Notwithstanding
anything to the contrary contained in this subsection 3.5, Company shall
retain any and all rights it may have against any Issuing Lender for any
liability arising solely out of the gross negligence or willful misconduct of
such Issuing Lender, as determined by a final judgment of a court of competent
jurisdiction.

 

	
  Section 4.

  	
   

  	
  CONDITIONS TO LOANS AND LETTERS OF CREDIT

  

 

 

4.1                               Conditions
to Effectiveness of this Agreement.

 

This Agreement shall become effective upon
satisfaction of the following conditions:

 

(i)            Administrative
Agent shall have received this Agreement executed and delivered by Acquisition
Sub (with sufficient originally executed copies for each Lender to follow
promptly thereafter);

 

(ii)           Administrative
Agent shall have received copies of the Organizational Documents of Acquisition
Sub, certified by the Secretary of State of its jurisdiction of organization
or, if such document is of a type that may not be so certified, certified by
the secretary or similar officer of Acquisition Sub, together with a good
standing certificate from the Secretary of State of its jurisdiction of
organization and, to the extent generally available, a certificate or other
evidence of good standing as to payment of any applicable franchise or similar
taxes from the appropriate taxing authority of each of such jurisdictions, each
dated a recent date prior to the Signing Date; and

 

(iii)          the
representations and warranties in subsections 5.1A, 5.2A, 5.2D and 5.10 with
respect to Acquisition Sub shall be true and correct in all material respects
on and as of the Signing Date to the same extent as though made on and as of
that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall have been true and correct in all material respects on and as
of such earlier date.

 

4.2                               Conditions
to Term Loans and Initial Revolving Loans and Swing Line Loans.

 

The
obligations of Lenders to make the Term Loans and any Revolving Loans and Swing
Line Loans to be made on the Closing Date and to issue the Letters of Credit to
be issued on the Closing Date are subject only to the prior or concurrent
satisfaction of the following conditions:

 

A.            Loan Party Documents.  On or before the Closing Date, Company shall,
and shall cause each other Loan Party to, deliver to Lenders (or to
Administrative Agent with sufficient originally executed copies, where
appropriate, for each Lender to follow promptly 

 

77

 

thereafter) the following with respect to Company or
such Loan Party, as the case may be, each, unless otherwise noted, dated the
Closing Date:

 

(i)            Copies
of the Organizational Documents of such Person, certified by the Secretary of
State of its jurisdiction of organization or, if such document is of a type
that may not be so certified, certified by the secretary or similar officer of
the applicable Loan Party, together with a good standing certificate from the
Secretary of State of its jurisdiction of organization and, to the extent
generally available, a certificate or other evidence of good standing as to
payment of any applicable franchise or similar taxes from the appropriate
taxing authority of such jurisdiction, each dated a recent date prior to the
Closing Date;

 

(ii)           Resolutions
of the Governing Body of such Person approving and authorizing the execution,
delivery and performance of the Loan Documents to which it is a party,
certified as of the Closing Date by the secretary or similar officer of such
Person as being in full force and effect without modification or amendment;

 

(iii)          Signature
and incumbency certificates of the officers of such Person executing the Loan
Documents to which it is a party; and

 

(iv)          Executed
originals of the Loan Documents (in substantially the form attached to this Agreement)
to which such Person is a party.

 

B.            Fees. 
Company shall have paid (or will pay substantially concurrently with the
disbursement of Loans to be made on the Closing Date) to Administrative Agent,
for distribution (as appropriate) to Administrative Agent and Lenders, the fees
payable on the Closing Date referred to in subsection 2.3.

 

C.            Representations and Warranties; Performance of Agreements.  Company shall have delivered to
Administrative Agent an Officer’s Certificate, in form and substance satisfactory
to Administrative Agent, to the effect that the Specified Representations shall
be accurate in all material respects on and as of that Funding Date to the same
extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall have been accurate in all
material respects on and as of such earlier date; provided that if a
representation and warranty, covenant or condition is qualified as to
materiality, the applicable materiality qualifier set forth above shall be
disregarded with respect to such representation and warranty for purposes of
this condition.  The representations and
warranties of FTD set forth in the Merger Agreement shall be true and correct
as of the date of the Merger Agreement and the Closing Date as if made at and
as of such dates (except for those representations and warranties which address
matters only as of an earlier date which shall have been true and correct as of
such earlier date), disregarding for these purposes any exception in such
representations and warranties relating to materiality or a Company Material
Adverse Effect, except for such failures to be true and correct which do not
result in a Company Material Adverse Effect.

 

78

 

D.            Financial Statements; Pro Forma Financial Statements.  On or before the Closing Date, Lenders shall
have received from Company (i) audited consolidated financial statements
of FTD and its Subsidiaries for Fiscal Years 2005, 2006, 2007 and, if the
Closing Date occurs after October 1, 2008, Fiscal Year 2008, consisting of
consolidated balance sheets and the related consolidated statements of income,
stockholders’ equity and cash flows for such Fiscal Years, (ii) unaudited
consolidated financial statements of FTD and its Subsidiaries for each Fiscal
Quarter ending after Fiscal Year 2007 and at least 45 days prior to the Closing
Date, consisting of a consolidated balance sheet and the related consolidated
statements of income and cash flows for each such Fiscal Quarter, all in
reasonable detail and certified by a Financial Officer of FTD that they fairly
present in all material respects the financial condition of FTD and its
Subsidiaries as at the dates indicated and the results of their operations and
cash flows for the periods indicated, subject to changes resulting from audit
and normal year-end adjustments, (iii) unaudited consolidated financial
statements of FTD and its Subsidiaries for each calendar month ending after the
most recently completed Fiscal Quarter for which unaudited financial statements
have been delivered pursuant to clause (ii) and at least 35 days prior to
the Closing Date, consisting of a consolidated balance sheet and the related
consolidated statements of income and cash flows for each such calendar month,
all in reasonable detail and certified by a Financial Officer of FTD that they
fairly present in all material respects the financial condition of FTD and its
Subsidiaries as at the dates indicated and the results of their operations and
cash flows for the periods indicated, subject to changes resulting from audit
and normal year-end adjustments, and (iv) pro forma consolidated financial
statements of FTD and its Subsidiaries as of the 12 month period ended June 30,
2008, consisting of a consolidated balance sheet and the related consolidated
statement of income for such 12 month period, giving effect to the Transactions
as if the Transactions had occurred on such date (in the case of the balance
sheet) or at the beginning of such period (in the case of such statement of
income).

 

E.             Opinions of Counsel to Loan Parties.  Administrative Agent shall have received an
originally executed copy of one or more favorable written opinions of Skadden,
Arps, Slate, Meagher & Flom LLP, counsel for the Loan Parties (and
such local counsel for the Loan Parties as may be necessary in jurisdictions
other than New York, Illinois and Delaware), in form and substance reasonably
satisfactory to Administrative Agent and its counsel, dated as of the Closing
Date and, in the case of the opinion of Skadden, Arps, Slate, Meagher &
Flom LLP, setting forth substantially the matters in the opinions designated in
Exhibit IX annexed hereto (this Agreement constituting a written
request by each Loan Party to such counsel to deliver such opinions to
Lenders).

 

F.             Solvency Assurances.  Administrative Agent and Lenders shall have
received an Officer’s Certificate of FTD dated the Closing Date,
substantially in the form of Exhibit XI annexed hereto and with
appropriate attachments, in each case demonstrating that, after giving effect
to the consummation of the transactions contemplated by the Loan Documents, FTD
and its Subsidiaries on a consolidated basis will be Solvent.

 

G.            Evidence of Insurance.  Administrative Agent shall have received a
certificate from Company’s insurance broker or other evidence satisfactory to
it that all insurance required to be maintained pursuant to subsection 6.4 is
in full force and effect and that 

 

79

 

Administrative Agent on behalf of Lenders has been
named as additional insured and/or loss payee thereunder to the extent required
under subsection 6.4.

 

H.            Necessary Governmental Authorizations and Consents;
Expiration of Waiting Periods, etc.  Company shall have obtained
all Governmental Authorizations required by the Merger Agreement.

 

I.              Security Interests in Personal and Mixed Property.  Holdings, Company and Subsidiary Guarantors
shall have delivered to Administrative Agent (i) certificates (which
certificates shall be accompanied by irrevocable undated stock powers, duly
endorsed in blank and otherwise satisfactory in form and substance to
Administrative Agent) representing all Capital Stock (to the extent such
Capital Stock is evidenced by certificates) pledged pursuant to the Security
Agreement, and (ii) duly completed UCC financing statements with respect
to all personal property Collateral of each Loan Party, for filing in all
domestic jurisdictions as may be necessary or, in the opinion of Administrative
Agent, desirable to perfect the security interests created in such
Collateral pursuant to the Collateral Documents.

 

J.             Additional Collateral.  Holdings, Company and Subsidiary Guarantors
shall have used commercially reasonable efforts to create in favor of
Administrative Agent, for the benefit of Lenders, a valid and (upon such filing
and recording) perfected First Priority security interest in the entire
personal and mixed property Collateral (other than Excluded Assets), which
shall include the use of commercially reasonable efforts to:

 

(i)            Instruments.  Deliver to Administrative Agent all
promissory notes or other instruments with a principal amount in excess of
$1,000,000 (duly endorsed, where appropriate, in a manner satisfactory to
Administrative Agent) evidencing any Collateral;

 

(ii)           Lien
Searches.  Deliver to Administrative
Agent the results of a recent search, by a Person satisfactory to Administrative
Agent, of all effective UCC financing statements and fixture filings and all
judgment and tax lien filings which may have been made with respect to any
personal or mixed property of any Loan Party, together with copies of all such
filings disclosed by such search;

 

(iii)          Fixture
Filings.  Deliver to Administrative
Agent, where appropriate, fixture filings, with respect to all personal and
mixed property Collateral of such Loan Party, for filing in all jurisdictions
as may be necessary or, in the opinion of Administrative Agent, desirable to
perfect the security interests created in such Collateral pursuant to the
Collateral Documents;

 

(iv)          Cover
Sheets, etc.  Deliver to
Administrative Agent all cover sheets or other documents or instruments
required to be filed with any IP Filing Office in order to create or perfect
Liens in respect of any IP Collateral, together with releases duly executed (if
necessary) of security interests by all applicable Persons for filing in all
applicable jurisdictions as may be necessary to terminate any effective filings
in any IP 

 

80

 

Filing
Office in respect of any IP Collateral (other than any such filings in respect
of Liens permitted to remain outstanding pursuant to the terms of this
Agreement);

 

(v)           Foreign
Pledge Agreements.  Deliver to
Administrative Agent executed Foreign Pledge Agreements with respect to 66% of
the Capital Stock owned by Company or a Subsidiary Guarantor of all Foreign
Subsidiaries with respect to which Administrative Agent deems a Foreign Pledge
Agreement necessary or advisable to perfect or otherwise protect the First
Priority Liens granted to Administrative Agent on behalf of Lenders in such
Capital Stock, and the taking of all such other actions under the laws of such
jurisdictions as Administrative Agent may deem necessary or advisable to
perfect or otherwise protect such Liens; and

 

(vi)          Opinions
of Foreign Local Counsel.  Deliver to
Administrative Agent an opinion of counsel (which counsel shall be reasonably
satisfactory to Administrative Agent) under the laws of each foreign
jurisdiction for which a Foreign Pledge Agreement is executed and delivered
with respect to the creation and perfection of the security interests in favor
of Administrative Agent in such Collateral and such other matters governed by
the laws of such jurisdiction regarding such security interests as
Administrative Agent may reasonably request, in each case in form and substance
reasonably satisfactory to Administrative Agent.

 

K.            Closing Date Mortgages; Closing Date Mortgage Policies;
etc.  Holdings, Company
and Subsidiary Guarantors shall have used commercially reasonable efforts to
deliver to Administrative Agent:

 

(i)            Closing
Date Mortgages.  Fully executed and
notarized Mortgages (each a “Closing Date Mortgage”
and, collectively, the “Closing Date Mortgages”),
in proper form for recording in all appropriate places in all applicable
jurisdictions, encumbering each owned Real Property Asset with a value equal to
or greater than $5,000,000 and listed in Schedule 4.2K annexed
hereto (each a “Closing Date Mortgaged Property”
and, collectively, the “Closing Date Mortgaged
Properties”);

 

(ii)           Opinions
of Local Counsel.  An opinion of
counsel (which counsel shall be reasonably satisfactory to Administrative
Agent) in each state in which a Closing Date Mortgaged Property is located with
respect to the enforceability of the form(s) of Closing Date Mortgages to
be recorded in such state and such other matters as Administrative Agent may
reasonably request, in each case in form and substance reasonably satisfactory
to Administrative Agent;

 

(iii)          Title
Insurance.  (a) ALTA mortgagee
title insurance policies or unconditional commitments therefor (the “Closing Date Mortgage Policies”) issued by the Title Company
with respect to the Closing Date Mortgaged Properties listed in Part A of Schedule
4.2K annexed hereto, in amounts not less than the respective amounts
designated therein with respect to any particular Closing Date Mortgaged
Properties, insuring fee simple title to each such Closing Date Mortgaged
Property vested in such Loan Party and assuring Administrative Agent that the
applicable Closing Date 

 

81

 

Mortgages
create valid and enforceable First Priority mortgage Liens on the respective
Closing Date Mortgaged Properties encumbered thereby, subject only to Permitted
Encumbrances and a standard survey exception, which Closing Date Mortgage
Policies (1) shall include an endorsement for mechanics’ liens, for future
advances under this Agreement and for any other matters reasonably requested by
Administrative Agent and (2) shall provide for affirmative insurance and
such reinsurance as Administrative Agent may reasonably request, all of the foregoing
in form and substance reasonably satisfactory to Administrative Agent; and (b) evidence
satisfactory to Administrative Agent that such Loan Party has (i) delivered
to the Title Company all certificates and affidavits reasonably required by the
Title Company in connection with the issuance of the Closing Date Mortgage
Policies and (ii) paid to the Title Company or to the appropriate
Government Authorities all expenses and premiums of the Title Company in
connection with the issuance of the Closing Date Mortgage Policies and all
recording and stamp taxes (including mortgage recording and intangible taxes)
payable in connection with recording the Closing Date Mortgages in the
appropriate real estate records;

 

(iv)          Title
Reports.  With respect to each Closing
Date Mortgaged Property listed in Schedule 4.2K annexed hereto, a title
report issued by the Title Company with respect thereto;

 

(v)           Copies
of Documents Relating to Title Exceptions. 
Copies of all recorded documents listed as exceptions to title or
otherwise referred to in the Closing Date Mortgage Policies or in the title
reports delivered pursuant to subsection 4.2K(iv); and

 

(vi)          Matters
Relating to Flood Hazard Properties. 
(a) Evidence, which may be in the form of a letter from an
insurance broker or a municipal engineer, as to whether (1) any Closing
Date Mortgaged Property is a Flood Hazard Property and (2) the community
in which any such Flood Hazard Property is located is participating in the
National Flood Insurance Program, (b) if there are any such Flood Hazard
Properties, such Loan Party’s written acknowledgement of receipt of written
notification from Administrative Agent (1) as to the existence of each
such Flood Hazard Property and (2) as to whether the community in which
each such Flood Hazard Property is located is participating in the National
Flood Insurance Program, and (c) in the event any such Flood Hazard
Property is located in a community that participates in the National Flood
Insurance Program, evidence that Company has obtained flood insurance in
respect of such Flood Hazard Property to the extent required under the
applicable regulations of the Board of Governors of the Federal Reserve System.

 

L.            Matters Relating to Existing Indebtedness of Company and
its Subsidiaries.

 

(i)            Termination
of Existing Credit Agreement and Related Liens.  On the Closing Date, Company and its
Subsidiaries shall have (a) repaid in full all Indebtedness outstanding
under the Existing Credit Agreement, (b) terminated any commitments to 

 

82

 

lend
or make other extensions of credit thereunder, (c) delivered to
Administrative Agent all documents or instruments necessary to release all
Liens securing Indebtedness or other obligations of Company and its Subsidiaries
thereunder, and (d) made arrangements satisfactory to Administrative Agent
with respect to any letters of credit outstanding thereunder.

 

(ii)           Redemption
of Subordinated Notes.  Company shall
have redeemed or defeased or acquired and canceled all of the Subordinated
Notes.

 

M.           Merger Agreement.  Administrative Agent shall have received a
fully executed or conformed copy of the Merger Agreement and any documents
executed in connection therewith, and the Merger Agreement shall be in full
force and effect.

 

N.            Consummation of Acquisition and Merger; Equity
Contribution; Escrow.

 

(i)            Acquisition
and Merger.  The Transaction shall be
consummated in accordance in all material respects with the Merger Agreement
and no provisions thereof shall have been amended, supplemented, waived or
otherwise modified in any manner which is materially adverse to Lenders, in
each case without the written consent of Lead Arranger.

 

(ii)           Equity
Contribution.  Company shall have
received a Cash capital contribution in an aggregate amount of not less than
the amount necessary to fund the Acquisition Financing Requirements to the
extent required to be paid by Acquisition Sub (and not funded by available Cash
at FTD or under the credit facilities evidenced by this Agreement).

 

(iii)          Escrow.  In the event that there is Dissenting Common
Stock (as defined in the Merger Agreement) and the Lead Arranger so requests,
an escrow or similar arrangement (the “Escrow”) shall
have been established on terms reasonably satisfactory to Lead Arranger and
United Online.

 

(iv)          United
Online Debt Documents.  Lead Arranger
shall have received a fully executed or conformed copy of the credit agreement
and related documents entered into by United Online in connection with the
Transaction, and the terms thereof shall be reasonably satisfactory to
Administrative Agent.

 

O.            Closing Date Consolidated Adjusted EBITDA.  Lead Arranger shall have received a Closing
Date Certificate signed by a Financial Officer of Company, demonstrating in
reasonable detail Closing Date Consolidated Adjusted EBITDA of at least
$97,500,000 for the most recently completed trailing 12 month period ended at
least 35 days prior to the Closing Date for which financial statements have
been delivered pursuant to subsection 4.2D.

 

83

 

P.            Company Material Adverse Effect.  From June 30, 2007 through April 30,
2008, there have not been any Company Effects that constitute a Company
Material Adverse Effect.

 

Q.            Market Material Adverse Change.  There shall not have been any material
disruption or material adverse change occurring after April 30, 2008 in
the financial or capital markets generally or in the market for syndicated
credit facilities generally that in the reasonable judgment of Lead Arranger
would materially adversely affect the Successful Syndication (as defined in
that certain Fee Letter dated April 30, 2008 (the “Fee Letter”)
between United Online and Administrative Agent) of the Facilities as
contemplated by that certain Commitment Letter dated April 30, 2008 (the “Commitment Letter”) between United Online and Administrative
Agent, including after giving effect to changes to the Facilities permitted
pursuant to the Fee Letter.

 

R.            Competing Offers.  There shall not have been any competing
offering, placement or arrangement for any debt security or bank financing
other than (i) the obligations under the United Online Debt Documents, (ii) senior
debt of United Online in an amount not to exceed $60 million or (iii) Alternative
Online Debt (as defined in the Commitment Letter).

 

4.3                               Conditions
to All Loans.

 

The
obligations of any Lender to make its Loans on each Funding Date (other than
the Closing Date) are subject to the following further conditions precedent:

 

A.            Administrative Agent shall have
received before that Funding Date, in accordance with the provisions of
subsection 2.1B, a duly executed Notice of Borrowing, in each case signed
by a duly authorized Responsible Officer of Company.

 

B.            As of that Funding Date:

 

(i)            The
representations and warranties contained herein and in the other Loan Documents
shall be true, correct and complete in all material respects on and as of that
Funding Date to the same extent as though made on and as of that date, except
to the extent such representations and warranties specifically relate to an
earlier date, in which case such representations and warranties shall have been
true, correct and complete in all material respects on and as of such earlier
date; provided, that, if a representation and warranty is qualified as
to materiality, the materiality qualifier set forth above shall be disregarded
with respect to such representation and warranty for purposes of this
condition;

 

(ii)           No
event shall have occurred and be continuing or would result from the
consummation of the borrowing contemplated by such Notice of Borrowing that
would constitute an Event of Default or a Potential Event of Default; and

 

84

 

(iii)          No
order, judgment or decree of any arbitrator or Government Authority shall
purport to enjoin or restrain such Lender from making the Loans to be made by
it on that Funding Date.

 

4.4                               Conditions
to Letters of Credit.

 

The
issuance of any Letter of Credit hereunder (other than any Letter of Credit
issued on the Closing Date) is subject to the following further conditions
precedent:

 

A.            On or before the date of issuance of
such Letter of Credit, Administrative Agent shall have received, in accordance with
the provisions of subsection 3.1B(i), an originally executed Request for
Issuance (or a facsimile copy thereof) in each case signed by a duly authorized
Responsible Officer of Company, together with all other information specified
in subsection 3.1B(i) and such other documents or information as the
applicable Issuing Lender may reasonably require in connection with the
issuance of such Letter of Credit.

 

B.            On the date of issuance of such Letter
of Credit, all conditions precedent described in subsection 4.3B shall be
satisfied to the same extent as if the issuance of such Letter of Credit were
the making of a Loan and the date of issuance of such Letter of Credit were a
Funding Date.

 

Section 5.              COMPANY’S REPRESENTATIONS AND
WARRANTIES

 

In
order to induce Lenders to enter into this Agreement and to make the Loans, to
induce Issuing Lenders to issue Letters of Credit and to induce Revolving
Lenders to purchase participations therein, Company represents and warrants to
each Lender; provided, however, notwithstanding anything to the
contrary expressed or implied in this Agreement or the other Loan Documents,
the parties hereto acknowledge and agree that the only representations and
warranties made under the Loan Documents (i) on the Signing Date are those
set forth in subsection 4.1(iii) and (ii) on the Closing Date are
those constituting the Specified Representations:

 

5.1                               Organization,
Powers, Qualification, Good Standing, Business and Subsidiaries.

 

A.            Organization and Powers.  Each of Holdings, Acquisition Sub and FTD is
a corporation duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization as specified in Schedule 5.1
annexed hereto.  Each of Holdings,
Acquisition Sub and FTD has all requisite power and authority to own and
operate its properties, to carry on its business as now conducted and as
proposed to be conducted, to enter into the Loan Documents to which it is a
party and to carry out the transactions contemplated thereby.

 

B.            Qualification and Good Standing.  Each of Holdings, Acquisition Sub and FTD is
qualified to do business and in good standing in every jurisdiction where its
assets are located and wherever necessary to carry out its business and
operations, except in 

 

85

 

jurisdictions where the failure to be so qualified or
in good standing has not had and could not reasonably be expected to result in
a Material Adverse Effect.

 

C.            Conduct of Business.  Holdings, Acquisition Sub, FTD and their
respective Subsidiaries are engaged only in the businesses permitted to be
engaged in pursuant to subsections 7.11 and 8.14.

 

D.            Subsidiaries.  All of the Subsidiaries of Acquisition Sub
and FTD and their jurisdictions of organization are identified in Schedule 5.1
annexed hereto, as said Schedule 5.1 may be supplemented from time to
time pursuant to the provisions of subsection 6.1(xvi).  The Capital Stock of each of the Subsidiaries
identified in Schedule 5.1 annexed hereto (as so supplemented by
Company) is duly authorized and validly issued and none of such Capital Stock
constitutes Margin Stock and, except as set forth in Schedule 5.1
annexed hereto (as so supplemented), is fully paid and nonassessable.  Each of the Subsidiaries identified in Schedule 5.1
annexed hereto (as so supplemented by Company) is a corporation, partnership,
trust or limited liability company duly organized, validly existing and in good
standing under the laws of its respective jurisdiction of organization set
forth therein, has all requisite power and authority to own and operate its
properties and to carry on its business as now conducted and as proposed to be
conducted, and is qualified to do business and in good standing in every
jurisdiction where its assets are located and wherever necessary to carry out
its business and operations, in each case except where failure to be so
qualified or in good standing or a lack of such power and authority has not had
and could not reasonably be expected to result in a Material Adverse Effect.  Schedule 5.1 annexed hereto (as
so supplemented) correctly sets forth the ownership interest of Acquisition Sub
and FTD and each of their respective Subsidiaries in each of the Subsidiaries
of Acquisition Sub and FTD identified therein.

 

5.2                               Authorization
of Borrowing, etc.

 

A.            Authorization of Borrowing.  The execution, delivery and performance of
the Loan Documents have been duly authorized by all necessary action on the
part of each Loan Party that is a party thereto.

 

B.            No Conflict.  The execution, delivery and performance by
the Loan Parties of the Loan Documents to which they are parties and the
consummation of the transactions contemplated by the Loan Documents do not and
will not (i) violate any provision of any law or any governmental rule or
regulation applicable to Holdings or any of its Subsidiaries, the
Organizational Documents of Holdings or any of its Subsidiaries or any order,
judgment or decree of any court or other Government Authority binding on
Holdings or any of its Subsidiaries, (ii) conflict with, result in a
breach of or constitute (with due notice or lapse of time or both) a default
under any Contractual Obligation of Holdings or any of its Subsidiaries, (iii) result
in or require the creation or imposition of any Lien upon any of the properties
or assets of Holdings or any of its Subsidiaries (other than any Liens created
under any of the Loan Documents in favor of Administrative Agent on behalf of
Lenders), or (iv) require any approval of stockholders or any approval or
consent of any Person under any Contractual Obligation of Holdings or any of
its Subsidiaries, except for such approvals or consents which will be obtained
on or before the Closing Date and except, in each case, to the extent such
violation, conflict, 

 

86

 

breach, Lien or failure to obtain such approval or
consent could not reasonably be expected to result in a Material Adverse
Effect.

 

C.            Governmental Consents.  The execution, delivery and performance by
the Loan Parties of the Loan Documents to which they are parties and the
consummation of the transactions contemplated by the Loan Documents do not and
will not require any Governmental Authorization except any thereof which the
failure to obtain could not reasonably be expected to have a Material Adverse
Effect.

 

D.            Binding Obligation.  Each of the Loan Documents has been duly
executed and delivered by each Loan Party that is a party thereto and is the
legally valid and binding obligation of such Loan Party, enforceable against
such Loan Party in accordance with its respective terms, except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or limiting creditors’ rights generally or by equitable principles
relating to enforceability.

 

5.3                               Financial
Condition.

 

Company
has heretofore delivered to Lenders, at Lenders’ request, the financial
statements and information described in subsection 4.2D.  All such statements other than pro forma
financial statements were prepared in conformity with GAAP and fairly present,
in all material respects, the financial position (on a consolidated basis) of
the entities described in such financial statements as at the respective dates
thereof and the results of operations and cash flows (on a consolidated basis)
of the entities described therein for each of the periods then ended, subject,
in the case of any such unaudited financial statements, to changes resulting
from audit and normal year-end or quarter-end adjustments.  As of the Signing Date, neither Company nor
any of its Subsidiaries has any Contingent Obligation, contingent liability or
liability for taxes, long-term lease or unusual forward or long-term commitment
that is not reflected in the foregoing financial statements available as of the
Signing Date or the notes thereto and that, in any such case, would have a
Material Adverse Effect.

 

5.4                               No
Material Adverse Change; No Restricted Junior Payments.

 

Since June 30,
2007, no event or change has occurred that has resulted in or evidences, either
in any case or in the aggregate, a Material Adverse Effect.  Since and including the Closing Date, neither
Company nor any of its Subsidiaries has directly or indirectly declared,
ordered, paid or made, or set apart any sum or property for, any Restricted
Junior Payment or agreed to do so except as permitted by subsection 7.5.

 

5.5                               Title
to Properties; Liens; Real Property; Intellectual Property.

 

A.            Title to Properties; Liens.  Company and its Subsidiaries have (i) good,
sufficient and legal title to (in the case of fee interests in real property), (ii) valid
leasehold interests in (in the case of leasehold interests in real or personal
property), or (iii) good title to (in the case of all other personal
property), all of their respective properties and assets reflected in the
financial statements referred to in subsection 5.3 or in the most recent
financial statements 

 

87

 

delivered pursuant to subsection 6.1, in each
case except for assets disposed of since the date of such financial statements
in the ordinary course of business or as otherwise permitted by subsection 7.7
and except for such defects that individually or in the aggregate would not
reasonably be expected to have a Material Adverse Effect.  All such properties and assets are free and
clear of Liens except for Liens permitted pursuant to subsection 7.2A.

 

B.            Real Property.  As of the Signing Date, Schedule 5.5B
annexed hereto contains a true, accurate and complete list of (i) all fee
interests in any Real Property Assets of Acquisition Sub, FTD and their
respective Subsidiaries and (ii) all material leases, subleases or
assignments of leases (together with all amendments, modifications,
supplements, renewals or extensions of any thereof) affecting each Real
Property Asset, regardless of whether a Loan Party is the landlord or tenant
(whether directly or as an assignee or successor in interest) under such lease,
sublease or assignment.

 

C.            Intellectual Property.  As of the Closing Date, Company and its
Subsidiaries own or have the right to use, all Intellectual Property used in
the conduct of their business, except where the failure to own or have such
right to use in the aggregate could not reasonably be expected to result in a
Material Adverse Effect.  No claim has
been asserted and is pending by any Person challenging the use of any such
Intellectual Property or the validity or effectiveness of any such Intellectual
Property, nor does any Responsible Officer of Company know of any valid basis
for any such claim, except for such claims that in the aggregate could not
reasonably be expected to result in a Material Adverse Effect.  To Company’s knowledge, the use of such
Intellectual Property by Company and its Subsidiaries does not infringe on the
rights of any Person, except for such claims and infringements that, in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.  All material federal
registrations of and applications for Intellectual Property that are owned or
licensed by Acquisition Sub and FTD or any of their respective Domestic
Subsidiaries on the Signing Date are described on Schedule 5.5C annexed
hereto.

 

5.6                       Litigation;
Adverse Facts.

 

Except
as set forth in Schedule 5.6 annexed hereto, there are no
Proceedings (whether or not purportedly on behalf of Acquisition Sub, FTD or
any of their respective Subsidiaries) at law or in equity, or before or by any
court or other Government Authority (including any Environmental Claims) that
are pending or, to the knowledge of any Responsible Officer of Company,
threatened against or affecting Acquisition Sub, FTD or any of their respective
Subsidiaries or any property of Acquisition Sub, FTD or any of their respective
Subsidiaries and that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.  Neither Company nor any of its Subsidiaries (i) is
in violation of any applicable laws (including Environmental Laws) that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect, or (ii) is subject to or in default with respect
to any final judgments, writs, injunctions, decrees, rules or regulations
of any court or other Government Authority that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect.

 

88

 

5.7                               Payment
of Taxes.

 

Except
as could not reasonably be expected to have a Material Adverse Effect, all tax
returns and reports of Holdings and its Subsidiaries required to be filed by
any of them have been timely filed, and except to the extent permitted by
subsection 6.3, all taxes shown on such tax returns to be due and payable
and all assessments, fees and other governmental charges upon Holdings and its
Subsidiaries and upon their respective properties, assets, income, businesses
and franchises that are due and payable have been paid prior to delinquency
other than those (i) currently payable without penalty or interest, or (ii) being
contested in good faith by appropriate proceedings; provided that
Holdings or such Subsidiary, as the case may be, has set aside on its books
adequate reserves therefor in accordance with GAAP and the failure to pay such
amounts would not reasonably be expected to result in a Material Adverse
Effect.

 

5.8                       Performance
of Agreements.

 

Neither Company nor any
of its Subsidiaries is in default in the performance, observance or fulfillment
of any of the obligations, covenants or conditions contained in any of its
Contractual Obligations, and no condition exists that, with the giving of
notice or the lapse of time or both, would constitute such a default, except
where the consequences, direct or indirect, of such default or defaults, if
any, could not reasonably be expected to result in a Material Adverse Effect.

 

5.9                               Governmental
Regulation.

 

Neither
Company nor any of its Subsidiaries is subject to regulation under the Federal
Power Act, the Interstate Commerce Act or the Investment Company Act of 1940 or
under any other federal or state statute or regulation which may limit its
ability to incur Indebtedness or which may otherwise render all or any portion
of the Obligations unenforceable.

 

5.10                        Securities
Activities.

 

A.            Neither Company nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying any
Margin Stock.

 

B.            Following application of the proceeds
of each Loan, not more than 25% of the value of the assets (either of Company
only or of Company and its Subsidiaries on a consolidated basis) subject to the
provisions of subsection 7.2 or 7.7 or subject to any restriction
contained in any agreement or instrument, between Company and any Lender or any
Affiliate of any Lender, relating to Indebtedness and within the scope of
subsection 8.2, will be Margin Stock.

 

5.11                Employee
Benefit Plans.

 

A.            Company, each of its Subsidiaries and
each of their respective ERISA Affiliates are in compliance in all material
respects with all applicable provisions and 

 

89

 

requirements of ERISA and the regulations and
published interpretations thereunder with respect to each Employee Benefit
Plan, and have performed all their obligations under each Employee Benefit
Plan.  Each Employee Benefit Plan that is
intended to qualify under Section 401(a) of the Internal Revenue Code
is so qualified.

 

B.            No ERISA Event has occurred or is
reasonably expected to occur.

 

C.            Except to the extent required under Section 4980B
of the Internal Revenue Code or except as set forth in Schedule 5.11
annexed hereto, no Employee Benefit Plan provides health or welfare benefits
(through the purchase of insurance or otherwise) for any retired or former
employee of Company, any of its Subsidiaries or any of their respective ERISA
Affiliates.

 

D.            As of the most recent valuation date
for any Pension Plan, the amount of unfunded benefit liabilities (as defined in
Section 4001(a)(18) of ERISA), individually or in the aggregate for all
Pension Plans (excluding for purposes of such computation any Pension Plans
with respect to which assets exceed benefit liabilities), does not exceed
$5,000,000.

 

E.             As of the most recent valuation date
for each Multiemployer Plan for which the actuarial report is available, the
potential liability of Company, its Subsidiaries and their respective ERISA
Affiliates for a complete withdrawal from such Multiemployer Plan (within the
meaning of Section 4203 of ERISA), when aggregated with such potential
liability for a complete withdrawal from all Multiemployer Plans, based on
information available pursuant to Section 4221(e) of ERISA, does not
exceed $5,000,000.

 

F.             As of the Signing Date hereof, Company
and its Subsidiaries have made full payment when due of all required
contributions to any Foreign Plan, except where the failure to do so would not
result in a Material Adverse Effect.

 

5.12                Certain Fees.

 

No
broker’s or finder’s fee or commission will be payable with respect to this
Agreement or any of the transactions contemplated hereby, except such as are
included in Transaction Costs, and Company hereby indemnifies Lenders against,
and agrees that it will hold Lenders harmless from, any claim, demand or
liability for any such broker’s or finder’s fees alleged to have been incurred
in connection herewith or therewith and any expenses (including reasonable
fees, expenses and disbursements of counsel) arising in connection with any
such claim, demand or liability.

 

5.13                Environmental
Protection.

 

(i)            Neither
Company nor any of its Subsidiaries nor any of their respective Facilities or
operations are subject to any outstanding written order, consent decree or
settlement agreement with any Person relating to (a) any Environmental
Law, (b) any Environmental Claim, or (c) any Hazardous Materials
Activity, in each case, that, 

 

90

 

individually
or in the aggregate, could reasonably be expected to result in a Material
Adverse Effect;

 

(ii)           neither
Company nor any of its Subsidiaries has received any letter or written
request for information under Section 104 of the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604)
or any comparable state law, in each case, that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect;

 

(iii)          to
any Responsible Officer of Company’s knowledge there are, and have been, no
conditions, occurrences, or Hazardous Materials Activities that could
reasonably be expected to form the basis of an Environmental Claim against
Company or any of its Subsidiaries that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect;

 

(iv)          as
of the Closing Date neither Company nor any of its Subsidiaries nor, to any
Responsible Officer of Company’s knowledge, any predecessor of Company or any
of its Subsidiaries has filed any notice under any Environmental Law indicating
past or present treatment of Hazardous Materials at any Facility, and none of
Company’s or any of its Subsidiaries’ operations involves the generation,
transportation, treatment, storage or disposal of hazardous waste, as defined
under 40 C.F.R. Parts 260-270 or any state equivalent, in each case, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect; and

 

(v)           compliance
with all current or reasonably foreseeable future requirements pursuant to or
under Environmental Laws could not, individually or in the aggregate, be
reasonably expected to result in a Material Adverse Effect.

 

5.14                Employee
Matters.

 

There
is no strike or work stoppage in existence or threatened involving Company
or any of its Subsidiaries that could reasonably be expected to result in a
Material Adverse Effect.

 

5.15                Solvency.

 

The
Loan Parties, on a consolidated basis, are, 
and, upon the incurrence of any Obligations by any Loan Party on any
date on which this representation is made, will be, Solvent.

 

5.16                Matters Relating
to Collateral.

 

A.            Creation, Perfection and Priority of Liens.  The execution and delivery of the Collateral
Documents by the Loan Parties, together with (i) the actions taken to date
pursuant to subsections 4.2, 6.8 and 6.9 and (ii) the delivery to
Administrative Agent of any Pledged Collateral not delivered to Administrative
Agent at the time of execution and delivery of 

 

91

 

the applicable Collateral Document (all of which
Pledged Collateral has been so delivered) are effective to create in favor of
Administrative Agent for the benefit of Lenders, as security for the respective
Secured Obligations (as defined in the applicable Collateral Document in
respect of any Collateral), a valid First Priority Lien on all of the
Collateral (other than Excluded Perfection Assets), and all filings of UCC
financing statements necessary to perfect and maintain the perfection and First
Priority status of such Liens that can be perfected by filing UCC financing statements
have been duly made or taken and remain in full force and effect (or will be
duly made or taken within applicable time periods), other than the filing of
any UCC financing statements delivered to Administrative Agent for filing (but
not yet filed) and the periodic filing of UCC continuation statements in
respect of UCC financing statements filed by or on behalf of Administrative
Agent.  The foregoing notwithstanding,
from and including the Closing Date to the date that is 90 days after the
Closing Date, this representation will be deemed satisfied (including for its
purpose as a Specified Representation) to the extent Company has used
commercially reasonable efforts to take the actions described in subsection
4.2J.

 

B.            Governmental Authorizations.  No authorization, approval or other action
by, and no notice to or filing with, any Government Authority is required for
either (i) the pledge or grant by any Loan Party of the Liens purported to
be created in favor of Administrative Agent pursuant to any of the Collateral
Documents or (ii) the exercise by Administrative Agent of any rights or
remedies in respect of any Collateral (whether specifically granted or created
pursuant to any of the Collateral Documents or created or provided for by
applicable law), except for filings or recordings contemplated by the
Collateral Documents and except as may be required, in connection with the
disposition of any Pledged Collateral, by laws generally affecting the offering
and sale of securities.

 

C.            Absence of Third-Party Filings.  Except such as may have been filed in favor
of Administrative Agent as contemplated by the Collateral Documents and to
evidence permitted lease obligations and other Liens permitted pursuant to
subsection 7.2A and those that are being terminated in connection with the
termination of the Existing Credit Agreement, (i) no effective UCC
financing statement, fixture filing or other instrument similar in effect
covering all or any part of the Collateral is on file in any filing or
recording office and (ii) no effective filing covering all or any part of
the IP Collateral is on file in any IP Filing Office.

 

D.            Margin Regulations.  The pledge of the Pledged Collateral pursuant
to the Collateral Documents does not violate Regulation U or X of the Board of
Governors of the Federal Reserve System.

 

E.             Information Regarding Collateral.  All information supplied to Administrative
Agent by or on behalf of any Loan Party with respect to any of the Collateral
(in each case taken as a whole with respect to any particular Collateral) is
accurate and complete in all material respects.

 

5.17                        Disclosure.

 

No
information (excluding projections, forward-looking information and information
of a general economic or industry nature) furnished by or on behalf of any Loan

 

92

 

Party to Administrative Agent or any Lender in
connection with the negotiation of any Loan Document or included therein or
delivered pursuant thereto (including the Confidential Information Memorandum),
taken as a whole, contained or contains any untrue statement of a material fact
or omitted or omits to state a material fact necessary to make the statements
contained therein not materially misleading, in light of the circumstances
under which they were or are made as of the date such information is dated or
certified.  All projections furnished by
or on behalf of any Loan Party to Administrative Agent or any Lender in
connection with the negotiation of any Loan Document were prepared in good
faith based upon assumptions that were believed by the preparer thereof to be
reasonable at the time made, it being understood and agreed that such
projections are not a guarantee of financial performance and actual results may
differ from the projections and such differences may be material.

 

5.18                Subordinated
Indebtedness.

 

The
Obligations constitute senior indebtedness that is entitled to the benefits of
the subordination provisions, if any, of all Indebtedness of Company and its
Subsidiaries.

 

5.19                Merger Agreement.

 

Company has delivered to Lenders complete and correct
copies of the Merger Agreement and of all exhibits and schedules thereto.

 

5.20                Reporting to
IRS.

 

Company
does not intend to treat the Loans and related transactions as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4).  In the event Company determines to take any
action inconsistent with such intention, it will promptly notify Administrative
Agent thereof.

 

Company
acknowledges that one or more Lenders may treat their Loans as part of a
transaction that is subject to Treasury Regulation Section 1.6011-4 or Section 301.6112-1,
and Administrative Agent and such Lender or Lenders, as applicable, may file
such IRS forms or maintain such lists and other records as they may determine
is required by such Treasury Regulations.

 

5.21                Foreign Assets
Control Regulations, etc.

 

Neither
the making of the Loans to, or issuance of a Letter of Credit on behalf of,
Company nor its use of the proceeds thereof will violate the Trading with the
Enemy Act, as amended, or any of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
or any enabling legislation or executive order relating thereto.  Without limiting the foregoing, neither
Company nor any of its Subsidiaries or Affiliates (i) is or will become a
Person whose property or interests in property are blocked pursuant to Section 1
of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
(66 Fed. Reg. 49079 (2001)) or (ii) 

 

93

 

engages or will engage in
any dealings or transactions, or be otherwise associated, with any such
Person.  Company and its Subsidiaries and
Affiliates are in compliance, in all material respects, with the Patriot Act.

 

5.22                        Insignificant
Subsidiaries.

 

As of
the Closing Date, FTD Canada, Inc. is not a Significant Subsidiary.

 

Section 6.              COMPANY’S AFFIRMATIVE COVENANTS

 

Company
covenants and agrees that from and including the Closing Date, so long as any
of the Commitments hereunder shall remain in effect and until payment in full
of all of the Loans and other Obligations (other than Unasserted Obligations)
and the cancellation, expiration or collateralization (in a manner reasonably
acceptable to Administrative Agent) of all Letters of Credit, unless Requisite
Lenders shall otherwise give written consent, Company shall perform, and shall
cause each of its Subsidiaries to perform, all covenants in this Section 6.

 

6.1                       Financial
Statements and Other Reports.

 

Company
will maintain, and cause each of its Subsidiaries to maintain, a system of
accounting established and administered in accordance with sound business
practices to permit preparation of financial statements in conformity with
GAAP.  Company will deliver to
Administrative Agent:

 

(i)            Events
of Default, etc.:  promptly upon any
Responsible Officer of Company obtaining knowledge (a) of any condition or
event that constitutes an Event of Default or Potential Event of Default, (b) that
any Person has given any notice to Company or any of its Subsidiaries or taken
any other action with respect to a claimed default or event or condition of the
type referred to in subsection 8.2, (c) of any change in Company’s
independent certified accountants, any changes in Company’s Organizational
Documents, or any restatement of Company’s financial statements or (d) of
the occurrence of any event or change that has caused or evidences, either in
any case or in the aggregate, a Material Adverse Effect, an Officer’s
Certificate specifying the nature and period of existence of such condition,
event or change, or specifying the notice given or action taken by any such
Person and the nature of such claimed Event of Default, Potential Event of
Default, default, event or condition, and what action Company has taken, is
taking and proposes to take with respect thereto;

 

(ii)           Monthly
Financials: as soon as available and in any event within 45 days after the
end of each month ending after the Signing Date and on or prior to September 30,
2008, the consolidated balance sheet of Company and its Subsidiaries as at the
end of such month and the related consolidated statements of income and cash
flows of Company and its Subsidiaries for such month, all in reasonable detail
and certified by a Financial Officer of Company that they fairly present, in
all material respects, the financial condition of Company and its Subsidiaries
as at the dates indicated and the 

 

94

 

results
of their operations and their cash flows for the periods indicated, subject to
changes resulting from audit and normal year-end and quarter end adjustments;

 

(iii)          Quarterly
Financials:  as soon as available and
in any event within 45 days after the end of each Fiscal Quarter, other than
the last Fiscal Quarter of any Fiscal Year (commencing with the first such
complete Fiscal Quarter that began after the Closing Date), (a) the
consolidated balance sheet of Company and its Subsidiaries as at the end of
such fiscal period and the related consolidated statements of income and cash
flows of Company and its Subsidiaries for such fiscal period and for the period
from the beginning of the then current Fiscal Year to the end of such fiscal
period, setting forth in each case (commencing with the Fiscal Year ending December 31,
2010) in comparative form the corresponding figures for the corresponding
periods of the previous Fiscal Year, to the extent prepared for such fiscal
period, all in reasonable detail and certified by a Financial Officer of
Company that they fairly present, in all material respects, the financial
condition of Company and its Subsidiaries as at the dates indicated and the
results of their operations and their cash flows for the periods indicated,
subject to changes resulting from audit and normal year-end adjustments and (b) revenue
and gross profits for the international, floral and consumer divisions of
Company’s business for such period;

 

(iv)          Year-End
Financials:  as soon as available and
in any event within 90 days after the end of each Fiscal Year (commencing with
the Fiscal Year ending December 31, 2008), (a) the consolidated
balance sheets of Company and its Subsidiaries and the related consolidated
statements of income and cash flows of Company and its Subsidiaries for such
Fiscal Year (which, in the case of the Fiscal Year ended December 31,
2008, shall be for the period from the Closing Date to December 31, 2008),
setting forth in each case (commencing with the Fiscal Year ending December 31,
2010) in comparative form the corresponding figures for the previous Fiscal
Year, all in reasonable detail and certified by a Financial Officer of Company
that they fairly present, in all material respects, the financial condition of
Company and its Subsidiaries as at the dates indicated and the results of their
operations and their cash flows for the periods indicated, (b) in the case
of such consolidated financial statements, a report thereon of
PricewaterhouseCoopers LLP or other independent certified public accountants of
recognized national standing selected by Company and reasonably satisfactory to
Administrative Agent, which report shall be unqualified, including concerning
the ability of Company and its Subsidiaries to continue as a going concern, and
shall state that such consolidated financial statements fairly present, in all
material respects, the consolidated financial position of Company and its
Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated in conformity with GAAP applied on a
basis consistent with prior years (except as otherwise disclosed in such
financial statements and excluding any such prior year which commenced before January 1.
2009) and that the examination by such accountants in connection with such
consolidated financial statements has been made in accordance with generally
accepted auditing standards, and (c) revenue and gross profits 

 

95

 

for
the international, floral and consumer divisions of the Company’s business for
such period;

 

(v)           Pricing
and Compliance Certificates: 
together with each delivery of financial statements pursuant to clauses (iii) and
(iv) above, (a) an Officer’s Certificate of Company stating that the
signers have reviewed the terms of this Agreement and have made, or caused to
be made under their supervision, a review in reasonable detail of the
transactions and condition of Company and its Subsidiaries during the
accounting period covered by such financial statements and that such review has
not disclosed the existence during or at the end of such accounting period, and
that the signers do not have knowledge of the existence as at the date of such
Officer’s Certificate, of any condition or event that constitutes an Event of
Default or Potential Event of Default, or, if any such condition or event
existed or exists, specifying the nature and period of existence thereof and
what action Company has taken, is taking and proposes to take with respect
thereto; and (b) a Compliance Certificate demonstrating in reasonable
detail compliance during and at the end of the applicable accounting periods
with the restrictions contained in subsections 7.1, 7.2, 7.3, 7.4, 7.6, 7.7,
7.8 and 7.9, in each case to the extent compliance with such restrictions is
required to be tested at the end of the applicable accounting period; in
addition, on or before the 45th day following the
end of each of the first three Fiscal Quarters of each Fiscal Year and on or
before the 90th day following the end of each Fiscal Year, a Pricing
Certificate demonstrating in reasonable detail the calculation of the
Consolidated Leverage Ratio as of the end of the four-Fiscal Quarter period
then ended;

 

(vi)          Reconciliation
Statements:  if, as a result of any
change in accounting principles and policies from those used in the preparation
of the audited financial statements referred to in subsection 5.3, the
consolidated financial statements of Company and its Subsidiaries delivered
pursuant to clauses (ii), (iii) or (xii) of this subsection 6.1 will
differ in any material respect from the consolidated financial statements that
would have been delivered pursuant to such clauses had no such change in
accounting principles and policies been made, then (a) together with the
first delivery of financial statements pursuant to clause (ii), (iii), (iv) or
(xiii) of this subsection 6.1 following such change, consolidated
financial statements of Company and its Subsidiaries for (y) the current
Fiscal Year to the effective date of such change and (z) the two full
Fiscal Years immediately preceding the Fiscal Year in which such change is
made, in each case prepared on a pro forma basis as if such change had been in
effect during such periods, and (b) together with each delivery of
financial statements pursuant to clause (ii), (iii), (iv) or (xiii) of
this subsection 6.1 following such change, if required pursuant to
subsection 1.2, a written statement of the chief accounting officer or
chief financial officer of Company setting forth the differences (including any
differences that would affect any calculations relating to the financial
covenants set forth in subsection 7.6) which would have resulted if such
financial statements had been prepared without giving effect to such change;

 

(vii)         Accountants’
Certification:  together with each
delivery of consolidated financial statements pursuant to clause (iii) above
to the extent available from 

 

96

 

Company’s
independent certified public accountants on commercially reasonable terms and
in accordance with the standards of the Public Company Accounting Oversight Board
(United States), a written statement by the independent certified public
accountants giving the report thereon stating whether, in connection with
their audit examination, any condition or event that constitutes an Event of
Default under subsection 7.6A or B has come to their attention and, if
such a condition or event has come to their attention, specifying the nature
and period of existence thereof; provided that such accountants shall
not be liable by reason of any failure to obtain knowledge of any such Event of
Default;

 

(viii)        Accountants’
Reports:  promptly upon receipt
thereof (unless restricted by applicable professional standards), copies of all
reports submitted to Company by independent certified public accountants in
connection with each annual, interim or special audit of the financial
statements of Company and its Subsidiaries made by such accountants, including
any comment letter submitted by such accountants to management in connection
with their annual audit;

 

(ix)           SEC
Filings and Press Releases: 
promptly, a notice of the filing of all regular and periodic reports and
all registration statements (other than on Form S-8 or a similar form) and
prospectuses, if any, filed by Company or any of its Subsidiaries with the
Securities and Exchange Commission and all press releases made available
generally by Company or any of its Subsidiaries to the public concerning
developments that are material to the business of Company or any of its
Subsidiaries, taken as a whole;

 

(x)            Litigation
or Other Proceedings:  promptly upon
any Responsible Officer of Company obtaining knowledge of (1) the
institution of, or non-frivolous written threat of, any Proceeding against or
affecting Company or any of its Subsidiaries or any property of Company or any
of its Subsidiaries not previously disclosed in writing by Company to Lenders
or (2) any material development in any Proceeding that, in any case:

 

(x)            has
a reasonable possibility after giving effect to the coverage and policy limits
of insurance policies issued to Company and its Subsidiaries of giving rise to
a Material Adverse Effect; or

 

(y)           seeks
to enjoin or otherwise prevent the consummation of, or to recover any damages
or obtain relief as a result of, the transactions contemplated hereby;

 

written notice thereof
together with such other information as may be reasonably available to Company
to enable Lenders and their counsel to evaluate such matters.

 

(xi)           ERISA
Events:  promptly upon a Responsible
Officer of Company becoming aware of the occurrence of or forthcoming
occurrence of any ERISA Event, a written notice specifying the nature thereof,
what action Company, any of its Subsidiaries or any of their respective ERISA
Affiliates has taken, is taking or proposes 

 

97

 

to
take with respect thereto and, when known, any action taken or threatened by
the Internal Revenue Service, the Department of Labor or the PBGC with respect
thereto;

 

(xii)          ERISA
Notices:  with reasonable promptness,
copies of (a) all written notices received by Company, any of its
Subsidiaries or any of their respective ERISA Affiliates from a Multiemployer
Plan sponsor concerning an ERISA Event; and (b) copies of such other
documents or governmental reports or filings relating to any Employee Benefit
Plan as Administrative Agent shall reasonably request;

 

(xiii)         Financial
Plans:  as soon as practicable and in
any event no later than 90 days after the beginning of each Fiscal Year, a
consolidated plan and financial forecast for such Fiscal Year (the “Financial Plan” for such Fiscal Year), including (a) forecasted
consolidated balance sheets and forecasted consolidated statements of income
and cash flows of Company and its Subsidiaries for each such Fiscal Year,
together with a pro  forma Compliance Certificate for each such
Fiscal Year and an explanation of the assumptions on which such forecasts are
based, (b) forecasted consolidated statements of income and cash flows of
Company and its Subsidiaries for each quarter of each such Fiscal Year,  and (c) such other information and
projections as any Lender may reasonably request;

 

(xiv)        Insurance:  as soon as practicable after any material
change in insurance coverage maintained by Company and its Subsidiaries notice
thereof to Administrative Agent specifying the changes and reasons therefor;

 

(xv)         Governing
Body:  with reasonable promptness,
written notice of any change in the Governing Body or principal executive
officer of Company;

 

(xvi)        New
Subsidiaries:  promptly upon any
Person becoming a Subsidiary of Company, a written notice setting forth with
respect to such Person (a) the date on which such Person became a
Subsidiary of Company and (b) all of the data required to be set forth in Schedule
5.1 annexed hereto with respect to all Subsidiaries of Company (it being
understood that such written notice shall be deemed to supplement Schedule
5.1 annexed hereto for all purposes of this Agreement);

 

(xvii)       Good
Standing Certificates:  promptly upon
request of Administrative Agent (but no more frequently than once each Fiscal
Quarter), good standing certificates as to each Loan Party from its
jurisdiction of organization;

 

(xviii)      Notices
from Holders of Subordinated Indebtedness: 
promptly, upon receipt, copies of material all notices from holders of Subordinated
Indebtedness or a trustee, agent or other representative of such a holder;

 

(xix)         Patriot
Act, etc.: with reasonable promptness, information to confirm compliance
with the representations contained in subsection 5.21 reasonably requested by
any Lender through Administrative Agent; and

 

98

 

(xx)          Other
Information:  with reasonable
promptness, such other information and data with respect to Company or any of
its Subsidiaries as from time to time may be reasonably requested by
Administrative Agent.

 

6.2                       Existence,
etc.

 

Except
as permitted by subsection 7.7, Company will, and will cause each of its
Subsidiaries to, at all times preserve and keep in full force and effect its
existence in the jurisdiction of organization specified on Schedule 5.1
(as supplemented by the Company from time to time) and all rights and
franchises material to its business; provided, however that
neither Company nor any of its Subsidiaries shall be required to preserve any
such right or franchise if the Governing Body of Company or such Subsidiary
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of Company or such Subsidiary, as the case may be, and
that the loss thereof is not disadvantageous in any material respect to
Company, such Subsidiary or Lenders.

 

6.3                       Payment
of Taxes and Claims; Tax.

 

Except
as would not reasonably be expected to result in a Material Adverse Effect,
Holdings will, and will cause each of its Subsidiaries to, pay all taxes, fees,
assessments and other governmental charges imposed upon it or any of its
properties or assets or in respect of any of its income, businesses or
franchises before any penalty accrues thereon, and all claims for sums that
have become due and payable and that by law have or may become a Lien upon any
of its properties or assets, prior to the time when any penalty or fine shall
be incurred with respect thereto; provided that no such tax, fee,
assessment, charge or claim need be paid if it is being contested in good faith
by appropriate proceedings, so long as (i) such reserve or other
appropriate provision, if any, as shall be required in conformity with GAAP
shall have been made therefor, and (ii) in the case of a tax, assessment,
charge or claim which has or may become a Lien against any of the Collateral,
such proceedings conclusively operate to stay the sale of any portion of the
Collateral to satisfy such charge or claim.

 

6.4                               Maintenance
of Properties; Insurance; Application of Net Insurance/ Condemnation Proceeds.

 

A.            Maintenance of Properties.  Company will, and will cause each of its
Subsidiaries to, maintain or cause to be maintained in good repair, working
order and condition, ordinary wear and tear and casualty events or accidents
excepted, all material properties used or useful in the business of Company and
its Subsidiaries (including all Intellectual Property) and from time to time
will make or cause to be made all appropriate repairs, renewals and
replacements thereof, except where the failure to do so could not reasonably be
expected to result in a Material Adverse Effect.

 

B.            Insurance.  Company will maintain or cause to be
maintained, with financially sound and reputable insurers, such public
liability insurance, third party property damage insurance, business
interruption insurance and casualty insurance with respect to liabilities,
losses or damage in respect of the assets, properties and businesses of Company
and 

 

99

 

its Subsidiaries as may customarily be carried or
maintained under similar circumstances by companies of established reputation
engaged in similar businesses, in each case in such amounts (giving effect to
self-insurance), with such deductibles, covering such risks and otherwise on
such terms and conditions as shall be customary for companies similarly
situated in the industry.  Without
limiting the generality of the foregoing, Company will maintain or cause to be
maintained (i) flood insurance with respect to each Flood Hazard Property
that is located in a community that participates in the National Flood
Insurance Program, in each case in compliance with any applicable regulations
of the Board of Governors of the Federal Reserve System, and (ii) replacement
value casualty insurance on the Collateral under such policies of insurance,
with such insurance companies, in such amounts, with such deductibles, and
covering such risks as are at all times satisfactory to Administrative Agent in
its commercially reasonable judgment. 
Each policy of liability insurance (excluding director and officer
liability policies) shall name Administrative Agent for the benefit of Lenders
as an additional insured thereunder as its interests may appear and each
business interruption and casualty insurance policy shall contain a loss
payable clause or endorsement, satisfactory in form and substance to
Administrative Agent, that names Administrative Agent for the benefit of
Lenders as the loss payee thereunder for any covered loss in excess of
$1,000,000 and provides for at least 30 days prior written notice to
Administrative Agent of any modification or cancellation of such policy (except
in the case of non-payment of premium). 
In connection with the renewal of each such policy of insurance, Company
promptly shall deliver to Administrative Agent a certificate from Company’s
insurance broker or other evidence satisfactory to Administrative Agent that
Administrative Agent on behalf of Lenders has been named as additional insured
and/or loss payee thereunder.

 

C.            Application of Net Insurance/Condemnation Proceeds.

 

(i)            Business
Interruption Insurance.  Upon receipt
by Company or any of its Subsidiaries of any business interruption insurance
proceeds constituting Net Insurance/Condemnation Proceeds from business
interruption insurance, (a) so long as no Event of Default pursuant to
subsection 8.1, 8.6 or 8.7 shall have occurred and be continuing, Company
or such Subsidiary may retain and apply such Net Insurance/Condemnation
Proceeds for working capital and any other corporate purposes, and (b) if
an Event of Default pursuant to subsection 8.1, 8.6 or 8.7 shall have occurred
and be continuing, Company shall apply an amount equal to such Net
Insurance/Condemnation Proceeds, to the extent such Net Insurance/Condemnation
Proceeds exceed $2,500,000, to prepay the Loans (and/or the Revolving Loan
Commitment Amount shall be reduced) as provided in subsections 2.4B and 2.4D.

 

(ii)           Other
Net Insurance/Condemnation Proceeds. 
Upon receipt by Company or any of its Subsidiaries or by Administrative
Agent as loss payee of any Net Insurance/Condemnation Proceeds in excess of
$2,500,000 other than from business interruption insurance:

 

(a)           so
long as no Event of Default shall have occurred and be continuing,
Administrative Agent, if it received such Net Insurance/Condemnation Proceeds,
shall deliver them to Company, and Company shall, or shall cause one or more of
its Subsidiaries to apply any such Net 

 

100

 

Insurance/Condemnation
Proceeds to pay or reimburse the costs of repairing, restoring or replacing the
assets in respect of which such Net Insurance/Condemnation Proceeds were
received or, to the extent not so applied, to prepay the Loans (and/or the
Revolving Loan Commitment Amount shall be reduced) as provided in
subsection 2.4B; and

 

(b)           if
at any time an Event of Default shall have occurred and be continuing,
Administrative Agent, if it holds such Net Insurance/Condemnation Proceeds, is
hereby authorized by Company to, and Company, if it or one of its Subsidiaries
holds such Net Insurance/Condemnation Proceeds, shall, apply such Net
Insurance/Condemnation Proceeds to prepay the Loans (and/or the Revolving Loan
Commitment Amount shall be reduced) as provided in subsection 2.4B and
subsection 2.4D.

 

6.5                               Inspection
Rights; Lender Meeting.

 

A.            Inspection Rights.  Company shall, and shall cause each of its
Subsidiaries to, permit any authorized representatives designated by any Lender
to visit and inspect any of the properties of Company or of any of its
Subsidiaries, to inspect, copy and take extracts from its and their financial
and accounting records, and to discuss its and their affairs, finances and
accounts with its and their officers and independent public accountants
(provided that Company may, if it so chooses, be present at or participate in any
such discussion), (i) so long as no Event of Default has  occurred and is continuing, upon reasonable
notice and at such reasonable times during normal business hours as may
reasonably be requested but not to exceed once each Fiscal Year or (ii) at
any time or from time to time following the occurrence and during the
continuation of an Event of Default.

 

B.            Lender Meeting.  Company will, upon the request of
Administrative Agent or Requisite Lenders, participate in a meeting of
Administrative Agent and Lenders once during each Fiscal Year to be held at
Company’s principal offices (or at such other location as may be agreed to by
Company and Administrative Agent) at such time as may be agreed to by Company
and Administrative Agent.

 

6.6                               Compliance
with Laws, etc.

 

Company
shall comply, and shall cause each of its Subsidiaries and all other Persons on
or occupying any Facilities to comply, with the requirements of all applicable
laws, rules, regulations and orders of any Government Authority (including all
Environmental Laws), noncompliance with which could reasonably be expected to
result in, individually or in the aggregate, a Material Adverse Effect.

 

6.7                               Environmental
Matters.

 

A.            Environmental Disclosure.  Company will deliver to Administrative Agent:

 

101

 

(i)            Environmental
Audits and Reports.  As soon as
practicable following receipt thereof, copies of all environmental audits,
investigations, analyses and reports of any kind or character, whether prepared
by personnel of Company or any of its Subsidiaries or by independent
consultants, Government Authorities or any other Persons, with respect to
significant environmental matters at any Facility that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect
or with respect to any Environmental Claims that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

(ii)           Notice
of Certain Releases, Remedial Actions, etc.  Promptly upon the occurrence thereof, written
notice describing in reasonable detail (a) any Release required to be
reported to any Government Authority under any applicable Environmental Laws, (b) any
remedial action taken by Company or any other Person in response to (1) any
Hazardous Materials Activities the existence of which could reasonably be
expected to result in one or more Environmental Claims having, individually or
in the aggregate, a Material Adverse Effect, or (2) any Environmental
Claims that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect, and (c) Company’s discovery of any
occurrence or condition on any real property adjoining or in the vicinity of
any Facility that could cause such Facility or any part thereof to be subject
to any material restrictions on the ownership, occupancy, transferability or
use thereof under any Environmental Laws that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

(iii)          Written
Communications Regarding Environmental Claims, Releases, etc.  As soon as practicable following the sending
or receipt thereof by Company or any of its Subsidiaries, a copy of any and all
written communications with respect to (a) any Environmental Claims that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect, (b) any Release required to be reported to any
Government Authority that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect, and (c) any request
for information from any Government Authority that suggests such Government
Authority is investigating whether Company or any of its Subsidiaries may be
potentially responsible for any Hazardous Materials Activity that, individually
or in the aggregate, could reasonably be expected to result in a Material
Adverse Effect.

 

(iv)          Notice
of Certain Proposed Actions Having Environmental Impact.  Prompt written notice describing in reasonable
detail (a) any proposed acquisition of stock, assets, or property by
Company or any of its Subsidiaries that could reasonably be expected to (1) expose
Company or any of its Subsidiaries to, or result in, Environmental Claims that
could reasonably be expected to result in, individually or in the aggregate, a
Material Adverse Effect or (2) affect the ability of Company or any of its
Subsidiaries to maintain in full force and effect all material Governmental
Authorizations required under any Environmental Laws for their respective
operations and (b) any proposed action to be taken by Company or any of
its Subsidiaries to commence manufacturing or other industrial operations or to
modify current operations 

 

102

 

in
a manner that could reasonably be expected to subject Company or any of its
Subsidiaries to any material additional obligations or requirements under any
Environmental Laws, in each case, that could reasonably be expected to result
in, individually or in the aggregate, a Material Adverse Effect

 

B.            Company’s Actions Regarding Hazardous Materials
Activities.  Company
shall, in compliance with all applicable Environmental Laws, promptly
undertake, and shall cause each of its Subsidiaries promptly to undertake, any
and all investigations, studies, sampling, testing, abatement, cleanup,
removal, remediation or other response actions required under Environmental
Laws to remove, remediate, clean up or abate any Hazardous Materials Activity
on, under or about any Facility that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect and that is in
violation of any Environmental Laws or that presents a material risk of giving
rise to an Environmental Claim.

 

6.8                               Execution
of Guaranty and Personal Property Collateral Documents After the Closing Date.

 

A.            Execution of Guaranty and Personal Property Collateral
Documents.  In the
event that any Person becomes a Subsidiary of Company after the date hereof,
Company will promptly notify Administrative Agent of that fact and cause such
Subsidiary to execute and deliver to Administrative Agent a counterpart of the
Guaranty and Security Agreement and to take all such further actions and
execute all such further documents and instruments (including actions,
documents and instruments comparable to those described in subsection 4.2I
and 4.2J) as may be necessary or, in the opinion of Administrative Agent,
desirable to create in favor of Administrative Agent, for the benefit of Lenders,
a valid and perfected First Priority Lien on all of the personal and mixed
property assets (to the extent included in the definition of Collateral) of
such Subsidiary described in the applicable forms of Collateral Documents other
than any personal or mixed property asset subject to a Lien permitted by
subsection 7.2A(ii) or (v).  In
addition, as provided in the Security Agreement, Company shall, or shall cause
the Subsidiary that owns the Capital Stock of such Person to, execute and
deliver to Administrative Agent a supplement to the Security Agreement and to
deliver to Administrative Agent all certificates representing such Capital
Stock of such Person (accompanied by irrevocable undated stock powers, duly
endorsed in blank).

 

B.            Foreign Subsidiaries.  Notwithstanding the provisions of
subsection 6.8A, (i) no Foreign Subsidiary shall be required to
execute and deliver the Guaranty or the Security Agreement, and (ii) no
Capital Stock of a Foreign Subsidiary in excess of 66% of the Capital Stock of
such Foreign Subsidiary shall be required to be pledged pursuant to the
provisions of the Security Agreement.

 

C.            Subsidiary Organizational Documents, Legal Opinions, etc.  Company shall deliver to Administrative
Agent, together with the Loan Documents required to be delivered under
subsection 6.8A, (i) certified copies of the Organizational Documents of
any Person that becomes a Subsidiary of Company after the date hereof executing
the Guaranty and Security Agreement, together with a good standing certificate
from the Secretary of State of the jurisdiction of its organization and, to the
extent generally available, a certificate or other 

 

103

 

evidence of good standing as to payment of any
applicable franchise or similar taxes from the appropriate taxing authority of
such jurisdiction, each to be dated a recent date prior to their delivery to
Administrative Agent, (ii) a certificate executed by the secretary or
similar officer of such Subsidiary as to (a) the fact that the attached
resolutions of the Governing Body of such Subsidiary approving and authorizing
the execution, delivery and performance of such Loan Documents are in full
force and effect and have not been modified or amended and (b) the
incumbency and signatures of the officers of such Subsidiary executing such
Loan Documents, and (iii) a favorable opinion of counsel to such
Subsidiary, in form and substance satisfactory to Administrative Agent and its
counsel, as to (a) the due organization and good standing of such
Subsidiary, (b) the due authorization, execution and delivery by such
Subsidiary of such Loan Documents, (c) the enforceability of such Loan
Documents against such Subsidiary and (d) such other matters (including
matters relating to the creation and perfection of Liens in any Collateral
pursuant to such Loan Documents) as Administrative Agent may reasonably
request, all of the foregoing to be satisfactory in form and substance to
Administrative Agent and its counsel.

 

6.9                       Matters
Relating to Additional Real Property Collateral.

 

A.            Additional Mortgages, etc.  From and after the Closing Date, in the event
that (i) Company or any Subsidiary Guarantor acquires any fee interest in
real property with a value in excess of $5,000,000 or (ii) at the time any
Person becomes a Subsidiary Guarantor, such Person owns or holds any fee
interest in real property with a value in excess of $5,000,000, in the case of
clause (ii) above excluding any such Real Property Asset the encumbrancing
of which requires the consent of any applicable lessor or then-existing senior
lienholder, where Company and its Subsidiaries have attempted in good faith,
but are unable, to obtain such lessor’s or senior lienholder’s consent (any
such non-excluded Real Property Asset described in the foregoing clause (i) or
(ii) being an “Additional Mortgaged
Property”), Company or such Subsidiary Guarantor shall deliver to
Administrative Agent, as soon as practicable after such Person acquires such
Additional Mortgaged Property or becomes a Subsidiary Guarantor, as the case
may be, a fully executed and notarized Mortgage (an “Additional
Mortgage”), in proper form for recording in all appropriate places
in all applicable jurisdictions, encumbering the interest of such Loan Party in
such Additional Mortgaged Property; and such opinions, documents, title
insurance and environmental reports as may be reasonably required by
Administrative Agent.

 

B.            Real Estate Appraisals.  Upon request of Administrative Agent in
connection with the delivery of an Additional Mortgage, Company shall, and
shall cause each of its Subsidiaries to, permit an independent real estate
appraiser satisfactory to Administrative Agent, upon reasonable notice, to
visit and inspect such Additional Mortgaged Property for the purpose of
preparing an appraisal of such Additional Mortgaged Property satisfying the
requirements of any applicable laws and regulations (in each case to the extent
required under such laws and regulations as determined by Administrative Agent
in its discretion).

 

6.10                        Interest
Rate Protection.

 

For
the period from and including the date that is 90 days after the Closing Date
to and including the third anniversary of the Closing Date, Company shall
maintain one or more 

 

104

 

Interest Rate Agreements in form and substance
reasonably satisfactory to Administrative Agent with respect to the Term Loans,
in an aggregate notional principal amount of not less than 40% of the Term
Loans then outstanding during such period.

 

6.11                        Post-Closing
Items.

 

To the
extent not satisfied prior to the Signing Date pursuant to subsection 4.2, not
later than the date that is 90 days after the Signing Date (or such longer
period as Administrative Agent may agree), Company shall take or cause to be
taken all such actions, executed and delivered or cause to be executed and
delivered all such agreements, documents and instruments, and made or caused to
be made all such filings and recordings that may be necessary or, in the
opinion of Administrative Agent, desirable in order to create in favor of
Administrative Agent, for the benefit of Lenders, a valid and perfected First
Priority security interest in the entire personal and mixed property Collateral
(other than Excluded Assets), including the delivery of duly completed UCC
termination statements, and authorization of the filing thereof from the
applicable secured party, as may be necessary to terminate any effective UCC
financing statements or fixture filings (other than any such financing statements
or fixture filings in respect of Liens permitted to remain outstanding pursuant
to the terms of this Agreement).

 

Section 7.              COMPANY’S
NEGATIVE COVENANTS

 

Company
covenants and agrees that from and including the Closing Date, so long as any
of the Commitments hereunder shall remain in effect and until payment in full
of all of the Loans and other Obligations (other than Unasserted Obligations)
and the cancellation, expiration or collateralization (in a manner reasonably
acceptable to Administrative Agent) of all Letters of Credit, unless Requisite
Lenders shall otherwise give prior written consent, Company shall perform, and
shall cause each of its Subsidiaries to perform, all covenants in this Section 7.

 

7.1                       Indebtedness.

 

Company
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, create, incur, assume or guaranty, or otherwise become or remain
directly or indirectly liable with respect to, any Indebtedness, except:

 

(i)            Company
and its Subsidiaries may become and remain liable with respect to the
Obligations;

 

(ii)           Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Contingent Obligations permitted by subsection 7.4
and, upon any matured obligations actually arising pursuant thereto, the
Indebtedness corresponding to the Contingent Obligations so extinguished;

 

(iii)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Indebtedness in respect of Capital Leases and
Indebtedness of Company and its Subsidiaries secured by Liens permitted by 

 

105

 

subsection 7.2A(ii) in
an aggregate principal amount not to exceed $20,000,000 at any time
outstanding;

 

(iv)          Company
may become and remain liable with respect to Indebtedness to any Subsidiary,
and any wholly-owned Subsidiary of Company (other than any Dormant Subsidiary)
may become and remain liable with respect to Indebtedness to Company or any
Subsidiary Guarantor, and any Foreign Subsidiary may become and remain liable
with respect to Indebtedness to another Foreign Subsidiary; provided
that (a) a Lien on all such intercompany Indebtedness owing to a Loan
Party (excluding Indebtedness of a Foreign Subsidiary except as provided below)
shall have been granted to Administrative Agent for the benefit of Lenders, (b) if
such intercompany Indebtedness is evidenced by a promissory note or other
instrument owing to a Loan Party, such promissory note or instrument shall have
been pledged to Administrative Agent pursuant to the Security Agreement, and (c) the
aggregate amount (without duplication) of all such Indebtedness of Foreign
Subsidiaries to Company or any Subsidiary Guarantor, all Investments in Foreign
Subsidiaries permitted by subsection 7.3(ix) and all Contingent
Obligations permitted by subsection 7.4(ix) does not exceed $40,000,000
(plus any Additional Contributions not being utilized by Company or any of its
Subsidiaries for any other purpose under this subsection 7.1 or subsection 7.3
or 7.4 (other than Additional Contributions loaned to a Foreign Subsidiary
under this subsection 7.1(iv), and the corresponding Investment in respect of
such loan, for the purpose of (1) Permitted Acquisitions under subsection
7.3(viii), (2) Permitted Acquisitions or Investments under subsection
7.3(xiv) or (3) satisfying Contingent Obligations under subsection
7.4(ix))) at any time outstanding; provided that any such Indebtedness
of a wholly-owned Foreign Subsidiary to Company or a Subsidiary Guarantor shall
be evidenced by a promissory note or other instrument (except to the extent
such note or instrument would result in a tax or otherwise have adverse
consequences on or with respect to such Foreign Subsidiaries) and such
promissory note or other instrument shall be pledged to Administrative Agent;

 

(v)           Company
and its Subsidiaries (other than Dormant Subsidiaries), as applicable, may
remain liable with respect to Indebtedness described in Schedule 7.1
annexed hereto and any refinancings, refundings, renewals or extensions thereof
that in any case do not increase the principal or commitment amount thereof;

 

(vi)          Company
may remain liable with respect to Indebtedness evidenced by the Subordinated
Notes in an amount not to exceed the aggregate principal amount thereof
outstanding on the Closing Date; provided that the Subordinated Notes
have been subject to legal or covenant defeasance;

 

(vii)         Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to other Indebtedness in an aggregate principal amount not
to exceed $20,000,000 at any time outstanding;

 

(viii)        Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Indebtedness of any Person assumed in 

 

106

 

connection
with any acquisition of such Person permitted by subsection 7.3 and a Person
that becomes a direct or indirect wholly-owned Subsidiary of Company as a
result of any acquisition permitted by subsection 7.3 may remain liable with
respect to Indebtedness existing on the date of such acquisition; provided that
such Indebtedness is not created in anticipation of such acquisition;

 

(ix)           Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to refinancings or renewals of Indebtedness described in
clause (viii) above; provided that (a) any such refinancing
Indebtedness is in an aggregate principal amount not greater than the aggregate
principal amount of the Indebtedness being renewed or refinanced, plus the
amount of any interest, fees and premiums required to be paid thereon and
reasonable fees and expenses associated therewith, (b) such refinancing
Indebtedness has a later or equal final maturity and longer or equal weighted
average life than the Indebtedness being renewed or refinanced, (c) the
covenants, events of default, subordination and other provisions thereof
(including any guarantees thereof) shall be, in the aggregate no less favorable
to Lenders than those contained in the Indebtedness being renewed or
refinanced, and (d) no Event of Default shall have occurred or be
continuing immediately prior and after giving effect thereto;

 

(x)            Company
and its Subsidiaries may become and remain liable with respect to Indebtedness
consisting of insurance premium financing;

 

(xi)           Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to obligations in respect of purchase price or other
similar adjustments incurred by Company and its Subsidiaries (other than
Dormant Subsidiaries) in a Permitted Acquisition or any other Investment or
disposition expressly permitted hereunder; and

 

(xii)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Indebtedness in respect of sale and lease-back transactions
permitted by subsection 7.10(b).

 

7.2                       Liens
and Related Matters.

 

A.            Prohibition on Liens.  Company shall not, and shall not permit any
of its Subsidiaries to, directly or indirectly, create, incur, assume or permit
to exist any Lien on or with respect to any property or asset of any kind
(including any document or instrument in respect of goods or accounts
receivable) of Company or any of its Subsidiaries, whether now owned or
hereafter acquired, or any income or profits therefrom, or file or permit the
filing of, or permit to remain in effect, any financing statement or other
similar notice of any Lien with respect to any such property, asset, income or
profits under the UCC or under any similar recording or notice statute, except:

 

(i)            Permitted
Encumbrances;

 

107

 

(ii)           Liens
on any asset existing at the time of acquisition of such asset by Company or a
Subsidiary (other than Dormant Subsidiaries), or Liens to secure the payment of
all or any part of the purchase price of an asset upon the acquisition of such
asset by Company or a Subsidiary (other than Dormant Subsidiaries) or to secure
any Indebtedness permitted hereby incurred by Company or a Subsidiary (other
than Dormant Subsidiaries) at the time of or within ninety days after the
acquisition of such asset, which Indebtedness is incurred for the purpose of
financing all or any part of the purchase price thereof; provided, however,
that any such Lien shall apply only to the asset so acquired and proceeds
thereof and accessions thereto; and provided  further, that the
aggregate principal amount of all Indebtedness secured by such Liens and all
Indebtedness in respect of Capital Leases permitted by subsection 7.1(iii) does
not exceed $20,000,000 at any time outstanding;

 

(iii)          Liens
described in Schedule 7.2 annexed hereto and any Lien granted as a
replacement or substitute therefor, so long as such Lien covers the same
property as is secured by the Lien described in Schedule 7.2;

 

(iv)          Other
Liens securing Indebtedness and other obligations in an aggregate amount not to
exceed $10,000,000 at any time outstanding;

 

(v)           Liens
securing Indebtedness described in subsections 7.1(viii) and 7.1(ix) in
an aggregate principal amount not to exceed $5,000,000 at any time outstanding;
and

 

(vi)          Liens
securing Indebtedness refinancing or renewing the Indebtedness secured by Liens
described in clauses (ii), (iii) and (v) of this subsection 7.2A; provided
that such Liens encumber the same or substantially the same property encumbered
by the original Liens (including after-acquired property to the extent that the
Liens securing the Indebtedness being refinanced or renewed extended to
after-acquired property) and no other property and the principal or commitment
amount of Indebtedness secured thereby does not increase.

 

B.            Equitable Lien in Favor of Lenders.  If Company or any of its Subsidiaries shall
create or assume any Lien upon any of its properties or assets, whether now
owned or hereafter acquired, other than Liens excepted by the provisions of
subsection 7.2A, it shall make or cause to be made effective provision
whereby the Obligations will be secured by such Lien equally and ratably with
any and all other Indebtedness secured thereby as long as any such Indebtedness
shall be so secured; provided that, notwithstanding the foregoing, this
covenant shall not be construed as a consent by Requisite Lenders to the
creation or assumption of any such Lien not permitted by the provisions of
subsection 7.2A.

 

C.            No Further Negative Pledges.  Neither Company nor any of its Subsidiaries
shall enter into any agreement (other than the Subordinated Note Indenture)
prohibiting the creation or assumption of any Lien upon any of its properties
or assets as security for the Obligations or any Indebtedness that refinances
the Obligations, whether now owned or hereafter acquired, other than (i) any
agreement (a) prohibiting only the creation of Liens securing Subordinated
Indebtedness or (b) containing an “equal and ratable” clause, (ii) any

 

108

 

agreement evidencing Indebtedness secured by Liens
permitted by subsection 7.2A(ii), as to the assets securing such
Indebtedness or subject to Liens permitted under subsection 7.2A(v) or
7.2A(vi) or Permitted Encumbrances referred to in clauses (iii), (xv),
(xvi), (xviii) or (xix) of the definition thereof, (iii) any agreement
evidencing an asset sale, as to the assets being sold, (iv) provisions
restricting Liens on assets of and interests in Joint Ventures; (v) leases
and licenses containing customary non-assignment or negative pledge
restrictions entered into in the ordinary course of business; and (vi) agreements
binding on property or Persons acquired in a Permitted Acquisition (or
Investment permitted hereunder), not entered into in contemplation of such
Permitted Acquisition (or Investment permitted hereunder) and not applicable to
any Person other than the Person acquired, or to any property other than the
property so acquired.

 

D.            No Restrictions on Subsidiary Distributions to Company or
Other Subsidiaries. 
Company will not, and will not permit any of its Subsidiaries to, create
or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any such Subsidiary to
(i) pay dividends or make any other distributions on any of such
Subsidiary’s Capital Stock owned by Company or any other Subsidiary of Company,
(ii) repay or prepay any Indebtedness owed by such Subsidiary to Company
or any other Subsidiary of Company, (iii) make loans or advances to
Company or any other Subsidiary of Company, or (iv) transfer any of its
property or assets to Company or any other Subsidiary of Company, except (a) as
provided in this Agreement or any other Loan Documents, (b) as to
transfers of assets, as may be provided in an agreement with respect to a sale
of such assets, (c) the Subordinated Note Indenture, (d) in any
agreement of any Person assumed in connection with any acquisition of such
Person permitted by subsection 7.3 that apply only to property of such Person,
including restrictions under any acquired Indebtedness of such Person not
incurred in violation of this Agreement relating to the property of such Person
or any of its Subsidiaries, which restriction in each case existed at the time
of acquisition, was not put into place in connection with or in anticipation of
such acquisition and is not applicable to any Person other than the Person
acquired, or to any property other than the property so acquired, (e) as
to transfers of assets, as may be provided in leases or licenses entered into
in the ordinary course of business, (f) any agreement that amends,
refinances or replaces any agreement containing restrictions permitted by the
preceding clause (d); provided that the terms and conditions of such
agreement, as they relate to any such restrictions, are no less favorable to
Company or any such Subsidiary, as applicable, than those under the agreement
so amended, refinanced or replaced, (g) restrictions contained in
Indebtedness of a Foreign Subsidiary permitted by subsection 7.1(vii); provided
that such restrictions relate only to one or more Foreign Subsidiaries, (h) as
to transfers of assets, as may be provided in any agreement relating to Liens
permitted by subsection 7.2A, and (i) encumbrances or restrictions
relating to Joint Ventures.

 

7.3                       Investments;
Acquisitions.

 

Company
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, make any Investment in any Person, including any Joint Venture, or
acquire, by purchase or otherwise, all or substantially all the business,
property or fixed assets of, or Capital Stock of any Person, or any division or
line of business of any Person except:

 

109

 

(i)            Company
and its Subsidiaries (other than Dormant Subsidiaries) may make and own
Investments in Cash and Cash Equivalents;

 

(ii)           (a) Company
and its wholly-owned Domestic Subsidiaries (other than Dormant Subsidiaries)
may make and own additional equity Investments in their respective wholly-owned
Domestic Subsidiaries (other than Dormant Subsidiaries) and (b) Foreign
Subsidiaries may make and own additional equity Investments in other Foreign
Subsidiaries;

 

(iii)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may make Investments in
the form of Indebtedness permitted by subsection 7.1(iv);

 

(iv)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may make Consolidated
Capital Expenditures permitted by subsection 7.8;

 

(v)           Company
and its Subsidiaries may consummate the Acquisition in accordance with the
terms and conditions of the Merger Agreement;

 

(vi)          Company
and its Subsidiaries may continue to own the Investments owned by them and
described in Schedule 7.3 annexed hereto;

 

(vii)         Company
and its Subsidiaries (other than Dormant Subsidiaries) may make Permitted
Acquisitions (including the acquisition of the Capital Stock of Subsidiaries
formed in connection with any such Permitted Acquisition) for a purchase price
(including all Cash, Securities and Indebtedness (other than Capital Leases)
permitted by subsection 7.1(viii)) not to exceed $80,000,000 (plus any
Additional Contributions not being utilized by Company or any of its
Subsidiaries for any other purpose under subsection 7.1, 7.3(ix) or 7.4
which, (a) when aggregated with any Additional Contributions made for
purposes of Permitted Acquisitions permitted by subsections 7.3(viii) and
7.3(xiv), do not exceed $40,000,000 and (b) when aggregated with any
Additional Contributions made for purposes of Permitted Acquisitions and other
Investments permitted by subsections 7.3(viii) and 7.3(xiv) do not
exceed $60,000,000) and continue to own such assets after the acquisition
thereof; provided that (a) no Potential Event of Default or Event
of Default shall have occurred and be continuing at the time such acquisition
occurs or after giving effect thereto, (b) Company shall, and shall cause
its Subsidiaries to, comply with the applicable requirements of subsections 6.8
and 6.9 with respect to each such acquisition that results in a Person becoming
a Subsidiary and (c) Company shall be in Pro Forma Compliance at the time
of such acquisition;

 

(viii)        any
Foreign Subsidiary of Company may make Permitted Acquisitions (including the
acquisition of the Capital Stock of Subsidiaries formed in connection with any
such Permitted Acquisition) for a purchase price (including all Cash,
Securities and Indebtedness (other than Capital Leases) permitted by subsection
7.1(viii)) not to exceed $40,000,000 (plus any Additional Contributions not
being utilized by Company or any of its Subsidiaries for any other purpose
under subsection 7.1, 7.3(ix) or 7.4 (other than 

 

110

 

Additional  Contributions  loaned  to  a  Foreign  Subsidiary  under  subsection  7.1(iv),  and  the  corresponding  Investment  in  respect  of  such  loan,  for  the  purpose  of  (a)  Permitted  Acquisitions  under  subsection  7.3(viii),  (b)  Permitted  Acquisitions  or  Investments  under  subsection  7.3(xiv)  or  (c)  satisfying  Contingent  Obligations  under  subsection  7.4(ix))  which,  (a)  when  aggregated  with  any  Additional  Contributions  made  for  purposes  of  Permitted  Acquisitions  permitted  by  subsections  7.3(vii)  and  (xiv),  do  not  exceed  $40,000,000  and  (b)  when  aggregated  with  any  Additional  Contributions  made  for  purposes  of  Permitted  Acquisitions  and  other  Investments  permitted  by  subsections  7.3(vii)  and  7.3(xiv)  do  not  exceed  $60,000,000)  and  continue  to  own  such  assets  after  the  acquisition  thereof;  provided  that  (a)  no  Potential  Event  of  Default  or  Event  of  Default  shall  have  occurred  and  be  continuing  at  the  time  such  acquisition  occurs  or  after  giving  effect  thereto  and  (b)  Company  shall  be  in  Pro  Forma  Compliance  at  the  time  of  such  acquisition;

 

(ix)           Company
and its wholly-owned Domestic Subsidiaries (other than Dormant Subsidiaries)
may make additional Investments in their respective Foreign Subsidiaries; provided
that the aggregate amount (without duplication) of all such Investments under
this subsection 7.3(ix), all Indebtedness of Foreign Subsidiaries to Company or
any Subsidiary Guarantor permitted by subsection 7.1(iv) and all
Contingent Obligations permitted by subsection 7.4(ix) does not exceed
$40,000,000 (plus any Additional Contributions not being utilized by Company or
any of its Subsidiaries for any other purpose under this subsection 7.3 or
subsection 7.1 or 7.4 (other than Additional Contributions loaned to a Foreign
Subsidiary under subsection 7.1(iv), and the corresponding Investment in respect
of such loan, for the purpose of (a) Permitted Acquisitions under
subsection (viii), (b) Permitted Acquisitions or other Investments under
subsection 7.3(xiv) or (c) satisfying Contingent Obligations under
subsection 7.4(ix))) at any time outstanding;

 

(x)            Company
and its Subsidiaries (other than Dormant Subsidiaries) may receive and hold
promissory notes and other non-Cash consideration received in connection with
any Asset Sale permitted by subsection 7.7;

 

(xi)           Company
and its Subsidiaries (other than Dormant Subsidiaries) may acquire Securities
or Investments in connection with the satisfaction or enforcement of
Indebtedness or claims due or owing to Company or any of its Subsidiaries,
including Securities or Investments received in connection with the bankruptcy,
insolvency or reorganization of the Person obligated on such Indebtedness or
claim, or as security for any such Indebtedness or claim;

 

(xii)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may make loans
(financing equipment sold by Company and its Subsidiaries) or equipment leases
to customers doing business with Company and its Subsidiaries in an aggregate
principal amount not to exceed $40,000,000 at any time outstanding (with the
principal amount of such leases to be deemed to be equal to the discounted
present value, at a market rate of interest, of the remaining rental payments
plus any residual value of the leased equipment as shown on Company’s financial
statements);

 

111

 

(xiii)         Company
and its Subsidiaries (other than Dormant Subsidiaries) may make loans to
customers doing business with Company and its Subsidiaries in settlement of
accounts receivable owing to Company or any of its Subsidiaries from such
customer in an aggregate principal amount not to exceed $15,000,000 at any time
outstanding;

 

(xiv)        Company
and its Subsidiaries (other than Dormant Subsidiaries) may make Permitted
Acquisitions and make and own other Investments in an aggregate amount (without
duplication) not to exceed $20,000,000 at any time outstanding (plus (a) in
the case of Permitted Acquisitions, any Additional Contributions not being
utilized by Company or any of its Subsidiaries for any other purpose under
subsection 7.1, 7.3(ix) or 7.4 (other than Additional Contributions loaned
to a Foreign Subsidiary under subsection 7.1(iv), and the corresponding
Investment in respect of such loan, for the purpose of (1) Permitted
Acquisitions or other Investments under subsection 7.3(viii) or
7.3(xiv) or (2) satisfying Contingent Obligations under subsection
7.4(ix)), which, when aggregated with any Additional Contributions made for
purposes of Permitted Acquisitions permitted by subsection 7.3(vii) or
7.3(viii), do not exceed $40,000,000 at any time outstanding and (b) in
the case of other Investments, any Additional Contributions not being utilized
by Company and its Subsidiaries for any other purpose under subsection 7.1 ,
7.3(ix) or 7.4 (other than Additional Contributions loaned to a Foreign
Subsidiary under subsection 7.1(iv)), and the corresponding Investment in
respect of such loan, for the purpose of (1) Permitted Acquisitions or
other Investments under subsection 7.3(viii) or 7.3(xiv) or (2) satisfying
Contingent Obligations under subsection 7.4(ix)), which, when aggregated with
any Additional Contributions made for purposes of Permitted Acquisitions
permitted by subsection 7.3(vii) or 7.3(viii), do not exceed $60,000,000
at any time outstanding); and

 

(xv)         Company
and its Subsidiaries (other than Dormant Subsidiaries) may make loans and
advances to officers, directors or employees for business-related travel
expenses, moving expenses and other similar expenses, in each case incurred in
the ordinary course of business or consistent with past practice.

 

7.4                       Contingent
Obligations.

 

Company
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, create or become or remain liable with respect to any Contingent
Obligation, except:

 

(i)            Subsidiary
Guarantors may become and remain liable with respect to Contingent Obligations
in respect of the Guaranty;

 

(ii)           Company
may become and remain liable with respect to Contingent Obligations in respect
of Letters of Credit;

 

(iii)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Contingent Obligations under Hedge Agreements;

 

112

 

(iv)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Contingent Obligations in respect of customary
indemnification and purchase price adjustment obligations incurred in
connection with Asset Sales or other sales of assets;

 

(v)           Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Contingent Obligations in respect of any Indebtedness of
Company or any of its Domestic Subsidiaries permitted by subsection 7.1;

 

(vi)          Company
and its Subsidiaries, as applicable, may remain liable with respect to
Contingent Obligations described in Schedule 7.4 annexed hereto;

 

(vii)         Subsidiary
Guarantors may remain liable with respect to Contingent Obligations arising
under their subordinated guaranties of the Subordinated Notes, provided
that the Subordinated Notes have been defeased;

 

(viii)        Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to other Contingent Obligations; provided that the
amount of such Contingent Obligations shall not exceed $5,000,000 at any time
outstanding;

 

(ix)           Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable with respect to Contingent Obligations in respect of any obligations of
any Foreign Subsidiary; provided that the aggregate amount (without
duplication) of all such Contingent Obligations, all Indebtedness of Foreign
Subsidiaries to Company or any Subsidiary Guarantor permitted by subsection 7.1(iv) and
all Investments in Foreign Subsidiaries permitted by subsection 7.3(ix) does
not exceed $40,000,000 (plus any Additional Contributions not being utilized by
Company or any of its Subsidiaries for any other purpose under this subsection
7.4 or subsections 7.1 or 7.3) at any time outstanding;

 

(x)            Company
and the Subsidiary Guarantors may become and remain liable with respect to
Contingent Obligations in respect of any obligations of Company or any
Subsidiary Guarantor not prohibited by this Agreement; and

 

(xi)           Any
Subsidiary of Company (other than the Subsidiary Guarantors) may become and
remain liable with respect to Contingent Obligations in respect of any other
Subsidiary not prohibited by this Agreement.

 

7.5                       Restricted
Junior Payments.

 

Company
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, declare, order, pay, make or set apart any sum for any Restricted
Junior Payment; provided that Company may (i) make regularly
scheduled payments of interest in respect of any Subordinated Indebtedness in
accordance with the terms of, and only to the extent required by, 

 

113

 

and subject to the subordination provisions contained
in, the indenture or other agreement pursuant to which such Subordinated
Indebtedness was issued, as such indenture or other agreement may be amended
from time to time to the extent not prohibited by this Agreement; (ii) make
Restricted Junior Payments to Holdings or United Online (a) provided such
amounts are reflected in the calculation of Consolidated Net Income, to the
extent necessary to permit Holdings to pay Company’s allocated share of general
administrative costs and expenses to United Online, (b) to the extent
necessary to permit Holdings to reimburse United Online for the allocated tax
liabilities of Company, in each case so long as Holdings applies the amount of
any such Restricted Junior Payment for such purpose or to make payments under a
tax sharing agreement with United Online permitted under subsection 7.9 which
provides for payment by Company and its Subsidiaries of the taxes of United
Online allocable to Holdings, Company and its Subsidiaries, and (c) for
RSU Payments that constitute Restricted Junior Payments; and (iii) Company
may make all payments necessary in connection with the Merger Agreement
(including payments to defease and/or repurchase Subordinated Notes).

 

7.6                       Financial
Covenants.

 

A.            Minimum Consolidated Fixed Charge Coverage Ratio.  Company shall not permit the Consolidated
Fixed Charge Coverage Ratio as of the last day of the most recently ended
Fiscal Quarter to be less than the ratio set forth below opposite the
applicable Fiscal Quarter:

 

114

 

	
  Period

  	
   

  	
  Minimum Consolidated Fixed Charge

  Coverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2008

  	
   

  	
  1.65:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2009

  	
   

  	
  1.65:1.00

  	
   

  
	
  June 30,
  2009

  	
   

  	
  1.65:1.00

  	
   

  
	
  September 30,
  2009

  	
   

  	
  1.65:1.00

  	
   

  
	
  December 31,
  2009

  	
   

  	
  1.65:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2010

  	
   

  	
  1.65:1.00

  	
   

  
	
  June 30,
  2010

  	
   

  	
  1.65:1.00

  	
   

  
	
  September 30,
  2010

  	
   

  	
  1.65:1.00

  	
   

  
	
  December 31,
  2010

  	
   

  	
  1.65:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2011

  	
   

  	
  1.65:1.00

  	
   

  
	
  June 30, 2011

  	
   

  	
  1.65:1.00

  	
   

  
	
  September 30,
  2011

  	
   

  	
  1.65:1.00

  	
   

  
	
  December 31,
  2011

  	
   

  	
  1.65:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2012

  	
   

  	
  1.65:1.00

  	
   

  
	
  June 30,
  2012

  	
   

  	
  1.65:1.00

  	
   

  
	
  September 30,
  2012

  	
   

  	
  1.65:1.00

  	
   

  
	
  December 31,
  2012

  	
   

  	
  1.65:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2013

  	
   

  	
  1.65:1.00

  	
   

  
	
  June 30,
  2013

  	
   

  	
  1.65:1.00

  	
   

  
	
  September 30,
  2013

  	
   

  	
  1.65:1.00

  	
   

  
	
  December 31,
  2013 and any Fiscal Quarter thereafter

  	
   

  	
  1.70:1.00

  	
   

  

 

B.            Maximum Leverage Ratio.  Company shall not permit the Consolidated
Leverage Ratio as of the last day of the most recently ended Fiscal Quarter
ending on the dates set forth below to exceed the correlative ratio indicated:

 

115

 

	
  Period

  	
   

  	
  Maximum Leverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2008

  	
   

  	
  4.75:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2009

  	
   

  	
  4.75:1.00

  	
   

  
	
  June 30,
  2009

  	
   

  	
  4.75:1.00

  	
   

  
	
  September 30,
  2009

  	
   

  	
  4.75:1.00

  	
   

  
	
  December 31,
  2009

  	
   

  	
  4.50:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2010

  	
   

  	
  4.50:1.00

  	
   

  
	
  June 30,
  2010

  	
   

  	
  4.50:1.00

  	
   

  
	
  September 30,
  2010

  	
   

  	
  4.50:1.00

  	
   

  
	
  December 31,
  2010

  	
   

  	
  4.00:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2011

  	
   

  	
  4.00:1.00

  	
   

  
	
  June 30,
  2011

  	
   

  	
  4.00:1.00

  	
   

  
	
  September 30,
  2011

  	
   

  	
  4.00:1.00

  	
   

  
	
  December 31,
  2011

  	
   

  	
  3.50:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2012

  	
   

  	
  3.50:1.00

  	
   

  
	
  June 30,
  2012

  	
   

  	
  3.50:1.00

  	
   

  
	
  September 30,
  2012

  	
   

  	
  3.50:1.00

  	
   

  
	
  December 31,
  2012

  	
   

  	
  3.25:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2013

  	
   

  	
  3.00:1.00

  	
   

  
	
  June 30,
  2013

  	
   

  	
  3.00:1.00

  	
   

  
	
  September 30,
  2013

  	
   

  	
  3.00:1.00

  	
   

  
	
  December 31,
  2013 and any Fiscal Quarter thereafter

  	
   

  	
  2.50:1.00

  	
   

  

 

7.7                       Restriction
on Fundamental Changes; Asset Sales.

 

Company
shall not, and shall not permit any of its Subsidiaries to enter into any
transaction of merger or consolidation, or liquidate, wind-up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease or
sub-lease (as lessor or sublessor), transfer or otherwise dispose of, in one
transaction or a series of transactions, all or any part of its business,
property or assets (including its notes or receivables and Capital Stock of a
Subsidiary, whether newly issued or outstanding), whether now owned or
hereafter acquired, except:

 

(i)            (a) any
Subsidiary of Company may be merged with or into Company or any wholly-owned
Subsidiary Guarantor, or be liquidated, wound up or dissolved, or all or any
part of its business, property or assets may be conveyed, sold, leased,
transferred or otherwise disposed of, in one transaction or a series of
transactions, to Company or 

 

116

 

any
wholly-owned Subsidiary Guarantor (or, in the case of a Foreign Subsidiary, to
another Foreign Subsidiary); provided that, in the case of such a
merger, Company or such wholly-owned Subsidiary Guarantor shall be the
continuing or surviving Person; and (b) any Foreign Subsidiary may be
merged with or into any other Foreign Subsidiary;

 

(ii)           Company
and its Subsidiaries (other than Dormant Subsidiaries) may sell, lease or
otherwise dispose of assets in transactions that do not constitute Asset Sales;
provided that the consideration received for such assets shall be in an
amount at least equal to the fair market value thereof;

 

(iii)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may dispose of obsolete,
worn out or surplus property in the ordinary course of business;

 

(iv)          Company
and its Subsidiaries (other than Dormant Subsidiaries) may make Asset Sales of
assets having a fair market value not in excess of $10,000,000 and may sell
Florists’ Transworld Delivery, Inc.’s headquarters located at 3113
Woodcreek Drive, Downers Grove, Illinois; provided that (a) the
consideration received for such assets shall be in an amount at least equal to
the fair market value thereof; (b) 75% of the consideration received shall
be Cash or Cash Equivalents; (c) no Event of Default shall have occurred
or be continuing after giving effect thereto; and (d) the proceeds of such
Asset Sales shall be applied as required by subsection 2.4B(iv)(a) or
subsection 2.4D;

 

(v)           Company
and its Subsidiaries may sell real property located in Sleaford, England owned
by any Subsidiary of Company;

 

(vi)          in
order to resolve disputes that occur in the ordinary course of business,
Company and its Subsidiaries (other than Dormant Subsidiaries) may discount or
otherwise compromise for less than the face value thereof, notes or accounts
receivable;

 

(vii)         Company
or a Subsidiary (other than a Dormant Subsidiary) may sell or dispose of shares
of Capital Stock of any of its Subsidiaries in order to qualify members of the
Governing Body of the Subsidiary if required by applicable law;

 

(viii)        any
Person may be merged with or into Company or any Subsidiary (other than any
Dormant Subsidiary) if the acquisition of the Capital Stock of such Person by
Company or such Subsidiary would have been permitted pursuant to
subsection 7.3; provided that (a) in the case of Company,
Company shall be the continuing or surviving Person, (b) if a Subsidiary
is not the surviving or continuing Person, the surviving Person becomes a
Subsidiary and complies with the provisions of subsections 6.8 and 6.9 and
(c) no Potential Event of Default or Event of Default shall have occurred
or be continuing after giving effect thereto;

 

(ix)           Company
or a Subsidiary (other than a Dormant Subsidiary) may, in the ordinary course
of business, dispose of Hedge Agreements;

 

117

 

(x)                                   Company
and its Subsidiaries (other than Dormant Subsidiaries) may sell or grant
licenses to use Intellectual Property to the extent such licenses do not
prohibit the licensor from using such Intellectual Property;

 

(xi)                                Company
and its Subsidiaries may consummate the Acquisition and Merger in accordance
with the terms and conditions of the Merger Agreement;

 

(xii)                             Company
and its Subsidiaries may settle accounts receivable owing to Company or any of
its Subsidiaries in connection with the making of loans permitted by subsection
7.3(xii);

 

(xiii)                          Company
and its Subsidiaries may transfer property as a result of casualty or
condemnation events;

 

(xiv)                         Company
and its Subsidiaries may enter into leases and subleases of real and personal
property in the ordinary course of business;

 

(xv)                            Company
and its Subsidiaries may sell or dispose of shares of Capital Stock of any of
its Subsidiaries in order to qualify members of the Governing Body of the
Subsidiary if required by applicable law; and

 

(xvi)                         Company
and its Subsidiaries may dispose of Cash or Cash Equivalents in transactions
not prohibited by this Agreement.

 

7.8                       Consolidated
Capital Expenditures.

 

Company
shall not, and shall not permit its Subsidiaries to, make or incur Consolidated
Capital Expenditures, in any calendar year indicated below, in an aggregate
amount in excess of the corresponding amount (the “Maximum
Consolidated Capital Expenditures Amount”) set forth below opposite
such calendar year; provided that the Maximum Consolidated Capital
Expenditures Amount for any calendar year shall be increased by an amount equal
to the excess, if any, of the Maximum Consolidated Capital Expenditures Amount
for the previous calendar year (without giving effect to any adjustment in
accordance with this proviso) over the actual amount of Consolidated Capital
Expenditures for such previous calendar year with the Consolidated Capital
Expenditures in such following calendar year to be applied first to such unused
amounts; provided, further that in no event shall the amount of
such increase exceed 50% of the Maximum Consolidated Capital Expenditures
Amount for such previous calendar year (prior to any adjustment in accordance
with this proviso); provided  further that the foregoing
limitations shall not restrict Consolidated Capital Expenditures funded with
Net Securities Proceeds:

 

118

 

	
  Calendar Year

  	
   

  	
  Maximum Consolidated

  Capital Expenditures

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  $

  	
  14,000,000

  	
   

  
	
  2009

  	
   

  	
  $

  	
  18,000,000

  	
   

  
	
  2010

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  2011

  	
   

  	
  $

  	
  11,000,000

  	
   

  
	
  2012

  	
   

  	
  $

  	
  11,000,000

  	
   

  
	
  2013

  	
   

  	
  $

  	
  12,000,000

  	
   

  

 

7.9                               Transactions
with Shareholders and Affiliates.

 

Company shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, enter into or permit to exist any
transaction (including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any Affiliate of Company, on terms that are
less favorable to Company or that Subsidiary in any material respect, taken as
a whole, as the case may be, than those that would have been obtained at the
time from Persons who are not an Affiliate; provided that the foregoing
restriction shall not apply to:

 

(i)            any
transaction between Company and any of its wholly-owned Subsidiaries or between
any of its wholly-owned Subsidiaries;

 

(ii)           indemnification
payments (including reimbursement of fees and expenses) to officers, directors,
employees or consultants of Company or any of its Subsidiaries;

 

(iii)          any
Restricted Junior Payment permitted by subsection 7.5;

 

(iv)          Investments
permitted by subsection 7.3;

 

(v)           any
transaction involving consideration of $2,000,000 or less per annum;

 

(vi)          any
employment agreement, employee benefit plan, officer or director
indemnification agreement or any similar arrangement entered into by Company or
any of its Subsidiaries in the ordinary course of business and payments or
issuances of Equity Interests of United Online pursuant thereto;

 

(vii)         any
tax sharing agreements of Company or any of its Subsidiaries entered into with
United Online and any of its Subsidiaries providing for Company and 

 

119

 

its
Subsidiaries to pay the portion of United Online’s consolidated taxes directly
attributed to Holdings, Company and its Subsidiaries;

 

(viii)        the
existence of, or the performance by Company or any its Subsidiaries of its
obligations under the terms of, the Merger Agreement; and

 

(ix)           marketing,
advertising and cross promotional arrangements regarding the promotion and sale
of the products and services of Company or any of its Subsidiaries, on one
side, and the promotion and sale of the products and services of United Online
or any of its Subsidiaries, on the other side, provided (a) with
respect to such marketing, advertising and cross promotional arrangements
provided by Company and its Subsidiaries, the amounts paid to Company and its
Subsidiaries shall be at least equal to the out-of-pockets cost incurred by
Company and its Subsidiaries and shall not exceed $15,000,000 in any calendar
year and (b) with respect to marketing, advertising and cross promotional
arrangements provided to Company and its Subsidiaries, the amount paid by
Company and its Subsidiaries shall be reasonable in the good faith judgment of
Company taking into account all relevant factors including the market value of
the benefit received by Company and the market value of such promotions,
products or services to the extent ascertainable and shall not exceed
$15,000,000 in any calender year;

 

(x)            agreements
in connection with RSU Payments; and

 

(xi)           agreements
between United Online and its Subsidiaries (other than the Loan Parties and their
Subsidiaries) on the one hand, and the Loan Parties, on the other hand, with
respect to good faith allocations of expenses relating to, and cost sharing
arrangements relating to, general and administrative matters.

 

7.10                        Sales
and Lease-Backs.

 

Company shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, become or remain liable as lessee or
as a guarantor or other surety with respect to any lease, whether an Operating
Lease or a Capital Lease, of any property (whether real, personal or mixed),
whether now owned or hereafter acquired, (i) that Company or any of its
Subsidiaries has sold or transferred or is to sell or transfer to any other
Person (other than Company or any of its Subsidiaries) or (ii) that
Company or any of its Subsidiaries intends to use for substantially the same
purpose as any other property that has been or is to be sold or transferred by
Company or any of its Subsidiaries to any Person (other than Company or any of
its Subsidiaries) in connection with such lease; provided that (a) Company
and its Subsidiaries (other than Dormant Subsidiaries) may become and remain
liable as lessee, guarantor or other surety with respect to any such lease if
and to the extent that Company or any of its Subsidiaries would be permitted to
enter into, and remain liable under, such lease to the extent that the
transaction would be permitted by subsection 7.1, assuming the sale and
lease-back transaction constituted Indebtedness in a principal amount equal to
the gross proceeds of the sale and (b) so long as no Event of Default has
occurred and is continuing or shall be caused thereby, Company or any of its
Subsidiaries may sell and become and remain liable as lessee with respect to a
lease for (x) 

 

120

 

Company’s headquarters located at 3113 Woodcreek
Drive, Downers Grove, Illinois and (y) any real property owned by Company
or its Subsidiaries and located in Sleaford, England, in each case, so long as
the Net Asset Sale Proceeds resulting therefrom are applied to prepay the Loans
and/or reduce permanently the Revolving Loan Commitment Amount in an amount
equal to such proceeds.

 

7.11                        Conduct
of Business.

 

From and after the Closing Date, Company shall not,
and shall not permit any of its Subsidiaries to, engage in any business other
than (i) the businesses engaged in by Company and its Subsidiaries on the
Closing Date and reasonably ancillary, complementary, similar or related
businesses and (ii) such other lines of business as may be consented to by
Requisite Lenders.

 

7.12                        Fiscal
Year.

 

Company shall not change its Fiscal Year-end from June 30;
provided that notwithstanding the foregoing, Company may change its
Fiscal Year-end to December 31.

 

Section 8.                                                  EVENTS
OF DEFAULT

 

If, following the Closing Date, any of the following
conditions or events (“Events of Default”)
shall occur:

 

8.1                               Failure
to Make Payments When Due.

 

(a) Failure
by Company to pay any installment of principal of any Loan when due, whether at
stated maturity, by acceleration, by notice of voluntary prepayment, by
mandatory prepayment or otherwise; or (b) failure by Company to pay when
due any amount payable to an Issuing Lender in reimbursement of any drawing
under a Letter of Credit; or failure by Company to pay any interest on any Loan
or any fee or any other amount due under this Agreement within five days after
the date due; or

 

8.2                               Default
in Other Agreements.

 

(i)            Failure
of Holdings, Company or any of its Subsidiaries to pay when due any principal
of or interest on or any other amount payable in respect of one or more items
of Indebtedness (other than Indebtedness referred to in
subsection 8.1),  Contingent
Obligations in respect of Indebtedness, Hedging Obligations or letters of
credit in an individual principal amount of $7,500,000 or more or an aggregate
principal amount of $12,500,000 or more, in each case beyond the end of any
grace period provided therefor (provided that, in the case of any
Hedging Obligation, the amount counted for this purpose shall be the amount
payable by Holdings, Company or any of its Subsidiaries if such Hedging
Obligation were terminated at such time); or

 

(ii)           breach
or default by Holdings, Company or any of its Subsidiaries with respect to any
other material term of (a) one or more items of Indebtedness (or 

 

121

 

Contingent
Obligations in respect of Indebtedness, Hedging Obligations or letters of
credit) in the aggregate principal amount referred to in clause (i) above
or (b) any loan agreement, mortgage, indenture or other agreement relating
to such item(s) of Indebtedness or Contingent Obligation(s), if the effect
of such breach or default is to cause, or to permit the holder or holders of
that Indebtedness or Contingent Obligation(s) (or a trustee on behalf of
such holder or holders) to cause, that Indebtedness or Contingent Obligation(s) to
become or be declared due and payable prior to its stated maturity or the
stated maturity of any underlying obligation, as the case may be (provided such
breach or default has not been cured or waived or ceased to be continuing); or

 

8.3                       Breach
of Certain Covenants.

 

Failure
of Company to perform or comply with any term or condition contained in
subsection 2.5 or 6.2 or Section 7 of this Agreement; or

 

8.4                       Breach
of Warranty.

 

Any
representation, warranty, certification or other statement made by Company or
any of its Subsidiaries in any Loan Document or in any statement or certificate
at any time given by Company or any of its Subsidiaries in writing pursuant
hereto or thereto or in connection herewith or therewith shall be false in any
material respect on the date as of which made; or

 

8.5                       Other
Defaults Under Loan Documents.

 

Any
Loan Party shall default in the performance of or compliance with any term
contained in this Agreement or any of the other Loan Documents, other than any
such term referred to in any other subsection of this Section 8, and
such default shall not have been remedied or waived within 30 days after the
earlier of (i) a Responsible Officer of Company or such Loan Party
becoming aware of such default or (ii) receipt by Company and such Loan
Party of notice from Administrative Agent or any Lender of such default; or

 

8.6                       Involuntary
Bankruptcy; Appointment of Receiver, etc.

 

(i)            A
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of Holdings, Company or any of its Significant Subsidiaries
in an involuntary case under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect, which decree
or order is not stayed; or any other similar relief shall be granted under any
applicable federal or state law; or

 

(ii)           an
involuntary case shall be commenced against Holdings, Company or any of its
Significant Subsidiaries under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect; or
a decree or order of a court having jurisdiction in the premises for the
appointment of a receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over 

 

122

 

Holdings,
Company or any of its Significant Subsidiaries, or over all or a substantial
part of its property, shall have been entered; or there shall have occurred the
involuntary appointment of an interim receiver, trustee or other custodian of
Holdings, Company or any of its Significant Subsidiaries for all or a
substantial part of its property; or a warrant of attachment, execution or
similar process shall have been issued against any substantial part of the
property of Holdings, Company or any of its Significant Subsidiaries, and any
such event described in this clause (ii) shall continue for 60 days unless
dismissed, bonded or discharged; or

 

8.7                       Voluntary
Bankruptcy; Appointment of Receiver, etc.

 

(i)            Holdings,
Company or any of its Significant Subsidiaries shall have an order for relief
entered with respect to it or commence a voluntary case under the Bankruptcy
Code or under any other applicable bankruptcy, insolvency or similar law now or
hereafter in effect, or shall consent to the entry of an order for relief in an
involuntary case, or to the conversion of an involuntary case to a voluntary
case, under any such law, or shall consent to the appointment of or taking
possession by a receiver, trustee or other custodian for all or a substantial
part of its property; or Holdings, Company or any of its Significant
Subsidiaries shall make any assignment for the benefit of creditors; or

 

(ii)           Holdings,
Company or any of its Significant Subsidiaries shall be unable, or shall fail
generally, or shall admit in writing its inability, to pay its debts as such
debts become due; or

 

8.8                       Judgments
and Attachments.

 

Any
money judgment, writ or warrant of attachment or similar process
involving in the aggregate at any time an amount in excess of $15,000,000,
in any case to the extent not adequately covered by insurance as to which a
solvent and unaffiliated insurance company has acknowledged coverage, (i) shall
be entered or filed against Company or any of its Subsidiaries or any of their
respective assets and shall remain undischarged, unvacated, unbonded or
unstayed for a period of 60 consecutive days (in any event later than five days
prior to the date of any action to foreclose or collect upon its judgment); or

 

8.9                       Dissolution.

 

Any
order, judgment or decree shall be entered against Holdings, Company or any of
its Significant Subsidiaries decreeing the dissolution or split up of Holdings,
Company or that Significant Subsidiary and such order shall remain undischarged
or unstayed for a period in excess of 30 days; or

 

123

 

8.10                Employee
Benefit Plans.

 

There
shall occur one or more ERISA Events or similar events in respect of any
Foreign Plans, that individually or in the aggregate result in or could
reasonably be expected to result in a Material Adverse Effect; or

 

8.11                Change
in Control.

 

A
Change in Control shall have occurred; or

 

8.12                        Invalidity
of Loan Documents; Failure of Security; Repudiation of Obligations.

 

At any
time after the execution and delivery thereof, (i) any Loan Document or
any material provision thereof, for any reason other than the satisfaction in
full of all Obligations, shall cease to be in full force and effect (other than
in accordance with its terms) in any material respect or shall be declared to
be null and void, (ii) Administrative Agent shall not have or shall cease
to have a valid and perfected First Priority Lien in any material portion of
the Collateral purported to be covered by the Collateral Documents, in each
case for any reason other than the failure of Administrative Agent or any
Lender to take any action within its control, or (iii) any Loan Party
shall contest the validity or enforceability of any Loan Document or any
provision thereof in writing or deny in writing that it has any further
liability, including with respect to future advances by Lenders, under any Loan
Document or any provision thereof to which it is a party; or

 

8.13                Conduct
of Business By Holdings.

 

Holdings shall (i) engage in any business other
than entering into and performing its obligations incidental to, under and in
accordance with the Loan Documents to which it is a party (which, for the
avoidance of doubt, shall include the ability to make Restricted Junior
Payments to the extent permitted by this Agreement) or related to or incidental
to its ownership of Company or (ii) own any assets other than (a) the
Capital Stock of Company and (b) Cash and Cash Equivalents in an amount
not to exceed $5,000,000 at any one time for the purpose of paying general
operating expenses of Holdings (excluding funds permitted to be paid or
distributed to Holdings or capital contributions to and issuances of equity by
Holdings); or

 

8.14                Conduct
of Business By Dormant Subsidiaries.

 

Any of
the Dormant Subsidiaries (i) engages in any business other than entering
into and performing its obligations under, incidental to and in accordance with
the Loan Documents to which it is a party (if any) or (ii) owns any assets
(other than Renaissance Greeting Cards, Inc. in respect of the
subordinated note dated December 21, 2005 issued by Marian Heath Greeting
Cards, LLC) or (iii) has any Indebtedness or other liability in respect of
Indebtedness or any Contractual Obligation; or

 

124

 

8.15                Failure
to Consummate Acquisition or Merger.

 

The conditions set forth in subsection 4.2N shall not
be satisfied concurrently with the making of the initial Loan, or the
Acquisition or Merger shall be unwound, reversed or otherwise rescinded in
whole or in part for any reason;

 

THEN
(i) upon the occurrence of any Event of Default described in
subsection 8.6 or 8.7, each of (a) the unpaid principal amount of and
accrued interest on the Loans, (b) an amount equal to the maximum amount
that may at any time be drawn under all Letters of Credit then outstanding
(whether or not any beneficiary under any such Letter of Credit shall have presented,
or shall be entitled at such time to present, the drafts or other documents or
certificates required to draw under such Letter of Credit), and (c) all
other Obligations shall automatically become immediately due and payable,
without presentment, demand, protest or other requirements of any kind, all of
which are hereby expressly waived by Company, and the obligation of each Lender
to make any Loan, the obligation of Administrative Agent to issue any Letter of
Credit and the right of any Lender to issue any Letter of Credit hereunder
shall thereupon terminate, and (ii) upon the occurrence and during the
continuation of any other Event of Default, Administrative Agent shall, upon
the written request or with the written consent of Requisite Lenders, by
written notice to Company, declare all or any portion of the amounts described
in clauses (a) through (c) above to be, and the same shall forthwith
become, immediately due and payable, and the obligation of each Lender to make
any Loan, the obligation of Administrative Agent to issue any Letter of Credit
and the right of any Lender to issue any Letter of Credit hereunder shall
thereupon terminate; provided that the foregoing shall not affect in any
way the obligations of Revolving Lenders under subsection 3.3C(i) or
the obligations of Revolving Lenders to purchase assignments of any unpaid
Swing Line Loans as provided in subsection 2.1A(iv).

 

Any
amounts described in clause (b) above, when received by Administrative
Agent, shall be held by Administrative Agent pursuant to the terms of the
Security Agreement and shall be applied as therein provided.

 

Section 9.                                          ADMINISTRATIVE
AGENT

 

9.1                       Appointment.

 

A.            Appointment of Administrative Agent.  Wells Fargo is hereby appointed
Administrative Agent hereunder and under the other Loan Documents.  Each Lender hereby authorizes Administrative
Agent to act as its agent in accordance with the terms of this Agreement and
the other Loan Documents.  Wells Fargo
agrees to act upon the express conditions contained in this Agreement and the
other Loan Documents, as applicable.  The
provisions of this Section 9 are solely for the benefit of Agents and
Lenders and no Loan Party shall have rights as a third party beneficiary of any
of the provisions thereof.  In performing
its functions and duties under this Agreement, Administrative Agent (other than
as provided in subsection 2.1D) shall act solely as an agent of Lenders
and does not assume and shall not be deemed to have assumed any obligation
towards or relationship of agency or trust with or for Company or any other
Loan Party.

 

125

 

Administrative
Agent may execute any of its duties under this Agreement or any other Loan
Document by or through agents, employees or attorneys-in-fact appointed by
Administrative Agent in its sole discretion. 
Administrative Agent and any such sub-agent may perform any and all of
the duties of Administrative Agent and exercise the rights and powers of
Administrative Agent by or through their respective Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person
and of such Person’s Affiliates (“Related Parties”).  The exculpatory provisions of this Article shall
apply to any such sub-agent and to the Related Parties of Administrative Agent
and any such sub-agent.

 

B.            Appointment of Supplemental
Collateral Agents.  It
is the purpose of this Agreement and the other Loan Documents that there shall
be no violation of any law of any jurisdiction denying or restricting the right
of banking corporations or associations to transact business as agent or
trustee in such jurisdiction.  It is
recognized that in case of litigation under this Agreement or any of the other
Loan Documents, and in particular in case of the enforcement of any of the Loan
Documents, or in case Administrative Agent deems that by reason of any present
or future law of any jurisdiction it may not exercise any of the rights, powers
or remedies granted herein or in any of the other Loan Documents or take any other
action which may be desirable or necessary in connection therewith, it may be
necessary that Administrative Agent appoint an additional individual or
institution as a separate trustee, co-trustee, collateral agent or collateral
co-agent (any such additional individual or institution being referred to
herein individually as a “Supplemental Collateral
Agent” and collectively as “Supplemental Collateral
Agents”).

 

In the event that Administrative Agent appoints a
Supplemental Collateral Agent with respect to any Collateral, (i) each and
every right, power, privilege or duty expressed or intended by this Agreement
or any of the other Loan Documents to be exercised by or vested in or conveyed
to Administrative Agent with respect to such Collateral shall be exercisable by
and vest in such Supplemental Collateral Agent to the extent, and only to the
extent, necessary to enable such Supplemental Collateral Agent to exercise such
rights, powers and privileges with respect to such Collateral and to perform
such duties with respect to such Collateral, and every covenant and obligation
contained in the Loan Documents and necessary to the exercise or performance
thereof by such Supplemental Collateral Agent shall run to and be enforceable
by either Administrative Agent or such Supplemental Collateral Agent, and (ii) the
provisions of this Section 9 and of subsections 10.2 and 10.3 that refer
to Administrative Agent shall inure to the benefit of such Supplemental
Collateral Agent and all references therein to Administrative Agent shall be
deemed to be references to Administrative Agent and/or such Supplemental
Collateral Agent, as the context may require.

 

Should any instrument in writing from Company or any
other Loan Party be required by any Supplemental Collateral Agent so appointed
by Administrative Agent for more fully and certainly vesting in and confirming
to him or it such rights, powers, privileges and duties, Company shall, or
shall cause such Loan Party to, execute, acknowledge and deliver any and all
such instruments promptly upon request by Administrative Agent.  In case any Supplemental Collateral Agent, or
a successor thereto, shall die, become incapable of acting, resign or be
removed, all the rights, powers, privileges and duties of such Supplemental 

 

126

 

Collateral Agent, to the extent permitted by law,
shall vest in and be exercised by Administrative Agent until the appointment of
a new Supplemental Collateral Agent.

 

C.            Control.  Each Lender and Administrative Agent hereby
appoint each other Lender as agent for the purpose of perfecting Administrative
Agent’s security interest in assets that, in accordance with the UCC, can be
perfected by possession or control.

 

9.2                       Powers
and Duties; General Immunity.

 

A.            Powers; Duties Specified.  Each Lender irrevocably authorizes
Administrative Agent to take such action on such Lender’s behalf and to
exercise such powers, rights and remedies hereunder and under the other Loan
Documents as are specifically delegated or granted to Administrative Agent by
the terms hereof and thereof, together with such powers, rights and remedies as
are reasonably incidental thereto. 
Administrative Agent shall have only those duties and responsibilities
that are expressly specified in this Agreement and the other Loan
Documents.  Administrative Agent may
exercise such powers, rights and remedies and perform such duties by or through
its agents or employees.  Administrative
Agent shall not have, by reason of this Agreement or any of the other Loan
Documents, a fiduciary relationship in respect of any Lender or Company; and
nothing in this Agreement or any of the other Loan Documents, expressed or
implied, is intended to or shall be so construed as to impose upon
Administrative Agent any obligations in respect of this Agreement or any of the
other Loan Documents except as expressly set forth herein or therein.

 

B.            Notice of Default.  If any Lender has given any
notice to Company or taken any other action with respect to a claimed Event of
Default or Potential Event of Default, it shall promptly provide a copy of such
notice to Administrative Agent.

 

C.            No Responsibility for Certain
Matters.  No Agent
shall be responsible to any Lender for the execution, effectiveness,
genuineness, validity, enforceability, collectibility or sufficiency of this
Agreement or any other Loan Document or for any representations, warranties,
recitals or statements made herein or therein or made in any written or oral
statements or in any financial or other statements, instruments, reports or
certificates or any other documents furnished or made by such Agent to Lenders
or by or on behalf of Company to such Agent or any Lender in connection with
the Loan Documents and the transactions contemplated thereby or for the financial
condition or business affairs of Company or any other Person liable for the
payment of any Obligations, nor shall such Agent be required to ascertain or
inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained in any of the Loan Documents or
as to the use of the proceeds of the Loans or the use of the Letters of Credit
or as to the existence or possible existence of any Event of Default or
Potential Event of Default.  Anything
contained in this Agreement to the contrary notwithstanding, Administrative
Agent shall not have any liability arising from confirmations of the amount of
outstanding Loans or the Letter of Credit Usage or the component amounts
thereof.

 

D.            Exculpatory Provisions.  No Agent or any of its officers, directors,
employees or agents shall be liable to Lenders for any action taken or omitted
by such Agent 

 

127

 

under or in connection with any of the Loan Documents
except to the extent caused by such Agent’s gross negligence or willful
misconduct.  An Agent shall be entitled
to refrain from any act or the taking of any action (including the failure to
take an action) in connection with this Agreement or any of the other Loan
Documents or from the exercise of any power, discretion or authority vested in
it hereunder or thereunder unless and until such Agent shall have received
instructions in respect thereof from Requisite Lenders (or such other Lenders
as may be required to give such instructions under subsection 10.6) and,
upon receipt of such instructions from Requisite Lenders (or such other
Lenders, as the case may be), such Agent shall be entitled to act or (where so
instructed) refrain from acting, or to exercise such power, discretion or
authority, in accordance with such instructions; provided that no Agent
shall be required to take any action that, in its opinion or the opinion of its
counsel, may expose such Agent to liability or that is contrary to any Loan
Document or applicable law.  Without
prejudice to the generality of the foregoing, (i) each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any
communication (including any electronic message, Internet or intranet website
posting or other distribution), instrument or document believed by it to be
genuine and correct and to have been signed or sent by the proper person or
persons, and shall be entitled to rely and shall be protected in relying on
opinions and judgments of attorneys (who may be attorneys for Company and its
Subsidiaries), accountants, experts and other professional advisors selected by
it; and (ii) no Lender shall have any right of action whatsoever against
an Agent as a result of such Agent acting or (where so instructed) refraining
from acting under this Agreement or any of the other Loan Documents in
accordance with the instructions of Requisite Lenders (or such other Lenders as
may be required to give such instructions under subsection 10.6).

 

E.             Agents Entitled to Act as Lender.  The agency hereby created shall in no way
impair or affect any of the rights and powers of, or impose any duties or
obligations upon, an Agent in its individual capacity as a Lender hereunder.  With respect to its participation in the
Loans and the Letters of Credit, an Agent shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were not
performing the duties and functions delegated to it hereunder, and the term “Lender”
or “Lenders” or any similar term shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity.  An Agent and its Affiliates may accept
deposits from, lend money to, acquire equity interests in and generally engage
in any kind of commercial banking, investment banking, trust, financial
advisory or other business with Company or any of its Affiliates as if it were
not performing the duties specified herein, and may accept fees and other
consideration from Company for services in connection with this Agreement and
otherwise without having to account for the same to Lenders.

 

9.3                               Independent
Investigation by Lenders; No Responsibility For Appraisal of Creditworthiness.

 

Each
Lender agrees that it has made its own independent investigation of the
financial condition and affairs of Company and its Subsidiaries in connection
with the making of the Loans and the issuance of Letters of Credit hereunder
and that it has made and shall continue to make its own appraisal of the
creditworthiness of Company and its Subsidiaries. No Agent shall have any duty
or responsibility, either initially or on a continuing basis, to make any such
investigation or any such appraisal on behalf of Lenders or to provide any
Lender with any credit 

 

128

 

or other information with respect thereto, whether
coming into its possession before the making of the Loans or at any time or
times thereafter, and no Agent shall have any responsibility with respect to
the accuracy of or the completeness of any information provided to Lenders.

 

9.4                       Right
to Indemnity.

 

Each
Lender, in proportion to its Pro Rata Share, severally agrees to indemnify each
Agent and its officers, directors, employees, agents, attorneys, professional
advisors and Affiliates to the extent that any such Person shall not have been
reimbursed by Company, for and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses
(including counsel fees and disbursements and fees and disbursements of any
financial advisor engaged by Agents) or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against an Agent or
such other Person in exercising the powers, rights and remedies of an Agent or
performing duties of an Agent hereunder or under the other Loan Documents or
otherwise in its capacity as Agent in any way relating to or arising out of
this Agreement or the other Loan Documents; provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of an Agent resulting solely from such Agent’s gross negligence or willful
misconduct as determined by a final judgment of a court of competent
jurisdiction.  If any indemnity furnished
to an Agent or any other such Person for any purpose shall, in the opinion of
such Agent, be insufficient or become impaired, such Agent may call for additional
indemnity and cease, or not commence, to do the acts indemnified against until
such additional indemnity is furnished.

 

9.5                               Resignation
of Agents; Successor Administrative Agent and Swing Line Lender.

 

A.            Resignation; Successor Administrative Agent.  Any Agent may resign at any time by giving 30
days’ prior written notice thereof to Lenders and Company.  Upon any such notice of resignation by
Administrative Agent, Requisite Lenders shall have the right, upon five
Business Days’ notice to, and, so long as no Event of Default has occurred and
is continuing, the consent of, Company (which consent shall not be unreasonably
withheld), to appoint a successor Administrative Agent.  If no such successor shall have been so
appointed by Requisite Lenders and shall have accepted such appointment within
30 days after the retiring Administrative Agent gives notice of its
resignation, the retiring Administrative Agent may, on behalf of Lenders,
appoint a successor Administrative Agent. 
If Administrative Agent shall notify Lenders and Company that no Person
has accepted such appointment as successor Administrative Agent, such
resignation shall nonetheless become effective in accordance with
Administrative Agent’s notice and (i) the retiring Administrative Agent
shall be discharged from its duties and obligations under the Loan Documents,
except that any Collateral held by Administrative Agent will continue to be
held by it until a Person shall have accepted the appointment of successor
Administrative Agent, and (ii) all payments, communications and determinations
provided to be made by, to or through Administrative Agent shall instead be
made by, to or through each Lender directly, until such time as Requisite
Lenders appoint a successor Administrative Agent in accordance with this
subsection 9.5A.  Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, 

 

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that successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement (if
not already discharged as set forth above). 
After any retiring Agent’s resignation hereunder, the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was an Agent under this Agreement.

 

B.            Successor Swing Line Lender.  Any resignation of Administrative Agent pursuant
to subsection 9.5A shall also constitute the resignation of Wells Fargo or
its successor as Swing Line Lender, and any successor Administrative Agent
appointed pursuant to subsection 9.5A shall, upon its acceptance of such
appointment, become the successor Swing Line Lender for all purposes
hereunder.  In such event (i) Company
shall prepay any outstanding Swing Line Loans made by the retiring
Administrative Agent in its capacity as Swing Line Lender, (ii) upon such
prepayment, the retiring Administrative Agent and Swing Line Lender shall
surrender any Swing Line Note held by it to Company for cancellation, and (iii) if
so requested by the successor Administrative Agent and Swing Line Lender in
accordance with subsection 2.1E, Company shall issue a Swing Line Note to
the successor Administrative Agent and Swing Line Lender substantially in the
form of Exhibit VII annexed hereto, in the amount of the Swing Line
Loan Commitment then in effect and with other appropriate insertions.

 

9.6                       Collateral
Documents and Guaranties.

 

Each
Lender (which terms shall include, for purposes of this subsection 9.6 any Swap
Counterparty) hereby further authorizes Administrative Agent, on behalf of and
for the benefit of Lenders, to enter into each Collateral Document as secured
party and to be the agent for and representative of Lenders under the Guaranty,
and each Lender agrees to be bound by the terms of each Collateral Document and
the Guaranty; provided that Administrative Agent shall not (i) enter
into or consent to any material amendment, modification, termination or waiver
of any provision contained in any Collateral Document or the Guaranty or (ii) release
any Collateral (except as otherwise expressly permitted or required pursuant to
the terms of this Agreement or the applicable Collateral Document), in each
case without the prior consent of Requisite Lenders (or, if required pursuant
to subsection 10.6, all Lenders); provided  further, however,
that, without further written consent or authorization from Lenders, Administrative
Agent may execute any documents or instruments necessary to (a) release
any Lien encumbering any item of Collateral that is the subject of a sale or
other disposition of assets permitted by this Agreement or to which Requisite
Lenders have otherwise consented, (b) release any Subsidiary Guarantor
from the Guaranty if all of the Capital Stock of such Subsidiary Guarantor is
sold to any Person (other than an Affiliate of Company) pursuant to a sale or
other disposition permitted hereunder or to which Requisite Lenders have
otherwise consented or (c) subordinate the Liens of Administrative Agent,
on behalf of Lenders, to any Liens permitted by clauses (ii) and (iii) of
subsection 7.2A; provided that, in the case of a sale of such item
of Collateral or stock referred to in clause (a) or (b), the requirements
of subsection 10.14 are satisfied. 
Anything contained in any of the Loan Documents to the contrary
notwithstanding, Company, Administrative Agent and each Lender hereby agree
that (1) no Lender shall have any right individually to realize upon any
of the Collateral under any Collateral Document or to enforce the Guaranty, it
being understood and agreed that all powers, rights and remedies under the
Collateral Documents and 

 

130

 

the Guaranty may be exercised solely by Administrative
Agent for the benefit of Lenders in accordance with the terms thereof, and (2) in
the event of a foreclosure by Administrative Agent on any of the Collateral
pursuant to a public or private sale, Administrative Agent or any Lender may be
the purchaser of any or all of such Collateral at any such sale and
Administrative Agent, as agent for and representative of Lenders (but not any
Lender or Lenders in its or their respective individual capacities unless
Requisite Lenders shall otherwise agree in writing) shall be entitled, for the
purpose of bidding and making settlement or payment of the purchase price for
all or any portion of the Collateral sold at any such public sale, to use and
apply any of the Obligations as a credit on account of the purchase price for
any Collateral payable by Administrative Agent at such sale.

 

Without
derogating from any other authority granted to Administrative Agent herein or
in the Collateral Documents or any other document relating thereto, each Lender
hereby specifically (i) authorizes Administrative Agent to enter into
pledge agreements pursuant to this subsection 9.6 with respect to the Capital
Stock of all existing and future first-tier Foreign Subsidiaries, which pledge
agreements may be governed by the laws of each of the jurisdictions of
formation of such Foreign Subsidiaries, as agent on behalf of each of Lenders,
with the effect that Lenders each become a secured party thereunder and (ii) appoints
Administrative Agent as its attorney-in-fact granting it the powers to execute
each such pledge agreement in its name and on its behalf, with the effect that
Lenders each become a secured party thereunder. 
With respect to each such pledge agreement, Administrative Agent has the
power to sub-delegate to third parties its powers as attorney-in-fact of each
Lender.

 

9.7                       Duties
of Other Agents.

 

To the
extent that any Lender is identified in this Agreement as a co-agent,
documentation agent or syndication agent, such Lender shall not have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than those applicable to all Lenders as such. 
Without limiting the foregoing, none of such Lenders shall have or be
deemed to have a fiduciary relationship with any Lender.

 

9.8                       Administrative
Agent May File Proofs of Claim.

 

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to Holdings, Company or any of the Subsidiaries of Holdings
or Company, Administrative Agent (irrespective of whether the principal of any
Loan shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Administrative Agent shall have made any
demand on Company) shall be entitled and empowered, by intervention in such
proceeding or otherwise

 

(i)            to
file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Loans and any other Obligations that are owing and
unpaid and to file such other papers or documents as may be necessary or
advisable in order to have the claims of Lenders and Agents (including any
claim for the reasonable compensation, expenses, disbursements and advances of
Lenders and Agents and their 

 

131

 

agents
and counsel and all other amounts due Lenders and Agents under subsections 2.3
and 10.2) allowed in such judicial proceeding, and

 

(ii)           to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Lender to make such payments to Administrative Agent
and, in the event that Administrative Agent shall consent to the making of such
payments directly to Lenders, to pay to Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of Agents and
their agents and counsel, and any other amounts due Agents under subsections
2.3 and 10.2.

 

Nothing
herein contained shall be deemed to authorize Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lenders or to authorize Administrative Agent
to vote in respect of the claim of any Lender in any such proceeding.

 

Section 10.                                   MISCELLANEOUS

 

10.1                        Successors
and Assigns; Assignments and Participations in Loans and Letters of Credit.

 

A.            General.  This Agreement shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of the parties hereto and the successors and assigns of Lenders (it
being understood that Lenders’ rights of assignment are subject to the further
provisions of this subsection 10.1). 
Neither Company’s rights nor obligations hereunder nor any interest
therein may be assigned or delegated by Company without the prior written
consent of all Lenders (and any attempted assignment or transfer by Company
without such consent shall be null and void). 
No sale, assignment or transfer or participation of any Letter of Credit
or any participation therein may be made separately from a sale, assignment,
transfer or participation of a corresponding interest in the Revolving Loan
Commitment and the Revolving Loans of the Revolving Lender effecting such sale,
assignment, transfer or participation. 
Anything contained herein to the contrary notwithstanding, except as
provided in subsection 2.1A(iv) and subsection 10.5, the Swing
Line Loan Commitment and the Swing Line Loans of Swing Line Lender may not be
sold, assigned or transferred as described below to any Person other than a
successor Administrative Agent and Swing Line Lender to the extent contemplated
by subsection 9.5.  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, the Affiliates of each of
Administrative Agent and Lenders and Indemnitees) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

 

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B.            Assignments.

 

(i)            Amounts
and Terms of Assignments.  Any Lender
may assign to one or more Eligible Assignees all or any portion of its rights
and obligations under this Agreement; provided that (a), except (1) in
the case of an assignment of the entire remaining amount of the assigning
Lender’s rights and obligations under this Agreement or (2) in the case of
an assignment to a Lender or an Affiliate of a Lender or an Approved Fund of a
Lender, the aggregate amount of the Revolving Loan Exposure, Tranche A Term
Loan Exposure or Tranche B Term Loan Exposure, as the case may be, of the
assigning Lender and the assignee subject to each such assignment shall not be
less than $1,000,000, unless each of Administrative Agent and, so long as no
Event of Default has occurred and is continuing, Company otherwise consents
(each such consent not to be unreasonably withheld or delayed), provided
that concurrent assignments by or to two or more Affiliated Funds shall be
aggregated for purposes of determining the minimum assignment amount, (b) each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned, and any assignment of all or
any portion of a Revolving Loan Commitment, Revolving Loan or Letter of Credit
participation shall be made only as an assignment of the same proportionate
part of the assigning Lender’s Revolving Loan Commitment, Revolving Loans and
Letter of Credit participations and (c) the parties to each assignment
shall execute and deliver to Administrative Agent an Assignment Agreement,
together with a processing and recordation fee of $3,500 (unless the assignee
is a Lender, an Affiliate or an Approved Fund of a Lender, in which case no fee
shall be required, and provided that only one such processing and recordation
fee shall be required in connection with concurrent assignments by or to two or
more Affiliated Funds), and the Eligible Assignee, if it shall not be a Lender,
shall deliver to Administrative Agent information reasonably requested by
Administrative Agent, including such forms, certificates or other evidence, if
any, with respect to United States federal income tax withholding matters as
the assignee under such Assignment Agreement may be required to deliver to
Administrative Agent pursuant to subsection 2.7B(iv).

 

Upon such execution,
delivery and any required consent, and recording in the Register
from and after the effective date specified in such Assignment Agreement, (y) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and (z) the
assigning Lender thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment Agreement,
relinquish its rights (other than any rights which survive the termination of
this Agreement under subsection 10.9B) and be released from its
obligations under this Agreement (and, in the case of an Assignment Agreement
covering all or the remaining portion of an assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto;
provided that, anything contained in any of the Loan Documents to the
contrary notwithstanding, if such Lender is an Issuing Lender such Lender shall
continue to have all rights and obligations of an Issuing Lender until the
cancellation or expiration of any Letters of Credit issued by it and the
reimbursement of any amounts drawn thereunder). 
The assigning Lender shall, 

 

133

 

upon the
effectiveness of such assignment or as promptly thereafter as practicable,
surrender its Notes, if any, to Administrative Agent for cancellation, and
thereupon new Notes shall, if so requested by the assignee and/or the assigning
Lender in accordance with subsection 2.1E, be issued to the assignee and/or
to the assigning Lender, substantially in the form of Exhibit IV, Exhibit V
or Exhibit VI annexed hereto, as the case may be, with appropriate
insertions, to reflect the amounts of the new Commitments and/or outstanding
Revolving Loans and/or outstanding Tranche A Term Loans and/or Tranche B Term
Loans, as the case may be, of the assignee and/or the assigning Lender.  Other than as provided in
subsection 2.1A(iv) and subsection 10.5, any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this subsection 10.1B shall be treated for purposes of
this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with subsection 10.1C.

 

(ii)           Acceptance
by Administrative Agent; Recordation in Register.  Upon its receipt of an Assignment Agreement
executed by an assigning Lender and an assignee representing that it is an
Eligible Assignee, together with the processing and recordation fee referred to
in subsection 10.1B(i) and any forms, certificates or other evidence
with respect to United States federal income tax withholding matters that such
assignee may be required to deliver to Administrative Agent pursuant to
subsection 2.7B(iv), Administrative Agent shall, if each of Administrative
Agent and Company have consented to the assignment evidenced thereby (in each
case to the extent such consent is required pursuant to
subsection 10.1B(i)), (a) accept such Assignment Agreement by
executing a counterpart thereof as provided therein (which acceptance shall
evidence any required consent of Administrative Agent to such assignment), (b) record
the information contained therein in the Register, and (c) give prompt
notice thereof to Company. 
Administrative Agent shall maintain a copy of each Assignment Agreement
delivered to and accepted by it as provided in this
subsection 10.1B(ii).  No Assignment
Agreement shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this
subsection 10.1B(ii).

 

(iii)          Consent
by Company.  If the consent of
Company to an assignment or to an Eligible Assignee is required hereunder
(including a consent to an assignment which does not meet the minimum
assignment thresholds specified in subsection 10.1B(i)), Company agrees
not to unreasonably withhold or delay giving its consent after the date notice
thereof has been delivered by the assigning Lender (through Administrative
Agent).

 

(iv)          Special
Purpose Funding Vehicles. 
Notwithstanding anything to the contrary contained herein, any Lender (a
“Granting Lender”) may grant to a
special purpose funding vehicle (an “SPC”),
identified as such in writing from time to time by the Granting Lender to
Administrative Agent and Company, the option to provide to Company all or any
part of any Loan that such Granting Lender would otherwise be obligated to make
to Company pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to make any Loan, and (ii) if
an SPC elects not to exercise such option or otherwise fails to provide all or
any part of such 

 

134

 

Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC
shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any state thereof.  In
addition, notwithstanding anything to the contrary contained in this subsection
10.1B(iv), any SPC may (i) with notice to, but without the prior written
consent of, Company and Administrative Agent and without paying any processing
fee therefor, assign all or a portion of its interests in any Loans to the
Granting Lender or to any financial institutions (consented to by Company and
Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans and (ii) disclose
on a confidential basis any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC. 
This subsection 10.1B(iv) may not be amended without the written
consent of the SPC.  An SPC shall not be
entitled to the benefits of subsection 2.7 unless it complies with subsection 2.7B(iii) as
though it were a Lender.

 

C.            Participations.  Any Lender may, without the consent of, or
notice to, Company or Administrative Agent, sell participations to one or more
Persons (other than a natural Person or Company or any of its Subsidiaries) in
all or a portion of such Lender’s rights and/or obligations under this
Agreement; provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) Company, Administrative Agent and Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver directly affecting (i) an
extension of the scheduled final maturity date of any Loan allocated to such
participation, (ii) a reduction of the principal amount of or the rate of
interest payable on any Loan allocated to such participation or (iii) an
increase in the Commitment allocated to such participation.  Subject to the further provisions of this
subsection 10.1C, Company agrees that each Participant shall be entitled
to the benefits of subsections 2.6D and 2.7 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to
subsection 10.1B.  To the extent
permitted by law, each Participant also shall be entitled to the benefits of
subsection 10.4 as though it were a Lender, provided such Participant
agrees to be subject to subsection 10.5 as though it were a Lender.  A Participant shall not be entitled (i) in

 

135

 

the case of subsection 2.7, to the rights or benefits
set forth thereunder unless Company is notified of the participation sold to
such Participant and such Participant agrees for the benefit of Company, to
comply with subsection 2.7B(iv) as though it were a Lender and (ii) in
the case of subsections 2.6D, 2.7 and 10.4, to the rights or benefits set forth
thereunder, unless such Participant provides written notice of its name and
address to Administrative Agent for recordation in the Register.

 

D.            Pledges and Assignments.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its Loans, and the other Obligations
owed to such Lender, to secure obligations of such Lender, including without
limitation any pledge or assignment to secure obligations to any Federal
Reserve Bank; provided that (i) no Lender shall be relieved of any
of its obligations hereunder as a result of any such assignment or pledge and (ii) in
no event shall any assignee or pledgee be considered to be a “Lender” or be
entitled to require the assigning Lender to take or omit to take any action
hereunder.

 

E.             Information.  Each Lender may furnish any information
concerning Holdings, Company and its Subsidiaries in the possession of that
Lender from time to time to assignees and participants (including prospective
assignees and participants), subject to subsection 10.19.

 

F.             Agreements of Lenders.  Each Lender listed on the signature pages hereof
hereby agrees, and each Lender that becomes a party hereto pursuant to an
Assignment Agreement shall be deemed to agree, (i) that it is an Eligible
Assignee; (ii) that it has experience and expertise in the making of or
purchasing loans such as the Loans t; and (iii) that it will make or purchase
Loans for its own account in the ordinary course of its business and without a
view to distribution of such Loans within the meaning of the Securities Act or
the Exchange Act or other federal securities laws (it being understood that,
subject to the provisions of this subsection 10.1, the disposition of such
Loans or any interests therein shall at all times remain within its exclusive
control).

 

10.2                Expenses.

 

Whether or not the transactions contemplated hereby
shall be consummated, Company agrees to pay promptly:  (i) all reasonable and documented costs
and expenses of negotiation, preparation and execution of the Loan Documents
and any consents, amendments, waivers or other modifications thereto; (ii) all
costs and expenses of furnishing all opinions by counsel for Company (including
any opinions reasonably requested by Administrative Agent or Lenders as to any
legal matters arising hereunder (and customarily provided in such situations by
nationally recognized law firms) and of Company’s performance of and compliance
with all agreements and conditions on its part to be performed or complied with
under this Agreement and the other Loan Documents; (iii) all reasonable
and documented fees, expenses and disbursements of counsel to Administrative
Agent (but excluding costs of internal counsel) in connection with the
negotiation, preparation, execution and administration of the Loan Documents
and any consents, amendments, waivers or other modifications thereto and any
other documents or matters requested by Company; provided that in the
event the initial Loans are not funded, Company’s Obligations under this clause
shall not exceed $200,000; (iv) all costs and 

 

136

 

expenses of creating and perfecting Liens in favor of
Administrative Agent on behalf of Lenders pursuant to any Collateral Document,
including filing and recording fees, expenses and taxes, stamp or documentary
taxes, search fees, title insurance premiums, and reasonable and documented
fees, expenses and disbursements of counsel to Administrative Agent and of
counsel providing any opinions that Administrative Agent or Requisite Lenders
may request in respect of the Collateral Documents or the Liens created
pursuant thereto; (v) all costs and expenses (including the reasonable and
documented fees, expenses and disbursements of any auditors, accountants or
appraisers and any environmental or other consultants, advisors and agents
employed or retained by Administrative Agent or its counsel) of obtaining and
reviewing any appraisals provided for under subsection 4.2 or 6.9B and any
environmental audits or reports provided for under subsection 6.9A; (vi) all
costs and expenses incurred by Administrative Agent in connection with the
custody or preservation of any of the Collateral following the occurrence and
during the continuance of an Event of Default; (vii) all other costs and
expenses incurred by Administrative Agent in connection with any syndication of
the Commitments prior to and for the first 90 days after the Closing Date; (viii) all
costs and expenses, including reasonable attorneys’ fees (but excluding costs
of internal counsel) and fees, costs and expenses of accountants, advisors and
consultants, incurred by Administrative Agent and its counsel relating to
efforts to (a) evaluate or assess any Loan Party, its business or
financial condition and (b) protect, evaluate, assess or dispose of any of
the Collateral; provided that such costs and expenses shall not exceed
$50,000 prior to the occurrence of an Event of Default without Company’s prior
consent (such consent not to be unreasonably withheld); and (viii) all
costs and expenses, including attorneys’ fees (but excluding costs of internal
counsel), fees, costs and expenses of accountants, advisors and consultants and
costs of settlement, incurred by Administrative Agent and Lenders in enforcing
any Obligations of or in collecting any payments due from any Loan Party
hereunder or under the other Loan Documents (including in connection with the
sale of, collection from, or other realization upon any of the Collateral or
the enforcement of the Loan Documents) or in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the
nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings.

 

10.3                Indemnity.

 

In
addition to the payment of expenses pursuant to subsection 10.2, whether or not
the transactions contemplated hereby shall be consummated, Company agrees to
defend (subject to Indemnitees’ selection of counsel), indemnify, pay and hold
harmless Agents and Lenders (including Issuing Lenders), and the officers,
directors, trustees, employees, agents, advisors and Affiliates of Agents and
Lenders (collectively called the “Indemnitees”),
from and against any and all Indemnified Liabilities (as hereinafter defined); provided
that Company shall not have any obligation to any Indemnitee hereunder with
respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities arise from the gross negligence or willful misconduct of, or breach
of any Loan Document by, that Indemnitee as determined by a final judgment of a
court of competent jurisdiction.

 

As
used herein, “Indemnified Liabilities” means,
collectively, any and all liabilities, obligations, damages (including natural
resource damages), penalties, actions, judgments, suits, claims (including
Environmental Claims), costs (including the costs of any 

 

137

 

investigation, study, sampling, testing, abatement,
cleanup, removal, remediation or other response action necessary to remove,
remediate, clean up or abate any Hazardous Materials Activity), expenses and
disbursements of any kind or nature whatsoever (including the reasonable documented
fees and disbursements of counsel for Indemnitees  in connection with any investigative,
administrative or judicial proceeding commenced or threatened by any Person,
whether or not any such Indemnitee shall be designated as a party or a
potential party thereto, and any fees or expenses incurred by Indemnitees in
enforcing this indemnity), whether direct, indirect or consequential and
whether based on any federal, state or foreign laws, statutes, rules or
regulations (including securities and commercial laws, statutes, rules or
regulations and Environmental Laws), on common law or equitable cause or on
contract or otherwise, that may be imposed on, incurred by, or asserted against
any such Indemnitee, in any manner relating to or arising out of (i) this
Agreement or the other Loan Documents or the transactions contemplated hereby
or thereby (including Lenders’ agreement to make the Loans hereunder or the use
or intended use of the proceeds thereof or the issuance of Letters of Credit
hereunder or the use or intended use of any thereof, the failure of an Issuing
Lender to honor a drawing under a Letter of Credit as a result of any act or
omission, whether rightful or wrongful, of any present or future de jure or de
facto Government Authority, or any enforcement of any of the Loan Documents
(including any sale of, collection from, or other realization upon any of the
Collateral or the enforcement of the Guaranty)) or (ii) any Environmental
Claim or any Hazardous Materials Activity relating to or arising from, directly
or indirectly, any past or present activity, operation, land ownership, or
practice of Company or any of its Subsidiaries.

 

To the
extent that the undertakings to defend, indemnify, pay and hold harmless set
forth in this subsection 10.3 may be unenforceable in whole or in part
because they are violative of any law or public policy, Company shall
contribute the maximum portion that it is permitted to pay and satisfy under
applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by Indemnitees or any of them.

 

10.4                Set-Off.

 

In
addition to any rights now or hereafter granted under applicable law and not by
way of limitation of any such rights, upon the occurrence and during the
continuation of any Event of Default each of the Lenders is hereby authorized
by Company at any time or from time to time, without notice to Company or to
any other Person, any such notice being hereby expressly waived, to set off and
to appropriate and to apply any and all deposits (general or special, time or
demand, provisional or final, including Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but not including trust accounts) and
any other Indebtedness at any time held or owing by that Lender or any Affiliate
of that Lender to or for the credit or the account of Company and each other
Loan Party against and on account of the Obligations of Company or any other
Loan Party due and payable to that Lender or to any other Lender under this
Agreement, the Letters of Credit and participations therein and the other Loan
Documents, including all claims of any nature or description arising out of or
connected with this Agreement, the Letters of Credit and participations therein
or any other Loan Document, irrespective of whether or not that Lender shall
have made any demand hereunder.

 

138

 

10.5                Ratable
Sharing.

 

Lenders
hereby agree among themselves that if any of them shall, whether by voluntary
or mandatory payment (other than a payment or prepayment of Loans made and
applied in accordance with the terms of this Agreement), by realization upon
security, through the exercise of any right of set-off or banker’s lien, by
counterclaim or cross action or by the enforcement of any right under the Loan
Documents or otherwise, or as adequate protection of a deposit treated as Cash
collateral under the Bankruptcy Code, receive payment or reduction of a
proportion of the aggregate amount of principal, interest, amounts payable in
respect of Letters of Credit, fees and other amounts then due and owing to that
Lender hereunder or under the other Loan Documents (collectively, the “Aggregate Amounts Due” to such Lender) that is greater than
the proportion received by any other Lender in respect of the Aggregate Amounts
Due to such other Lender, then the Lender receiving such proportionately
greater payment shall, unless such proportionately greater payment is required
by the terms of this Agreement, (i) notify Administrative Agent and each
other Lender of the receipt of such payment and (ii) apply a portion of
such payment to purchase assignments (which it shall be deemed to have
purchased from each seller of an assignment simultaneously upon the receipt by
such seller of its portion of such payment) of the Aggregate Amounts Due to the
other Lenders so that all such recoveries of Aggregate Amounts Due shall be
shared by all Lenders in proportion to the Aggregate Amounts Due to them; provided
that (a) if all or part of such proportionately greater payment received
by such purchasing Lender is thereafter recovered from such Lender upon the
bankruptcy or reorganization of Company or otherwise, those purchases shall be
rescinded and the purchase prices paid for such assignments shall be returned
to such purchasing Lender ratably to the extent of such recovery, but without
interest and (b) the foregoing provisions shall not apply to (1) any
payment made by Company pursuant to and in accordance with the express terms of
this Agreement or (2) any payment obtained by a Lender as consideration
for the assignment (other than an assignment pursuant to this
subsection 10.5) of or the sale of a participation in any of its
Obligations to any Eligible Assignee or Participant pursuant to
subsection 10.1B.  Company expressly
consents to the foregoing arrangement and agrees that any purchaser of an
assignment so purchased may exercise any and all rights of a Lender as to such
assignment as fully as if that Lender had complied with the provisions of
subsection 10.1B with respect to such assignment.  In order to further evidence such assignment
(and without prejudice to the effectiveness of the assignment provisions set
forth above), each purchasing Lender and each selling Lender agree to enter
into an Assignment Agreement at the request of a selling Lender or a purchasing
Lender, as the case may be, in form and substance reasonably satisfactory to
each such Lender.

 

10.6                Amendments
and Waivers.

 

No
amendment, modification, termination or waiver of any provision of this
Agreement or of the Notes, and no consent to any departure by Company
therefrom, shall in any event be effective without the written concurrence of
Requisite Lenders; provided, that no such amendment, modification,
termination, waiver or consent shall, without the consent of:

 

(a)           each
Lender with Obligations directly affected (whose consent shall be sufficient
for any such amendment, modification, termination or waiver without the consent
of Requisite Lenders) (1) reduce the principal amount of any 

 

139

 

Loan, (2) postpone
the scheduled final maturity date of any Loan, or postpone the date or reduce
the amount of any scheduled payment (but not prepayment) of principal of any
Loan, (3) postpone the date on which any interest or any fees are payable,
(4) decrease the interest rate borne by any Loan (other than any waiver of
any increase in the interest rate applicable to any of the Loans pursuant to
subsection 2.2E) or the amount of any fees payable hereunder (other than
any waiver of any increase in the fees applicable to Letters of Credit pursuant
to subsection 3.2 following an Event of Default) excluding any decrease
resulting from a change in the manner in which any financial ratio used in
determining any interest rate or fee is calculated that would result in a
reduction of any such rate or fee, (5) reduce the amount or postpone the
due date of any amount payable in respect of any Letter of Credit (other than
any waiver of any increase in the fees applicable to any Letter of Credit
pursuant to subsection 3.2), (6) extend the expiration date of any Letter
of Credit beyond the Revolving Loan Commitment Termination Date (unless all
unfunded risk participations with respect to any Letter of Credit are released
by the Issuing Lender (in its sole discretion), in which case, the Issuing
Lender may extend the stated expiration date of such Letter of Credit beyond
the Revolving Commitment Termination Date), (7) extend the Revolving
Commitment Termination Date or (8) change in any manner the obligations of
Revolving Lenders relating to the purchase of participations in Letters of
Credit;

 

(b)           each
Lender, (1) change in any manner the definition of “Class” or the
definition of “Pro Rata Share” or the definition of “Requisite Class Lenders”
or the definition of “Requisite Lenders” (except for any changes resulting from
an increase in the aggregate amount of the Commitments or Loans approved by
Requisite Lenders), (2) change in any manner any provision of this
Agreement that, by its terms, expressly requires the approval or concurrence of
all Lenders, (3) increase the maximum duration of Interest Periods
permitted hereunder, (4) release any Lien granted in favor of
Administrative Agent with respect to all or substantially all of the Collateral
or release Holdings or FTD, Inc. from its obligations under the Guaranty
or release all or substantially all of the Subsidiary Guarantors from their
obligations under the Guaranty, in each case other than in accordance with the
terms of the Loan Documents, or (5) change in any manner or waive the
provisions contained in subsection 2.4D, subsection 8.1, subsection 10.5
or this subsection 10.6.

 

In
addition, no amendment, modification, termination or waiver of any provision (i) of
any Note shall be effective without the written concurrence of the Lender which
is the holder of that Note, (ii) of subsection 2.1A(iv) or of
any other provision of this Agreement relating to the Swing Line Loan
Commitment or the Swing Line Loans shall be effective without the written
concurrence of Swing Line Lender, (iii) of Section 3 shall be
effective without the written concurrence of Administrative Agent and, with
respect to the purchase of participations in Letters of Credit, without the
written concurrence of each Issuing Lender that has issued an outstanding
Letter of Credit or has not been reimbursed for a payment under a Letter of
Credit, 

 

140

 

(iv) of Section 9 or of any other provision
of this Agreement which, by its terms, expressly requires the approval or
concurrence of Administrative Agent shall be effective without the written
concurrence of Administrative Agent, (v) of subsection 2.4 that
alters the application of any mandatory or voluntary prepayment as between
Classes without the written concurrence of Requisite Class Lenders of each
Class that is being allocated a lesser amount of any such prepayment as a
result thereof, provided that Requisite Lenders may waive, in whole or
in part, any mandatory prepayment and Requisite Lenders (in addition to each
Lender that thereby increases its Commitment) may increase the aggregate amount
of the Commitments or Loans, in each case so long as the application, as
between Classes, of any portion of such prepayment which is still required to
be made is not altered, and (vi) that increases the amount of a Commitment
of a Lender shall be effective without the consent of such Lender.

 

Notwithstanding
anything to the contrary in this subsection 10.6, in determining whether
Requisite Lenders have consented to any amendment, modification, termination,
waiver or consent, Loans held by United Online or its Subsidiaries shall be
excluded from the calculation of Requisite Lenders, both in calculating the
votes in favor of a particular matter and the aggregate Tranche A Term Loan
Exposure, Tranche B Term Loan Exposure and Revolving Loan Exposure.

 

Administrative
Agent may, but shall have no obligation to, with the concurrence of any Lender,
execute amendments, modifications, waivers or consents on behalf of that
Lender.  Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
it was given.  No notice to or demand on
Company in any case shall entitle Company to any other or further notice or
demand in similar or other circumstances. 
Any amendment, modification, termination, waiver or consent effected in
accordance with this subsection 10.6 shall be binding upon each Lender at
the time outstanding, each future Lender and, if signed by Company, on Company.

 

In
addition to the foregoing, Company may supplement the Schedules hereto as contemplated
by this Agreement.

 

10.7                Independence
of Covenants.

 

All
covenants hereunder shall be given independent effect so that if a particular
action or condition is not permitted by any of such covenants, the fact that it
would be permitted by an exception to, or would otherwise be within the
limitations of, another covenant shall not avoid the occurrence of an Event of
Default or Potential Event of Default if such action is taken or condition
exists.

 

10.8                Notices;
Effectiveness of Signatures.

 

Unless
otherwise specifically provided herein, any notice or other communication
herein required or permitted to be given shall be in writing and may be
personally served, or sent by telefacsimile or United States mail or courier
service and shall be deemed to have been given when delivered in person or by
courier service, upon receipt of telefacsimile in complete and legible form, or
three Business Days after depositing it in the United States mail with postage 

 

141

 

prepaid and properly addressed; provided that
notices to Administrative Agent, Swing Line Lender and any Issuing Lender shall
not be effective until received.  For the
purposes hereof, the address of each party hereto shall be as set forth under
such party’s name on the signature pages hereof or (i) as to Company
and Administrative Agent, such other address as shall be designated by such
Person in a written notice delivered to the other parties hereto and (ii) as
to each other party, such other address as shall be designated by such party in
a written notice delivered to Administrative Agent.  Electronic mail and Internet and intranet
websites may be used to distribute routine communications, such as financial
statements and other information as provided in subsection 6.1.  Administrative Agent or Company may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

 

Loan
Documents and notices under the Loan Documents may be transmitted and/or signed
by telefacsimile and by signatures delivered in ‘PDF’ format by electronic
mail; provided, however, that no signature with respect to any
notice, request, agreement, waiver, amendment or other document that is
intended to have binding effect may be sent by electronic mail.  The effectiveness of any such documents and
signatures shall, subject to applicable law, have the same force and effect as
an original copy with manual signatures and shall be binding on all Loan
Parties, Agents and Lenders. 
Administrative Agent may also require that any such documents and
signature be confirmed by a manually-signed copy thereof; provided, however,
that the failure to request or deliver any such manually-signed copy shall not
affect the effectiveness of any facsimile or electronic mail document or
signature.

 

Notwithstanding
the foregoing, Company agrees that Administrative Agent may make any written
material delivered by Company to Administrative Agent, as well as any
amendments, waivers, consents and other written information, documents,
instruments and other materials relating to Company, any of their respective
Subsidiaries, or any other materials or matters relating to the Loan Documents
or any of the transactions contemplated hereby that Administrative Agent is
required or authorized pursuant to the terms hereof or of any Loan Document to
provide to Lenders (collectively, the “Communications”)
available to Lenders by posting such notices on a Platform; provided, however,
that any Communications that Company deems to contain material non-public
information (or to be otherwise unsuitable for posting on the Platform) and are
identified in writing to Administrative Agent as such may also be designated in
writing by Company as unauthorized for posting on a Platform and Administrative
Agent will not so post such Communications. 
Company acknowledges that (a) the distribution of material through
an electronic medium is not necessarily secure and that there are
confidentiality and other risks associated with such distribution, (b) a
Platform is provided “as is” and “as available” and (c) neither
Administrative Agent nor any of its Affiliates warrants the accuracy,
completeness, timeliness, sufficiency, or sequencing of the Communications
posted on a Platform.  Administrative
Agent and its Affiliates expressly disclaim with respect to a Platform any
liability for errors in transmission, incorrect or incomplete downloading,
delays in posting or delivery, or problems accessing the Communications posted
on such Platform and any liability for any losses, costs, expenses or
liabilities that may be suffered or incurred in connection with such Platform
(other than losses, costs, expenses or liabilities resulting from
Administrative 

 

142

 

Agent’s gross negligence, willful misconduct or breach
of the Loan Documents).  No warranty of
any kind, express, implied or statutory, including any warranty of
merchantability, fitness for a particular purpose, non-infringement of third
party rights or freedom from viruses or other code defects, is made by
Administrative Agent or any of its Affiliates in connection with any Platform.

 

Each
Lender agrees that notice to it (as provided in the next sentence) specifying
that any Communication has been posted to a Platform shall for purposes of this
Agreement constitute effective delivery to such Lender of such information,
documents or other materials comprising such Communication.  Each Lender agrees (1) to notify, on or
before the date such Lender becomes a party to this Agreement, Administrative
Agent in writing of such Lender’s e-mail address to which a notice may be sent
(and from time to time thereafter to ensure that Administrative Agent has on
record an effective e-mail address for such Lender) and (2) that any
notice may be sent to such e-mail address.

 

10.9                Survival
of Representations, Warranties and Agreements.

 

A.            All representations, warranties and
agreements made herein shall survive the execution and delivery of this
Agreement and the making of the Loans and the issuance of the Letters of Credit
hereunder.

 

B.            Notwithstanding anything in this
Agreement or implied by law to the contrary, the agreements of Company set
forth in subsections 2.6D, 2.7, 10.2, 10.3, 10.17 and 10.18 and the agreements
of Lenders set forth in subsections 9.2C, 9.4, 10.5, 10.18 and 10.19 shall
survive the payment of the Loans, the cancellation or expiration of the Letters
of Credit and the reimbursement of any amounts drawn thereunder, and the
termination of this Agreement.

 

10.10         Failure
or Indulgence Not Waiver; Remedies Cumulative.

 

No
failure or delay on the part of an Agent or any Lender in the exercise of any
power, right or privilege hereunder or under any other Loan Document shall
impair such power, right or privilege or be construed to be a waiver of any
default or acquiescence therein, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof
or of any other power, right or privilege. 
All rights and remedies existing under this Agreement and the other Loan
Documents are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

 

10.11         Marshalling;
Payments Set Aside.

 

Neither
any Agent nor any Lender shall be under any obligation to marshal any assets in
favor of Company or any other party or against or in payment of any or all of
the Obligations.  To the extent that
Company makes a payment or payments to Administrative Agent or Lenders (or to
Administrative Agent for the benefit of Lenders), or Agents or Lenders enforce
any security interests or exercise their rights of setoff, and such payment or
payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver or any 

 

143

 

other party under any bankruptcy law, any other state
or federal law, common law or any equitable cause, then, to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied,
and all Liens, rights and remedies therefor or related thereto, shall be
revived and continued in full force and effect as if such payment or payments
had not been made or such enforcement or setoff had not occurred.

 

10.12         Severability.

 

In
case any provision in or obligation under this Agreement or the Notes shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be affected
or impaired thereby.

 

10.13                 Obligations
Several; Independent Nature of Lenders’ Rights; Damage Waiver.

 

The
obligations of Lenders hereunder are several and no Lender shall be responsible
for the obligations or Commitments of any other Lender hereunder except that
Wells Fargo shall be obligated to fund any Defaulted Term Loans as described in
subsection 2.1D.  Nothing contained
herein or in any other Loan Document, and no action taken by Lenders pursuant
hereto or thereto, shall be deemed to constitute Lenders, or Lenders and
Company, as a partnership, an association, a Joint Venture or any other kind of
entity. The amounts payable at any time hereunder to each Lender shall be a
separate and independent debt, and, subject to subsection 9.6, each Lender
shall be entitled to protect and enforce its rights arising out of this
Agreement and it shall not be necessary for any other Lender to be joined as an
additional party in any proceeding for such purpose.

 

To the
extent permitted by law, Company shall not assert, and hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect or
consequential damages (as opposed to direct or actual damages) arising out of,
in connection with or as a result of this Agreement (including, without
limitation, subsection 2.1C hereof), any other Loan Document, any
transaction contemplated by the Loan Documents, any Loan or the use of proceeds
thereof.  No Indemnitee shall be liable
for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with the
Loan Documents or the transactions contemplated thereby except as a result of
the Indemnitee’s gross negligence or willful misconduct or breach of any Loan
Document.

 

10.14         Release
of Security Interest or Guaranty.

 

Upon
the sale or other disposition of any Collateral to any Person (other than a
Loan Party) that is permitted by this Agreement or to which Requisite Lenders
have otherwise consented, or the sale or other disposition of all of the
Capital Stock of a Subsidiary Guarantor to any Person (other than a Loan Party)
that is permitted by this Agreement or to which Requisite Lenders have otherwise
consented, Administrative Agent’s security interest in such Collateral or the
Guaranty of such Subsidiary Guarantor, as applicable, shall be automatically
released without 

 

144

 

any further act or action by Administrative Agent or
the Lenders simultaneously with the consummation of such sale or other
disposition.  Upon the sale or other
disposition of any Collateral to any Person (other than a Loan Party) that is permitted
by subsection 7.7(iv) or (v) or for which Requisite Lender consent is
required, Company shall deliver to Administrative Agent an Officer’s
Certificate (i) specifying the Collateral or Capital Stock to be sold or
otherwise disposed of in the proposed transaction and (ii) stating that the
Collateral or the Capital Stock subject to such disposition is being sold or
otherwise disposed of in compliance with such subsections or requesting the
consent of Requisite Lenders to such sale. 
If a Loan Party desires additional evidence of the release referenced in
this subsection 10.14, upon delivery to Administrative of the Officer’s
Certificate referenced in the preceding sentence, Administrative Agent shall,
at such Loan Party’s expense, so long as Administrative Agent (a) has no
reason to believe that the facts stated in such Officer’s Certificate are not
true and correct and (b), if the sale or other disposition of such item of
Collateral or Capital Stock constitutes an Asset Sale, shall have received
evidence satisfactory to it that arrangements satisfactory to it have been made
for delivery of the Net Asset Sale Proceeds if and as required by
subsection 2.4, execute and deliver such releases of its security interest
in such Collateral or such Guaranty as may be reasonably requested by such Loan
Party.

 

10.15         Applicable
Law.

 

THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT AS OTHERWISE EXPRESSLY SET FORTH
IN ANY SUCH LOAN DOCUMENT), AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SUBSECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE
APPLICATION OF ANOTHER LAW.

 

10.16                                                 Construction
of Agreement; Nature of Relationship.

 

Each
of the parties hereto acknowledges that (i) it has been represented by
counsel in the negotiation and documentation of the terms of this Agreement, (ii) it
has had full and fair opportunity to review and revise the terms of this
Agreement, (iii) this Agreement has been drafted jointly by all of the
parties hereto, and (iv) neither Administrative Agent nor any Lender or
other Agent has any fiduciary relationship with or duty to Company arising out
of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between Administrative Agent, the other Agents and Lenders, on
one hand, and Company, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor. 
Accordingly, each of the parties hereto acknowledges and agrees that the
terms of this Agreement shall not be construed against or in favor of another
party.

 

10.17                                                 Consent
to Jurisdiction and Service of Process.

 

ALL
JUDICIAL PROCEEDINGS BROUGHT AGAINST COMPANY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN 

 

145

 

DOCUMENT, OR ANY OBLIGATIONS HEREUNDER AND
THEREUNDER, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK.  BY EXECUTING AND DELIVERING THIS AGREEMENT,
COMPANY, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY

 

(I)            ACCEPTS
GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH
COURTS;

 

(II)           WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS;

 

(III)         AGREES
THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO COMPANY AT
ITS ADDRESS PROVIDED IN ACCORDANCE WITH SUBSECTION 10.8;

 

(IV)         AGREES
THAT SERVICE AS PROVIDED IN CLAUSE (iii) ABOVE IS SUFFICIENT TO CONFER
PERSONAL JURISDICTION OVER COMPANY IN ANY SUCH PROCEEDING IN ANY SUCH COURT,
AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT;

 

(V)          AGREES
THAT LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW OR TO BRING PROCEEDINGS AGAINST COMPANY IN THE COURTS OF ANY OTHER
JURISDICTION; AND

 

(VI)         AGREES
THAT THE PROVISIONS OF THIS SUBSECTION 10.17 RELATING TO JURISDICTION AND
VENUE SHALL BE BINDING AND ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE UNDER
NEW YORK GENERAL OBLIGATIONS LAW SUBSECTION 5-1402 OR OTHERWISE.

 

10.18         Waiver
of Jury Trial.

 

EACH OF
THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER
RELATIONSHIP THAT IS BEING ESTABLISHED.  The scope of this waiver is intended to be
all-encompassing of any and all disputes that may be filed in any court and
that relate to the subject matter of this transaction, including contract claims,
tort claims, breach of duty claims and all other common law and statutory
claims.  Each party hereto acknowledges
that this waiver is a material inducement to enter into a business
relationship, that each has already relied on this waiver in entering into this
Agreement, and that each will 

 

146

 

continue to rely on this waiver in their related
future dealings.  Each party hereto
further warrants and represents that it has reviewed this waiver with its legal
counsel and that it knowingly and voluntarily waives its jury trial rights
following consultation with legal counsel. 
THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT
BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER
SPECIFICALLY REFERRING TO THIS SUBSECTION 10.18 AND EXECUTED BY EACH OF
THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS
MADE HEREUNDER.  In the event
of litigation, this Agreement may be filed as a written consent to a trial by
the court.

 

10.19         Confidentiality.

 

Each
Lender shall hold all non-public information obtained pursuant to the
requirements of this Agreement in accordance with such Lender’s customary
procedures for handling confidential information of this nature, it being
understood and agreed by Company that in any event a Lender may
make disclosures (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such information and agree to keep such
information confidential), (b) to the extent requested by any Government
Authority, (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this subsection 10.19, to (i) any
Eligible Assignee of or Participant in, or any prospective Eligible Assignee of
or Participant in, any of its rights or obligations under this Agreement or (ii) any
direct or indirect contractual counterparty or prospective counterparty (or such
contractual counterparty’s or prospective counterparty’s professional advisor)
to any credit derivative transaction relating to obligations of Company, (g) with
the consent of Company, (h) to the extent such information (i) becomes
publicly available other than as a result of a breach of this
subsection 10.19 or (ii) becomes available to Administrative Agent or
any Lender on a nonconfidential basis from a source other than Company or (i) to
the National Association of Insurance Commissioners or any other similar
organization or any nationally recognized rating agency that requires access to
information about a Lender’s or its Affiliates’ investment portfolio in
connection with ratings issued with respect to such Lender or its Affiliates
and that no written or oral communications from counsel to an Agent and no
information that is or is designated as privileged or as attorney work product
may be disclosed to any Person unless such Person is a Lender or a Participant
hereunder; provided that, unless specifically prohibited by applicable
law or court order, each Lender shall notify Company in writing of any request
by any Government Authority or representative thereof (other than any such
request in connection with any examination of the financial condition of such
Lender by such Government Authority) for disclosure of any such non-public
information prior to disclosure of such information; and provided, further
that in no 

 

147

 

event shall any Lender be obligated or required to
return any materials furnished by Company or any of its Subsidiaries.  In addition, from and after the Closing Date
or the public disclosure of this Agreement by Company, Administrative Agent may
disclose the existence of this Agreement and information about this Agreement
to market data collectors, similar service providers to the lending industry,
and service providers to Administrative Agent and Lenders, and Administrative
Agent or any of its Affiliates may place customary “tombstone” advertisements
relating hereto in publications (including publications circulated or otherwise
made available in electronic form) of its choice at its own expense.

 

10.20         Counterparts;
Effectiveness.

 

This
Agreement and any amendments, waivers, consents or supplements hereto or in
connection herewith may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument; signature pages may
be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the
same document.  This Agreement shall become
effective upon the execution of a counterpart hereof by each of the parties
hereto.

 

10.21         USA
Patriot Act.

 

Each
Lender hereby notifies Company that pursuant to the requirements of the Patriot
Act , it is required to obtain, verify and record information that identifies
Loan Parties, which information includes the name and address of each Loan
Party and other information that will allow such Lender to identify such Loan
Party in accordance with the Patriot Act.

 

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148

 

IN
WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first written above.

 

COMPANY:

 

	
   

  	
  UNOLA
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mark R.
  Goldston

  
	
   

  	
  Title: 

  	
  Chairman,
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  	
  21301 Burbank
  Boulevard

  
	
   

  	
   

  	
  5th Floor

  
	
   

  	
   

  	
  Woodland Hills,
  CA 91367 - 6677

  
	
   

  	
   

  	
   

  
				

 

S-1

 

LENDERS:

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL 

  ASSOCIATION,

  
	
   

  	
  individually and as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bradford E.
  Chambers

  
	
   

  	
  Title: 

  	
  Senior Vice
  President & Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  	
  333 South Grand
  Avenue, 9th Floor

  
	
   

  	
   

  	
  MAC E2064-09C

  
	
   

  	
   

  	
  Los Angeles, CA
  90071

  
	
   

  	
   

  	
  Attn: Brad
  Chambers

  
				

 

S-2

 

	
   

  	
  AMERICAN AGCREDIT, PCA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary Van
  Schuyver

  
	
   

  	
  Name: 

  	
  Gary Van
  Schuyver

  
	
   

  	
  Title:

  	
  Vice President

  

 

S-3

 

	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Travis J.
  Burns

  
	
   

  	
  Name: 

  	
  Travis J. Burns

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  

 

S-4

 

	
   

  	
  HSBC BANK USA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Molly
  Drennan

  
	
   

  	
  Name: 

  	
  Molly Drennan

  
	
   

  	
  Title:

  	
  Vice President

  

 

S-5

 

	
   

  	
  ING (U.S.) CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven G.
  Fleenor

  
	
   

  	
  Name: 

  	
  Steven G.
  Fleenor

  
	
   

  	
  Title:

  	
  Managing Director

  

 

S-6

 

FTD
GROUP, INC.(1)

 

FTD Group, Inc. (“FTD”)
shall have no obligations hereunder until the consummation of the Merger.  Prior to that time, the obligations of
Company pursuant to this Agreement and the other Loan Documents shall be solely
those of Acquisition Sub.  Upon
consummation of the Merger, FTD shall (by delivery of this counterpart to
Administrative Agent following consummation of the Merger) assume, and hereby
assumes, all the obligations and other liabilities of Acquisition Sub under
this Agreement and all references to Company contained in this Agreement and
the other Loan Documents shall be deemed to refer to FTD.

 

	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Title: 

  	
   

  
					

 

(1) To be executed
and delivered by FTD Group, Inc. to Administrative Agent on the Closing
Date.

 

S-7

 

EXHIBITS

 

	
  I

  	
   

  	
  FORM OF NOTICE OF
  BORROWING

  
	
  II

  	
   

  	
  FORM OF NOTICE OF
  CONVERSION/CONTINUATION

  
	
  III

  	
   

  	
  FORM OF NOTICE OF
  REQUEST FOR ISSUANCE OF LETTER OF CREDIT

  
	
  IV

  	
   

  	
  FORM OF TRANCHE A
  TERM NOTE

  
	
  V

  	
   

  	
  FORM OF TRANCHE B
  TERM NOTE

  
	
  VI

  	
   

  	
  FORM OF REVOLVING
  NOTE

  
	
  VII

  	
   

  	
  FORM OF SWING LINE
  NOTE

  
	
  VIII

  	
   

  	
  FORM OF COMPLIANCE
  CERTIFICATE

  
	
  IX

  	
   

  	
  FORM OF OPINION OF
  COMPANY COUNSEL

  
	
  X

  	
   

  	
  FORM OF ASSIGNMENT
  AGREEMENT

  
	
  XI

  	
   

  	
  FORM OF FINANCIAL
  CONDITION CERTIFICATE

  
	
  XII

  	
   

  	
  FORM OF GUARANTY

  
	
  XIII

  	
   

  	
  FORM OF SECURITY
  AGREEMENT

  
	
  XIV

  	
   

  	
  FORM OF MORTGAGE

  
	
  XV

  	
   

  	
  FORM OF NOTICE OF
  PREPAYMENT

  
	
  XVI

  	
   

  	
  FORM OF CLOSING
  DATE CERTIFICATE

  

 

 

EXHIBIT I

 

[FORM OF] NOTICE OF BORROWING

 

Pursuant to that certain Credit Agreement
dated as of August 4, 2008, as amended, supplemented, amended and restated
or otherwise modified to the date hereof (said Credit Agreement, as so amended,
supplemented, amended and restated or otherwise modified, being the “Credit Agreement”, the terms defined therein and not
otherwise defined herein being used herein as therein defined), by and among
UNOLA Corp., a Delaware corporation (and following the Merger, FTD Group, Inc.,
a Delaware corporation, collectively, “Company”), the
financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders (in such capacity, “Administrative
Agent”), this represents Company’s request to borrow as follows:

 

1.         Date
of borrowing:                                      ,
               

 

2.         Lender(s):

 

[  ] a.               Lenders,
in accordance with their applicable Pro Rata Shares

 

[  ] b.              Swing
Line Lender

 

3.         Type
of Loans / Amount / Interest Rate Option:

 

[  ] A.           Tranche
A Term Loans:  $                

 

[  ] a.               Base
Rate Loan(s)

 

[  ] b.              Eurodollar
Rate Loans with an initial Interest Period of                
month(s)

 

[  ] B.            Tranche
B Term Loans:  $                   

 

[  ] a.               Base
Rate Loan(s)

 

[  ] b.              Eurodollar
Rate Loans with an initial Interest Period of                
month(s)

 

[  ] C.           Revolving
Loans:  $                   

 

[  ] a.               Base
Rate Loan(s)

 

[  ] b.              Eurodollar
Rate Loans with an initial Interest Period of                
month(s)

 

[  ] D.           Swing
Line Loan:  $                   

 

	
  I-1

  	
   

  	
  Notice of Borrowing

  

 

 

The proceeds of such Loans
are to be deposited in account no.                      .

 

The undersigned officer, to the best of his
or her knowledge, certifies on behalf of Company that:

 

(i)         The
[Specified Representations]1 [representations
and warranties] contained in the Credit Agreement and in the other Loan
Documents are true, correct and complete in all material respects on and as of
the date hereof to the same extent as though made on and as of the date hereof,
except to the extent such representations and warranties specifically relate to
an earlier date, in which case such representations and warranties were true,
correct and complete in all material respects on and as of such earlier date; provided,
that, if a representation and warranty is qualified as to materiality, the
materiality qualifier set forth above shall be disregarded with respect to such
representation and warranty for purposes of this condition; and

 

(ii)        No
event has occurred and is continuing or would result from the consummation of
the borrowing contemplated hereby that would constitute an Event of Default or
a Potential Event of Default.

 

	
  DATED:

  	
   

  	
   

  	
  [UNOLA CORP.][FTD GROUP, INC.]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

1   To be used in the Notice of Borrowing delivered on the Closing Date
only.

 

	
  I-2

  	
   

  	
  Notice of Borrowing

  

 

 

EXHIBIT II

 

[FORM OF] NOTICE OF CONVERSION/CONTINUATION

 

Pursuant to that certain Credit Agreement
dated as of August 4, 2008, as amended, supplemented, amended and restated
or otherwise modified to the date hereof (said Credit Agreement, as so amended,
supplemented, amended and restated or otherwise modified, being the “Credit Agreement”, the terms defined therein and not
otherwise defined herein being used herein as therein defined), by and among
UNOLA Corp., a Delaware corporation (and following the Merger, FTD Group, Inc.,
a Delaware corporation, collectively, “Company”), the
financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders (in such capacity, “Administrative
Agent”), this represents Company’s request to convert or continue
Loans as follows:

 

1.         Date
of conversion/continuation:                                     ,             

 

2.                                    Type of Loans; Amounts of Loans being
converted/continued; Nature of
conversion/continuation:

 

[  ] A.           Tranche
A Term Loans:  $                  

 

[  ] a.               Conversion
of Base Rate Loans to Eurodollar Rate Loans

 

[  ] b.              Conversion
of Eurodollar Rate Loans to Base Rate Loans

 

[  ] c.               Continuation
of Eurodollar Rate Loans as such

 

[  ] B.            Tranche
B Term Loans:  $                  

 

[  ] a.               Conversion
of Base Rate Loans to Eurodollar Rate Loans

 

[  ] b.              Conversion
of Eurodollar Rate Loans to Base Rate Loans

 

[  ] c.               Continuation
of Eurodollar Rate Loans as such

 

[  ] C.           Revolving
Loans:  $                  

 

[  ] a.               Conversion
of Base Rate Loans to Eurodollar Rate Loans

 

[  ] b.              Conversion
of Eurodollar Rate Loans to Base Rate Loans

 

[  ] c.               Continuation
of Eurodollar Rate Loans as such

 

	
  II-1

  	
   

  	
  Notice of
  Conversion/Continuation

  

 

 

If Loans are being continued as or converted
to Eurodollar Rate Loans, the duration of the new Interest Period that
commences on the conversion/continuation date:                               
month(s)

 

In the case of a conversion to or
continuation of Eurodollar Rate Loans, the undersigned officer, to the best of
his or her knowledge, certifies on behalf of Company that no Event of Default
or Potential Event of Default has occurred and is continuing under the Credit
Agreement.

 

	
  II-2

  	
   

  	
  Notice of
  Conversion/Continuation

  

 

 

	
  DATED: 

  	
   

  	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

	
  II-3

  	
   

  	
  Notice of Conversion/Continuation

  

 

EXHIBIT III

 

[FORM OF] REQUEST FOR ISSUANCE

 

Pursuant to that certain Credit Agreement
dated as of August 4, 2008, as amended, supplemented, amended and restated
or otherwise modified to the date hereof (said Credit Agreement, as so amended,
supplemented, amended and restated or otherwise modified, being the “Credit Agreement”, the terms defined therein and not
otherwise defined herein being used herein as therein defined), by and among
UNOLA Corp., a Delaware corporation (and following the Merger, FTD Group, Inc.,
a Delaware corporation, collectively, “Company”), the
financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders (in such capacity, “Administrative
Agent”), this represents Company’s request for the issuance of a
Letter of Credit by [Administrative Agent][name of other Lender] as follows:

 

1.         Issuing Lender:          [Administrative
Agent]

                                   [                                                                  ]

 

2.         Date
of issuance of Letter of Credit:                                  ,
                   

 

3.         Type
of Letter of Credit:

 

[  ] a.               Commercial
Letter of Credit

 

[  ] b.              Standby
Letter of Credit

 

4.         Face
amount of Letter of Credit:  $                                

 

5.         Expiration
date of Letter of Credit:                                  ,
                 

 

6.                                    Currency in which Letter of Credit is to be denominated
(if other than U.S. dollars:                 

 

7.         Name
and address of beneficiary:

                                                                                       

                                                                                       

                                                                                       

                                                                                       

 

8.         Attached
hereto is:

 

[  ]                              the verbatim text of such proposed Letter of Credit

 

[  ]                              a description of the proposed terms and conditions of such Letter of
Credit, including a precise description of any documents to be presented by the
beneficiary which, if presented by the beneficiary 

 

	
  III-1

  	
   

  	
  Request
  for Issuance

  

 

 

prior to the expiration date of such Letter
of Credit, would require
the Issuing Lender to make payment under such Letter of Credit.

 

The undersigned officer, to the best of his
or her knowledge, certifies on behalf of Company that:

 

(i)         The
[Specified Representations]1 [representations
and warranties] contained in the Credit Agreement and in the other Loan
Documents are true, correct and complete in all material respects on and as of the
date hereof to the same extent as though made on and as of the date hereof,
except to the extent such representations and warranties specifically relate to
an earlier date, in which case such representations and warranties were true,
correct and complete in all material respects on and as of such earlier date; provided,
that, if a representation and warranty is qualified as to materiality, the
materiality qualifier set forth above shall be disregarded with respect to such
representation and warranty for purposes of this condition; and

 

(ii)        No
event has occurred and is continuing or would result from the issuance of the
Letter of Credit contemplated hereby that would constitute an Event of Default
or a Potential Event of Default.

 

 

	
  DATED:
  

  	
   

  	
   

  	
  [UNOLA CORP.][FTD GROUP, INC.]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

1 To be used in the Request for Issuance
delivered on the Closing Date only.

 

	
  III-2

  	
   

  	
  Request
  for Issuance

  

 

 

EXHIBIT IV

 

[FORM OF] TRANCHE A TERM NOTE

 

UNOLA CORP.

 

	
  $[                                          ]

  	
   

  	
  [                                            ]

  
	
   

  	
   

  	
  [                    ]

  

 

FOR VALUE RECEIVED, UNOLA CORP., a Delaware
corporation (“Company”), promises to pay to  [                    ]
(“Payee”) or its registered assigns the
principal amount of [                    ]  ($[                    ]).  The principal amount of this Note shall be
payable on the dates and in the amounts specified in the Credit Agreement;
provided that the last such installment shall be in an amount sufficient to
repay the entire unpaid principal balance of this Note, together with all
accrued and unpaid interest thereon.

 

Company also promises to pay interest on the
unpaid principal amount hereof, until paid in full, at the rates and at the
times which shall be determined in accordance with the provisions of that
certain Credit Agreement dated as of August 4, 2008 by and among Company,
the financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders (in such capacity, “Administrative
Agent”) (said Credit Agreement, as it may be amended, supplemented,
amended and restated or otherwise modified from time to time, being the “Credit Agreement”, the terms defined therein and not
otherwise defined herein being used herein as therein defined).

 

This Note is one of Company’s “Tranche A Term
Notes” and is issued pursuant to and entitled to the benefits of the Credit
Agreement, to which reference is hereby made for a more complete statement of
the terms and conditions under which the Tranche A Term Loan evidenced hereby
was made and is to be repaid.

 

All payments of principal and interest in
respect of this Note shall be made in lawful money of the United States of
America in same day funds at the Funding and Payment Office or at such other
place as shall be designated in writing for such purpose in accordance with the
terms of the Credit Agreement.  Unless
and until an Assignment Agreement effecting the assignment or transfer of this
Note shall have been accepted by Administrative Agent and recorded in the
Register as provided in the Credit Agreement, Company and Administrative Agent
shall be entitled to deem and treat Payee as the owner and holder of this Note
and the Loan evidenced hereby.  Payee
hereby agrees, by its acceptance hereof, that before disposing of this Note or
any part hereof it will make a notation hereon of all principal payments
previously made hereunder and of the date to which interest hereon has been
paid; provided, however, that the failure to make a notation of
any payment made on this Note shall not limit or otherwise affect the
obligations of Company hereunder with respect to payments of principal of or
interest on this Note.

 

Whenever any payment on this Note shall be
stated to be due on a day which is not a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time shall be
included in the computation of the payment of interest on this Note.

 

	
  IV-1

  	
   

  	
  Tranche A Term Note

  

 

This Note is subject to mandatory prepayment
as provided in the Credit Agreement and to prepayment at the option of Company
as provided in the Credit Agreement.

 

THIS NOTE AND THE RIGHTS AND
OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. THIS NOTE
INCORPORATES BY REFERENCE THE PROVISIONS SET FORTH IN SUBSECTION 10.17 OF
THE CREDIT AGREEMENT.

 

Upon the occurrence of an Event of Default,
the unpaid balance of the principal amount of this Note, together with all
accrued and unpaid interest thereon, may become, or may be declared to be, due
and payable in the manner, upon the conditions and with the effect provided in
the Credit Agreement.

 

The terms of this Note are subject to
amendment only in the manner provided in the Credit Agreement.

 

This Note is subject to restrictions on transfer
or assignment as provided in the Credit Agreement.

 

No reference herein to the Credit Agreement
and no provision of this Note or the Credit Agreement shall alter or impair the
obligations of Company, which are absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective times,
and in the currency prescribed herein and in the Credit Agreement.

 

Company promises to pay all costs and
expenses, including reasonable attorneys’ fees, all as provided in the Credit
Agreement, incurred in the collection and enforcement of this Note.  Company and any endorsers of this Note hereby
consent to renewals and extensions of time at or after the maturity hereof,
without notice, and hereby waive diligence, presentment, protest, demand and
notice of every kind and, to the full extent permitted by law, the right to
plead any statute of limitations as a defense to any demand hereunder.

 

	
  IV-2

  	
   

  	
  Tranche A Term Note

  

 

 

IN WITNESS WHEREOF, Company has caused this
Note to be duly executed and delivered by its officer thereunto duly authorized
as of the date and at the place first written above.

 

	
   

  	
   

  	
  UNOLA CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
  IV-3

  	
   

  	
  Tranche A Term Note

  

 

 

EXHIBIT V

 

THIS NOTE HAS BEEN ISSUED WITH
ORIGINAL ISSUE DISCOUNT (“OID”).   A Holder may, upon request,
obtain from the Company the Note’s issue price, issue date, amount of OID and
yield to maturity by contacting [INSERT name of person, title, address and/or
telephone number of contact at Company].

 

[FORM OF] TRANCHE B TERM NOTE

 

UNOLA CORP.

 

	
  $[                                          ]

  	
   

  	
  [                                            ]

  
	
   

  	
   

  	
  [                    ]

  

 

FOR VALUE RECEIVED, UNOLA CORP., a Delaware
corporation (“Company”), promises to pay to
[                    ]
(“Payee”) or its registered assigns the
principal amount of [                    ]($[                    ]).  The principal amount of this Note shall be
payable on the dates and in the amounts 
specified in the Credit Agreement; provided that the last such
installment shall be in an amount sufficient to repay the entire unpaid
principal balance of this Note, together with all accrued and unpaid interest
thereon.

 

Company also promises to pay interest on the
unpaid principal amount hereof, until paid in full, at the rates and at the
times which shall be determined in accordance with the provisions of that
certain Credit Agreement dated as of August 4, 2008 by and among Company,
the financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and administrative
agent for Lenders (in such capacity, “Administrative Agent”)
(said Credit Agreement, as it may be amended, supplemented, amended and
restated or otherwise modified from time to time, being the “Credit Agreement”, the terms defined therein and not otherwise
defined herein being used herein as therein defined).

 

This Note is one of Company’s “Tranche B Term
Notes”  and is issued pursuant to and
entitled to the benefits of the Credit Agreement, to which reference is hereby
made for a more complete statement of the terms and conditions under which the
Tranche B Term Loan evidenced hereby was made and is to be repaid.

 

All payments of principal and interest in
respect of this Note shall be made in lawful money of the United States of
America in same day funds at the Funding and Payment Office or at such other
place as shall be designated in writing for such purpose in accordance with the
terms of the Credit Agreement.  Unless
and until an Assignment Agreement effecting the assignment or transfer of this
Note shall have been accepted by Administrative Agent and recorded in the
Register as provided in the Credit Agreement, Company and Administrative Agent
shall be entitled to deem and treat Payee as the owner and holder of this Note
and the Loan evidenced hereby.  Payee
hereby agrees, by its acceptance hereof, that before disposing of this Note or
any part hereof it will make a notation hereon of all principal payments
previously made hereunder and of the date to which interest hereon has been
paid; provided, however, that the failure to make a notation of
any payment made on this Note shall not limit or otherwise 

 

	
  V-1

  	
   

  	
  Tranche B Term Note

  

 

affect the obligations of
Company hereunder with respect to payments of principal of or interest on this
Note.

 

Whenever any payment on this Note shall be
stated to be due on a day which is not a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time shall be
included in the computation of the payment of interest on this Note.

 

This Note is subject to mandatory prepayment
as provided in the Credit Agreement and to prepayment at the option of Company
as provided in the Credit Agreement.

 

THIS NOTE AND THE RIGHTS AND
OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE
STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.  THIS NOTE INCORPORATES BY REFERENCE THE
PROVISIONS SET FORTH IN SUBSECTION 10.17 OF THE CREDIT AGREEMENT.

 

Upon the occurrence of an Event of Default,
the unpaid balance of the principal amount of this Note, together with all accrued
and unpaid interest thereon, may become, or may be declared to be, due and
payable in the manner, upon the conditions and with the effect provided in the
Credit Agreement.

 

The terms of this Note are subject to
amendment only in the manner provided in the Credit Agreement.

 

This Note is subject to restrictions on
transfer or assignment as provided in the Credit Agreement.

 

No reference herein to the Credit Agreement
and no provision of this Note or the Credit Agreement shall alter or impair the
obligations of Company, which are absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective times,
and in the currency prescribed herein and in the Credit Agreement.

 

Company promises to pay all costs and expenses,
including reasonable attorneys’ fees, all as provided in the Credit Agreement,
incurred in the collection and enforcement of this Note.  Company and any endorsers of this Note hereby
consent to renewals and extensions of time at or after the maturity hereof,
without notice, and hereby waive diligence, presentment, protest, demand and
notice of every kind and, to the full extent permitted by law, the right to
plead any statute of limitations as a defense to any demand hereunder.

 

	
  V-2

  	
   

  	
  Tranche B Term Note

  

 

 

IN WITNESS WHEREOF, Company has caused this
Note to be duly executed and delivered by its officer thereunto duly authorized
as of the date and at the place first written above.

 

	
   

  	
   

  	
  UNOLA CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
  V-3

  	
   

  	
  Tranche B Term Note

  

 

EXHIBIT VI

 

[FORM OF] REVOLVING NOTE

 

UNOLA CORP.

 

	
  $[                                          ]

  	
   

  	
  [                                            ]

  
	
   

  	
   

  	
  [                    ]

  

 

FOR VALUE RECEIVED, UNOLA CORP., a Delaware
corporation (“Company”), promises to pay to [                    ]
(“Payee”) or its registered assigns, the
lesser of (x) [                    ]
($[                    ])
and (y) the unpaid principal amount of all advances made by Payee to
Company as Revolving Loans under the Credit Agreement referred to below.  The principal amount of this Note shall be
payable on the dates and in the amounts 
specified in the Credit Agreement.

 

Company also promises to pay interest on the
unpaid principal amount hereof, until paid in full, at the rates and at the
times which shall be determined in accordance with the provisions of that
certain Credit Agreement dated as of August 4, 2008 by and among Company,
the financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders (in such capacity, “Administrative
Agent”) (said Credit Agreement, as it may be amended, supplemented,
amended and restated or otherwise modified from time to time, being the “Credit Agreement”, the terms defined therein and not
otherwise defined herein being used herein as therein defined).

 

This Note is one of Company’s “Revolving
Notes” and is issued pursuant to and entitled to the benefits of the Credit
Agreement, to which reference is hereby made for a more complete statement of
the terms and conditions under which the Revolving Loans evidenced hereby were
made and are to be repaid.

 

All payments of principal and interest in
respect of this Note shall be made in lawful money of the United States of
America in same day funds at the Funding and Payment Office or at such other
place as shall be designated in writing for such purpose in accordance with the
terms of the Credit Agreement.  Unless
and until an Assignment Agreement effecting the assignment or transfer of this Note
shall have been accepted by Administrative Agent and recorded in the Register
as provided in the Credit Agreement, Company and Administrative Agent shall be
entitled to deem and treat Payee as the owner and holder of this Note and the
Loans evidenced hereby.  Payee hereby
agrees, by its acceptance hereof, that before disposing of this Note or any
part hereof it will make a notation hereon of all principal payments previously
made hereunder and of the date to which interest hereon has been paid; provided,
however, that the failure to make a notation of any payment made on this
Note shall not limit or otherwise affect the obligations of Company hereunder
with respect to payments of principal of or interest on this Note.

 

Whenever any payment on this Note shall be
stated to be due on a day which is not a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time shall be
included in the computation of the payment of interest on this Note.

 

	
  VI-1

  	
   

  	
  Revolving Note

  

 

 

This Note is subject to mandatory prepayment
as provided in the Credit Agreement and to prepayment at the option of Company
as provided in the Credit Agreement.

 

THIS NOTE AND THE RIGHTS AND
OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE
STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.  THIS NOTE INCORPORATES BY REFERENCE THE
PROVISIONS SET FORTH IN SUBSECTION 10.17 OF THE CREDIT AGREEMENT.

 

Upon the occurrence of an Event of Default,
the unpaid balance of the principal amount of this Note, together with all
accrued and unpaid interest thereon, may become, or may be declared to be, due
and payable in the manner, upon the conditions and with the effect provided in
the Credit Agreement.

 

The terms of this Note are subject to
amendment only in the manner provided in the Credit Agreement.

 

This Note is subject to restrictions on
transfer or assignment as provided in the Credit Agreement.

 

No reference herein to the Credit Agreement
and no provision of this Note or the Credit Agreement shall alter or impair the
obligations of Company, which are absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective times,
and in the currency prescribed herein and in the Credit Agreement.

 

Company promises to pay all costs and
expenses, including reasonable attorneys’ fees, all as provided in the Credit
Agreement, incurred in the collection and enforcement of this Note.  Company and any endorsers of this Note hereby
consent to renewals and extensions of time at or after the maturity hereof,
without notice, and hereby waive diligence, presentment, protest, demand and
notice of every kind and, to the full extent permitted by law, the right to
plead any statute of limitations as a defense to any demand hereunder.

 

	
  VI-2

  	
   

  	
  Revolving Note

  

 

IN WITNESS WHEREOF, Company has caused this
Note to be duly executed and delivered by its officer thereunto duly authorized
as of the date and at the place first written above.

 

	
   

  	
   

  	
  UNOLA CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
  VI-3

  	
   

  	
  Revolving Note

  

 

 

TRANSACTIONS

ON

REVOLVING NOTE

 

	
  Date

  	
   

  	
  Type of Loan

  Made This Date

  	
   

  	
  Amount of

  Loan Made

  This Date

  	
   

  	
  Amount of

  Principal Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance

  This Date

  	
   

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

	
  VI-4

  	
   

  	
  Revolving Note

  

 

 

EXHIBIT VII

 

[FORM OF] SWING LINE NOTE

 

UNOLA CORP.

 

	
  $[

  	
                                           

  	
  ]

  	
  [

  	
                                           

  	
  ]

  
	
   

  	
   

  	
   

  	
  [

  	
                       

  	
  ]

  
							

 

FOR
VALUE RECEIVED, UNOLA CORP., a Delaware corporation (“Company”),
promises to pay to [____________] (“Payee”) or its
registered assigns, the lesser of (x) [____________] ($[____________]) and
(y) the unpaid principal amount of all advances made by Payee to Company
as Swing Line Loans under the Credit Agreement referred to below.  The principal amount of this Note shall be
payable on the dates and in the amounts specified in the Credit Agreement.

 

Company
also promises to pay interest on the unpaid principal amount hereof, until paid
in full, at the rates and at the times which shall be determined in accordance
with the provisions of that certain Credit Agreement dated as of August 4,
2008 by and among Company, the financial institutions party thereto from time
to time (each individually referred to herein as a “Lender”
and collectively as “Lenders”) and
Wells Fargo Bank, National Association, as sole lead arranger, sole book
manager and administrative agent for Lenders (in such capacity, “Administrative Agent”) (said Credit Agreement, as it may be
amended, supplemented, amended and restated or otherwise modified from time to
time, being the “Credit Agreement”, the terms
defined therein and not otherwise defined herein being used herein as therein
defined).

 

This
Note is Company’s “Swing Line Note” and is issued pursuant to and entitled to
the benefits of the Credit Agreement, to which reference is hereby made for a
more complete statement of the terms and conditions under which the Swing Line
Loans evidenced hereby were made and are to be repaid.

 

All
payments of principal and interest in respect of this Note shall be made in
lawful money of the United States of America in same day funds at the Funding
and Payment Office or at such other place as shall be designated in writing for
such purpose in accordance with the terms of the Credit Agreement.

 

Whenever
any payment on this Note shall be stated to be due on a day which is not a
Business Day, such payment shall be made on the next succeeding Business Day
and such extension of time shall be included in the computation of the payment
of interest on this Note.

 

This
Note is subject to mandatory prepayment as provided in the Credit Agreement and
to prepayment at the option of Company as provided in the Credit Agreement.

 

THIS
NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO

 

	
  VII-1

  	
   

  	
  Swing
  Line Note

  

 

 

CONFLICTS OF LAWS PRINCIPLES. 
THIS NOTE INCORPORATES BY REFERENCE THE PROVISIONS SET FORTH IN
SUBSECTION 10.17 OF THE CREDIT AGREEMENT.

 

Upon
the occurrence of an Event of Default, the unpaid balance of the principal
amount of this Note, together with all accrued and unpaid interest thereon, may
become, or may be declared to be, due and payable in the manner, upon the
conditions and with the effect provided in the Credit Agreement.

 

The
terms of this Note are subject to amendment only in the manner provided in the
Credit Agreement.

 

This
Note is subject to restrictions on transfer or assignment as provided in the
Credit Agreement.

 

No
reference herein to the Credit Agreement and no provision of this Note or the
Credit Agreement shall alter or impair the obligations of Company, which are
absolute and unconditional, to pay the principal of and interest on this Note
at the place, at the respective times, and in the currency prescribed herein
and in the Credit Agreement.

 

Company
promises to pay all costs and expenses, including reasonable attorneys’ fees,
all as provided in the Credit Agreement, incurred in the collection and
enforcement of this Note.  Company and
any endorsers of this Note hereby consent to renewals and extensions of time at
or after the maturity hereof, without notice, and hereby waive diligence,
presentment, protest, demand and notice of every kind and, to the full extent
permitted by law, the right to plead any statute of limitations as a defense to
any demand hereunder.

 

	
  VII-2

  	
   

  	
  Swing
  Line Note

  

 

 

IN
WITNESS WHEREOF, Company has caused this Note to be duly executed and delivered
by its officer thereunto duly authorized as of the date and at the place first
written above.

 

	
   

  	
  UNOLA CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

	
  VII-3

  	
   

  	
  Swing
  Line Note

  

 

 

TRANSACTIONS

ON

SWING LINE NOTE

 

	
  Date

  	
   

  	
  Amount of

  Loan Made

  This Date

  	
   

  	
  Amount of

  Principal Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance

  This Date

  	
   

  	
  Notation

  Made By

  

 

 

	
  VII-4

  	
   

  	
  Swing
  Line Note

  

 

 

EXHIBIT VIII

 

[FORM OF] COMPLIANCE CERTIFICATE

 

THE
UNDERSIGNED HEREBY CERTIFY THAT:

 

(1)                              We are the duly elected [Title] and [Title]
of FTD Group, Inc., a Delaware corporation (“Company”);

 

(2)                              We have reviewed the terms of that certain
Credit Agreement dated as of August 4, 2008, as amended, supplemented,
amended and restated or otherwise modified to the date hereof (said Credit Agreement,
as so amended, supplemented, amended and restated or otherwise modified, being
the “Credit Agreement”, the terms defined
therein and not otherwise defined in this Certificate (including Attachment
No. 1 annexed hereto and made a part hereof) being used in this
Certificate as therein defined), by and among Company, the financial
institutions party thereto from time to time (each individually referred to
herein as a “Lender” and collectively as “Lenders”) and Wells Fargo Bank, National Association, as
sole lead arranger, sole book manager and administrative agent for Lenders (in
such capacity, “Administrative Agent”), and the
terms of the other Loan Documents, and we have made, or have caused to be made
under our supervision, a review in reasonable detail of the transactions and
condition of Company and its Subsidiaries during the accounting period covered
by the attached financial statements; and

 

(3)                              The examination described in paragraph
(2) above did not disclose, and we have no knowledge of, the existence of
any condition or event which constitutes an Event of Default or Potential Event
of Default during or at the end of the accounting period covered by the
attached financial statements or as of the date of this Certificate[, except as
set forth below]

 

[Set forth [below] [in a separate attachment to this Certificate] are
all exceptions to paragraph (3) above specifying the nature of the
condition or event, the period during which it has existed and the action which
Company has taken, is taking, or proposes to take with respect to each such
condition or event:

 

	
   

  	
  ].

  

 

	
  VIII-1

  	
   

  	
  Compliance
  Certificate

  

 

 

The
foregoing certifications, together with the computations set forth in
Attachment No. 1 annexed hereto and made a part hereof and the financial
statements delivered with this Certificate in support hereof, are made and
delivered by the undersigned in their official (and not individual) capacities
this [______] day of [______], [______] pursuant to subsection 6.1(v) of
the Credit Agreement.

 

 

	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

	
  VIII-2

  	
   

  	
  Compliance
  Certificate

  

 

 

ATTACHMENT NO. 1

TO COMPLIANCE CERTIFICATE

 

This
Attachment No. 1 is attached to and made a part of a Compliance
Certificate dated as of ________________, _______ and pertains to the period from ________________, _______ to ________________, _______. 
Subsection references herein relate to subsections of the Credit Agreement.

 

	
  A.

  	
   

  	
  Indebtedness

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Indebtedness of Company
  and its Subsidiaries (other than Dormant Subsidiaries) in respect of Capital
  Leases and Indebtedness secured by Liens permitted by subsection 7.2A(ii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Maximum permitted under
  subsection 7.1(iii):

  	
   

  	
  $

  	
  20,000,000

  
	
   

  	
   

  	
  3.

  	
  Indebtedness of Foreign
  Subsidiaries to Company or any Subsidiary Guarantor, all Investments in
  Foreign Subsidiaries permitted by subsection 7.3(ix) and all Contingent
  Obligations permitted by subsection 7.4(ix):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  4.

  	
  Maximum permitted under
  subsection 7.1(iv)(c):

  	
   

  	
  $

  	
  40,000,000

  
	
   

  	
   

  	
  5.

  	
  Indebtedness permitted
  under subsection 7.1(vii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  6.

  	
  Maximum permitted under
  subsection 7.1(vii):

  	
   

  	
  $

  	
  20,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Liens

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Purchase money or other
  Indebtedness secured by Liens permitted under subsection 7.2A(ii) and
  Indebtedness of Company and its Subsidiaries in respect of Capital Leases
  permitted by subsection 7.1(iii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Maximum permitted under
  subsection 7.2A(ii):

  	
   

  	
  $

  	
  20,000,000

  
	
   

  	
   

  	
  3.

  	
  Indebtedness secured by
  Liens permitted under subsection 7.2A(iv):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  4.

  	
  Maximum permitted under
  subsection 7.2A(iv):

  	
   

  	
  $

  	
  10,000,000

  
	
   

  	
   

  	
  5.

  	
  Indebtedness secured by
  Liens permitted under subsection 7.2A(v):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  6.

  	
  Maximum permitted under
  subsection 7.2A(v):

  	
   

  	
  $

  	
  5,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Investments

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Investments by Company
  and Subsidiaries (other than Dormant Subsidiaries) permitted under subsection
  7.3(vii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Maximum permitted by
  Company and its Subsidiaries (other than Dormant Subsidiaries) under subsection
  7.3(vii):

  	
   

  	
  $

  	
  80,000,000

  
	
   

  	
   

  	
  3.

  	
  Maximum Additional
  Contributions permitted under subsection 7.3(vii):

  	
   

  	
  $

  	
  40,000,000

  
	
   

  	
   

  	
  4.

  	
  Investments by Foreign
  Subsidiaries of Company permitted under subsection 7.3(viii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  5.

  	
  Maximum permitted by
  Foreign Subsidiaries under subsection 7.3(viii):

  	
   

  	
  $

  	
  40,000,000

  

 

	
  VIII-3

  	
   

  	
  Compliance
  Certificate

  

 

 

	
   

  	
   

  	
  6.

  	
  Maximum Additional
  Contributions permitted under subsection 7.3(viii):

  	
   

  	
  $

  	
  40,000,000

  
	
   

  	
   

  	
  7.

  	
  Investments by Company
  and wholly-owned Domestic Subsidiaries (other than Domestic Subsidiaries)
  permitted under subsection 7.3(ix):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  8.

  	
  Maximum permitted under
  subsection 7.3(ix):

  	
   

  	
  $

  	
  40,000,000

  
	
   

  	
   

  	
  9.

  	
  Loans or equipment
  leases to customers permitted under subsection 7.3(xii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  10.

  	
  Maximum permitted under
  subsection 7.3(xii):

  	
   

  	
  $

  	
  40,000,000

  
	
   

  	
   

  	
  12.

  	
  Loans in settlement of
  accounts receivable permitted under subsection 7.3(xiii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  13.

  	
  Maximum permitted under
  subsection 7.3(xiii):

  	
   

  	
  $

  	
  15,000,000

  
	
   

  	
   

  	
  14.

  	
  Investments by Company
  and its Domestic Subsidiaries (other than Dormant Subsidiaries) permitted
  under subsection 7.3(xiv):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  15.

  	
  Maximum by Company and
  its Domestic Subsidiaries (other than Dormant Subsidiaries) permitted under
  subsection 7.3(xiv):

  	
   

  	
  $

  	
  20,000,000

  
	
   

  	
   

  	
  16.

  	
  Maximum Additional
  Contributions permitted under subsection 7.3(xiv)(a):

  	
   

  	
  $

  	
  40,000,000

  
	
   

  	
   

  	
  17.

  	
  Maximum Additional
  Contributions permitted under subsection 7.3(xiv)(b):

  	
   

  	
  $

  	
  60,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Contingent Obligations

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Contingent Obligations
  permitted under subsection 7.4(viii):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Maximum permitted under
  subsection 7.4(viii):

  	
   

  	
  $

  	
  5,000,000

  
	
   

  	
   

  	
  3.

  	
  Contingent Obligations
  permitted under subsection 7.4(ix):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  4.

  	
  Maximum permitted under
  subsection 7.4(ix):

  	
   

  	
  $

  	
  40,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  Minimum Fixed Charge Coverage
  Ratio (for the four-Fiscal Quarter period ending ______________,
  _____)

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Consolidated Net
  Income:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Consolidated Interest
  Expense and any amounts referred to in subsection 2.3 payable on or before
  the Closing Date:1

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  3.

  	
  Provisions for Taxes
  based on income, (including provisions recorded to the extent necessary to
  permit any corporate parent (or any Affiliate of such corporate parent) to
  discharge the consolidated, combined or other group Tax liabilities of such
  corporate parent and its Subsidiaries):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  4.

  	
  Total depreciation
  expense:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  5.

  	
  Total amortization
  expense:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  6.

  	
  Transaction Costs:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  7.

  	
  Management or employee
  retention or incentive expenses

  	
   

  	
  $ 

  	
   

  

 

1 The amounts referenced in items E.2 through E.12
should only be included to the extent deducted in the calculation of
Consolidated Net Income.

 

	
  VIII-4

  	
   

  	
  Compliance
  Certificate

  

 

 

	
   

  	
   

  	
   

  	
  under any Loan Party’s
  cliff bonus plan or any other bonus or incentive plan:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.

  	
  Foreign currency
  translation or transaction gains or losses (including gains or losses related
  to currency remeasurements of indebtedness):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  9.

  	
  All  extraordinary,
  unusual or non-recurring losses, charges or expenses (minus any
  extraordinary, unusual or non-recurring gains (other than the proceeds of
  business interruption insurance)) (it being understood and agreed that Item
  10(e) of Regulation S-K under the Securities Act of 1933 shall not constitute
  a limitation on any such determination and unusual or non-recurring losses,
  charges, expenses or gains shall be determined by Company in good faith):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  10.

  	
  All other non-Cash
  items, including, without limitation, non-Cash stock compensation expenses
  for officers, directors, employees and consultants (other than any such
  non-Cash item to the extent it represents an accrual of or reserve for Cash
  expenditures in any future period):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  11.

  	
  All expenses incurred
  in connection with the prepayment, amendment or refinancing of Indebtedness:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  12.

  	
  (A) Any impairment
  charge or asset write-off or write-down, in each case relating to an
  intangible asset, pursuant to Financial Accounting Standards Board Statements
  No. 142 and No. 144, (B) the amortization of intangible assets
  arising pursuant to Financial Accounting Standards Board Statement
  No. 141, (C) the amortization or write-off deferred financing fees
  and (D) the amortization of other intangible assets:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  13.

  	
  Non-Cash items added in
  the calculation of Consolidated Net Income (other than any such non-Cash
  items to the extent expected to result in the receipt of Cash payments in any
  future period):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  14.

  	
  Consolidated Adjusted
  EBITDA (1+2+3+4+5+6+7+8+9+10+11+12-13):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  15.

  	
  Current taxes based on
  income and paid in cash:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  16.

  	
  The greater of
  maintenance Consolidated Capital Expenditures (net of any proceeds of any
  related financings) and $8,000,000:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  17.

  	
  Add line 15 to line 16:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  18.

  	
  Consolidated Adjusted
  EBITDA minus line 17:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  19.

  	
  Consolidated Cash
  Interest Expense (E.2 above):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  20.

  	
  Scheduled payments of
  Indebtedness:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  21.

  	
  Consolidated Fixed
  Charges (19+20):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  22.

  	
  Fixed Charge Coverage
  Ratio (18):(21):

  	
   

  	
  ____:1.00

  
	
   

  	
   

  	
  23.

  	
  Minimum ratio required
  under subsection 7.6A:

  	
   

  	
  [___]:1.00

  

 

	
  VIII-5

  	
   

  	
  Compliance
  Certificate

  

 

 

	
  F.

  	
   

  	
  Maximum Leverage Ratio
  (as of ______________, _____)

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  All Indebtedness of the
  Company and its Subsidiaries for borrowed money:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Consolidated Adjusted
  EBITDA (E.14 above):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  3.

  	
  Leverage Ratio (1):(2):

  	
   

  	
  ____:1.00

  
	
   

  	
   

  	
  4.

  	
  Maximum ratio permitted
  under subsection 7.6B:

  	
   

  	
  ____:1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
   

  	
  Fundamental Changes

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Aggregate fair market
  value of assets sold in any one or more Asset Sales after Closing Date in one
  or more transactions permitted under subsection 7.7(iv):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Maximum permitted under
  subsection 7.7(iv):

  	
   

  	
  $

  	
  10,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H.

  	
   

  	
  Consolidated Capital
  Expenditures

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Consolidated Capital
  Expenditures for the current calendar year (other than expenditures funded
  with Net Securities Proceeds):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Consolidated Capital
  Expenditures for the prior calendar year (other than expenditures funded with
  Net Securities Proceeds):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  3.

  	
  Maximum amount of
  Consolidated Capital Expenditures permitted under subsection 7.8 for prior
  calendar year:

  	
   

  	
  $

  	
  [___________]

  
	
   

  	
   

  	
  4.

  	
  Excess of permitted
  amount of Consolidated Capital Expenditures for prior calendar year over
  Consolidated Capital Expenditures in prior calendar year (3-2):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  5.

  	
  Maximum permitted
  carryover Consolidated Capital Expenditures Amount from prior calendar year:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  6.

  	
  Permitted carryover
  Consolidated Capital Expenditure Amount from prior calendar year (smaller of
  (4) or (5)):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  7.

  	
  Maximum amount of
  Consolidated Capital Expenditures permitted under subsection 7.8 for current
  calendar year without regard to carryover amount:

  	
   

  	
  $

  	
  [___________]

  
	
   

  	
   

  	
  8.

  	
  Maximum permitted under
  subsection 7.8 (6+7):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
   

  	
  Consolidated Excess Cash Flow
  (for the Fiscal Year ended ___________)

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Consolidated Adjusted
  EBITDA (E.14 above):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Consolidated Current
  Assets at beginning of Fiscal Year:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  3.

  	
  Consolidated Current
  Liabilities at beginning of Fiscal Year:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  4.

  	
  Consolidated Working
  Capital at beginning of Fiscal Year 

  (2-3) (may be negative number):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  5.

  	
  Consolidated Current
  Assets at end of Fiscal Year:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  6.

  	
  Consolidated Current
  Liabilities at end of Fiscal Year:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  7.

  	
  Consolidated Working
  Capital at end of Fiscal Year (5-6)

  	
   

  	
  $ 

  	
   

  

 

	
  VIII-6

  	
   

  	
  Compliance
  Certificate

  

 

 

	
   

  	
   

  	
   

  	
  (may be a negative
  number):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.

  	
  Consolidated Working
  Capital Adjustment (4-7) (may be a negative number):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  9.

  	
  Consolidated Cash
  Interest Expense:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  10.

  	
  Scheduled repayments of
  the Term Loans:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  11.

  	
  Current taxes based on
  income of Company and its Subsidiaries and paid in cash:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  12.

  	
  Consolidated Capital
  Expenditures (net of any proceeds of any related financings with respect to
  such expenditure):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  13.

  	
  Permitted Acquisitions
  and other Investments permitted under subsection 7.3 net of Additional
  Contributions utilized for such purpose:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  14.

  	
  Extraordinary cash
  losses added in the calculations of Consolidated Adjusted EBITDA:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  15.

  	
  To the extent expensed
  in a prior Fiscal Year, the amount, if any, of cliff bonus payments made
  during such Fiscal Year:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  16.

  	
  Other cash expenses
  added in calculating Consolidated Adjusted EBITDA:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  17.

  	
  RSU Payments:

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  18.

  	
  Consolidated Excess
  Cash Flow (1+8-(9+10+11+12+13+14+15+16+17)):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.

  	
   

  	
  Transactions with Shareholders
  and affiliates

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Transactions with
  Affiliates involving marketing, advertising and cross-promotional
  arrangements permitted under subsection 7.9(ix):

  	
   

  	
  $ 

  	
   

  
	
   

  	
   

  	
  2.

  	
  Maximum permitted under
  subsection 7.9(ix):

  	
   

  	
  $

  	
  15,000,000

  

 

	
  VIII-7

  	
   

  	
  Compliance
  Certificate

  

 

 

EXHIBIT IX

 

MATTERS TO BE COVERED BY OPINION
OF COMPANY COUNSEL1

 

1.                                    Each of the Delaware Loan Parties2 is validly existing and in good standing under the Delaware
General Corporation Law (“DGCL”).

 

2.                                    Each Delaware Loan Party has the corporate
power and authority to execute, deliver and perform all of its obligations
under each of the Transaction Agreements3 to
which it is a party under the DGCL. The execution and delivery of each of the
Transaction Agreements and the consummation by each Delaware Loan Party of the
transactions contemplated thereby  have been duly
authorized by all requisite corporate action on the part of each such Delaware
Loan Party under the DGCL.  Each of the
Transaction Agreements has been duly executed and delivered by each Delaware Loan
Party party thereto under the DGCL.

 

3.                                    Each of the NY Law Transaction Agreements4 constitutes the valid and binding obligation of each Loan Party
party thereto enforceable against each such Loan Party in accordance with its
terms under the Applicable Laws5 of the State of New York.

 

4.                                    The
execution and delivery by each Delaware Loan Party of each of the Transaction
Agreements to which it is a party and the performance by each Delaware Loan
Party of its obligations under each of the Transaction Agreements to which it
is a party, each in accordance with its terms, do not [(i)] conflict with the
Certificate of Incorporation or By-laws of such Delaware Loan Party [and (ii) violate,
breach or result in a default under the Indenture, dated February 6, 2004 (the
“Indenture”), by and between FTD, Inc., U.S. Bank National Association, as
trustee, and the subsidiary guarantors party thereto from time to time]6.

 

5.                                    Neither the execution, delivery or
performance by any Loan Party of the Transaction Agreements to which it is a
party nor the compliance by such Loan Party with the terms and provisions
thereof will contravene any provision of the DGCL, any Applicable Law of the
State of New York or any Applicable Law of the United States of America.

 

6.                                    No Governmental Approval7,
which has not been obtained or taken and is not in full force and effect, is
required to authorize, or is required in connection with, the execution or
delivery of , and performance of its obligations under (as of the date hereof),
any of the Transaction Agreements by any Loan Party or the enforceability of
any of the Transaction 

 

1 Terms
defined in the Credit Agreement and not otherwise defined herein are used
herein as therein defined.

2 “Delaware
Loan Parties” means each Loan Party organized under the laws of the State of
Delaware.

3 
“Transaction Agreements” means the Credit Agreement, the Security Agreement,
the Guaranty, the UK Law Pledge Agreement* and each Note issued on the Closing
Date.

4  “NY Law Transaction Agreements”
means the Transaction Agreements (other than the UK Pledge Agreement)

5 “Applicable Laws” shall mean those
laws, rules and regulations which, in our experience, are normally
applicable to transactions of the type contemplated by the Transaction
Agreements, without our having made any special investigation as to the
applicability of any specific law, rule or regulation, and which are not
the subject of a specific opinion herein referring expressly to a particular
law or laws.

6 This opinion will only be given to
the extent all notes under the Indenture are not tendered on the Closing Date.

7 “Governmental
Approval” means  any consent, approval,
license, authorization or validation of, or filing, recording or registration
with, any governmental authority pursuant to the Applicable Laws of the State
of New York and the United States of America.

 

	
  IX-1

  	
   

  	
  Opinion of Company Counsel

  

 

 

Agreements against any Loan Party, except those Governmental Approvals
set forth in Schedule 1 to the Company’s Certificate.

 

7.                                    No Loan Party, solely after giving effect to
the Term Loans made pursuant to the Credit Agreement and the application of the
proceeds thereof as described in the Credit Agreement, is an “investment
company” as such term is defined in the Investment Company Act of 1940, as
amended.

 

8.                                    Neither the extension of credit nor the use
of proceeds provided in the Credit Agreement will violate Regulation U or X of
the Board of Governors of the Federal Reserve System.

 

9.                                    Under the New York UCC8,
the provisions of the Security Agreement are effective to create a valid
security interest in each Grantor’s (as defined in the Security Agreement on
the date of the opinion) rights in the UCC Collateral9 in favor of Wells Fargo Bank, National
Association, as Administrative Agent for the Lenders (the “Agent”) to
secure the Secured Obligations (as defined in the Security Agreement) owed to
the Lenders.

 

10.                            To the extent the Delaware UCC10 is applicable to the
authorization of the Financing Statements11,
pursuant to the provisions of the Security Agreement, each Grantor has
authorized the filing of the Financing Statements for purposes of Section 9-509
of the Delaware UCC.

 

11.                            Under the Delaware UCC, the Financing
Statements include not only all the types of information required by Section 9-502(a) of
the Delaware UCC but also the types of information without which the Filing
Office12 may
refuse to accept the Financing Statements pursuant to Section 9-516 of the
Delaware UCC.

 

12.                            Under the Delaware UCC, the security interest
of the Agent will be perfected in each Grantor’s (who is party to the Security
Agreement on the date of the opinion) rights in all UCC Collateral upon the
later of the attachment of the security interest and the filing of the
Financing Statement naming such Grantor as debtor in the Filing Office; provided
however, we express no opinion with respect to (i) money, (ii) deposit
accounts, (iii) letter of credit rights, (iv) goods covered by a
certificate of title statute, (v) as-extracted collateral, or (vi) any
property subject to a statute, regulation or treaty of the United States whose
requirements for a security interest’s obtaining priority over the rights of a
lien creditor with respect to the property preempt Section 9-310(a) of
the Delaware Code.

 

8 “New
York UCC” means the Uniform Commercial Code as in effect in the State of New
York.

9 “UCC
Collateral” means that portion of the Collateral (as such term is defined in
the Security Agreement) to the extent the Uniform Commercial Code governs a
security interest in such collateral.

10 “Delaware
UCC” means the Uniform Commercial Code as in effect in the State of Delaware.

11 “Financing
Statements” means an unfiled copy of each financing statement identifying a
Delaware Loan Party as debtor and “Wells Fargo Bank, National Association, as
Administrative Agent” as secured party, which we understand will be filed in
the Filing Office.

12 “Filing
Office” means the office of the Secretary of State of the State of Delaware.

 

	
  IX-2

  	
   

  	
  Opinion of Company Counsel

  

 

 

13.                            Assuming that neither the Agent nor any
Beneficiary (as defined in the Security Agreement) has notice of any adverse
claims with respect to the Possessory Certificates13 then, upon the delivery in the State of New
York of such Possessory Certificates to the Agent indorsed, by an effective
indorsement in blank or to the Agent, the Agent will acquire a perfected
security interest in such Possessory Certificates free of any adverse claims
under 8-303 of the New York UCC. As used herein, “notice of adverse claim” has
the meaning set forth in Section 8-105 of the New York UCC and includes,
without limitation, any adverse claim that the Agent or any Beneficiary would
discover upon any investigation which such person has a duty, imposed by
statute or regulation, to investigate.

 

14.                            Under the New York UCC,
upon the later of the attachment of the security interest and the Secured Party
obtaining possession of the Possessory Instruments,14 the security interest of the Secured Party in
such Possessory Instruments will be perfected.

 

15.                            To the extent that the federal trademark laws
of the United States of America are applicable to security interests in
trademarks, the recordation of the Grant 
of Trademark Security Interest15 in the United States Patent and Trademark
Office (the “PTO”) against the U.S. registered trademarks and trademark
applications set forth on Schedule A thereto (the “Trademarks”) within
three (3) months of the date thereof will render the Agent’s security
interest, for the benefit of itself and the Lenders, in the applicable Grantor’s
right, title and interest in such Trademarks effective against subsequent
purchasers of such Trademarks.

 

16.                            To
the extent that the federal patent laws of the United States of America are
applicable to security interests in patents, the recordation of the Grant of
Patent Security Interest16 in the PTO against the U.S. patents and patent
applications set forth on Schedule A thereto (the “Patents”) within
three (3) months of the date thereof will render the Agent’s security
interest, for the benefit of itself and the Lenders, in the applicable Grantor’s
right, title and interest in such Patents effective against subsequent
purchasers and mortgagees of such Patents.

 

17.                            To the extent that provisions of the federal copyright laws of the
United States are applicable to security interests in copyrights, the
recordation of the Grant of Copyright Security Interest17 in the United States Copyright Office
(the “USCO”) against the U.S. registered copyrights set forth on Schedule A
thereto (the “Copyrights”) within one (1) month after its execution will
render the Agent’s security interest in the applicable Grantor’s right, title
and interest in such Copyrights effective against subsequent transfers of such
Copyrights.

 

[standard
qualifications and assumptions to come from Company counsel]

 

13 “Possessory
Certificates” means certificates identified on schedule [____] to the opinion
and delivered to the Agent on the date of the opinion.

14 “Possessory Instruments”
means the instruments identified on Schedule II hereto and
delivered to the Secured Party on the date hereof.

15 “Grant of Trademark
Security Interest” means that certain Grant of Trademark Security Interest
dated the date of the opinion, by and among each Grantor and Agent.

16 “Grant of Patent Security Interest” means that certain Grant of
Patent Security Interest dated the date of the opinion, by and among each
Grantor and Agent.

17 “Grant of Copyright Security
Interest” means that certain Grant of Copyright Security Interest dated the
date of the opinion, by and among each Grantor and Agent.

* “UK Law Pledge Agreement” means the
pledge agreement between FTD, Inc. and the Agent.

 

	
  IX-3

  	
   

  	
  Opinion of Company Counsel

  

 

 

	
  IX-4

  	
   

  	
  Opinion of Company Counsel

  

 

 

EXHIBIT X

 

[FORM OF] ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This
Assignment and Assumption Agreement (the “Assignment and Assumption”)
is dated as of the Effective Date set forth below and is entered into by and
between the Assignor identified in item 1 below (the “Assignor”)
and the Assignee identified in item 2 below (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, the “Credit Agreement”), receipt of a
copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth
herein in full.

 

For
an agreed consideration, the Assignor hereby irrevocably sells and assigns to
the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement
and any other documents or instruments delivered pursuant thereto to the extent
related to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including without limitation any participations in
any letters of credit, guarantees, and swing line loans included in such
facilities) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned by the Assignor to the Assignee pursuant to
clauses (i) and (ii) above being referred to herein collectively as
the “Assigned Interest”).  Each such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

 

	
  1.

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
  [indicate [Affiliate]
  [Approved Fund] of [identify Lender]]

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Borrower:

  	
  FTD Group, Inc., a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative Agent:

  	
  Wells Fargo Bank,
  National Association, as the administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Credit Agreement:

  	
  The $425,000,000 Senior
  Secured Credit Agreement dated as of August 4, 2008 among Company, the
  financial

  

 

	
  X-1

  	
   

  	
  Assignment
  and Assumption Agreement

  

 

 

	
   

  	
   

  	
  institutions party
  thereto from time to time (each individually referred to herein as a “Lender” and collectively as “Lenders”)
  and Wells Fargo Bank, National Association as sole lead arranger, sole book
  manager and administrative agent for Lenders (in such capacity, “Administrative Agent”)

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Assigned Interest:

  	
   

  

 

	
  Facility Assigned

  	
   

  	
   

  	
  Aggregate Amount of

  Commitment/Loans for all

  Lenders

  	
   

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
   

  	
  Percentage Assigned of

  Commitment/Loans

  	
   

  	
   

  	
  CUSIP

  Number

  
	
   

  	
  Revolving Loan Commitment

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tranche A Term Loan

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tranche B Term Loan

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
   

  	
   

  

 

Effective
Date:  _____________ ____, 20_____ [TO BE
INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The terms set forth in this Assignment and
Assumption are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF
  ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

	
  X-2

  	
   

  	
  Assignment
  and Assumption Agreement

  

 

 

	
  Consented to and
  Accepted:

  	
   

  
	
   

  	
   

  
	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION

  	
   

  
	
  as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Consented to:

  	
   

  
	
   

  	
   

  
	
  FTD
  GROUP, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

	
  X-3

  	
   

  	
  Assignment
  and Assumption Agreement

  

 

 

ANNEX 1

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.                                    Representations and Warranties.

 

1.1                            Assignor.  The Assignor (a) represents
and warrants that (i) it is the legal and beneficial owner of the Assigned
Interest, (ii) the Assigned Interest is free and clear of any lien,
encumbrance or other adverse claim and (iii) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated
hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of
Borrower, any of its Subsidiaries or Affiliates or any other Person obligated
in respect of any Loan Document or (iv) the performance or observance by
Borrower, any of its Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Loan Document.

 

1.2.                        Assignee.  The Assignee (a) represents
and warrants that (i) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby and to become a Lender under
the Credit Agreement, (ii) it meets all the requirements of an Eligible
Assignee under the Credit Agreement (subject to such consents, if any, as may
be required under the Credit Agreement), (iii) from and after the
Effective Date, it shall be bound by the provisions of the Credit Agreement as
a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it is sophisticated with respect
to decisions to acquire assets of the type represented by the Assigned Interest
and either it, or the person exercising discretion in making its decision to
acquire the Assigned Interest, is experienced in acquiring assets of such type,
(v) it has received a copy of the Credit Agreement, and has received or
has been accorded the opportunity to receive copies of the most recent
financial statements delivered pursuant to subsection 6.1 thereof, as
applicable, and such other documents and information as it deems appropriate to
make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase the Assigned Interest, (vi) it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest, and (vii) if
it is a Foreign Lender, attached to the Assignment and Assumption is any
documentation required to be delivered by it pursuant to the terms of the
Credit Agreement, duly completed and executed by the Assignee; and (b) agrees
that (i) it will, independently and without reliance on the Administrative
Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents, and (ii) it
will perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Lender.

 

2.                                    Payments.  From and after the Effective
Date, the Administrative Agent shall make all payments in respect of the
Assigned Interest (including payments of principal, 

 

	
  X-ANNEX 1-1

  	
   

  	
  Assignment
  and Assumption Agreement

  

 

 

interest,
fees and other amounts) to the Assignor for amounts which have accrued to but
excluding the Effective Date and to the Assignee for amounts which have accrued
from and after the Effective Date.

 

3.                                    General Provisions.  This
Assignment and Assumption shall be binding upon, and inure to the benefit of,
the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by
telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption.  THIS
ASSIGNMENT AND ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE APPLICATION OF ANOTHER LAW.

 

	
  X-ANNEX 1-2

  	
   

  	
  Assignment
  and Assumption Agreement

  

 

 

EXHIBIT XI

 

[FORM OF] FINANCIAL CONDITION CERTIFICATE

 

This FINANCIAL CONDITION
CERTIFICATE (this “Certificate”)
is delivered in connection with that certain Credit Agreement dated as of August 4,
2008 (the “Credit Agreement”) by and among
UNOLA Corp., a Delaware corporation (and following the Merger, FTD Group, Inc.,
a Delaware corporation), the financial institutions party thereto from time to
time (each individually referred to herein as a “Lender”
and collectively as “Lenders”) and
Wells Fargo Bank, National Association, as sole lead arranger, sole book
manager and administrative agent for Lenders (in such capacity, “Administrative Agent”). 
Capitalized terms used herein without definition have the same meanings
as in the Credit Agreement.

 

This Certificate is being delivered pursuant
to subsection 4.2F of the Credit Agreement. 
The undersigned is the Executive Vice President and Chief Financial
Officer of FTD Group, Inc. (“FTD”) and
hereby further certifies as of the date hereof, in her capacity as an officer
of FTD, and not individually, as follows:

 

1.         I
have responsibility for (a) the management of the financial affairs of FTD
and its Subsidiaries and the preparation of financial statements of FTD, and (b) reviewing
the financial and other aspects of the transactions contemplated by the Credit
Agreement.

 

2.         I
have carefully reviewed the contents of this Certificate.

 

3.         I
have prepared and/or reviewed such financial statements, projections and other
information as I deemed necessary to deliver this Certificate.

 

4.         Based
upon the foregoing and upon the best of my knowledge after due diligence, I
hereby certify as follows:

 

a.         The
“fair saleable value” of the property of FTD and its Subsidiaries on a
consolidated basis is both (A) greater than the total amount of
liabilities (including contingent liabilities) of FTD and its Subsidiaries on a
consolidated basis, and (B) not less than the amount that will be required
to pay the probable liabilities on FTD’s and its Subsidiaries’ existing debts
as they become absolute and due considering all financing alternatives and
potential asset sales reasonably available to FTD and its Subsidiaries.

 

b.         FTD
and its Subsidiaries do not intend to incur (nor do they reasonably believe
that they will incur), debts beyond their ability to pay such debts as they
become due.

 

c.         FTD
and its Subsidiaries do not have an unreasonably small amount of capital in
relation to their business or any contemplated or undertaken transaction.

 

For the purpose of the above analysis, the
values of FTD’s and its Subsidiaries’ assets have been computed by considering
FTD and each of its Subsidiaries as a going concern entity.

 

	
   

  	
  XI-1

  	
  Financial Condition
  Certificate

  

 

I understand that Administrative Agent and
Lenders are relying on this Certificate.

 

The undersigned has executed this
Certificate, in her capacity as an officer of FTD and not individually, as of
the ___ day of ___________, 200_.

 

 

	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

	
   

  	
  XI-2

  	
  Financial Condition
  Certificate

  

 

EXHIBIT XII

 

[FORM OF] GUARANTY

 

This GUARANTY is
entered into as of [_____], 2008 by UNOL  INTERMEDIATE, INC., a Delaware corporation (“Holdings” or a “Guarantor”), EACH OF THE UNDERSIGNED SUBSIDIARIES OF COMPANY (each a “Subsidiary Guarantor”, and together with Holdings and any
future Subsidiaries of Company executing this Guaranty, being collectively
referred to herein as the “Guarantors”)
in favor of and for the benefit of WELLS FARGO BANK, NATIONAL
ASSOCIATION, as agent for and representative of (in such capacity
herein called “Guarantied Party”) the financial
institutions (“Lenders”) party to the Credit
Agreement referred to below and any Swap Counterparties (as hereinafter
defined).

 

RECITALS.

 

A.        UNOLA
Corp., a Delaware corporation (“Company”), has
entered into that certain Credit Agreement dated as of August 4, 2008 with
Lenders and Guarantied Party, as Administrative Agent for Lenders (said Credit
Agreement, as it may hereafter be amended, supplemented, amended and restated
or otherwise modified from time to time, being the “Credit
Agreement”; capitalized terms defined therein and not otherwise
defined herein being used herein as therein defined).

 

B.         Company
may from time to time enter, or may from time to time have entered, into one or
more Interest Rate Agreements, Currency Agreements or other swap agreements
(collectively, the “Lender Swap Agreements”)
with one or more Persons that are Lenders or Affiliates of Lenders at the time
such Lender Swap Agreements are entered into (in such capacity, collectively, “Swap Counterparties”) in accordance with the terms of the
Credit Agreement, and it is desired that the obligations of Company under the
Lender Swap Agreements, including without limitation the obligation of Company
to make payments thereunder in the event of early termination thereof, together
with all obligations of Company under the Credit Agreement and the other Loan
Documents, be guarantied hereunder.

 

C.        Guarantied
Party, Lenders and each Swap Counterparty for which Guarantied Party has
received the notice required by Section 18 hereof  are sometimes referred to herein as “Beneficiaries”.

 

D.        The
Guarantied Obligations (as hereinafter defined) are being incurred for and will
inure to the benefit of Guarantors (which benefits are hereby acknowledged).

 

E.         It
is a condition precedent to the making of the initial Loans under the Credit
Agreement that Company’s obligations thereunder be guarantied by Guarantors.

 

F.         Guarantors
are willing irrevocably and unconditionally to guaranty such obligations of
Company.

 

NOW, THEREFORE, based upon the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in order to induce Lenders and Guarantied Party to enter into
the Credit Agreement and to make Loans and 

 

	
   

  	
  XII-1

  	
  Guaranty

  

 

other extensions of credit
thereunder and to induce Swap Counterparties to enter into the Lender Swap
Agreements, Guarantors hereby agree as follows:

 

1.         Guaranty.       (a) Guarantors jointly
and severally irrevocably and unconditionally guaranty, as primary obligors and
not merely as sureties, the due and punctual payment in full of all Guarantied
Obligations (as hereinafter defined) when the same shall become due, whether at
stated maturity, by acceleration, demand or otherwise (including amounts that
would become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code).  The term “Guarantied Obligations” is used herein in its most
comprehensive sense and includes any and all Obligations of Company and all
obligations of Company under Lender Swap Agreements, now or hereafter made,
incurred or created, whether absolute or contingent, liquidated or
unliquidated, whether due or not due, and however arising under or in
connection with the Credit Agreement, the Lender Swap Agreements, this Guaranty
and the other Loan Documents, including those arising under successive borrowing
transactions under the Credit Agreement which shall either continue such
obligations of Company or from time to time renew them after they have been
satisfied.

 

Each Subsidiary Guarantor acknowledges that
the Loans and Letters of Credit may benefit its business and that the
Guarantied Obligations are being incurred for and will inure to its benefit.

 

Any interest on any portion of the Guarantied
Obligations that accrues after the commencement of any proceeding, voluntary or
involuntary, involving the bankruptcy, insolvency, receivership,
reorganization, liquidation or arrangement of Company (or, if interest on any
portion of the Guarantied Obligations ceases to accrue by operation of law by
reason of the commencement of said proceeding, such interest as would have
accrued on such portion of the Guarantied Obligations if said proceeding had
not been commenced) shall be included in the Guarantied Obligations because it
is the intention of each Guarantor and Guarantied Party that the Guarantied
Obligations should be determined without regard to any rule of law or
order that may relieve Company of any portion of such Guarantied Obligations.

 

In the event that all or any portion of the
Guarantied Obligations is paid by Company or any Guarantor, the obligations of
each Guarantor hereunder shall continue and remain in full force and effect or
be reinstated, as the case may be, in the event that all or any part of such
payment(s) is rescinded or recovered directly or indirectly from
Guarantied Party or any other Beneficiary as a preference, fraudulent transfer
or otherwise, and any such payments that are so rescinded or recovered shall
constitute Guarantied Obligations.

 

Subject to the other provisions of this Section 1,
upon the failure of Company to pay any of the Guarantied Obligations when and
as the same shall become due, each Guarantor will upon demand pay, or cause to
be paid, in cash, to Guarantied Party for the ratable benefit of Beneficiaries,
an amount equal to the aggregate of the unpaid Guarantied Obligations.

 

(b)        Anything
contained in this Guaranty to the contrary notwithstanding, the obligations of
each Guarantor under this Guaranty and the other Loan Documents shall be
limited to a maximum aggregate amount equal to the largest amount that would not
render its obligations hereunder subject to avoidance as a fraudulent transfer
or conveyance under Section 

 

	
   

  	
  XII-2

  	
  Guaranty

  

 

548 of Title 11 of the
United States Code or any applicable provisions of comparable state law
(collectively, the “Fraudulent Transfer Laws”),
in each case after giving effect to all other liabilities of such Guarantor,
contingent or otherwise, that are relevant under the Fraudulent Transfer Laws
(specifically excluding, however, any liabilities of such Guarantor (x) in
respect of intercompany indebtedness to Company or other affiliates of Company
to the extent that such indebtedness would be discharged in an amount equal to
the amount paid by such Guarantor hereunder and (y) under any guaranty of
Subordinated Indebtedness which guaranty contains a limitation as to maximum
amount similar to that set forth in this Section 1(b), pursuant to which
the liability of such Guarantor hereunder is included in the liabilities taken
into account in determining such maximum amount) and after giving effect as
assets to the value (as determined under the applicable provisions of the
Fraudulent Transfer Laws) of any rights to subrogation, reimbursement,
indemnification or contribution of such Guarantor pursuant to applicable law or
pursuant to the terms of any agreement.

 

(c)        Each
Guarantor desires to allocate among all Guarantors (collectively, the “Contributing Guarantors”), in a fair and equitable manner,
their obligations arising under this Guaranty. 
Accordingly, in the event any payment or distribution is made on any
date by a Guarantor under this Guaranty, each such Guarantor shall be entitled
to a contribution from each of the other Contributing Guarantors in the maximum
amount permitted by law so as to maximize the aggregate amount of the
Guarantied Obligations paid to Beneficiaries.

 

2.         Guaranty Absolute; Continuing Guaranty.  The
obligations of each Guarantor hereunder are irrevocable, absolute, independent
and unconditional and shall not be affected by any circumstance which
constitutes a legal or equitable discharge of a guarantor or surety other than
payment in full of the Guarantied Obligations. 
In furtherance of the foregoing and without limiting the generality
thereof, each Guarantor agrees that:  (a) this
Guaranty is a guaranty of payment when due and not of collectibility; (b) Guarantied
Party may enforce this Guaranty upon the occurrence and during the continuance
of an Event of Default or the occurrence of an early termination date or
similar event under any Lender Swap Agreements notwithstanding the existence of
any dispute between Company and any Beneficiary with respect to the existence
of such event (other than the defense of payment or performance); (c) the
obligations of each Guarantor hereunder are independent of the obligations of
Company under the Loan Documents or the Lender Swap Agreements and the
obligations of any other guarantor of obligations of Company and a separate
action or actions may be brought and prosecuted against each Guarantor whether
or not any action is brought against Company or any of such other guarantors
and whether or not Company is joined in any such action or actions; and (d) a
payment of a portion, but not all, of the Guarantied Obligations by one or more
Guarantors shall in no way limit, affect, modify or abridge the liability of
such or any other Guarantor for any portion of the Guarantied Obligations that
has not been paid.  This Guaranty is a
continuing guaranty and shall be binding upon each Guarantor and its successors
and assigns, and each Guarantor irrevocably waives any right to revoke this
Guaranty as to future transactions giving rise to any Guarantied Obligations.

 

3.         Actions by Beneficiaries.  Any
Beneficiary may from time to time without notice or demand to any Guarantor and
without affecting the validity or enforceability of this Guaranty or giving
rise to any limitation, impairment or discharge of any Guarantor’s liability
hereunder, (a) renew, extend, accelerate or otherwise change the time,
place, manner or 

 

	
   

  	
  XII-3

  	
  Guaranty

  

 

terms of payment of the
Guarantied Obligations, (b) settle, compromise, release or discharge, or
accept or refuse any offer of performance with respect to, or substitutions
for, the Guarantied Obligations or any agreement relating thereto and/or
subordinate the payment of the same to the payment of any other obligations, (c) request
and accept other guaranties of the Guarantied Obligations and take and hold
security for the payment of this Guaranty or the Guarantied Obligations, (d) release,
exchange, compromise, subordinate or modify, with or without consideration, any
security for payment of the Guarantied Obligations, any other guaranties of the
Guarantied Obligations, or any other obligation of any Person with respect to
the Guarantied Obligations, (e) enforce and apply any security now or
hereafter held by or for the benefit of any Beneficiary in respect of this
Guaranty or the Guarantied Obligations and direct the order or manner of sale
thereof, or exercise any other right or remedy that Guarantied Party or the
other Beneficiaries, or any of them, may have against any such security, as
Guarantied Party in its discretion may determine consistent with the Credit Agreement,
the Lender Swap Agreements and any applicable security agreement, including
foreclosure on any such security pursuant to one or more judicial or
nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable, and (f) exercise any other rights available to Guarantied
Party or the other Beneficiaries, or any of them, under the Loan Documents or
the Lender Swap Agreements.

 

4.         No Discharge.  This Guaranty and the
obligations of Guarantors hereunder shall be valid and enforceable and shall
not be subject to any limitation, impairment or discharge for any reason (other
than payment in full of the Guarantied Obligations), including without
limitation the occurrence of any of the following, whether or not any Guarantor
shall have had notice or knowledge of any of them:  (a) any failure to assert or enforce or
agreement not to assert or enforce, or the stay or enjoining, by order of
court, by operation of law or otherwise, of the exercise or enforcement of, any
claim or demand or any right, power or remedy with respect to the Guarantied
Obligations or any agreement relating thereto, or with respect to any other
guaranty of or security for the payment of the Guarantied Obligations, (b) any
waiver or modification of, or any consent to departure from, any of the terms
or provisions of the Credit Agreement, any of the other Loan Documents, the
Lender Swap Agreements or any agreement or instrument executed pursuant
thereto, or of any other guaranty or security for the Guarantied Obligations, (c) the
Guarantied Obligations, or any agreement relating thereto, at any time being
found to be illegal, invalid or unenforceable in any respect, (d) the
application of payments received from any source to the payment of indebtedness
other than the Guarantied Obligations, even though Guarantied Party or the
other Beneficiaries, or any of them, might have elected to apply such payment
to any part or all of the Guarantied Obligations, (e) any failure to
perfect or continue perfection of a security interest in any collateral which
secures any of the Guarantied Obligations, (f) any defenses (other than
the defense of payment or performance), set-offs or counterclaims which Company
may assert against Guarantied Party or any Beneficiary in respect of the Guarantied
Obligations, including but not limited to failure of consideration, breach of
warranty, statute of frauds, statute of limitations, accord and satisfaction
and usury, and (g) any other act or thing or omission, or delay to do any
other act or thing, which may or might in any manner or to any extent vary the
risk of a Guarantor as an obligor in respect of the Guarantied Obligations.

 

5.         Waivers.  Each Guarantor waives, for the
benefit of Beneficiaries:  (a) any
right to require Guarantied Party or the other Beneficiaries, as a condition of
payment or performance by such Guarantor, to (i) proceed against Company,
any other guarantor of the 

 

	
   

  	
  XII-4

  	
  Guaranty

  

 

Guarantied Obligations or
any other Person, (ii) proceed against or exhaust any security held from
Company, any other guarantor of the Guarantied Obligations or any other Person,
(iii) proceed against or have resort to any balance of any deposit account
or credit on the books of any Beneficiary in favor of Company or any other
Person, or (iv) pursue any other remedy in the power of  any Beneficiary; (b) any defense arising
by reason of the incapacity, lack of authority or any disability or other
defense of Company including, without limitation, any defense based on or
arising out of the lack of validity or the unenforceability of the Guarantied
Obligations or any agreement or instrument relating thereto or by reason of the
cessation of the liability of Company from any cause other than payment in full
of the Guarantied Obligations; (c) any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in
amount nor in other respects more burdensome than that of the principal; (d) any
defense based upon Guarantied Party’s or any other Beneficiary’s errors or
omissions in the administration of the Guarantied Obligations, except behavior
that amounts to bad faith; (e) (i) any principles or provisions of
law, statutory or otherwise, that are or might be in conflict with the terms of
this Guaranty and any legal or equitable discharge of such Guarantor’s
obligations hereunder, (ii) the benefit of any statute of limitations
affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any
rights to set-offs, recoupments and counterclaims, and (iv) promptness,
diligence and any requirement that any Beneficiary protect, secure, perfect or
insure any Lien or any property subject thereto; (f) notices, demands,
presentments, protests, notices of protest, notices of dishonor and notices of
any action or inaction, including acceptance of this Guaranty, notices of
default under the Credit Agreement, notices of default or early termination
under any Lender Swap Agreement or any agreement or instrument related thereto,
notices of any renewal, extension or modification of the Guarantied Obligations
or any agreement related thereto, notices of any extension of credit to Company
and notices of any of the matters referred to in Sections 3 and 4 and any right
to consent to any thereof; and (g) to the fullest extent permitted by law,
any defenses or benefits that may be derived from or afforded by law which
limit the liability of or exonerate guarantors or sureties, or which may
conflict with the terms of this Guaranty.

 

6.         Guarantors’ Rights of Subrogation, Contribution, Etc.;
Subordination of Other Obligations.  Until the Guarantied
Obligations (other than Unasserted Obligations and obligations under the Lender
Swap Agreements) shall have been paid in full and the Commitments shall have
terminated, all Letters of Credit shall have expired or been cancelled (or the
reimbursement Obligations in respect thereof have been secured with cash
collateral or letters of credit in a manner reasonably satisfactory to the applicable
Issuing Lender) and the Lender Swap Agreements have been paid in full (or the
obligations thereunder have been secured by a collateral arrangement reasonably
satisfactory to the Swap Counterparty), each Guarantor shall withhold exercise
of (a) any claim, right or remedy, direct or indirect, that such Guarantor
now has or may hereafter have against Company or any of its assets in
connection with this Guaranty or the performance by such Guarantor of its
obligations hereunder, in each case whether such claim, right or remedy arises
in equity, under contract, by statute, under common law or otherwise and
including without limitation (i) any right of subrogation, reimbursement
or indemnification that such Guarantor now has or may hereafter have against
Company, (ii) any right to enforce, or to participate in, any claim, right
or remedy that any Beneficiary now has or may hereafter have against Company,
and (iii) any benefit of, and any right to participate in, any collateral
or security now or hereafter held by any Beneficiary and (b) any right of
contribution such Guarantor now has or may hereafter have against any other 

 

	
   

  	
  XII-5

  	
  Guaranty

  

 

guarantor of any of the
Guarantied Obligations.  Each Guarantor
further agrees that, to the extent the agreement to withhold the exercise of
its rights of subrogation, reimbursement, indemnification and contribution as
set forth herein is found by a court of competent jurisdiction to be void or
voidable for any reason, any rights of subrogation, reimbursement or
indemnification such Guarantor may have against Company or against any
collateral or security, and any rights of contribution such Guarantor may have
against any such other guarantor, shall be junior and subordinate to any rights
Guarantied Party or the other Beneficiaries may have against Company, to all
right, title and interest Guarantied Party or the other Beneficiaries may have
in any such collateral or security, and to any right Guarantied Party or the
other Beneficiaries may have against such other guarantor.

 

Any indebtedness of Company now or hereafter
held by any Guarantor is subordinated in right of payment to the Guarantied
Obligations, and any such indebtedness of Company to a Guarantor collected or
received by such Guarantor after an Event of Default has occurred and is
continuing and any amount paid to a Guarantor on account of any subrogation,
reimbursement, indemnification or contribution rights referred to in the
preceding paragraph when all Guarantied Obligations have not been paid in full,
shall be held in trust for Guarantied Party on behalf of  Beneficiaries and shall forthwith be paid
over to Guarantied Party for the benefit of 
Beneficiaries to be credited and applied against the Guarantied
Obligations.

 

7.         Expenses.  Guarantors jointly and
severally agree to pay, or cause to be paid, on demand, and to save Guarantied
Party and the other Beneficiaries harmless against liability for, (i) all
costs and expenses, including attorneys’ fees (but excluding costs of internal
counsel), fees, costs and expenses of accountants, advisors and consultants and
costs of settlement, incurred or expended by Guarantied Party or any other
Beneficiary in connection with the enforcement of or preservation of any rights
under this Guaranty, and (ii) any and all costs and expenses (including
those arising from rights of indemnification) required to be paid by Guarantors
under the provisions of any other Loan Document.

 

8.         Financial Condition of Company.  No
Beneficiary shall have any obligation, and each Guarantor waives any duty on
the part of any Beneficiary, to disclose or discuss with such Guarantor its
assessment, or such Guarantor’s assessment, of the financial condition of
Company or any matter or fact relating to the business, operations or condition
of Company.  Each Guarantor has adequate
means to obtain information from Company on a continuing basis concerning the
financial condition of Company and its ability to perform its obligations under
the Loan Documents and the Lender Swap Agreements, and each Guarantor assumes
the responsibility for being and keeping informed of the financial condition of
Company and of all circumstances bearing upon the risk of nonpayment of the
Guarantied Obligations.

 

9.         Representations and Warranties.  Each
Guarantor represents for itself that each of the representations and warranties
made in the Credit Agreement by Company as to such Guarantor, its assets,
financial condition, operations, organization, legal status, business and the
Loan Documents to which it is a party are true and correct in all material
respects; provided, that, if a representation and warranty is qualified
as to materiality, the materiality qualifier set forth above shall be
disregarded with respect to such representation and warranty for purposes of
this condition.

 

	
   

  	
  XII-6

  	
  Guaranty

  

 

10.       Covenants.  Each Subsidiary Guarantor
agrees that, so long as any part of the Guarantied Obligations (other than
Unasserted Obligations and obligations under the Lender Swap Agreements) shall
remain unpaid, any Letter of Credit shall be outstanding (unless the
reimbursement Obligations in respect thereof have been secured with cash
collateral or letters of credit in a manner reasonably satisfactory to the
applicable Issuing Lender), any Lender shall have any Commitment or any Swap
Counterparty shall have any obligation under any Lender Swap Agreement (unless
the obligations thereunder have been secured by a collateral arrangement
reasonably satisfactory to the applicable Swap Counterparty), such Subsidiary
Guarantor will, unless Requisite Obligees (as such term is defined in Section 17(a))
shall otherwise consent in writing, perform or observe, and cause its
Subsidiaries, if any, to perform or observe, all of the terms, covenants and
agreements that the Loan Documents state that Company is to cause a Subsidiary
Guarantor and such Subsidiaries to perform or observe.

 

11.       Set Off.  In addition to any other rights
any Beneficiary may have under law or in equity, if any amount shall at any
time be due and owing by a Guarantor to any Beneficiary under this Guaranty,
such Beneficiary is authorized at any time or from time to time upon the
occurrence and during the continuation of any Event of Default, without notice
(any such notice being expressly waived), to set off and to appropriate and to
apply any and all deposits (general or special, including but not limited to
indebtedness evidenced by certificates of deposit, whether matured or
unmatured) and any other indebtedness of such Beneficiary owing to a Guarantor
and any other property of such Guarantor held by a Beneficiary to or for the
credit or the account of such Guarantor against and on account of the
Guarantied Obligations and liabilities of such Guarantor to any Beneficiary
under this Guaranty.

 

12.       Discharge of Guaranty Upon Sale of Subsidiary Guarantor.  If
all of the stock of a Subsidiary Guarantor or any of its successors in interest
under this Guaranty shall be sold or otherwise disposed of (including by merger
or consolidation) in a sale or other disposition not prohibited by the Credit
Agreement or otherwise consented to by Requisite Obligees (as such term is
defined in Section 17(a)), the Guaranty of such Subsidiary Guarantor shall
be automatically released without any further act or action by the Guarantied
Party simultaneously with such sale or other disposition.  Such Subsidiary Guarantor or such successor
in interest, as the case may be, may request Guarantied Party to execute and deliver
documents or instruments necessary to evidence the release and discharge of
this Guaranty as provided in subsection 10.14 of the Credit Agreement.

 

13.       Amendments and Waivers.  No
amendment, modification, termination or waiver of any provision of this
Guaranty, and no consent to any departure by any Guarantor therefrom, shall in
any event be effective without the written concurrence of Guarantied Party and,
in the case of any such amendment or modification, Guarantors.  Any such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which it was
given.

 

14.       Miscellaneous.  It is not necessary for
Beneficiaries to inquire into the capacity or powers of any Guarantor or
Company or the officers, directors or any agents acting or purporting to act on
behalf of any of them.

 

	
   

  	
  XII-7

  	
  Guaranty

  

 

The rights, powers and remedies given to
Beneficiaries by this Guaranty are cumulative and shall be in addition to and
independent of all rights, powers and remedies given to Beneficiaries by virtue
of any statute or rule of law or in any of the Loan Documents or the
Lender Swap Agreements or any agreement between one or more Guarantors and one
or more Beneficiaries or between Company and one or more Beneficiaries.  Any forbearance or failure to exercise, and
any delay by any Beneficiary in exercising, any right, power or remedy
hereunder shall not impair any such right, power or remedy or be construed to
be a waiver thereof, nor shall it preclude the further exercise of any such
right, power or remedy.

 

In case any provision in or obligation under
this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

THIS GUARANTY AND THE RIGHTS AND
OBLIGATIONS OF GUARANTORS, GUARANTIED PARTY AND THE OTHER BENEFICIARIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES.

 

This Guaranty shall inure to the benefit of
Beneficiaries and their respective successors and assigns.

 

ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY
GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY MAY BE BROUGHT IN
ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK,
AND BY EXECUTION AND DELIVERY OF THIS GUARANTY EACH GUARANTOR ACCEPTS FOR
ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY,
THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT
RENDERED THEREBY IN CONNECTION WITH THIS GUARANTY.  Each Guarantor agrees that service of all
process in any such proceeding in any such court may be made by registered or
certified mail, return receipt requested, to such Guarantor at its address set
forth below its signature hereto, such service being acknowledged by such
Guarantor to be sufficient for personal jurisdiction in any action against such
Guarantor in any such court and to be otherwise effective and binding service
in every respect.  Nothing herein shall
affect the right to serve process in any other manner permitted by law or shall
limit the right of Guarantied Party or any Beneficiary to bring proceedings
against such Guarantor in the courts of any other jurisdiction.

 

EACH GUARANTOR AND, BY ITS
ACCEPTANCE OF THE BENEFITS HEREOF, GUARANTIED PARTY EACH AGREES TO WAIVE ITS
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS GUARANTY.  THE SCOPE
OF THIS WAIVER IS 

 

	
   

  	
  XII-8

  	
  Guaranty

  

 

 

INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT
LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS. EACH GUARANTOR AND, BY ITS ACCEPTANCE OF THE
BENEFITS HEREOF, GUARANTIED PARTY EACH (I) ACKNOWLEDGES THAT THIS WAIVER
IS A MATERIAL INDUCEMENT FOR SUCH GUARANTOR AND GUARANTIED PARTY TO ENTER INTO
A BUSINESS RELATIONSHIP, THAT SUCH GUARANTOR AND GUARANTIED PARTY HAVE ALREADY
RELIED ON THIS WAIVER IN ENTERING INTO THIS GUARANTY OR ACCEPTING THE BENEFITS
THEREOF, AS THE CASE MAY BE, AND THAT EACH WILL CONTINUE TO RELY ON THIS
WAIVER IN THEIR RELATED FUTURE DEALINGS, AND (II) FURTHER WARRANTS AND
REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL.  THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY
OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS OF THIS GUARANTY.  In
the event of litigation, this Guaranty may be filed as a written consent to a
trial by the court.

 

15.       Additional Guarantors.  The
initial Guarantor(s) hereunder shall be Holdings and such of the
Subsidiaries of Company as are signatories hereto on the date hereof.  From time to time subsequent to the date
hereof, Subsidiaries of Company may become parties hereto, as additional
Guarantors (each an “Additional Guarantor”),
as required under subsection 6.8 of the Credit Agreement, by executing a
counterpart of this Guaranty.  A form of
such a counterpart is attached as Exhibit A.  Upon delivery of any such counterpart to
Guarantied Party, notice of which is hereby waived by Guarantors, each such
Additional Guarantor shall be a Guarantor and shall be as fully a party hereto
as if such Additional Guarantor were an original signatory hereof.  Each Guarantor expressly agrees that its
obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Guarantor hereunder, nor by any election of
the Guarantied Party not to cause any Subsidiary of Company to become an
Additional Guarantor hereunder.  This
Guaranty shall be fully effective as to any Guarantor that is or becomes a
party hereto regardless of whether any other Person becomes or fails to become
or ceases to be a Guarantor hereunder.

 

16.       Counterparts; Effectiveness.  This
Guaranty may be executed in any number of counterparts and by the different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed to be an original for all purposes; but all such
counterparts together shall constitute but one and the same instrument.  This Guaranty shall become effective as to
each Guarantor upon the execution of a counterpart hereof by such Guarantor
(whether or not a counterpart hereof shall have been executed by any other
Guarantor) and receipt by the Guarantied Party of written or telephonic
notification of such execution and authorization of delivery thereof.

 

	
   

  	
  XII-9

  	
  Guaranty

  

 

17.       Guarantied Party as Agent.

 

(a)        Guarantied Party has been appointed to act as Guarantied
Party hereunder by Lenders.  Guarantied
Party shall be obligated, and shall have the right hereunder, to make demands,
to give notices, to exercise or refrain from exercising any rights, and to take
or refrain from taking any action, solely in accordance with this Guaranty and
the Credit Agreement; provided that Guarantied Party shall exercise, or
refrain from exercising, any remedies under or with respect to this Guaranty in
accordance with the instructions of (i) Requisite Lenders, or (ii) after
payment in full of all Obligations under the Credit Agreement and the other
Loan Documents (other than Unasserted Obligations and obligations under the
Lender Swap Agreements), the cancellation or expiration of all Letters of
Credit (or the securing of reimbursement Obligations in respect thereof with
cash collateral or letters of credit in a manner reasonably satisfactory to the
applicable Issuing Lender) and the termination of the Commitments, the holders
of a majority of (A) the aggregate notional amount under all Lender Swap
Agreements (including Lender Swap Agreements that have been terminated) or (B) if
all Lender Swap Agreements have been terminated in accordance with their terms,
the aggregate amount then due and payable (exclusive of expenses and similar
payments but including any early termination payments then due) under such
Lender Swap Agreements (Requisite Lenders or, if applicable, such holders being
referred to herein as “Requisite Obligees”).

 

(b)        Guarantied Party shall at all times be the same Person that
is Administrative Agent under the Credit Agreement.  Written notice of resignation by
Administrative Agent pursuant to subsection 9.5 of the Credit Agreement shall
also constitute notice of resignation as Guarantied Party under this Guaranty;
and appointment of a successor Administrative Agent pursuant to subsection 9.5
of the Credit Agreement shall also constitute appointment of a successor
Guarantied Party under this Guaranty. 
Upon the acceptance of any appointment as Administrative Agent under
subsection 9.5 of the Credit Agreement by a successor Administrative Agent,
that successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Guarantied Party under this Guaranty, and the retiring Guarantied Party under
this Guaranty shall promptly (i) transfer to such successor Guarantied
Party all sums held hereunder, together with all records and other documents
necessary or appropriate in connection with the performance of the duties of
the successor Guarantied Party under this Guaranty, and (ii) take such
other actions as may be necessary or appropriate in connection with the
assignment to such successor Guarantied Party of the rights created hereunder,
whereupon such retiring Guarantied Party shall be discharged from its duties
and obligations under this Guaranty. 
After any retiring Guarantied Party’s resignation hereunder as
Guarantied Party, the provisions of this Guaranty shall inure to its benefit as
to any actions taken or omitted to be taken by it under this Guaranty while it
was Guarantied Party hereunder.

 

18.       Notice of Lender Swap Agreements. 
Guarantied Party shall not be deemed to have any duty whatsoever with
respect to any Swap Counterparty until it shall have received written notice in
form and substance satisfactory to Guarantied Party from Company, a Guarantor
or the Swap Counterparty as to the existence and terms of the applicable Lender
Swap Agreement.

 

	
   

  	
  XII-10

  	
  Guaranty

  

 

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  XII-11

  	
  Guaranty

  

 

IN WITNESS WHEREOF, each Guarantor and Guarantied Party, solely
for the purposes of the waiver of the right to jury trial contained in Section 14,
have caused this Guaranty to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first written above.

 

	
   

  	
  UNOL INTERMEDIATE, INC.,
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  FTD, INC., as
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  FTD.COM INC.,
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  FLORISTS’ TRANSWORLD DELIVERY,

  INC., as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  XII-S-1

  	
  Guaranty

  

 

	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION, as Administrative Agent, as Guarantied Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  XII-S-2

  	
  Guaranty

  

 

 

EXHIBIT A

 

[FORM OF] COUNTERPART FOR ADDITIONAL
GUARANTORS

 

This COUNTERPART (this “Counterpart”), dated _______, 20__, is delivered pursuant
to Section 15 of the Guaranty referred to below.  The undersigned hereby agrees that this
Counterpart may be attached to the Guaranty, dated as of [_____], 2008 (as it
may be from time to time amended, modified or supplemented, the “Guaranty”; capitalized terms used herein not otherwise
defined herein shall have the meanings ascribed therein), among the Guarantors
named therein and Wells Fargo Bank, National Association as Guarantied
Party.  The undersigned, by executing and
delivering this Counterpart, hereby becomes an Additional Guarantor under the
Guaranty in accordance with Section 15 thereof and agrees to be bound by
all of the terms thereof.

 

IN WITNESS WHEREOF, the undersigned has caused this Counterpart
to be duly executed and delivered by its officer thereunto duly authorized as
of ______________, 20__.

 

	
   

  	
  [NAME OF ADDITIONAL GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  XII-A-1

  	
  Guaranty

  

 

 

EXHIBIT XIII

 

[FORM OF] SECURITY AGREEMENT

 

This SECURITY AGREEMENT (this
“Agreement”) is dated as of [_____],
2008 and entered into by and among UNOL INTERMEDIATE INC.,
a Delaware corporation (“Holdings”), UNOLA CORP., a Delaware corporation (“Company”),
each of THE UNDERSIGNED DIRECT AND INDIRECT SUBSIDIARIES
of Company (each of such undersigned Subsidiaries being a “Subsidiary
Grantor” and collectively “Subsidiary Grantors”)
and each ADDITIONAL GRANTOR that may become a
party hereto after the date hereof in accordance with Section 21 hereof
(each of Company, Holdings, each Subsidiary Grantor, and each Additional
Grantor being a “Grantor” and collectively the “Grantors”) and WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Administrative Agent for and representative of (in
such capacity herein called “Secured Party”)
the Beneficiaries (as hereinafter defined).

 

PRELIMINARY STATEMENTS

 

A.        Pursuant
to the Credit Agreement dated as of August 4, 2008 (said Credit Agreement,
as it may hereafter be amended, restated, supplemented, amended and restated or
otherwise modified from time to time, being the “Credit
Agreement”; the terms defined therein and not otherwise defined
herein being used herein as therein defined), by and among Company, the
financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders (in such capacity, “Administrative
Agent”), Lenders have made certain commitments, subject to the terms
and conditions set forth in the Credit Agreement, to extend certain credit
facilities to Company.

 

B.         Company
may from time to time enter, or may from time to time have entered, into one or
more Lender Swap Agreements with one or more Swap Counterparties in accordance
with the terms of the Credit Agreement, and it is desired that the obligations
of Company under the Lender Swap Agreements, including, without limitation, the
obligation of Company to make payments thereunder in the event of early
termination thereof, together with all obligations of Company under the Credit
Agreement and the other Loan Documents, be secured hereunder.

 

C.        Holdings
and Subsidiary Grantors have executed and delivered the Guaranty in favor of
Secured Party for the benefit of Lenders and any Swap Counterparties, pursuant
to which Holdings and each Subsidiary Grantor have guarantied the prompt
payment and performance when due of all obligations of Company under the Credit
Agreement and all obligations of Company under the Lender Swap Agreements.

 

D.        It
is a condition precedent to the initial extensions of credit by Lenders under
the Credit Agreement that Grantors listed on the signature pages hereof
shall have granted the security interests and undertaken the obligations
contemplated by this Agreement.

 

NOW, THEREFORE, in consideration of the agreements set
forth herein and in the Credit Agreement and in order to induce Lenders to make
Loans and other extensions of 

 

	
   

  	
  XIII-1

  	
  Security Agreement

  

 

credit under the Credit
Agreement and to induce Swap Counterparties to enter into the Lender Swap
Agreements, each Grantor hereby agrees with Secured Party as follows:

 

SECTION 1.                             Grant
of Security.

 

Each Grantor hereby grants to Secured Party
for the benefit of the Beneficiaries a security interest in, all of such
Grantor’s right, title and interest in and to all of the personal property of
such Grantor, in each case whether now or hereafter existing, whether tangible
or intangible, whether now owned or hereafter acquired, wherever the same may
be located and whether or not subject to the Uniform Commercial Code as it
exists on the date of this Agreement, or as it may hereafter be amended in the
State of New York (the “UCC”),
including the following (the “Collateral”):

 

(a)        all
Accounts;

 

(b)        all
Chattel Paper;

 

(c)        all
Money and all Deposit Accounts, together with all amounts on deposit from time
to time in such Deposit Accounts;

 

(d)        all
Documents;

 

(e)        all
General Intangibles, Payment Intangibles and Software and other Intellectual
Property;

 

(f)         all
Goods, including Inventory, Equipment, Farm Products and Fixtures;

 

(g)        all
Instruments;

 

(h)        all
Investment Property;

 

(i)         all
Letter-of-Credit Rights and other Supporting Obligations;

 

(j)         all
Records;

 

(k)        all
Commercial Tort Claims, including those set forth on Schedule 1 annexed
hereto; and

 

(l)         all
Proceeds and Accessions with respect to any of the foregoing Collateral.

 

Each category of Collateral set forth above
shall have the meaning set forth in the UCC (to the extent such term is defined
in the UCC), it being the intention of Grantors that the description of the
Collateral set forth above be construed to include the broadest possible range
of assets.

 

Notwithstanding anything herein to the
contrary, in no event shall the term “Collateral” include, and no Grantor shall
be deemed to have granted a security interest in, any of such Grantor’s rights
or interests in or under, (a) any license, contract, permit, Instrument, 

 

	
   

  	
  XIII-2

  	
  Security Agreement

  

 

Security or General Intangible to which such Grantor is a party or any
of its rights or interests thereunder to the extent, but only to the extent,
that such a grant would, under the terms of such license, contract, permit,
Instrument, Security or General Intangible, result in a breach of the terms of,
or constitute a default under, such license, contract, permit, Instrument, Security
or General Intangible (other than to the extent that any such term would be
rendered ineffective pursuant to the UCC or any other applicable law (including
the Bankruptcy Code) or principles of equity); provided, that
immediately upon the ineffectiveness, lapse or termination of any such
provision the term “Collateral” shall include, and such Grantor shall be deemed
to have granted a security interest in, all such rights and interests as if
such provision had never been in effect, (b) any property or asset owned
or hereafter acquired by any Grantor that is subject to a Lien permitted to be
incurred pursuant to the Credit Agreement to the extent that the documents
evidencing such Lien prohibit the grant of a security interest in or Lien on
such property or asset; provided  that, upon such property or
asset no longer being subject to such Lien or prohibition, such property or
asset shall (without any act or delivery by any Person) constitute Collateral
hereunder or (c) any United States intent-to-use trademark or service mark
application to the extent that, and solely during the period prior to the
filing of evidence of use of such trademark or service mark, the grant of a
security interest therein would invalidate such intent-to-use trademark or
service mark application under Federal law.

 

Notwithstanding the foregoing, the term
“Collateral” shall not include, and no Grantor shall be deemed to have granted
a security interest in, any Equity Interests issued by a Foreign Subsidiary
exceeding 66% of the voting power of all classes of the Equity Interests of
such Foreign Subsidiary entitled to vote.

 

SECTION 2.                             Security
for Obligations.

 

This Agreement secures, and the Collateral is
collateral security for, the prompt payment or performance in full when due,
whether at stated maturity, by required prepayment, declaration, acceleration,
demand or otherwise, of all Secured Obligations of each Grantor.  “Secured Obligations”
means:

 

(a)        with
respect to Company, all obligations and liabilities of every nature of Company
now or hereafter existing under or arising out of or in connection with the
Credit Agreement and the other Loan Documents and any Lender Swap Agreement;

 

(b)        with
respect to each Subsidiary Grantor and Additional Grantor, all obligations and
liabilities of every nature of such Subsidiary Grantor now or hereafter
existing under or arising out of or in connection with the Guaranty; and

 

(c)        with
respect to Holdings, all obligations and liabilities of every nature of
Holdings now or hereafter existing under or arising out of or in connection
with the Guaranty;

 

in each case together with all extensions or
renewals thereof, whether for principal, interest, reimbursement of amounts
drawn under Letters of Credit, payments for early termination of Lender Swap
Agreements, fees, expenses, indemnities or otherwise, whether voluntary or
involuntary, direct or indirect, absolute or contingent, liquidated or
unliquidated, whether or not jointly owed with others, and whether or not from
time to time decreased or extinguished and 

 

	
   

  	
  XIII-3

  	
  Security Agreement

  

 

later increased, created or incurred, and all
or any portion of such obligations or liabilities that are paid, to the extent
all or any part of such payment is avoided or recovered directly or indirectly
from Secured Party or any Lender or Swap Counterparty as a preference,
fraudulent transfer or otherwise, and all obligations of every nature of
Grantors now or hereafter existing under this Agreement (including, without
limitation, interest and other amounts that, but for the filing of a petition
in bankruptcy with respect to Company or any other Grantor, would accrue on
such obligations, whether or not a claim is allowed against Company or such
Grantor for such amounts in the related bankruptcy proceeding).

 

SECTION 3.                             Grantors
Remain Liable.

 

Anything contained herein to the contrary
notwithstanding, Secured Party shall not have any obligation or liability under
any contracts, licenses, and agreements included in the Collateral by reason of
this Agreement, nor shall Secured Party be obligated to perform any of the
obligations or duties of any Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder.

 

SECTION 4.                             Representations
and Warranties.

 

Each Grantor represents and warrants as
follows:

 

(a)        Ownership of Collateral. 
Such Grantor owns its interests in the Collateral free and clear of any
Lien (other than Liens permitted pursuant to subsection 7.2A of the Credit
Agreement (“Permitted Liens”)).

 

(b)        Perfection.  The
execution and delivery of the Collateral Documents by such Grantor, together
with (i) the actions taken to date pursuant to subsections 4.2, 6.8 and
6.9 of the Credit Agreement and (ii) the delivery to Secured Party of any
Securities Collateral not delivered to Secured Party at the time of execution
and delivery of the this Agreement (all of which Securities Collateral has been
so delivered) are effective to create in favor of Secured Party for the benefit
of the Beneficiaries, as security for the Secured Obligations, a valid First
Priority Lien on all of its interests in the Collateral (other than Excluded
Perfection Assets), and all filings of UCC financing statements necessary to
perfect and maintain the perfection and First Priority status of such Liens
that can be perfected by filing UCC financing statements have been duly made or
taken and remain in full force and effect (or will be duly made or taken within
applicable time periods), other than the filing of any UCC financing statements
delivered to Secured Party for filing (but not yet filed) and the periodic
filing of UCC continuation statements in respect of UCC financing statements
filed by or on behalf of Secured Party. 
The foregoing notwithstanding, from and including the Closing Date to
the date that is 90 days after the Closing Date, this representation will be
deemed satisfied (including for its purpose as a Specified Representation) to
the extent Company has used commercially reasonable efforts to take the actions
described in subsection 4.2J of the Credit Agreement.

 

(c)        Office Locations; Type and Jurisdiction of Organization; Locations of
Equipment and Inventory.  As
of the Signing Date or, in the case of an Additional Grantor, the date of the applicable
Counterpart, such Grantor’s name as it appears in official filings in the
jurisdiction of its organization, type of organization (i.e. corporation,
limited partnership, etc.), 

 

	
   

  	
  XIII-4

  	
  Security Agreement

  

 

jurisdiction of
organization, chief executive office, office where such Grantor keeps its
Records regarding the Accounts, Intellectual Property and originals of Chattel
Paper and organization number provided by the applicable Government Authority of
the jurisdiction of organization are set forth on Schedule 3 annexed
hereto.  All of the Equipment and
Inventory with a fair market value in excess of $500,000 is, as of the Signing
Date, or in the case of an Additional Grantor, the date of the applicable
Counterpart, located at the places set forth on Schedule 4 annexed
hereto, except for Equipment that is leased to florists and other customers and
Inventory which, in the ordinary course of business, is in transit either
(i) from a supplier to a Grantor, (ii) between the locations set
forth on Schedule 4 annexed hereto, or (iii) to customers of a
Grantor.

 

(d)        Names.  As of the
Signing Date, no Grantor (or predecessor by merger or otherwise of such
Grantor) has, within the five year period preceding the date hereof, or, in the
case of an Additional Grantor, the date of the applicable Counterpart, had a
different name from the name of such Grantor listed on the signature
pages hereof, except the names set forth on Schedule 5 annexed
hereto.

 

(e)        Delivery of Certain Collateral.  Each certificate or Instrument (excluding
checks), owned or held by such Grantor, as of the Signing Date or, in the case
of an Additional Grantor, the date of the applicable Counterpart, evidencing,
comprising or representing Collateral with, in the case of any Instrument, a
stated value in excess of $1,000,000 has been delivered to Secured Party duly
endorsed or accompanied by duly executed instruments of transfer or assignment
in blank.

 

(f)         Securities Collateral. 
All of the Pledged Subsidiary Equity set forth on Schedule 6
annexed hereto is duly authorized and validly issued and, except as set forth
in Schedule 6 annexed hereto, is fully paid and nonassessable; as of the
Signing Date, all of the Pledged Subsidiary Debt set forth on Schedule 7
annexed hereto has been duly authorized and is the legally valid and binding
obligation of the issuers thereof and is not in default; there are no
outstanding warrants, options or other rights to purchase, or other agreements
outstanding with respect to, or property that is now or hereafter convertible
into, or that requires the issuance or sale of, any Pledged Subsidiary Equity; Schedule
6 annexed hereto sets forth all of the Equity Interests and the Pledged
Equity owned by each Grantor, and the percentage ownership in each issuer
thereof, in each case, as of the Signing Date or, in the case of an Additional
Grantor, the date of the applicable Counterpart; and Schedule 7 annexed
hereto sets forth all of the Pledged Debt owned by such Grantor as of the
Signing Date or, in the case of an Additional Grantor, the date of the
applicable Counterpart.

 

(g)        Intellectual Property Collateral.  A true and complete list of all
(i) Trademark Registrations and applications for any Trademark owned by
such Grantor, in whole or in part, is set forth on Schedule 8 annexed
hereto; (ii) Patents owned by such Grantor, in whole or in part, is set
forth on Schedule 9 annexed hereto and (iii) Copyright
Registrations and applications for Copyright Registrations owned by such
Grantor, in whole or in part, is set forth on Schedule 10 annexed
hereto; and such Grantor is not aware of any pending or threatened written
claim by any third party against such Grantor that any of the material
Intellectual Property owned, held or used by such Grantor is invalid or
unenforceable except for such claims that in the aggregate could not reasonably
be expected to result in a Material Adverse Effect.

 

	
   

  	
  XIII-5

  	
  Security Agreement

  

 

(h)        Deposit Accounts, Securities Accounts, Commodity Accounts.  Schedule 11 annexed hereto lists
all Deposit Accounts, Securities Accounts and Commodity Accounts owned by each
Grantor as of the Signing Date or, in the case of an Additional Grantor, the
date of the applicable Counterpart, and indicates the institution or
intermediary at which the account is held and the account number.

 

(i)         Chattel Paper.  As of
the Signing Date or, in the case of an Additional Grantor, the date of the
applicable Counterpart, such Grantor has no interest in any Chattel Paper,
except as set forth in Schedule 12 annexed hereto.

 

(j)         Letter-of-Credit Rights. 
As of the Signing Date or, in the case of an Additional Grantor, the
date of the applicable Counterpart, such Grantor has no interest in any
Letter-of-Credit Rights, except as set forth on Schedule 13 annexed
hereto.

 

(k)        Documents.  As of the
Signing Date or, in the case of an Additional Grantor, the date of the
applicable Counterpart, no negotiable Documents are outstanding with respect to
any of the Inventory, except as set forth on Schedule 14 annexed hereto.

 

The representations and
warranties as to the information set forth in Schedules referred to herein are
made as to each Grantor (other than Additional Grantors) as of the Signing Date
and as to each Additional Grantor as of the date of the applicable Counterpart,
except that, in the case of a Pledge Supplement, Grant or notice delivered
pursuant to Section 5(b) or (c) hereof, such representations and
warranties are made as of the date of such supplement or notice.

 

SECTION 5.                             Further
Assurances.

 

(a)        Generally.  Each
Grantor agrees that from time to time, at the expense of Grantors, such Grantor
will promptly execute and deliver any further instruments and documents, and
take all further actions, that Secured Party may reasonably request such
Grantor to take, in order to perfect and protect any security interest granted
or purported to be granted hereby or to enable Secured Party to exercise and
enforce its rights and remedies hereunder with respect to any Collateral.  Without limiting the generality of the
foregoing, Grantor will:  (i) notify
Secured Party in writing of receipt by such Grantor of any interest in Chattel
Paper with a value in excess of $500,000 (other than Chattel Paper received by
such Grantor in connection with the making of loans (financing equipment sold)
or equipment leases to customers permitted by subsection 7.3(xii) of the Credit
Agreement), (ii) notify Secured Party in writing of the establishment by
such Grantor of any Deposit Account, Securities Account, Commodity Contract or
and Commodity Account with a principal balance of $2,000,000 or more
individually or $5,000,000 with any single financial institution,
(iii) notify Secured Party in writing of the creation in favor of such
Grantor of any Letter-of-Credit Rights with a value in excess of $1,000,000,
(iv) upon the reasonable request of Secured Party, execute and deliver,
and cause to be executed and delivered, agreements establishing, and take, or
cause to be taken, such other actions, as may be necessary to establish, that
Secured Party has control of Deposit Accounts, Investment Property, electronic
Chattel Paper, Chattel Paper and Letter-of-Credit Rights of such Grantor,
(v) furnish to Secured Party, upon the reasonable request of Secured
Party, statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as Secured
Party may reasonably request, all in 

 

	
   

  	
  XIII-6

  	
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reasonable detail; provided
that unless an Event of Default shall have occurred and be continuing, Secured
Party shall be entitled to no more than one such request each Fiscal Year,
(viii) at any reasonable time, following prior written request by Secured
Party, exhibit the Collateral (that is suitable for exhibition) to and allow
inspection of the Collateral (that is suitable for inspection) by Secured
Party, or persons designated by Secured Party; provided that unless an
Event of Default shall have occurred and be continuing, such exhibition or
inspection shall be limited to no more than once each Fiscal Year and
(ix) if an Event of Default has occurred and is continuing, upon the
request of Secured Party, appear in and defend any action or proceeding that
may affect such Grantor’s title to or Secured Party’s security interest in all
or any material part of the Collateral. 
Each Grantor hereby authorizes Secured Party to file one or more
financing or continuation statements, and amendments thereto, relative to all
or any part of the Collateral (including any financing statement indicating
that it covers “all assets” or “all personal property” of such Grantor or using
words of similar import) without the signature of any Grantor.

 

(b)        Securities Collateral. 
Without limiting the generality of the foregoing Section 5(a), each
Grantor agrees that (i) all Instruments with a principal amount in excess
of $1,000,000 and all certificates representing or evidencing the Securities
Collateral shall be delivered to and held by or on behalf of Secured Party
pursuant hereto and shall be in suitable form for transfer by delivery or, as
applicable, shall be accompanied by such Grantor’s endorsement, where
necessary, or duly executed instruments of transfer or assignments in blank,
all in form and substance reasonably satisfactory to Secured Party and
(ii) it will, upon obtaining any additional Pledged Equity or Pledged
Debt, promptly (and in any event within 30 days after the end of the Fiscal
Quarter in which any such Pledged Equity or Pledged Debt is obtained), deliver
to Secured Party a Pledge Supplement, duly executed by such Grantor, in respect
of any additional Pledged Equity or Pledged Debt obtained; provided,
that the failure of any Grantor to execute a Pledge Supplement with respect to
any additional Pledged Equity or Pledged Debt shall not impair the security
interest of Secured Party therein or otherwise adversely affect the rights and
remedies of Secured Party hereunder with respect thereto.  The representations and warranties contained
in Section 4(f) hereof shall be deemed to have been made by such
Grantor as to such Pledged Equity or Pledged Debt when such Pledge Supplement
is delivered.

 

(c)        Intellectual Property Collateral.  At least quarterly, within 30 days after the
end of each Fiscal Quarter, each Grantor shall notify Secured Party in writing
of any applications or registrations for Intellectual Property acquired or
filed by such Grantor since the last update provided to Secured Party.  Such notice shall be accompanied by the
delivery to Secured Party of a Grant (solely with respect to such additional
Intellectual Property) executed by each Grantor that has acquired Intellectual Property
set forth in the notice, for submission by Secured Party for recordation with
respect thereto in the applicable IP Filing Office; provided, that the
parties agree that the failure of any Grantor to execute a Grant with respect
to any additional Intellectual Property shall not impair the security interest
of Secured Party therein or otherwise adversely affect the rights and remedies
of Secured Party hereunder with respect thereto.  Upon delivery to Secured Party of a Grant, Schedules
8, 9 and 10 annexed hereto shall be deemed modified to include a reference
to any right, title or interest in any Intellectual Property set forth on Schedule
A to such Grant.  Upon each such
acquisition, the representations and warranties contained in
Section 4(g) hereof shall be deemed to have been made by such Grantor
as to such Intellectual Property, whether or not such Grant is delivered

 

	
   

  	
  XIII-7

  	
  Security Agreement

  

 

(d)        Commercial Tort Claims. 
Grantors have no Commercial Tort Claims as of the date hereof, except as
set forth on Schedule 1 annexed hereto. 
In the event that a Grantor shall at any time after the date hereof have
any Commercial Tort Claims in excess of $2,000,000, such Grantor shall promptly
(and in any event within 20 Business Days of a Responsible Officer obtaining
knowledge thereof) notify Secured Party thereof in writing, which notice shall
(i) set forth in reasonable detail the basis for and nature of such
Commercial Tort Claim and (ii) constitute an amendment to this Agreement
by which such Commercial Tort Claim shall constitute part of the Collateral.

 

SECTION 6.                             Certain
Changes.

 

Each Grantor shall:

 

(a)        give
Secured Party written notice promptly (and in no event more than 30 days
following any such event) of: (i) any change in such Grantor’s name,
identity or corporate structure or (ii) any reincorporation,
reorganization or other action that results in a change of the jurisdiction of
organization of such Grantor; and

 

(b)        if
Secured Party gives value to enable such Grantor to acquire rights in or the
use of any Collateral, use such value for such purposes.

 

SECTION 7.                             Special
Covenants With Respect to Equipment and Inventory.

 

Each Grantor shall:

 

(a)        if
any Inventory is in possession or control of any of such Grantor’s agents or
processors, if the aggregate fair market value of all such Inventory exceeds
$1,000,000, upon the occurrence and during the continuation of an Event of
Default, instruct such agent or processor to hold all such Inventory for the
account of Secured Party and subject to the instructions of Secured Party;

 

(b)        if
any Inventory or Equipment with a stated value in excess of $2,500,000 is
located on premises leased by such Grantor, upon the written request of Secured
Party, use commercially reasonably efforts (which efforts shall not be required
to include the payment of any additional amounts or the making of any
concessions in respect of the lease) to deliver to Secured Party a fully
executed Collateral Access Agreement; and

 

(c)        upon
the issuance and delivery to such Grantor of any negotiable Document with a
stated value in excess of $1,000,000, promptly deliver such Document to Secured
Party.

 

SECTION 8.                             Special
Covenants with respect to Accounts and Assigned Agreements.

 

Secured Party shall have the right at any
time, upon the occurrence and during the continuation of an Event of Default
and upon written notice to such Grantor of its intention to do so, to
(i) notify the account debtors or obligors under any Accounts of the
assignment of such Accounts to Secured Party and to direct such account debtors
or obligors to make payment of all amounts due or to become due to such Grantor
thereunder directly to Secured Party, (ii) notify 

 

	
   

  	
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each Person maintaining a
lockbox or similar arrangement to which account debtors or obligors under any
Accounts have been directed to make payment to remit all amounts representing
collections on checks and other payment items from time to time sent to or
deposited in such lockbox or other arrangement directly to Secured Party,
(iii) enforce collection of any such Accounts at the expense of Grantors,
and (iv) adjust, settle or compromise the amount or payment thereof, in
the same manner and to the same extent as such Grantor might have done.  After receipt by such Grantor of the notice
from Secured Party referred to in the preceding sentence, (A) all amounts
and proceeds (including checks and other Instruments) received by such Grantor
in respect of the Accounts shall be received in trust for the benefit of
Secured Party hereunder, shall be segregated from other funds of such Grantor
and shall be forthwith paid over or delivered to Secured Party in the same form
as so received (with any necessary endorsement) to be held as cash Collateral
and applied as provided by Section 17 hereof, and (B) such Grantor
shall not, without the written consent of Secured Party, adjust, settle or
compromise the amount or payment of any Account, or release wholly or partly
any account debtor or obligor thereof, or allow any credit or discount thereon.

 

SECTION 9.                             Special
Covenants With Respect to the Securities Collateral.

 

(a)        Form of Securities Collateral.  Secured Party shall have the right at any
time upon prior written request to exchange certificates or instruments
representing or evidencing Securities Collateral for certificates or
instruments of smaller or larger denominations. 
If any Securities Collateral is not a security pursuant to Section 8-103
of the UCC, no Grantor shall take any action that, under such Section, converts
such Securities Collateral into a security without causing the issuer thereof
to issue to it certificates or instruments evidencing such Securities
Collateral, which it shall promptly deliver to Secured Party as provided in
this Section 9(a).

 

(b)        Covenants.  Each
Grantor shall, upon the request of Secured Party, use commercially reasonable
efforts to promptly execute and deliver to Secured Party an agreement providing
for control by Secured Party of all Deposit Accounts, Security Entitlements,
Securities Accounts, Commodity Contracts and Commodity Accounts of such Grantor
containing a principal balance of $2,000,000 or more individually or $5,000,000
in the aggregate for any financial institution.

 

(c)        Voting and Distributions. 
So long as no Event of Default shall have occurred and be continuing,
(i) each Grantor shall be entitled to exercise any and all voting and
other consensual rights pertaining to the Securities Collateral or any part
thereof for any purpose not prohibited by the terms of this Agreement or the
Credit Agreement; and (ii) each Grantor shall be entitled to receive and
retain any and all dividends, other distributions, principal and interest paid
in respect of the Securities Collateral.

 

Upon the occurrence and during the
continuation of an Event of Default, upon written notice from Secured Party to
any Grantor,(x) all rights of such Grantor to exercise the voting and
other consensual rights which it would otherwise be entitled to exercise pursuant
hereto shall cease (until such Event of Default ceases to be continuing), and
all such rights shall thereupon become vested in Secured Party (until such
Event of Default ceases to be continuing) who shall thereupon have the sole
right to exercise such voting and other consensual rights; (y) 

 

	
   

  	
  XIII-9

  	
  Security Agreement

  

 

except as otherwise
specified in the Credit Agreement and upon written notice from the Secured
Party, all rights of such Grantor to receive the dividends, other
distributions, principal and interest payments which it would otherwise be
authorized to receive and retain pursuant hereto shall cease (until such Event
of Default ceases to be continuing), and all such rights shall thereupon become
vested in Secured Party (until such Event of Default ceases to be continuing)
who shall thereupon have the sole right to receive and hold as Collateral such
dividends, other distributions, principal and interest payments; and
(z) all dividends, principal, interest payments and other distributions
which are received by such Grantor contrary to the provisions of clause
(y) above shall be received in trust for the benefit of Secured Party,
shall be segregated from other funds of such Grantor and shall forthwith be
paid over to Secured Party as Collateral in the same form as so received (with
any necessary endorsements).

 

In order to permit Secured Party to exercise
the voting and other consensual rights which it may be entitled to exercise
pursuant hereto and to receive all dividends and other distributions which it
may be entitled to receive hereunder, (I) each Grantor shall during the
continuation of an Event of Default promptly upon the request of Secured Party
execute and deliver (or cause to be executed and delivered) to Secured Party
all such proxies, dividend payment orders and other instruments as Secured
Party may from time to time reasonably request, and (II) without limiting
the effect of clause (I) above, each Grantor hereby grants to Secured
Party an irrevocable proxy to vote the Pledged Equity and to exercise all other
rights, powers, privileges and remedies to which a holder of the Pledged Equity
would be entitled (including giving or withholding written consents of holders
of Equity Interests, calling special meetings of holders of Equity Interests
and voting at such meetings), which proxy shall be effective, automatically and
without the necessity of any action (including any transfer of any Pledged
Equity on the record books of the issuer thereof) by any other Person
(including the issuer of the Pledged Equity or any officer or agent thereof),
upon the occurrence and during the continuation of an Event of Default and
which proxy shall only terminate upon the payment in full of the Secured
Obligations (other than Unasserted Obligations), such Event of Default having
ceased to be continuing or having been waived with such waiver being evidenced
by a writing executed by Secured Party.

 

SECTION 10.                          Special Covenants With Respect to the Intellectual
Property Collateral

 

(a)        Each
Grantor shall have the duty diligently to prosecute, file and/or make, unless
such Grantor, in its commercially reasonable judgment, decides otherwise,
(i) any pending application for registration relating to any of the
Intellectual Property filed in the name of such Grantor, (ii) any fees or
documents necessary to maintain or renew Trademark Registrations, Copyright
Registrations, and issued Patents included in the Intellectual Property, and
(iii) any Trademark opposition or cancellation proceedings relating to
Trademarks included in the Intellectual Property.  Except as otherwise provided herein, each
Grantor shall have the right to commence and prosecute in its own name, as real
party in interest, for its own benefit and at its own expense, such suits,
proceedings or other actions for infringement, unfair competition, dilution,
misappropriation or other damage, or reexamination or reissue proceedings as
are necessary to protect the Intellectual Property.  Each Grantor shall promptly, following its
becoming aware thereof, notify Secured Party of the institution of, or of any
adverse determination in, any proceeding (whether in an IP Filing Office or any
federal, state, local or foreign court) regarding such Grantor’s ownership,
right to use, or interest in any material 

 

	
   

  	
  XIII-10

  	
  Security Agreement

  

 

 

Intellectual Property (other
than routine office actions in the course of prosecution).  Each Grantor shall provide to Secured Party
any further information with respect thereto reasonably requested by Secured
Party.

 

(b)        In
addition to, and not by way of limitation of, the granting of a security
interest in the Collateral pursuant hereto, each Grantor, effective upon the
occurrence and during the continuation of an Event of Default, hereby grants to
Secured Party, to the extent that such license can be granted without violating
exclusive licenses in effect on the Closing Date, the nonexclusive,
non-terminable (until the payment in full of the Secured Obligations) right and
license to use all Trademarks, Copyrights, Patents or technical processes
(including, without limitation, the Intellectual Property) owned or used (to
the extent sublicensing is permissible) by such Grantor that relate to the
Collateral, together with any goodwill connected with the use of and symbolized
by any Trademarks included in the foregoing grant, all to the extent necessary
to enable Secured Party to realize on the Collateral in accordance with this
Agreement and to enable any transferee or assignee of the Collateral to enjoy
the benefits of the Collateral.  The
foregoing right and license granted is subject, in the case of Trademarks, to
sufficient rights to quality control and inspection in favor of such Grantor to
avoid the risk of invalidation of such Trademarks.  This right shall inure to the benefit of all
successors, assigns and transferees of Secured Party and its successors,
assigns and transferees, whether by voluntary conveyance, operation of law,
assignment, transfer, foreclosure, deed in lieu of foreclosure or
otherwise.  Such right and license shall
be granted free of charge, without requirement that any monetary payment
whatsoever be made to such Grantor.  To
the extent that any Grantor is permitted to license the Intellectual Property
after the Closing Date and with respect to pre-existing licenses which may be
included in the Collateral, Secured Party shall promptly enter into a
non-disturbance agreement or other similar arrangement, at such Grantor’s
request, with such Grantor and any licensee of any Intellectual Property
permitted hereunder (or pre-existing) in form and substance reasonably
satisfactory to Secured Party pursuant to which Secured Party shall agree not
to disturb or interfere with such licensee’s rights under its license agreement
with such Grantor, so long as such licensee is not in default thereunder.

 

(c)        Secured
Party shall have the right at any time, upon the occurrence and during the
continuation of an Event of Default and upon written notice to such Grantor of
its intention to do so, to notify the obligors with respect to any such amounts
of the existence of the security interest created hereby and to direct such
obligors to make payment of all such amounts directly to Secured Party, and,
upon such notification and at the expense of such Grantor, to enforce
collection of any such amounts and to adjust, settle or compromise the amount
or payment thereof, in the same manner and to the same extent as such Grantor
might have done.  After receipt by any
Grantor of the notice from Secured Party referred to in the preceding sentence
and upon the occurrence and during the continuation of any Event of Default,
(i) all amounts and proceeds (including checks and Instruments) received
by each Grantor in respect of amounts due to such Grantor in respect of the
Intellectual Property or any portion thereof shall be received in trust for the
benefit of Secured Party hereunder, shall be segregated from other funds of
such Grantor and shall be forthwith paid over or delivered to Secured Party in
the same form as so received (with any necessary endorsement) to be held as
cash Collateral and applied as provided by Section 17 hereof, and
(ii) such Grantor shall not, without the prior written consent of Secured
Party, adjust, settle or compromise the amount or payment of any such amount or
release wholly or partly any obligor with respect thereto or allow any credit
or discount thereon.

 

	
   

  	
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  Security Agreement

  

 

SECTION 11.                     Collateral
Account.

 

(a)        Secured
Party is hereby authorized to establish and maintain as a blocked account under
the sole dominion and control of Secured Party, a restricted Deposit Account
designated as “[FTD Group, Inc.] Collateral Account” (the “Collateral Account”). 
All amounts at any time held in the Collateral Account shall be
beneficially owned by Grantors but shall be held in the name of Secured Party
hereunder, for the benefit of Beneficiaries, as collateral security for the
Secured Obligations upon the terms and conditions set forth herein.  Grantors shall have no right to withdraw,
transfer or, except as expressly set forth herein or in the Credit Agreement,
otherwise receive any funds deposited into the Collateral Account.  Anything contained herein to the contrary
notwithstanding, the Collateral Account shall be subject to such applicable laws,
and such applicable regulations of the Board of Governors of the Federal
Reserve System and of any other appropriate banking or Government Authority, as
may now or hereafter be in effect.  All
deposits of funds in the Collateral Account shall be made by wire transfer (or,
if applicable, by intra-bank transfer from another account of a Grantor) of
immediately available funds, in each case addressed in accordance with
instructions of Secured Party.  Each
Grantor shall, promptly after initiating a transfer of funds to the Collateral
Account, give notice to Secured Party by telefacsimile of the date, amount and
method of delivery of such deposit.  Cash
held by Secured Party in the Collateral Account shall not be invested by
Secured Party but instead shall be maintained as a cash deposit in the
Collateral Account pending application thereof as elsewhere provided in this
Agreement or in the Credit Agreement.  To
the extent permitted under Regulation Q of the Board of Governors of the
Federal Reserve System, any cash held in the Collateral Account shall bear
interest at the standard rate paid by Secured Party to its customers for
deposits of like amounts and terms. 
Subject to Secured Party’s rights hereunder, any interest earned on
deposits of cash in the Collateral Account shall be deposited directly in, and
held in, the Collateral Account.

 

(b)        In
the event that Company is required to cash collateralize any Letter of Credit
or Letters of Credit pursuant to the Credit Agreement, other than pursuant to
Section 8 of the Credit Agreement, in which case the provisions of
Section 15(c) hereof shall apply, subject to the provisions of the
Credit Agreement, such cash collateral shall be retained by Secured Party until
such time as such Letter of Credit or Letters of Credit shall have expired or
been surrendered and any drawings under such Letter of Credit or Letters of
Credit paid in full, whether by reason of application of funds in the
Collateral Account or otherwise.  Secured
Party is authorized to apply any amount in the Collateral Account to pay any
drawing on a Letter of Credit.  Subject
to the provisions of Section 15(c) hereof and the Credit Agreement,
if any such cash collateral is no longer required to be retained in the
Collateral Account, it shall be paid by Secured Party to Company or at
Company’s direction.

 

SECTION 12.                     Secured
Party Appointed Attorney-in-Fact.

 

Each Grantor hereby irrevocably appoints
Secured Party as such Grantor’s attorney-in-fact, and Secured Party is hereby
authorized, with full authority in the place and stead of such Grantor and in
the name of such Grantor, Secured Party or otherwise, from time to time, in
each case, upon the occurrence and during the continuation of an Event of
Default in Secured Party’s reasonable discretion to take any action and to
execute any instrument that Secured Party 

 

	
   

  	
  XIII-12

  	
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may deem necessary or
advisable to accomplish the purposes of this Agreement, including, without
limitation:

 

(a)        to
obtain and adjust insurance required to be maintained by such Grantor or paid
to Secured Party pursuant to the Credit Agreement;

 

(b)        to
ask for, demand, collect, sue for, recover, compound, receive and give
acquittance and receipts for moneys due and to become due under or in respect
of any of the Collateral;

 

(c)        to
receive, endorse and collect any drafts or other Instruments, Documents,
Chattel Paper and other documents in connection with clauses (a) and
(b) above;

 

(d)        to
file any claims or take any action or institute any proceedings that Secured
Party may deem necessary or desirable for the collection of any of the
Collateral or otherwise to enforce or protect the rights of Secured Party with
respect to any of the Collateral;

 

(e)        to
pay or discharge taxes or Liens (other than taxes not required to be discharged
pursuant to the Credit Agreement and Liens permitted under this Agreement or
the Credit Agreement) levied or placed upon or threatened against the
Collateral, the legality or validity thereof and the amounts necessary to
discharge the same to be determined by Secured Party in its sole discretion,
any such payments made by Secured Party to become obligations of such Grantor
to Secured Party, due and payable immediately without demand;

 

(f)         to
sign and endorse any invoices, freight or express bills, bills of lading,
storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with Accounts and other documents
relating to the Collateral; and

 

(g)        generally
to sell, transfer, pledge, make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though Secured Party were
the absolute owner thereof for all purposes, and to do, at Secured Party’s
option and Grantors’ expense, at any time or from time to time, all acts and
things that Secured Party deems necessary to protect, preserve or realize upon
the Collateral and Secured Party’s security interest therein in order to effect
the intent of this Agreement, all as fully and effectively as such Grantor
might do.

 

SECTION 13.                     Secured
Party May Perform.

 

Upon the occurrence and during the
continuation of an Event of Default, if any Grantor fails to perform any
agreement contained herein, Secured Party may itself perform, or cause
performance of, such agreement, and the expenses of Secured Party incurred in
connection therewith shall be payable by Grantors in accordance with
Section 18(b) hereof.

 

SECTION 14.                     Standard
of Care.

 

The powers conferred on Secured Party hereunder
are solely to protect its interest in the Collateral and shall not impose any
duty upon it to exercise any such powers. 
Except for the exercise of reasonable care in the custody of any
Collateral in its possession and the accounting for moneys actually received by
it hereunder, Secured Party shall have no duty as to 

 

	
   

  	
  XIII-13

  	
  Security Agreement

  

 

any Collateral or as to the
taking of any necessary steps to preserve rights against prior parties or any
other rights pertaining to any Collateral. 
Secured Party shall be deemed to have exercised reasonable care in the
custody and preservation of Collateral in its possession if such Collateral is
accorded treatment substantially equal to that which Secured Party accords its
own property.

 

SECTION 15.                     Remedies.

 

(a)        Generally.  If any
Event of Default shall have occurred and be continuing, Secured Party may,
subject to Section 20 hereof, 
exercise in respect of the Collateral, in addition to all other rights
and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party on default under the UCC (whether or not the
UCC applies to the affected Collateral), and also may (i) require each
Grantor to, and each Grantor hereby agrees that it will at its expense and upon
the request of Secured Party forthwith, assemble all or part of the Collateral
as directed by Secured Party and make it available to Secured Party at a place
to be designated by Secured Party that is reasonably convenient to both
parties, (ii) enter onto the property where any Collateral is located and
take possession thereof with or without judicial process, (iii) prior to
the disposition of the Collateral, store, process, repair or recondition the Collateral
or otherwise prepare the Collateral for disposition in any manner to the extent
Secured Party deems appropriate, (iv) take possession of any Grantor’s
premises or place custodians in exclusive control thereof, remain on such
premises and use the same and any of such Grantor’s equipment for the purpose
of completing any work in process, taking any actions described in the
preceding clause (iii) and collecting any Secured Obligation,
(v) without notice except as specified below, sell the Collateral or any
part thereof in one or more parcels at public or private sale, at any of
Secured Party’s offices or elsewhere, for cash, on credit or for future
delivery, at such time or times and at such price or prices and upon such other
terms as Secured Party may deem commercially reasonable, (vi) exercise
dominion and control over and refuse to permit further withdrawals from any
Deposit Account maintained with Secured Party or any Lender and provide
instructions directing the disposition of funds in Deposit Accounts not maintained
with Secured Party or any Lender and (vii) provide entitlement orders with
respect to Security Entitlements and other Investment Property constituting a
part of the Collateral and, without notice to any Grantor, transfer to or
register in the name of Secured Party or any of its nominees any or all of the
Securities Collateral.  Secured Party or
any Lender or Swap Counterparty may be the purchaser of any or all of the
Collateral at any such sale and Secured Party, as agent for and representative
of Lenders and Swap Counterparties (but not any Lender or Swap Counterparty in
its individual capacity unless Requisite Obligees shall otherwise agree in
writing), shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply any of the Secured Obligations as a
credit on account of the purchase price for any Collateral payable by Secured
Party at such sale.  Each purchaser at
any such sale shall hold the property sold absolutely free from any claim or
right on the part of any Grantor, and each Grantor hereby waives (to the extent
permitted by applicable law) all rights of redemption, stay and/or appraisal
which it now has or may at any time in the future have under any rule of
law or statute now existing or hereafter enacted.  Each Grantor agrees that, to the extent
notice of sale shall be required by law, at least ten days’ notice to such Grantor
of the time and place of any public sale or the time after which any private
sale is to be made shall constitute reasonable notification.  Secured Party shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given.  Secured Party may adjourn any public or
private sale from 

 

	
   

  	
  XIII-14

  	
  Security Agreement

  

 

time to time by announcement
at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned.  Each Grantor hereby waives any claims against
Secured Party arising by reason of the fact that the price at which any
Collateral may have been sold at such a private sale was less than the price
which might have been obtained at a public sale, even if Secured Party accepts
the first offer received and does not offer such Collateral to more than one
offeree.  If the proceeds of any sale or
other disposition of the Collateral are insufficient to pay all the Secured
Obligations, Grantors shall be jointly and severally liable for the deficiency
and the fees of any attorneys employed by Secured Party to collect such
deficiency.  Each Grantor further agrees
that a breach of any of the covenants contained in this Section 15 will
cause irreparable injury to Secured Party, that Secured Party has no adequate
remedy at law in respect of such breach and, as a consequence, that each and
every covenant contained in this Section shall be specifically enforceable
against such Grantor, and each Grantor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants
except for a defense that no default has occurred giving rise to the Secured
Obligations becoming due and payable prior to their stated maturities.

 

(b)        Securities Collateral. 
Each Grantor recognizes that, by reason of certain prohibitions
contained in the Securities Act and applicable state securities laws, Secured
Party may be compelled, with respect to any sale of all or any part of the
Securities Collateral conducted without prior registration or qualification of
such Securities Collateral under the Securities Act and/or such state
securities laws, to limit purchasers to those who will agree, among other
things, to acquire the Securities Collateral for their own account, for
investment and not with a view to the distribution or resale thereof.  Each Grantor acknowledges that any such
private placement may be at prices and on terms less favorable than those
obtainable through a sale without such restrictions (including an offering made
pursuant to a registration statement under the Securities Act) and,
notwithstanding such circumstances, each Grantor agrees that any such private
placement shall not be deemed, in and of itself, to be commercially unreasonable
and that Secured Party shall have no obligation to delay the sale of any
Securities Collateral for the period of time necessary to permit the issuer
thereof to register it for a form of sale requiring registration under the
Securities Act or under applicable state securities laws, even if such issuer
would, or should, agree to so register it. 
If Secured Party determines to exercise its right to sell any or all of
the Securities Collateral, upon the written request of Secured Party, each
Grantor shall and shall cause each issuer of any Securities Collateral to be
sold hereunder from time to time to furnish to Secured Party all such
information as Secured Party may request in order to determine the amount of
Securities Collateral which may be sold by Secured Party in exempt transactions
under the Securities Act and the rules and regulations of the Securities
and Exchange Commission thereunder, as the same are from time to time in
effect.

 

(c)        Collateral Account. 
If an Event of Default has occurred and is continuing, any amounts on
deposit in the Collateral Account, except for funds deposited in the Collateral
Account as described in the next sentence, shall be held by Secured Party and
applied as Obligations become due or, if applicable, pursuant to subsection 2.4D
of the Credit Agreement.  If, in
accordance with Section 8 of the Credit Agreement, Company is required to
pay to Secured Party an amount (the “Aggregate Available Amount”)
equal to the maximum amount that may at any time be drawn under all Letters of
Credit then outstanding under the Credit Agreement, Company shall deliver funds
in such an amount for deposit in the Collateral Account.  Following such deposit in the Collateral
Account, (i) upon any drawing under any 

 

	
   

  	
  XIII-15

  	
  Security Agreement

  

 

outstanding Letter of
Credit, Secured Party shall apply any amount in the Collateral Account to
reimburse the Issuing Lender for the amount of such drawing and (ii) in
the event of cancellation or expiration of any Letter of Credit, or in the
event of any reduction in the maximum available amount under any Letter of
Credit, Secured Party shall apply the amount then on deposit in the Collateral
Account in excess of the Aggregate Available Amount (calculated giving effect
to such cancellation, expiration or reduction) as provided in Section 17
hereof.

 

SECTION 16.                     Additional
Remedies for Intellectual Property Collateral.

 

(a)        Anything
contained herein to the contrary notwithstanding, upon the occurrence and during
the continuation of an Event of Default, (i) Secured Party shall have the
right (but not the obligation) to bring suit, in the name of any Grantor,
Secured Party or otherwise, to enforce any Intellectual Property, in which
event each Grantor shall, upon the request of Secured Party, do any and all
lawful acts and execute any and all documents required or reasonably requested
by Secured Party in aid of such enforcement and each Grantor shall promptly,
upon demand, reimburse and indemnify Secured Party as provided in subsections
10.2 and 10.3 of the Credit Agreement and Section 18 hereof, as
applicable, in connection with the exercise of its rights under this
Section 16, and, to the extent that Secured Party shall elect not to bring
suit to enforce any Intellectual Property as provided in this Section, each
Grantor agrees to use all commercially reasonable measures, whether by action,
suit, proceeding or otherwise, which, in such Grantor’s reasonable judgment are
necessary to prevent the infringement of any of the Intellectual Property
material to such Grantor’s business by others and for that purpose agrees to
use its commercially reasonable judgment in maintaining any action, suit or
proceeding against any Person so infringing reasonably necessary to prevent
such infringement; (ii) upon written demand from Secured Party, each
Grantor shall execute and deliver to Secured Party an assignment or assignments
of the Intellectual Property owned by such Grantor and such other documents as
are necessary or reasonably appropriate to carry out the intent and purposes of
this Agreement, provided, however, upon the occurrence and during the
continuation of an Event of Default, Secured Party shall not require Grantor to
execute and deliver to Secured Party an assignment of any application for a
Trademark which then-current filing basis is Section 1(b) of the
Lanham Act (an “ITU Application”) where such assignment could, in Grantor’s
reasonable business judgment, violate the prohibition against assignment of ITU
Applications contained in Section 10 of the Lanham Act; (iii) each
Grantor agrees that such an assignment and/or recording shall be applied to
reduce the Secured Obligations outstanding only to the extent that Secured
Party (or any Lender) receives cash proceeds in respect of the sale of, or
other realization upon, the Intellectual Property; and (iv) within five
Business Days after written notice from Secured Party, each Grantor shall use
reasonable efforts to make available to Secured Party, to the extent within
such Grantor’s power and authority, such personnel in such Grantor’s employ as
Secured Party may reasonably designate, by name, title or job responsibility,
to permit such Grantor to continue, directly or indirectly, to produce,
advertise and sell the products and services sold or delivered by such Grantor
under or in connection with the Trademarks and Trademark Rights, such persons
to be available to perform their prior functions on Secured Party’s behalf and
to be compensated by Secured Party at such Grantor’s expense on basis
consistent with the salary and benefit structure applicable to each as of the
date of such Event of Default.

 

(b)        If
(i) an Event of Default shall have occurred and, by reason of cure,
waiver, modification, amendment or otherwise, no longer be continuing,
(ii) no other Event of 

 

	
   

  	
  XIII-16

  	
  Security Agreement

  

 

Default shall have occurred
and be continuing, (iii) an assignment to Secured Party of any rights,
title and interests in and to the Intellectual Property shall have been
previously made, and (iv) the Secured Obligations shall not have become
immediately due and payable, upon the written request of any Grantor, Secured
Party shall promptly execute and deliver to such Grantor such assignments as
may be necessary to reassign to such Grantor any such rights, title and
interests as may have been assigned to Secured Party as aforesaid, subject to
any disposition thereof that may have been made by Secured Party; provided,
after giving effect to such reassignment, Secured Party’s security interest
granted pursuant hereto, as well as all other rights and remedies of Secured
Party granted hereunder, shall continue to be in full force and effect; and
provided further, the rights, title and interests so reassigned shall be free
and clear of all Liens other than Liens (if any) encumbering such rights, title
and interest at the time of their assignment to Secured Party and Permitted
Liens.

 

SECTION 17.                     Application
of Proceeds.

 

Except
as expressly provided elsewhere in this Agreement, all proceeds received by
Secured Party in respect of any sale of, collection from, or other realization
upon all or any part of the Collateral shall be applied as provided in the
Credit Agreement.

 

SECTION 18.                     Indemnity
and Expenses.

 

(a)        Grantors
jointly and severally agree to indemnify Secured Party, each Lender and each
Swap Counterparty from and against any and all claims, losses and liabilities
in any way relating to, growing out of or resulting from this Agreement and the
transactions contemplated hereby (including, without limitation, enforcement of
this Agreement), except to the extent such claims, losses or liabilities result
solely from Secured Party’s or such Lender’s or Swap Counterparty’s gross
negligence, bad faith or willful misconduct as finally determined by a court of
competent jurisdiction.

 

(b)        Grantors
jointly and severally agree to pay to Secured Party upon demand the amount of
any and all costs and expenses in accordance with subsection 10.2 of the Credit
Agreement.

 

(c)        The
obligations of Grantors in this Section 18 shall (i) survive the
termination of this Agreement and the discharge of Grantors’ other obligations
under this Agreement, the Lender Swap Agreements, the Credit Agreement and the
other Loan Documents and (ii), as to any Grantor that is a party to a Guaranty,
be subject to the provisions of Section 1(b) thereof.

 

SECTION 19.                     Continuing
Security Interest; Transfer of Loans; Termination and Release.

 

(a)        This
Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect until the payment in full of the
Secured Obligations (other than Unasserted Obligations and obligations under
the Lender Swap Agreements), the cancellation or termination of the
Commitments, the cancellation or expiration of all outstanding Letters of
Credit (or the securing of reimbursement Obligations in respect thereof with
cash collateral or letters of credit in a manner reasonably satisfactory to the
applicable Issuing Lender) 

 

	
   

  	
  XIII-17

  	
  Security Agreement

  

 

and the payment in full of
the Lender Swap Agreements (or the securing of obligations thereunder by a
collateral arrangement reasonably satisfactory to the applicable Swap Counterparty),
(ii) be binding upon Grantors and their respective successors and assigns,
and (iii) inure, together with the rights and remedies of Secured Party
hereunder, to the benefit of Secured Party and its successors, transferees and
assigns.  Without limiting the generality
of the foregoing clause (iii), (A) but subject to the provisions of
subsection 10.1 of the Credit Agreement, any Lender may assign or otherwise
transfer any Loans held by it to any other Person, and such other Person shall
thereupon become vested with all the benefits in respect thereof granted to
Lenders herein or otherwise and (B) any Swap Counterparty may assign or
otherwise transfer any Lender Swap Agreement to which it is a party to any
other Person in accordance with the terms of such Lender Swap Agreement, and
such other Person shall thereupon become vested with all the benefits in
respect thereof granted to Swap Counterparties herein or otherwise.

 

(b)        Upon
the payment in full of all Secured Obligations (other than Unasserted
Obligations and obligations under the Lender Swap Agreements), the cancellation
or termination of the Commitments, the cancellation or expiration of all
outstanding Letters of Credit (or the securing of reimbursement Obligations in
respect thereof with cash collateral or letters of credit in a manner
reasonably satisfactory to the applicable Issuing Lender) and the payment in
full of the Lender Swap Agreements (or the securing of obligations thereunder
by a collateral arrangement satisfactory to the Swap Counterparty in its sole
discretion), the security interest granted hereby (other than with respect to
any cash collateral in respect of Letters of Credit) shall automatically
terminate without any further act or action by the Secured Party and all rights
to the Collateral, including any Intellectual Property assigned to Secured
Party, shall revert to the applicable Grantors, all without delivery of any
instrument or performance of any by any Person. 
To the extent that any assets now owned or hereafter acquired, or to be
acquired, of a Grantor are subject to, or secured by, a Capital Lease
obligation or purchase money security interest which is permitted under the
Credit Agreement and the financing provider or prospective financing provider
in respect thereof reasonably requests in writing that Secured Party release or
subordinate its Liens hereunder on such assets or consent to the first priority
Lien of such financing provider, Secured Party shall, upon Grantor’s reasonable
request in writing, release or subordinate its Lien hereunder on such assets or
consent to the first priority Lien of such financing provider and shall at
Grantor’s sole expense deliver written evidence of such release or
subordination or consent to the first priority Lien of such financing provider,
as applicable to Grantor.  Upon any such
termination Secured Party will, at Grantors’ expense, execute and deliver to
Grantors such documents as Grantors shall reasonably request to evidence such
termination.  In addition, upon the
proposed sale or other disposition of any Collateral by a Grantor in accordance
with the Credit Agreement for which such Grantor desires a security interest
release from Secured Party, such a release may be obtained pursuant to the
provisions of subsection 10.14 of the Credit Agreement.

 

SECTION 20.                     Secured
Party as Agent.

 

(a)        Secured
Party has been appointed to act as Secured Party hereunder by Lenders and, by
their acceptance of the benefits hereof, Swap Counterparties.  Secured Party shall be obligated, and shall
have the right hereunder, to make demands, to give notices, to exercise or
refrain from exercising any rights, and to take or refrain from taking any
action 

 

	
   

  	
  XIII-18

  	
  Security Agreement

  

 

(including, without
limitation, the release or substitution of Collateral), solely in accordance
with this Agreement and the Credit Agreement; provided that Secured Party shall
exercise, or refrain from exercising, any remedies provided for in
Section 15 hereof in accordance with the instructions of Requisite
Obligees.  In furtherance of the
foregoing provisions of this Section 20(a), each Swap Counterparty, by its
acceptance of the benefits hereof, agrees that it shall have no right
individually to realize upon any of the Collateral hereunder, it being
understood and agreed by such Swap Counterparty that all rights and remedies
hereunder may be exercised solely by Secured Party for the benefit of Lenders
and Swap Counterparties in accordance with the terms of this Section 20(a).

 

(b)        Secured
Party shall at all times be the same Person that is Administrative Agent under
the Credit Agreement.  Written notice of
resignation by Administrative Agent pursuant to subsection 9.5 of the Credit
Agreement shall also constitute notice of resignation as Secured Party under
this Agreement; and appointment of a successor Administrative Agent pursuant to
subsection 9.5 of the Credit Agreement shall also constitute appointment of a
successor Secured Party under this Agreement. 
Upon the acceptance of any appointment as Administrative Agent under
subsection 9.5 of the Credit Agreement by a successor Administrative Agent,
that successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Secured Party under this Agreement, and the retiring Secured Party under this
Agreement shall promptly (i) transfer to such successor Secured Party all
sums, securities and other items of Collateral held hereunder, together with
all records and other documents necessary or appropriate in connection with the
performance of the duties of the successor Secured Party under this Agreement,
and (ii) execute (if necessary) and deliver to such successor Secured
Party such amendments to financing statements, and take such other actions, as
may be necessary or appropriate in connection with the assignment to such
successor Secured Party of the security interests created hereunder, whereupon
such retiring Secured Party shall be discharged from its duties and obligations
under this Agreement.  After any retiring
Administrative Agent’s resignation hereunder as Secured Party, the provisions
of this Agreement shall inure to its benefit as to any actions taken or omitted
to be taken by it under this Agreement while it was Secured Party hereunder.

 

(c)        Secured
Party shall not be deemed to have any duty whatsoever with respect to any Swap
Counterparty until it shall have received written notice in form and substance
satisfactory to Secured Party from a Grantor or the Swap Counterparty as to the
existence and terms of the applicable Lender Swap Agreement.

 

SECTION 21.                     Additional
Grantors.

 

The initial Grantors hereunder shall be
Company, Holdings and such of the Subsidiaries of Company as are signatories
hereto on the date hereof.  From time to
time subsequent to the date hereof, additional Subsidiaries of Company may
become Additional Grantors, by executing a Counterpart.  Upon delivery of any such Counterpart to
Secured Party, notice of which is hereby waived by Grantors, each such
Additional Grantor shall be a Grantor and shall be as fully a party hereto as
if such Additional Grantor were an original signatory hereto.  Each Grantor expressly agrees that its
obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Grantor hereunder, nor by any election of 

 

	
   

  	
  XIII-19

  	
  Security Agreement

  

 

Secured Party not to cause
any Subsidiary of Company to become an Additional Grantor hereunder.  This Agreement shall be fully effective as to
any Grantor that is or becomes a party hereto regardless of whether any other
Person becomes or fails to become or ceases to be a Grantor hereunder.

 

SECTION 22.                     Amendments;
Etc.

 

No amendment, modification, termination or
waiver of any provision of this Agreement, and no consent to any departure by
any Grantor therefrom, shall in any event be effective unless the same shall be
in writing and signed by Secured Party and, in the case of any such amendment
or modification, by Grantors; provided this Agreement may be modified by
the execution of a Counterpart by an Additional Grantor in accordance with
Section 21 hereof and Grantors hereby waive any requirement of notice of
or consent to any such amendment.  Any
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which it was given.

 

SECTION 23.                     Notices.

 

Any notice or other communication herein
required or permitted to be given shall be in writing and may be personally
served or sent by telefacsimile or United States mail or courier service and
shall be deemed to have been given when delivered in person or by courier
service, upon receipt of telefacsimile, or three Business Days after depositing
it in the United States mail with postage prepaid and properly addressed; provided
that notices to Secured Party shall not be effective until received.  For the purposes hereof, the address of each
party hereto shall be as provided in subsection 10.8 of the Credit Agreement or
as set forth under such party’s name on the signature pages hereof or such
other address as shall be designated by such party in a written notice
delivered to the other parties hereto.

 

SECTION 24.                     Failure or
Indulgence Not Waiver; Remedies Cumulative.

 

No failure or delay on the part of Secured
Party in the exercise of any power, right or privilege hereunder shall impair
such power, right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such
power, right or privilege preclude any other or further exercise thereof or of
any other power, right or privilege.  All
rights and remedies existing under this Agreement are cumulative to, and not
exclusive of, any rights or remedies otherwise available.

 

SECTION 25.                     Severability.

 

In case any provision in or obligation under
this Agreement shall be invalid, illegal or unenforceable in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

	
   

  	
  XIII-20

  	
  Security Agreement

  

 

 

SECTION 26.                     Headings.

 

Section and subsection headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any
substantive effect.

 

SECTION 27.                     Governing
Law; Rules of Construction.

 

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES,
EXCEPT TO THE EXTENT THAT THE UCC PROVIDES THAT THE PERFECTION OF THE SECURITY
INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
NEW YORK, IN WHICH CASE THE LAWS OF SUCH JURISDICTION SHALL GOVERN WITH RESPECT
TO THE PERFECTION OF THE SECURITY INTEREST IN, OR THE REMEDIES WITH RESPECT TO,
SUCH PARTICULAR COLLATERAL.  The
rules of construction set forth in subsection 1.3 of the Credit Agreement
shall be applicable to this Agreement mutatis mutandis.

 

SECTION 28.                     Consent to
Jurisdiction and Service of Process.

 

ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY
GRANTOR ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY OBLIGATIONS
HEREUNDER, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH
GRANTOR, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY
(I) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION
AND VENUE OF SUCH COURTS; (II) WAIVES ANY DEFENSE OF FORUM NON
CONVENIENS; (III) AGREES THAT SERVICE OF ALL PROCESS IN ANY
SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO SUCH GRANTOR AT ITS ADDRESS PROVIDED IN
ACCORDANCE WITH SECTION 23 HEREOF; (IV) AGREES THAT SERVICE AS
PROVIDED IN CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL
JURISDICTION OVER SUCH GRANTOR IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT;
(V) AGREES THAT SECURED PARTY RETAINS THE RIGHT TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST SUCH GRANTOR IN
THE COURTS OF ANY OTHER JURISDICTION; AND (VI) AGREES THAT THE PROVISIONS
OF THIS SECTION 28 RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND
ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL
OBLIGATIONS LAW SECTION 5-1402 OR OTHERWISE.

 

	
   

  	
  XIII-21

  	
  Security Agreement

  

 

SECTION 29.                     Waiver of
Jury Trial.

 

GRANTORS AND SECURED PARTY HEREBY AGREE TO
WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT. 
THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND
ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT
MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS,
TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS.  EACH GRANTOR AND SECURED PARTY
ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR GRANTORS AND SECURED
PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT GRANTORS AND SECURED PARTY
HAVE ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT
EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH GRANTOR AND SECURED PARTY FURTHER
WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED
EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY
REFERRING TO THIS SECTION 29 AND EXECUTED BY EACH OF THE PARTIES HERETO),
AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT.  In
the event of litigation, this Agreement may be filed as a written consent to a
trial by the court.

 

SECTION 30.                     Counterparts.

 

This Agreement may be executed in one or more
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are
physically attached to the same document.

 

SECTION 31.                     Definitions.

 

(a)        Each
capitalized term utilized in this Agreement that is not defined in the Credit
Agreement or in this Agreement, but that is defined in the UCC, including the
categories of Collateral listed in Section 1 hereof, shall have the
meaning set forth in Articles 1, 8 or 9 of the UCC.

 

(b)        In
addition, the following terms used in this Agreement shall have the following
meanings:

 

“Additional Grantor” means a Subsidiary of Company that becomes a
party hereto after the date hereof as an additional Grantor by executing a
Counterpart.

 

“Beneficiary” means Administrative Agent, each Lender and
each Swap Counterparty.

 

	
   

  	
  XIII-22

  	
  Security Agreement

  

 

“Collateral” has the meaning set forth in Section 1
hereof.

 

“Collateral Access Agreement” means any landlord waiver, mortgagee waiver,
bailee letter or similar acknowledgment or agreement of a landlord or mortgagee
in respect of any real property where any Collateral is located.

 

“Collateral Account” means the “[FTD Group, Inc.] Collateral
Account” established pursuant to Section 11 hereof.

 

“Copyright Registrations” means all copyright registrations issued to
any Grantor and applications for copyright registration that have been or may
hereafter be filed in the United States and in foreign countries (including,
without limitation, the registrations set forth on Schedule 10 annexed
hereto, as the same may be amended pursuant hereto from time to time).

 

“Copyright Rights” means all common law and other rights in and
to Copyrights in the United States and in foreign countries including all
copyright licenses (but with respect to such copyright licenses, only to the
extent permitted by such licensing arrangements), the right (but not the
obligation) to renew and extend Copyright Registrations and any such rights and
to register works protectable by copyright and the right (but not the obligation)
to sue in the name of any Grantor or in the name of Secured Party or Lenders
for past, present and future infringements of the Copyrights and any such
rights.

 

“Copyrights” means all items under copyright in various
published and unpublished works of authorship (including, without limitation,
copyrights, if any, in computer programs, computer data bases, other computer
software layouts, trade dress, drawings, designs, writings, and formulas),
including, without limitation, each of the copyrights, all derivative works and
other works protectable by copyright, which are presently, or in the future may
be, owned, created (as a work for hire for the benefit of such Grantor),
authored (as a work for hire for the benefit of such Grantor), or acquired by
such Grantor, in whole or in part, and all Copyright Rights with respect
thereto and all Copyright Registrations therefor, heretofore or hereafter
granted or applied for, and all renewals and extensions thereof, throughout the
world (including, without limitation, in any works which are the subject of the
Copyright Registrations set forth on Schedule 10 annexed hereto, as the
same may be amended pursuant hereto from time to time).

 

“Counterpart” means a counterpart to this Agreement
entered into by a Subsidiary of Company pursuant to Section 21 hereof.

 

“Credit Agreement” has the meaning set forth in the Preliminary
Statements of this Agreement.

 

“Equity Interests” means all shares of stock, partnership
interests, limited liability company interests and all other equity interests
in a Person, whether such stock or interests are classified as Investment
Property or General Intangibles under the UCC.

 

“Event of Default” means any Event of Default as defined in the
Credit Agreement [ or, after payment in full of all Obligations under the
Credit Agreement and the other Loan Documents, the cancellation or expiration
of all Letters of Credit and the termination of the Commitments, the occurrence
of an Early Termination Date (as defined in a Master Agreement 

 

	
   

  	
  XIII-23

  	
  Security Agreement

  

 

in the form prepared by the
International Swap and Derivatives Association, Inc. or a similar event
under any similar swap agreement) under any Lender Swap Agreement].

 

“Foreign Subsidiary” means any entity organized under the laws of
a jurisdiction other than the United States, the District of Columbia or a
State of the United States.

 

“Grant” means a Grant of Trademark Security
Interest, substantially in the form of Exhibit I annexed hereto, and a
Grant of Patent Security Interest, substantially in the form of Exhibit II
annexed hereto, and a Grant of Copyright Security Interest, substantially in
the form of Exhibit III annexed hereto.

 

“Intellectual Property” means, with respect to any Grantor all
right, title and interest (including rights acquired pursuant to a license or
otherwise but only to the extent permitted by agreements governing such license
or other use) in and to all intellectual property, including, without
limitation, all:

 

(a)        Copyrights,
Copyright Registrations and Copyright Rights;

 

(b)        Patents;

 

(c)        Trademarks,
Trademark Registrations, the Trademark Rights and goodwill of such Grantor’s
business connected with the use of and symbolized by the Trademarks;

 

(d)        all
trade secrets, trade secret rights, know-how, customer lists, processes of
production, ideas, confidential business information, techniques, processes,
formulas, and all other proprietary information; and

 

(e)        all
proceeds thereof (such as, by way of example and not by limitation, license
royalties and proceeds of infringement suits).

 

“ITU Application” has the meaning assigned to such term in
Section 16(a) hereof.

 

“Lanham Act” means 15 U.S.C. § 1051 et. seq., as
amended..

 

“Lender Swap Agreement” means an Interest Rate Agreement, Currency
Agreement or other swap agreement between Company or a Subsidiary of Company
and a Swap Counterparty.

 

“Patents” means all patents and patent applications
and rights and interests in patents and patent applications under any domestic
or foreign law that are presently, or in the future may be, owned or held by a
Grantor and all patents and patent applications and rights, title and interests
in patents and patent applications under any domestic or foreign law that are
presently, or in the future may be, owned by such Grantor in whole or in part
(including, without limitation, the patents and patent applications set forth
on Schedule 9 annexed hereto), all re-issues, re-examinations,
divisions, continuations, renewals, extensions and continuations-in-part
thereof, and all rights (but not obligations) corresponding thereto to sue for
past, present and future infringements.

 

“Permitted Liens” has the meaning assigned to such term in
Section 4(a) hereof.

 

	
   

  	
  XIII-24

  	
  Security Agreement

  

 

“Pledged Debt” means the Indebtedness from time to time
owed to a Grantor, including the Indebtedness set forth on Schedule 7
annexed hereto and issued by the obligors named therein, the Instruments and
certificates evidencing such Indebtedness and all interest, cash or other
property received, receivable or otherwise distributed in respect of or
exchanged therefor.

 

“Pledged Equity” means all Equity Interests now or hereafter
owned by a Grantor, including all securities convertible into, and rights,
warrants, options and other rights to purchase or otherwise acquire, any of the
foregoing, including those owned on the date hereof and set forth on Schedule
6 annexed hereto, the certificates or other instruments representing any of
the foregoing and any interest of such Grantor in the entries on the books of
any securities intermediary pertaining thereto and all distributions, dividends
and other property received, receivable or otherwise distributed in respect of
or exchanged therefor.

 

“Pledged Subsidiary Debt” means Pledged Debt owed to a Grantor by any
obligor that is, or becomes, a direct or indirect Subsidiary of such Grantor,
of which such Grantor is a direct or indirect Subsidiary or that controls, is
controlled by or under common control with such Grantor.

 

“Pledged Subsidiary Equity” means Pledged Equity in a Person that is, or
becomes a direct Subsidiary of a Grantor.

 

“Pledge Supplement” means a Pledge Supplement, in substantially
the form of Exhibit IV annexed hereto, in respect of the additional
Pledged Equity or Pledged Debt pledged pursuant to this Agreement.

 

“Requisite Obligees” means either (i) Requisite Lenders or
(ii), after payment in full of all Obligations under the Credit Agreement and
the other Loan Documents, the cancellation or expiration of all Letters of
Credit (or the securing of reimbursement Obligations in respect thereof with
cash collateral or letters of credit in a manner reasonably satisfactory to the
applicable Issuing Lender) and the termination of the Commitments, the holders
of a majority of (A) the aggregate notional amount under all Lender Swap
Agreements (including Lender Swap Agreements that have been terminated) or (B),
if all Lender Swap Agreements have been terminated in accordance with their
terms, the aggregate amount then due and payable (exclusive of expenses and
similar payments but including any early termination payments then due) under
such Lender Swap Agreements.

 

“Secured Obligations” has the meaning set forth in Section 2
hereof.

 

“Securities Collateral”
means, with respect to any Grantor, the Pledged Equity, the Pledged Debt and
any other Investment Property in which such Grantor has an interest.

 

“Swap Counterparty” means a Person that enters into a swap
agreement with Company or a Subsidiary and is a Lender or an Affiliate of a
Lender at the time such agreement is entered into.

 

“Trademark Registrations” means all registrations that have been or
may hereafter be issued or applied for thereon in the United States and any
state thereof and in foreign countries (including, without limitation, the
registrations set forth on Schedule 8 annexed hereto).

 

	
   

  	
  XIII-25

  	
  Security Agreement

  

 

“Trademark Rights” means all common law and other rights (but
in no event any of the obligations) in and to the Trademarks in the United
States and any state thereof and in foreign countries.

 

“Trademarks” means all trademarks, service marks,
designs, logos, indicia, trade names, trade dress, corporate names, company
names, business names, fictitious business names, trade styles and/or other
source and/or business identifiers and applications pertaining thereto, owned
by a Grantor, or hereafter adopted and used, in its business (including,
without limitation, the trademarks specifically set forth on Schedule 8
annexed hereto).

 

“UCC” means the Uniform Commercial Code, as it
exists on the date of this Agreement or as it may hereafter be amended, in the
State of New York.

 

[Remainder of page intentionally left blank]

 

	
   

  	
  XIII-26

  	
  Security Agreement

  

 

IN WITNESS WHEREOF, Grantors1 and Secured Party have caused this Agreement
to be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

 

 

	
   

  	
  UNOL INTERMEDIATE, INC.,
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNOLA CORP.,
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD GROUP, INC.,
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD, INC., as
  Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY,

  
	
   

  	
  INC., as
  Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

1 Grantors to be confirmed

 

	
   

  	
  XIII-S-1

  	
  Security Agreement

  

 

	
   

  	
  FTD.COM, INC.,
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Notice Address for each entity
  listed on

  Schedule A annexed hereto.

  
							

 

	
   

  	
  XIII-S-2

  	
  Security Agreement

  

 

	
   

  	
   

  	
  WELLS FARGO BANK, NATIONAL

  
	
   

  	
   

  	
  ASSOCIATION

  
	
   

  	
   

  	
  as Administrative
  Agent, as Secured Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  Wells Fargo Bank,
  National Association

  
	
   

  	
  Financial Sponsors
  Group

  
	
   

  	
  333 S. Grand Avenue,
  9th Floor

  
	
   

  	
  Los
  Angeles, California 90071

  
							

 

	
   

  	
  XIII-S-3

  	
  Security Agreement

  

 

 

SCHEDULE A

TO

SECURITY AGREEMENT

 

	
  Name

  	
   

  	
  Notice Address for each
  Grantor

  	
   

  
	
  FTD
  Group, Inc.

  	
   

  	
  3113 Woodcreek Drive,
  Downers Grove, DuPage County, Illinois 60515

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  UNOLA
  Corp.

  	
   

  	
  [Please provide
  address.]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  UNOL
  Intermediate Inc.

  	
   

  	
  [Please provide address.]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  FTD.COM
  Inc.

  	
   

  	
  3113 Woodcreek Drive,
  Downers Grove, DuPage County, Illinois 60515

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Florists’
  Transworld Delivery, Inc.

  	
   

  	
  3113 Woodcreek Drive,
  Downers Grove, DuPage County, Illinois 60515

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  FTD, Inc.

  	
   

  	
  3113 Woodcreek Drive,
  Downers Grove, DuPage County, Illinois 60515

  	
   

  

 

	
   

  	
  XIII-Schedule A-1

  	
  Security
  Agreement

  

 

SCHEDULE 1

TO

SECURITY AGREEMENT

 

Commercial
Tort Claims

 

	
   

  	
  XIII-Schedule 1-1

  	
  Security
  Agreement

  

 

SCHEDULE 2

TO

SECURITY AGREEMENT

 

Filing
Offices

 

	
  Grantor

  	
  Filing Offices

  
	
   

  	
   

  
	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 2-1

  	
  Security
  Agreement

  

 

SCHEDULE 3

TO

SECURITY AGREEMENT

 

Office
Locations, Type and Jurisdiction of Organization

 

	
  Name of

  Grantor

  	
   

  	
  Type of

  Organization

  	
   

  	
  Office

  Locations1

  	
   

  	
  Jurisdiction
  of

  Organization

  	
   

  	
  Organization

  Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1 List
chief executive office

 

	
   

  	
  XIII-Schedule 3-1

  	
  Security
  Agreement

  

 

SCHEDULE 4

TO

SECURITY AGREEMENT

 

Locations
of Equipment and Inventory

 

	
  Name of
  Grantor

  	
  Locations
  of Equipment and Inventory

  
	
   

  	
   

  
	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 4-1

  	
  Security
  Agreement

  

 

SCHEDULE 5

TO

SECURITY AGREEMENT

 

Other
Names

 

	
  Name of
  Grantor

  	
  Other
  Names

  
	
   

  	
   

  
	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 5-1

  	
  Security
  Agreement

  

 

SCHEDULE 6

TO

SECURITY AGREEMENT

 

	
  Equity
  Issuer

  	
  Class

  of

  Equity

  	
  Equity

  Certificate Nos.

  	
  Par

  Value

  	
  Amount
  of

  Equity Interests

  	
  Percentage
  of

  Outstanding

  Equity Pledged

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 6-1

  	
  Security
  Agreement

  

 

SCHEDULE 7

TO

SECURITY AGREEMENT

 

	
  

  Debt Issuer

  	
  Amount
  of

  Indebtedness

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 7-1

  	
  Security
  Agreement

  

 

SCHEDULE 8

TO

SECURITY AGREEMENT

 

U.S. Trademarks:

 

	
  

  Registered Owner

  	
  Trademark

  Description

  	
  Registration

  Number

  	
  Registration

  Date

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 8-1

  	
  Security
  Agreement

  

 

SCHEDULE 9

TO

SECURITY AGREEMENT

 

U.S. Patents Issued:

 

	
  Patent No.

  	
  Issue Date

  	
  Title

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

U.S. Patents Pending:

 

	
  Date

  Filed

  	
  Application

  Number

  	
  Title

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 9-1

  	
  Security
  Agreement

  

 

 

SCHEDULE 10

TO

SECURITY AGREEMENT

 

U.S.
Copyright Registrations:

 

	
  Title

  	
  Registration No.

  	
  Date of Issue

  	
  Registered Owner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Pending
U.S. Copyright Applications:

 

	
  Title

  	
  Date of
  Application

  	
  Copyright
  Claimant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 10-1

  	
  Security
  Agreement

  

 

SCHEDULE 11

TO

SECURITY AGREEMENT

 

Deposit
Accounts, Securities Accounts, Commodity Accounts

 

	
  Type of Account

  	
  Depository Bank
  or

  Securities Intermediary

  	
  Address of
  Depository Bank

  or Securities Intermediary

  	
  Account Number

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-Schedule 11-1

  	
  Security
  Agreement

  

 

SCHEDULE 12 

TO

SECURITY AGREEMENT

 

Chattel
Paper

 

	
   

  	
  XIII-Schedule 12-1

  	
  Security Agreement

  

 

SCHEDULE 13 

TO

SECURITY AGREEMENT

 

Letter-of-Credit
Rights

 

	
   

  	
  XIII-Schedule 13-1

  	
  Security
  Agreement

  

 

SCHEDULE 14 

TO

SECURITY AGREEMENT

 

Documents

 

	
   

  	
  XIII-Schedule 14-1

  	
  Security
  Agreement

  

 

EXHIBIT I TO

SECURITY AGREEMENT

 

[FORM OF] GRANT OF TRADEMARK SECURITY INTEREST

 

This GRANT OF TRADEMARK
SECURITY INTEREST (this “Grant”), dated
[_____], 2008 is by and among, Florists’
Transworld Delivery, Inc., a Michigan corporation, FTD Group, Inc., a
Delaware corporation, FTD, Inc., a Delaware corporation,  FTD.COM Inc., a Delaware corporation, UNOLA
Corp., a Delaware corporation and UNOL Intermediate, Inc., a Delaware
corporation, (each located at [3113 Woodcreek Drive, Downers Grove, DuPage County,
Illinois 60515]1,  each, a “Grantor” and collectively, the “Grantors”)
and Wells Fargo Bank, National Association, as sole lead arranger, sole book
manager and administrative agent for Lenders (in such capacity, “Administrative Agent,” and referred to herein as “Secured Party”).  Each
capitalized term utilized in this Grant that is not defined in the Security
Agreement, the Credit Agreement or in this Grant, but that is defined in the
UCC shall have the meaning set forth in Articles 1, 8 or 9 of the UCC.

 

WHEREAS, each Grantor owns and uses in its business,
and will, in the future adopt and so use, various intangible assets, including
the Trademark Collateral (as defined below);

 

WHEREAS, UNOLA Corp. (and following the Merger, FTD
Group, Inc., a Delaware corporation, collectively, the”Company”), has entered into a Credit Agreement dated as of August 4,
2008 (said Credit Agreement, as it may heretofore have been and as it may
hereafter be further amended, restated, supplemented, amended and restated or
otherwise modified from time to time, being the “Credit
Agreement”) with the financial institutions party thereto from time
to time (each, individually referred to herein as a “Lender”
and collectively, as “Lenders”) and
Secured Party pursuant to which Lenders have made certain commitments, subject
to the terms and conditions set forth in the Credit Agreement, to extend
certain credit facilities to Company;

 

WHEREAS, Company may from time to time enter, or may
from time to time have entered, into one or more swap agreements (collectively,
the “Lender Swap Agreements”) with one or
more Persons that are Lenders or Affiliates of Lenders at the time such Lender
Swap Agreements are entered into (in such capacity, collectively, “Swap Counterparties”); and

 

WHEREAS, certain Grantors have executed and
delivered that certain Guaranty dated as of [_____], 2008 (said Guaranty, as it
may heretofore have been and as it may hereafter be further amended, restated,
supplemented, amended and restated or otherwise modified from time to time,
being the “Guaranty”), in favor of Secured Party
for the benefit of Lenders and any Swap Counterparties, pursuant to which such
Grantors have guarantied the prompt payment and performance when due of all
obligations of Company under the Credit Agreement and the other Loan Documents
and all obligations of Company under the Lender Swap Agreements, including,
without limitation, the obligation of Company to make payments thereunder in
the event of early termination thereof; and

 

1 Confirming address of each Grantor.

 

	
   

  	
  XIII-I-1

  	
  Grant of Trademark
  Security Interest

  to Security Agreement

  

 

WHEREAS, pursuant to the terms of a Security
Agreement dated as of [_____], 2008 (said Security Agreement, as it may
heretofore have been and as it may hereafter be further amended, restated,
supplemented, amended and restated or otherwise modified from time to time,
being the “Security Agreement”), among the
Grantors, Secured Party and the other grantors named therein, each Grantor has
created in favor of Secured Party a security interest in, and Secured Party has
become a secured creditor with respect to, the Trademark Collateral;

 

NOW, THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, subject to the terms and
conditions of the Security Agreement, to evidence further the security interest
granted by the Grantors to Secured Party pursuant to the Security Agreement,
each Grantor hereby grants to Secured Party a security interest in all of such
Grantor’s right, title and interest in and to the following, in each case
whether now or hereafter existing or in which such Grantor now has or hereafter
acquires an interest and wherever the same may be located (the “Trademark Collateral”):

 

(i)         all trademarks, service marks, designs,
logos, indicia, trade names, trade dress, corporate names, company names,
business names, fictitious business names, trade styles and/or other source
and/or business identifiers and applications pertaining thereto, owned by such
Grantor, or hereafter adopted and used, in its business (including, without
limitation, the trademarks set forth on Schedule A annexed hereto)
(collectively, the “Trademarks”),
all registrations that have been or may hereafter be issued or applied for
thereon in the United States and any state thereof and in foreign countries
(including, without limitation, the registrations and applications set forth on
Schedule A annexed hereto), all common law and other rights (but in no
event any of the obligations) in and to the Trademarks in the United States and
any state thereof and in foreign countries, and all goodwill of such Grantor’s
business connected with the use of and symbolized by the Trademarks; and

 

(ii)        all Proceeds and Accessions with respect
to any of the foregoing.

 

Notwithstanding anything herein to the
contrary, in no event shall the “Collateral” include, and no Grantor shall be
deemed to have granted a security interest in any of such Grantor’s rights in
or under, any United States intent-to-use trademark or service mark application
to the extent that, and solely during the period prior to the filing of
evidence of use of such trademark or service mark, the grant of a security interest
therein would invalidate such intent-to-use trademark or service mark
application under Federal law.

 

Each Grantor does hereby further acknowledge
and affirm that the rights and remedies of Secured Party with respect to the
security interest in the Trademark Collateral granted hereby are more fully set
forth in the Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein.

 

[The remainder of
this page is intentionally left blank.]

 

	
   

  	
  XIII-I-2

  	
  Grant of Trademark
  Security Interest

  to Security Agreement

  

 

IN WITNESS WHEREOF, each Grantor has caused this GRANT OF
TRADEMARK SECURITY INTEREST to be duly executed and delivered by its officer
thereunto duly authorized as of the [__] day of [_______], 2008.

 

	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNOLA CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNOL INTERMEDIATE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD.COM INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
   

  	
  XIII-I-3

  	
  Grant of Trademark
  Security Interest

  to Security Agreement

  

 

SCHEDULE A

TO

GRANT OF TRADEMARK SECURITY INTEREST

 

	
  Owner

  	
  Trademark

  	
  Registration/

  Application Number

  	
  Registration/

  Application Date

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-1-A-1

  	
  Grant of Trademark
  Security Interest

  to Security Agreement

  

 

 

EXHIBIT II TO

SECURITY AGREEMENT

 

[FORM OF] GRANT OF PATENT SECURITY INTEREST

 

This GRANT OF PATENT SECURITY
INTEREST (this “Grant”),  dated [_____], 2008 is by and among, Florists’ Transworld Delivery, Inc., a Michigan
corporation, FTD Group, Inc., a Delaware corporation, FTD, Inc., a
Delaware corporation,  FTD.COM Inc., a
Delaware corporation, UNOLA Corp., a Delaware corporation and UNOL Intermediate, Inc.,
a Delaware corporation, (each located at [3113 Woodcreek Drive, Downers Grove,
DuPage County, Illinois 60515]1,  each, a “Grantor” and
collectively, the “Grantors”) and
Wells Fargo Bank, National Association, as sole lead arranger, sole book
manager and administrative agent for Lenders (in such capacity, “Administrative Agent,” and referred to herein as “Secured Party”).  Each
capitalized term utilized in this Grant that is not defined in the Security
Agreement, the Credit Agreement or in this Grant, but that is defined in the
UCC shall have the meaning set forth in Articles 1, 8 or 9 of the UCC.

 

WHEREAS, each Grantor owns and uses in its business,
and will, in the future adopt and so use, various intangible assets, including
the Patent Collateral (as defined below);

 

WHEREAS, UNOLA Corp. (and following the Merger, FTD
Group, Inc., a Delaware corporation, collectively, the”Company”), has entered into a Credit Agreement dated as of August 4,
2008 (said Credit Agreement, as it may heretofore have been and as it may
hereafter be further amended, restated, supplemented, amended and restated or
otherwise modified from time to time, being the “Credit
Agreement”) with the financial institutions party thereto from time
to time (each, individually referred to herein as a “Lender”
and collectively, as “Lenders”) and
Secured Party pursuant to which Lenders have made certain commitments, subject
to the terms and conditions set forth in the Credit Agreement, to extend
certain credit facilities to Company;

 

WHEREAS, Company may from time to time enter, or may
from time to time have entered, into one or more swap agreements (collectively,
the “Lender Swap Agreements”) with one or
more Persons that are Lenders or Affiliates of Lenders at the time such Lender
Swap Agreements are entered into (in such capacity, collectively, “Swap Counterparties”); and

 

WHEREAS, certain Grantors have executed and
delivered that certain Guaranty dated as of [_____], 2008 (said Guaranty, as it
may heretofore have been and as it may hereafter be further amended, restated,
supplemented, amended and restated or otherwise modified from time to time,
being the “Guaranty”), in favor of Secured Party
for the benefit of Lenders and any Swap Counterparties, pursuant to which such
Grantors have guarantied the prompt payment and performance when due of all
obligations of Company under the Credit Agreement and the other Loan Documents
and all obligations of Company under the Lender Swap Agreements, including,
without limitation, the obligation of Company to make payments thereunder in
the event of early termination thereof; and

 

1

 

	
   

  	
  XIII-II-1

  	
  Grant of Patent Security
  Interest

  to Security Agreement

  

 

WHEREAS, pursuant to the terms of a Security
Agreement dated as of [_____], 2008 (said Security Agreement, as it may
heretofore have been and as it may hereafter be further amended, restated,
supplemented, amended and restated or otherwise modified from time to time,
being the “Security Agreement”), among the
Grantors, Secured Party and the other grantors named therein, each Grantor has
created in favor of Secured Party a security interest in, and Secured Party has
become a secured creditor with respect to, the Patent Collateral;

 

NOW, THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, subject to the terms and
conditions of the Security Agreement, to evidence further the security interest
granted by the Grantors to Secured Party pursuant to the Security Agreement,
each Grantor hereby grants to Secured Party a security interest in all of such
Grantor’s right, title and interest in and to the following, in each case
whether now or hereafter existing or in which such Grantor now has or hereafter
acquires an interest and wherever the same may be located (the “Patent Collateral”):

 

(i)         all patents and patent applications and
rights and interests in patents and patent applications under any domestic or
foreign law that are presently, or in the future may be, owned or held by such
Grantor and all patents and patent applications and rights, title and interests
in patents and patent applications under any domestic or foreign law that are
presently, or in the future may be, owned by such Grantor in whole or in part
(including, without limitation, the patents and patent applications set forth
on Schedule A annexed hereto), all re-issues, re-examinations,
divisions, continuations, renewals, extensions and continuations-in-part
thereof and all rights (but not obligations) corresponding thereto to sue for
past, present and future infringements; and

 

(ii)        all Proceeds and Accessions with respect
to any of the foregoing.

 

Each Grantor does hereby further acknowledge
and affirm that the rights and remedies of Secured Party with respect to the
security interest in the Patent Collateral granted hereby are more fully set
forth in the Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein.

 

[The remainder of
this page intentionally left blank.]

 

	
   

  	
  XIII-II-2

  	
  Grant of Patent Security
  Interest

  to Security Agreement

  

 

IN WITNESS WHEREOF, each Grantor has caused this GRANT OF
PATENT SECURITY INTEREST to be duly executed and delivered by its officer
thereunto duly authorized as of the [___] day of [____________], 2008.

 

	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNOLA CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNOL INTERMEDIATE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD.COM INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
   

  	
  XII-II-3

  	
  Grant of Patent Security
  Interest

  to Security Agreement

  

 

SCHEDULE A

TO

GRANT OF PATENT SECURITY INTEREST

 

Patents Issued:

 

	
  Patent No.

  	
  Issue Date

  	
  Title

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Patents Pending:

 

	
  Applicant(s’)

  Name

  	
  Date

  Filed

  	
  Application

  Number

  	
  Title

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-II-A-1

  	
  Grant of Patent Security
  Interest

  to Security Agreement

  

 

EXHIBIT III TO

SECURITY AGREEMENT

 

[FORM OF] GRANT OF COPYRIGHT SECURITY INTEREST

 

This GRANT OF COPYRIGHT
SECURITY INTEREST (this “Grant”),  dated [_____], 2008 is by and among, Florists’ Transworld Delivery, Inc., a Michigan
corporation, FTD Group, Inc., a Delaware corporation, FTD, Inc., a
Delaware corporation,  FTD.COM Inc., a
Delaware corporation, UNOLA Corp., a Delaware corporation and UNOL Intermediate, Inc.,
a Delaware corporation, (each located at [3113 Woodcreek Drive, Downers Grove,
DuPage County, Illinois 60515]1,  each, a “Grantor” and
collectively, the “Grantors”) and
Wells Fargo Bank, National Association, as sole lead arranger, sole book
manager and administrative agent for Lenders (in such capacity, “Administrative Agent,” and referred to herein as “Secured Party”).  Each
capitalized term utilized in this Grant that is not defined in the Security
Agreement, the Credit Agreement or in this Grant, but that is defined in the
UCC shall have the meaning set forth in Articles 1, 8 or 9 of the UCC.

 

WHEREAS, each Grantor owns and uses in its business,
and will, in the future adopt and so use, various intangible assets, including
the Copyright Collateral (as defined below);

 

WHEREAS, UNOLA Corp. (and following the Merger, FTD
Group, Inc., a Delaware corporation, collectively, the”Company”), has entered into a Credit Agreement dated as of August 4,
2008 (said Credit Agreement, as it may heretofore have been and as it may
hereafter be further amended, restated, supplemented, amended and restated or
otherwise modified from time to time, being the “Credit
Agreement”) with the financial institutions party thereto from time
to time (each, individually referred to herein as a “Lender”
and collectively, as “Lenders”) and
Secured Party pursuant to which Lenders have made certain commitments, subject
to the terms and conditions set forth in the Credit Agreement, to extend
certain credit facilities to Company;

 

WHEREAS, Company may from time to time enter, or may
from time to time have entered, into one or more swap agreements (collectively,
the “Lender Swap Agreements”) with one or
more Persons that are Lenders or Affiliates of Lenders at the time such Lender
Swap Agreements are entered into (in such capacity, collectively, “Swap Counterparties”); and

 

WHEREAS, certain Grantors have executed and
delivered that certain Guaranty dated as of [_____], 2008 (said Guaranty, as it
may heretofore have been and as it may hereafter be further amended, restated,
supplemented, amended and restated or otherwise modified from time to time,
being the “Guaranty”), in favor of Secured Party
for the benefit of Lenders and any Swap Counterparties, pursuant to which such
Grantors have guarantied the prompt payment and performance when due of all
obligations of Company under the Credit Agreement and the other Loan Documents
and all obligations of Company under the Lender Swap Agreements, including,
without limitation, the obligation of Company to make payments thereunder in
the event of early termination thereof; and

 

1 Confirming
address of each Grantor.

 

	
   

  	
  XIII-III-1

  	
  Grant of Copyright
  Security Interest

  to Security Agreement

  

 

WHEREAS, pursuant to the terms of a Security
Agreement dated as of [_____], 2008 (said Security Agreement, as it may
heretofore have been and as it may hereafter be further amended, restated,
supplemented or otherwise modified from time to time, being the “Security Agreement”), among the Grantors, Secured Party and
the other grantors named therein, each Grantor created in favor of Secured
Party a security interest in, and Secured Party has become a secured creditor
with respect to, the Copyright Collateral;

 

NOW, THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, subject to the terms and
conditions of the Security Agreement, to evidence further the security interest
granted by the Grantors to Secured Party pursuant to the Security Agreement,
each Grantor hereby grants to Secured Party a security interest in all of such
Grantor’s right, title and interest in and to the following, in each case
whether now or hereafter existing or in which such Grantor now has or hereafter
acquires an interest and wherever the same may be located (the “Copyright Collateral”):

 

(i)  all
copyright registrations issued to any Grantor and applications for copyright
registration that have been or may hereafter be filed in the United States and
in foreign countries (including, without limitation, the registrations set
forth on Schedule A annexed hereto, as the same may be amended pursuant
hereto from time to time) (collectively, the “Copyright
Registrations”);

 

(ii) all
items under copyright in various published and unpublished works of authorship
(including, without limitation, copyrights, if any, in computer programs,
computer data bases, other computer software layouts, trade dress, drawings,
designs, writings, and formulas), including, without limitation, each of the
copyrights, all derivative works and other works protectable by copyright,
which are presently, or in the future may be, owned, created (as a work for
hire for the benefit of such Grantor), or acquired by such Grantor, in whole or
in part, and all Copyright Rights (as defined below) with respect thereto and
all Copyright Registrations therefor, heretofore or hereafter granted or
applied for, and all renewals and extensions thereof, throughout the world
(including, without limitation, in any works which are the subject of the
Copyright Registrations set forth on Schedule A annexed hereto, as
the same may be amended pursuant hereto from time to time) (collectively, the “Copyrights”);

 

(iii) all
common law and other rights in and to Copyrights in the United States and in
foreign countries including all copyright licenses (but with respect to such
copyright licenses, only to the extent permitted by such licensing
arrangements), the right (but not the obligation) to renew and extend Copyright
Registrations and any such rights and to register works protectable by
copyright and the right (but not the obligation) to sue in the name of any
Grantor or in the name of Secured Party or Lenders for past, present and future
infringements of the Copyrights and any such rights (collectively, the “Copyright Rights”); and

 

(iv) all
Proceeds, and Accessions with respect to any of the foregoing.

 

Each Grantor does hereby further acknowledge
and affirm that the rights and remedies of Secured Party with respect to the
security interest in the Copyright Collateral granted 

 

	
   

  	
  XIII-III-2

  	
  Grant of Copyright
  Security Interest

  to Security Agreement

  

 

 

hereby are more fully set
forth in the Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein.

 

	
   

  	
  XIII-III-3

  	
  Grant of Copyright
  Security Interest

  to Security Agreement

  

 

IN WITNESS WHEREOF, each Grantor has caused this GRANT OF
COPYRIGHT SECURITY INTEREST to be duly executed and delivered by its officer
thereunto duly authorized as of the [___] day of [___________], [_____].

 

	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNOLA CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNOL INTERMEDIATE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD.COM INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
   

  	
  XIII-III-4

  	
  Grant of Copyright
  Security Interest

  to Security Agreement

  

 

SCHEDULE A

TO

GRANT OF COPYRIGHT SECURITY INTEREST

 

U.S. Copyright Registrations:

 

	
  Title

  	
  Registration No.

  	
  Date of Issue

  	
  Registered Owner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Pending U.S. Copyright Applications:

 

	
  Title

  	
  Application No.

  	
  Date of
  Application

  	
  Copyright
  Claimant

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  XIII-IV-1

  	
  Pledge Supplement

  to Security Agreement

  

 

EXHIBIT IV TO

SECURITY AGREEMENT

 

PLEDGE SUPPLEMENT

 

This Pledge Supplement, dated as of [__________________],
is delivered pursuant to the Security Agreement, dated as of [_____], 2008
between [____________________], a [_______________] (“Grantor”),
the other Grantors named therein, and Wells Fargo Bank, National Association,
as Secured Party (said Security Agreement, as it may heretofore have been and
as it may hereafter be further amended, restated, supplemented, amended and
restated or otherwise modified from time to time, being the “Security Agreement”). 
Capitalized terms used herein not otherwise defined herein shall have
the meanings ascribed thereto in the Security Agreement.

 

Grantor hereby agrees that the [Pledged
Equity] [Pledged Debt] set forth on Schedule A annexed hereto shall be deemed
to be part of the [Pledged Equity] [Pledged Debt] and shall become part of the
Securities Collateral and shall secure all Secured Obligations.

 

IN WITNESS WHEREOF, Grantor has caused this Pledge Supplement
to be duly executed and delivered by its duly authorized officer as of [_______________].

 

	
   

  	
  [GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
					

 

	
   

  	
  XIII-IV-1

  	
  Pledge Supplement

  to Security Agreement

  

 

 

SCHEDULE A

TO

PLEDGE SUPPLEMENT

 

	
   

  	
  XIII-IV-A-1

  	
  Pledge Supplement 

  to Security Agreement

  

 

 

EXHIBIT V TO

SECURITY AGREEMENT

 

[FORM OF] COUNTERPART

 

COUNTERPART (this “Counterpart”),
dated as of [________], is delivered pursuant to Section 21 of the
Security Agreement referred to below. 
The undersigned hereby agrees that this Counterpart may be attached to
the Security Agreement, dated as of [______], 2008 (said Security Agreement, as
it may heretofore have been and as it may hereafter be further amended,
restated, supplemented, amended and restated or otherwise modified from time to
time being the “Security Agreement”; capitalized
terms used herein not otherwise defined herein shall have the meanings ascribed
therein), among UNOLA Corp., the other Grantors named therein, and Wells Fargo
Bank, National Association, as Secured Party. 
The undersigned by executing and delivering this Counterpart hereby
becomes a Grantor under the Security Agreement in accordance with Section 21
thereof and agrees to be bound by all of the terms thereof.  Without limiting the generality of the
foregoing, the undersigned hereby:

 

(i)         authorizes the Secured Party to add the
information set forth on the Schedules to this Agreement to the correlative
Schedules attached to the Security Agreement;

 

(ii)        grants a security interest in favor of
the Secured Party in all Collateral of the undersigned, including the items of
property described on the Schedules hereto to secure all Secured Obligations;
and

 

(iii)       makes the representations and warranties
set forth in the Security Agreement, as amended hereby, to the extent relating
to the undersigned.

 

	
   

  	
  [NAME OF ADDITIONAL GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

XIII-V-1

 

EXHIBIT XIV

 

[FORM OF] MORTGAGE

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
                       This
  space reserved for Recorder’s use only

  

 

MORTGAGE,
SECURITY AGREEMENT, ASSIGNMENT OF RENTS

AND
LEASES AND FIXTURE FILING (ILLINOIS)

 

by and from

 

FLORISTS’
TRANSWORLD DELIVERY, INC.

 

“Mortgagor”

 

to

 

WELLS
FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent

 

“Mortgagee”

 

Dated as
of ___________, 2008

 

	
   

  	
  Location:

  	
  3113 Woodcreek Drive

  
	
   

  	
  Municipality:

  	
  Downers Grove

  
	
   

  	
  County:

  	
  DuPage

  
	
   

  	
  State:

  	
  Illinois

  
	
   

  	
  Tax ID Nos.:

  	
  05-36-202-011 (Lot 1),
  05-36-202-012 (Lot 2)

  

 

THE
SECURED PARTY (MORTGAGEE) DESIRES THIS FIXTURE FILING TO BE

INDEXED
AGAINST THE RECORD OWNER OF THE REAL ESTATE DESCRIBED HEREIN

 

PREPARED
BY, RECORDING REQUESTED BY,

AND WHEN
RECORDED MAIL TO:

 

O’Melveny &
Myers LLP

400 South
Hope Street

Los
Angeles, California 90071-2899

Attention:
Gina Durham, Esq.

File 918,120-335

 

 

MORTGAGE,
SECURITY AGREEMENT, ASSIGNMENT OF RENTS

AND
LEASES AND FIXTURE FILING (ILLINOIS)

 

THIS
MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES AND FIXTURE FILING
(ILLINOIS) (this “Mortgage”)
is dated as of [_____], 2008 and from FLORISTS’ TRANSWORLD
DELIVERY, INC.., a Michigan corporation (“Mortgagor”),
whose address is [_____________________________] to WELLS FARGO
BANK, NATIONAL ASSOCIATION, (“Mortgagee”),
having an address at [333 S. Grand Avenue, 9th Floor, Los Angeles, California
90071], as administrative agent for Lenders.

 

RECITALS

 

A.        Mortgagee and Lenders have entered into a Credit Agreement
dated as of August 4, 2008, with UNOLA CORP., a
Delaware corporation (“Borrower”)
pursuant to which Mortgagee and Lenders have made certain commitments, subject
to the terms and conditions set forth therein, to extend certain credit
facilities to Borrower (said Credit Agreement, as it may hereafter be amended,
restated, supplemented, renewed, replaced or otherwise modified from time to
time, the “Credit Agreement”).

 

B.         Borrower may from time to time enter, or may from time to
time have entered, into one or more Swap Agreements (collectively, the “Swap Agreements”) with one or more Persons that are Lenders
or Affiliates of Lenders (in such capacity, collectively, the “Swap Counterparties”) at the time such Swap Agreements are
entered into in accordance with the terms of the Credit Agreement.

 

C.        Mortgagor has executed and delivered that certain Guaranty
dated of even date herewith (as the same may hereafter be amended, restated,
supplemented or otherwise modified from time to time, the “Guaranty”)
in favor of Mortgagee and Lenders, pursuant to which Mortgagor has guaranteed
the prompt payment and performance when due of all of the obligations of
Borrower under the Credit Agreement, the other Loan Documents and the Hedge
Agreements, including the obligation of Borrower to make payments thereunder in
the event of early termination thereof.

 

D.        Pursuant to the Credit Agreement, in order to induce
Mortgagee and Lenders to make Loans and other extensions of credit under the
Credit Agreement and the Swap Counterparties to enter into the Swap Agreements,
Mortgagor has agreed to execute and deliver this Mortgage.

 

ARTICLE 1

DEFINITIONS

 

Section 1.1.     Definitions. All capitalized terms used herein
without definition shall have the respective meanings ascribed to them in the Credit
Agreement. As used herein, the following terms shall have the following
meanings:

 

	
   

  	
  XIV-1

  	
  Mortgage

  

 

(a)        “Indebtedness”: (1) All
indebtedness of Borrower to Mortgagee and Lenders, the full and prompt payment
of which has been guaranteed by Mortgagor, including, without limitation, the
sum of all (a) principal, interest and other amounts evidenced or secured
by the Loan Documents or any Swap Agreements (as defined in the Guaranty), and (b) principal,
interest and other amounts which may hereafter be loaned under or in connection
with the Credit Agreement, any of the other Loan Documents or any Swap
Agreements, whether evidenced by a promissory note or other instrument which,
by its terms, is secured hereby, and (2) all other indebtedness,
obligations and liabilities now or hereafter existing of any kind of Mortgagor
or Borrower to Mortgagee under the Guaranty and all other documents which
recite that they are intended to be secured by this Mortgage. Pursuant to the
Credit Agreement, Lenders have agreed to provide Borrower with a Tranche A Term
Loan facility, a Tranche B Term Loan facility and a Revolving Loan facility,
which permits Borrower to borrow certain principal amounts, repay all or a
portion of such principal amounts, and reborrow the amounts previously paid to
Lenders, all upon satisfaction of certain conditions stated in the Credit
Agreement. The amount of such Revolving Loan facility may increase and decrease
from time to time as Lenders advance, Borrower repays, and Lenders re-advance
sums on account of the Revolving Loans, all as more fully described in the
Credit Agreement. Additionally, pursuant to the Credit Agreement, Borrower may
enter into the Swap Agreements. The term “Indebtedness” includes without
limitation all advances and re-advances under the Revolving Loan facility of
the Credit Agreement and all amounts under the Swap Agreements.

 

(b)        “Mortgaged Property”:
All of Mortgagor’s right, title and interest in and to (1) the fee
interest in the real property described in Exhibit A attached
hereto and incorporated herein by this reference, together with any greater
estate therein as hereafter may be acquired by Mortgagor (the “Land”), (2) all improvements now owned or hereafter
acquired by Mortgagor, now or at any time situated, placed or constructed upon
the Land (the “Improvements”; the Land and
Improvements are collectively referred to as the “Premises”),
(3) all materials, supplies, equipment, apparatus and other items of
personal property now owned or hereafter acquired by Mortgagor and now or
hereafter attached to, installed in or used in connection with any of the
Improvements or the Land, and water, gas, electrical, telephone, storm and
sanitary sewer facilities and all other utilities whether or not situated in
easements (the “Fixtures”), (4) all reserves,
escrows or impounds required under the Credit Agreement and all deposit
accounts maintained by Mortgagor with respect to the Mortgaged Property (the “Deposit Accounts”), (5) all leases, licenses,
concessions, occupancy agreements or other agreements (written or oral, now or
at any time in effect) which grant to any Person a possessory interest in, or
the right to use, all or any part of the Mortgaged Property, together with all
related security and other deposits (the “Leases”), (6) all
of the rents, revenues, royalties, income, proceeds, profits, security and
other types of deposits, and other benefits paid or payable by parties to the
Leases for using, leasing, licensing possessing, operating from, residing in,
selling or otherwise enjoying the Mortgaged Property (the “Rents”),
(7) all other agreements, such as construction contracts, architects’
agreements, engineers’ contracts, utility contracts, maintenance agreements,
management agreements, service contracts, listing agreements, guaranties,
warranties, permits, licenses, certificates and entitlements in any way
relating to the construction, use, occupancy, operation, maintenance, enjoyment
or ownership of the Mortgaged Property (the “Property
Agreements”), (8) all rights, privileges, tenements,
hereditaments, rights-of-way, easements, appendages and appurtenances
appertaining to the foregoing, (9) all property tax refunds (the “Tax Refunds”),

 

	
   

  	
  XIV-2

  	
  Mortgage

  

 

(10) all accessions,
replacements and substitutions for any of the foregoing and all proceeds
thereof (the “Proceeds”), (11) all insurance
policies, unearned premiums therefor and proceeds from such policies covering
any of the above property now or hereafter acquired by Mortgagor (the “Insurance”), and (12) all awards, damages,
remunerations, reimbursements, settlements or compensation heretofore made or
hereafter to be made by any governmental authority pertaining to the Land,
Improvements, or Fixtures (the “Condemnation Awards”).
As used in this Mortgage, the term “Mortgaged Property” shall mean all or,
where the context permits or requires, any portion of the above or any interest
therein.

 

(c)        “Obligations”: All
of the agreements, covenants, conditions, warranties, representations and other
obligations of Mortgagor or Borrower under the Credit Agreement, the other Loan
Documents and any Swap Agreements.

 

(d)        “UCC”: The
Uniform Commercial Code of Illinois or, if the creation, perfection and
enforcement of any security interest herein granted is governed by the laws of
a state other than Illinois, then, as to the matter in question, the Uniform
Commercial Code in effect in that state.

 

ARTICLE 2

MORTGAGE
OF MORTGAGED PROPERTY

 

Section 2.1.     Mortgage of Mortgaged Property. To secure the full and timely payment of
the Indebtedness and the full and timely performance of the Obligations,
Mortgagor MORTGAGES, GRANTS, BARGAINS, ASSIGNS, SELLS
and CONVEYS, to Mortgagee the Mortgaged Property,
subject, however, to the Permitted Encumbrances, TO HAVE AND
TO HOLD the Mortgaged Property to Mortgagee, and Mortgagor does
hereby bind itself, its successors and assigns to WARRANT AND
FOREVER DEFEND the title to the Mortgaged Property unto Mortgagee.

 

ARTICLE 3

WARRANTIES, REPRESENTATIONS AND COVENANTS

 

Mortgagor
warrants, represents and covenants to Mortgagee as follows:

 

Section 3.1.     Title to Mortgaged Property and Lien of
this Instrument.
Mortgagor owns the Mortgaged Property free and clear of any liens, claims or
interests, except the Permitted Encumbrances. This Mortgage creates a valid,
enforceable First Priority Lien and security interest against the Mortgaged
Property.

 

Section 3.2.     First Lien Status. Mortgagor shall preserve and protect the
first lien and security interest status of this Mortgage and the other Loan
Documents. If any lien or security interest other than the Permitted
Encumbrances is asserted against the Mortgaged Property, Mortgagor shall
promptly, and at its expense, (a) give Mortgagee a detailed written notice
of such lien or security interest (including origin, amount and other terms),
and (b) pay the underlying claim in full or take such other action so as
to cause it to be released or contest the same in compliance with the
requirements of the Credit Agreement (including the requirement of providing a
bond or other security satisfactory to Mortgagee).

 

	
   

  	
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  Mortgage

  

 

Section 3.3.     Payment and Performance. Mortgagor shall pay the Indebtedness
when due and shall perform the Obligations in full when they are required to be
performed.

 

Section 3.4.     Replacement of Fixtures. Mortgagor shall not, without the prior
written consent of Mortgagee, permit any of the Fixtures owned or leased by
Mortgagor to be removed at any time from the Land or Improvements, unless the
removed item is removed temporarily for maintenance and repair or, if removed
permanently, is permitted to be removed by the Credit Agreement, or is obsolete
and is replaced by an article of equal or better suitability and value, owned
by Mortgagor subject to the liens and security interests of this Mortgage and
the other Loan Documents, and free and clear of any other lien or security
interest except such as may be permitted under the Credit Agreement or first
approved in writing by Mortgagee.

 

Section 3.5.     Inspection. Mortgagor shall permit Mortgagee, and
Mortgagee’s agents, representatives and employees, upon reasonable prior notice
to Mortgagor, to inspect the Mortgaged Property and all books and records of
Mortgagor located thereon, and to conduct such environmental and engineering
studies as Mortgagee may reasonably require, provided that such inspections and
studies shall not materially interfere with the use and operation of the
Mortgaged Property.

 

Section 3.6.     Other Covenants. All of the covenants of Borrower (and,
if a party thereto, Mortgagor) in the Credit Agreement are incorporated herein
by reference and, together with covenants in this Article 3, shall
be covenants running with the Land.

 

Section 3.7.     Peaceable
Possession. Mortgagor’s possession of the Mortgaged Property has
been peaceable and undisturbed and to Mortgagor’s actual knowledge, there are
no facts by reason of which any adverse claim to any part of the Mortgaged
Property or to any undivided interest therein might reasonably be expected to
be made.

 

Section 3.8.     Condemnation Awards and Insurance
Proceeds.

 

(a)        Condemnation Awards. Mortgagor
assigns all awards and compensation to which it is entitled for any
condemnation or other taking, or any purchase in lieu thereof, to Mortgagee and
authorizes Mortgagee to collect and receive such awards and compensation and to
give proper receipts and acquittances therefor, subject to the terms of the
Credit Agreement.

 

(b)        Insurance Proceeds. Mortgagor
assigns to Mortgagee all proceeds of any insurance policies insuring against
loss or damage to the Mortgaged Property. Mortgagor authorizes Mortgagee to
collect and receive such proceeds and authorizes and directs the issuer of each
of such insurance policies to make payment for all such losses directly to
Mortgagee, instead of to Mortgagor and Mortgagee jointly, subject to the terms
of the Credit Agreement.

 

(c)        Collateral Protection Act. Pursuant
to the terms of the Collateral Protection Act (815 ILCS 180/1 et seq.),
Mortgagor is hereby notified that unless Mortgagor provides Mortgagee with
evidence of the insurance coverage required by this Mortgage, Mortgagee may
purchase insurance at Mortgagee’s expense to protect Mortgagor’s interests in
the Premises, which insurance may, but need not, protect the interests of
Mortgagor in the

 

	
   

  	
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  Mortgage

  

 

Premises. The coverage
purchased by Mortgagee may not pay any claim made by Mortgagor or any claim
made against Mortgagor in connection with the Premises. Mortgagor may later
cancel any insurance purchased by Mortgagee, but only after providing Mortgagee
with evidence that Mortgagor has obtained the insurance as required hereunder. If
Mortgagee purchases insurance, the Mortgagor will be responsible for the costs
of such insurance, including interest and any other charges imposed in
connection with the placement of the insurance, until the effective date of the
cancellation or expiration of the insurance. The costs of the insurance may be
added to the total obligation secured by this Mortgage. The costs of such
insurance may be greater than the cost of insurance Mortgagor may be able to
obtain for itself.

 

Section 3.9.     Taxes.

 

(a)        Mortgagor shall pay, when due and prior
to delinquency, all Taxes imposed or levied by any Government Authority which
create a lien upon the Mortgaged Property or any part thereof (all of which
Taxes are hereinafter referred to as “Impositions”). If
by law any such Imposition is payable, or may at the option of the taxpayer be
paid, in installments, Mortgagor may pay the same, together with any accrued
interest on the unpaid balance of such Imposition, in installments as the same
become due and before any fine, penalty, interest or cost may be added thereto
for the nonpayment of any such installment and interest. If at any time after
the date hereof there shall be assessed or imposed a license fee, tax or
assessment on Mortgagee which is measured by or based in whole or in part upon
the amount of the outstanding Obligations, then all such Taxes shall be deemed
to be included within the term “Impositions” as defined herein, and Mortgagor
shall pay and discharge the same as herein provided (to the fullest extent
permitted by law) with respect to the payment of Impositions.

 

(b)        Mortgagor has the right, before any
delinquency occurs, to contest or object to the amount or validity of any
Imposition by appropriate legal proceedings, but this right shall not be deemed
or construed in any way as relieving, modifying or postponing Mortgagor’s
obligation to pay any such Imposition at the time and in the manner provided
herein, unless (i) Mortgagor has given prior written notice to Mortgagee
of Mortgagor’s intent so to contest or object to an Imposition; (ii) Mortgagor
has demonstrated to Mortgagee’s satisfaction that the legal proceedings shall
conclusively operate to prevent the sale of the Mortgaged Property, or any part
thereof, to satisfy such Imposition prior to a final determination of such
proceedings; and (iii) Mortgagor has, or has caused to be, provided such
reserve or other appropriate provision, if any, as shall be required in
conformity with GAAP or by the appropriate taxing authority.

 

Section 3.10.   Utilities. Mortgagor shall pay, when due, all
utility charges incurred by Mortgagor for the benefit of the Mortgaged
Property, or which may become a charge or lien against the Mortgaged Property,
for gas, electricity, water, sewer and all other utility services furnished to
the Mortgaged Property, and all other assessments or charges of a similar
nature, whether public or private, affecting the Mortgaged Property or any
portion thereof, whether or not such assessments or charges are liens thereon.

 

ARTICLE 4

[Intentionally Omitted]

 

	
   

  	
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ARTICLE 5

DEFAULT AND FORECLOSURE

 

Section 5.1.     Remedies. If an Event of Default exists, Mortgagee
may, at Mortgagee’s election, exercise any or all of the following rights,
remedies and recourses:

 

(a)        Acceleration. Declare the
Indebtedness to be immediately due and payable, without further notice,
presentment, protest, notice of intent to accelerate, notice of acceleration,
demand or action of any nature whatsoever (each of which hereby is expressly
waived by Mortgagor), whereupon the same shall become immediately due and
payable.

 

(b)        Entry on Mortgaged Property. Enter
the Mortgaged Property and take exclusive possession thereof and of all books,
records and accounts relating thereto or located thereon. If Mortgagor remains
in possession of the Mortgaged Property after an Event of Default and without
Mortgagee’s prior written consent, Mortgagee may invoke any legal remedies to
dispossess Mortgagor.

 

(c)        Operation of Mortgaged Property. Hold,
lease, develop, manage, operate or otherwise use the Mortgaged Property upon
such terms and conditions as Mortgagee may deem reasonable under the
circumstances (making such repairs, alterations, additions and improvements and
taking other actions, from time to time, as Mortgagee deems necessary or
desirable), and apply all Rents and other amounts collected by Mortgagee in
connection therewith in accordance with the provisions of Section 5.7.

 

(d)        Foreclosure and Sale. Institute
proceedings for the complete foreclosure of this Mortgage by judicial action,
in which case the Mortgaged Property may be sold for cash or credit in one or
more parcels. With respect to any notices required or permitted under the UCC,
Mortgagor agrees that ten (10) days’ prior written notice shall be deemed
commercially reasonable. At any such sale by virtue of any judicial proceedings
or any other legal right, remedy or recourse, the title to and right of
possession of any such property shall pass to the purchaser thereof, and to the
fullest extent permitted by law, Mortgagor shall be completely and irrevocably
divested of all of its right, title, interest, claim, equity, equity of
redemption, and demand whatsoever, either at law or in equity, in and to the
property sold and such sale shall be a perpetual bar both at law and in equity
against Mortgagor, and against all other Persons claiming or to claim the
property sold or any part thereof, by, through or under Mortgagor. Mortgagee
may be a purchaser at such sale and if Mortgagee is the highest bidder,
Mortgagee may credit the portion of the purchase price that would be
distributed to Mortgagee against the Indebtedness in lieu of paying cash. In
the event this Mortgage is foreclosed by judicial action, appraisement of the
Mortgaged Property is waived.

 

(e)        Receiver. Make application to a
court of competent jurisdiction for, and obtain from such court as a matter of
strict right and without notice to Mortgagor or regard to the adequacy of the
Mortgaged Property for the repayment of the Indebtedness, the appointment of a
receiver of the Mortgaged Property, and Mortgagor irrevocably consents to such
appointment. Any such receiver shall have all the usual powers and duties of
receivers in similar cases,

 

	
   

  	
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  Mortgage

  

 

including the full power
to rent, maintain and otherwise operate the Mortgaged Property upon such terms
as may be approved by the court, and shall apply such Rents in accordance with
the provisions of Section 5.7.

 

(f)         Other. Exercise all other
rights, remedies and recourses granted under the Loan Documents, any Swap
Agreements or otherwise available at law or in equity.

 

Section 5.2.     Separate Sales. The Mortgaged Property may be sold in
one or more parcels and in such manner and order as Mortgagee in its sole
discretion may elect; the right of sale arising out of any Event of Default
shall not be exhausted by any one or more sales.

 

Section 5.3.     Remedies Cumulative, Concurrent and
Nonexclusive.
Mortgagee shall have all rights, remedies and recourses granted in the Loan
Documents and available at law or equity (including the UCC), which rights (a) shall
be cumulated and concurrent, (b) may be pursued separately, successively
or concurrently against Mortgagor or others obligated under the Loan Documents,
or against the Mortgaged Property, or against any one or more of them, at the
sole discretion of Mortgagee, (c) may be exercised as often as occasion
therefor shall arise, and the exercise or failure to exercise any of them shall
not be construed as a waiver or release thereof or of any other right, remedy
or recourse, and (d) are intended to be, and shall be, nonexclusive. No
action by Mortgagee in the enforcement of any rights, remedies or recourses
under the Loan Documents, any Swap Agreements or otherwise at law or equity
shall be deemed to cure any Event of Default.

 

Section 5.4.     Release of and Resort to Collateral. Mortgagee may release, regardless of
consideration and without the necessity for any notice to or consent by the
holder of any subordinate lien on the Mortgaged Property, any part of the
Mortgaged Property without, as to the remainder, in any way impairing,
affecting, subordinating or releasing the lien or security interest created in
or evidenced by the Loan Documents or their status as a first and prior lien
and security interest in and to the Mortgaged Property. For payment of the
Indebtedness, Mortgagee may resort to any other security in such order and
manner as Mortgagee may elect.

 

Section 5.5.     Waiver of Redemption, Notice and
Marshalling of Assets. To the fullest extent permitted by law, Mortgagor
hereby irrevocably and unconditionally waives and releases (a) all benefit
that might accrue to Mortgagor by virtue of any present or future statute of
limitations or law or judicial decision exempting the Mortgaged Property from
attachment, levy or sale on execution or providing for any stay of execution,
exemption from civil process, redemption or extension of time for payment, (b) all
notices of any Event of Default or of Mortgagee’s election to exercise or the
actual exercise of any right, remedy or recourse provided for under the Loan
Documents, and (c) any right to a marshalling of assets or a sale in
inverse order of alienation.

 

Section 5.6.     Discontinuance of Proceedings. If Mortgagee shall have proceeded to
invoke any right, remedy or recourse permitted under the Loan Documents and
shall thereafter elect to discontinue or abandon it for any reason, Mortgagee
shall have the unqualified right to do so and, in such an event, Mortgagor and
Mortgagee shall be restored to their former positions with respect to the
Indebtedness, the Obligations, the Loan Documents, the Mortgaged Property and
otherwise, and the rights, remedies, recourses and powers of Mortgagee

 

	
   

  	
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  Mortgage

  

 

 

shall continue as if the
right, remedy or recourse had never been invoked, but no such discontinuance or
abandonment shall waive any Event of Default which may then exist or the right
of Mortgagee thereafter to exercise any right, remedy or recourse under the
Loan Documents for such Event of Default.

 

Section 5.7.     Application of Proceeds. 
The proceeds of any sale of, and the Rents and other amounts generated
by the holding, leasing, management, operation or other use of the Mortgaged
Property, shall be applied by Mortgagee (or the receiver, if one is appointed)
in the following order unless otherwise required by applicable law:

 

(a)        to the payment of the costs and expenses
of taking possession of the Mortgaged Property and of holding, using, leasing,
repairing, improving and selling the same, including, without limitation (1) receiver’s
fees and expenses, including the repayment of the amounts evidenced by any
receiver’s certificates, (2) court costs, (3) reasonable attorneys’
and accountants’ fees and expenses, and (4) costs of advertisement;

 

(b)        to the payment of the Indebtedness and
performance of the Obligations in accordance with the Credit Agreement; and

 

(c)        the balance, if any, to the payment of
the Person or Persons legally entitled thereto.

 

Section 5.8.     Occupancy After Foreclosure. 
Any sale of the Mortgaged Property or any part thereof in accordance
with Section 5.1(d) will divest all right, title and interest
of Mortgagor in and to the property sold. 
Subject to applicable law, any purchaser at a foreclosure sale will
receive immediate possession of the property purchased.  If Mortgagor retains possession of such
property or any part thereof subsequent to such sale, Mortgagor will be
considered a tenant at sufferance of the purchaser, and will, if Mortgagor
remains in possession after demand to remove, be subject to eviction and
removal, forcible or otherwise, with or without process of law.

 

Section 5.9.     Additional Advances and Disbursements;
Costs of Enforcement.

 

(a)        If any Event of Default exists,
Mortgagee shall have the right, but not the obligation, to cure such Event of
Default in the name and on behalf of Mortgagor. 
All sums advanced and expenses incurred at any time by Mortgagee under
this Section 5.9, or otherwise under this Mortgage, any of the
other Loan Documents, any Swap Agreements or applicable law, shall bear
interest from the date that such sum is advanced or expense incurred, to and
including the date of reimbursement, computed at the rate or rates at which
interest is then computed on the Indebtedness, and all such sums, together with
interest thereon, shall be secured by this Mortgage.

 

(b)        Mortgagor shall pay all expenses
(including reasonable attorneys’ fees and expenses) of or incidental to the
perfection and enforcement of this Mortgage, the other Loan Documents and any
Swap Agreements, or the enforcement, compromise or settlement of the
Indebtedness or any claim under this Mortgage, the other Loan Documents and any
Swap 

 

	
   

  	
  XIV-8

  	
  Mortgage

  

 

Agreements, and for the
curing thereof, or for defending or asserting the rights and claims of
Mortgagee in respect thereof, by litigation or otherwise.

 

Section 5.10.   No Mortgagee in Possession. Neither the enforcement of any of the
remedies under this Article 5, the assignment of the Rents and
Leases under Article 6, the security interests under Article 7,
nor any other remedies afforded to Mortgagee under the Loan Documents, at law
or in equity shall cause Mortgagee to be deemed or construed to be a mortgagee
in possession of the Mortgaged Property, to obligate Mortgagee to lease the
Mortgaged Property or attempt to do so, or to take any action, incur any
expense, or perform or discharge any obligation, duty or liability whatsoever
under any of the Leases or otherwise.

 

Section 5.11.   Actions by Mortgagee to Preserve the
Mortgaged Property. If Mortgagor fails to make any payment or do any act as and in the
manner provided in this Mortgage, in any of the other Loan Documents or in any
of the Swap Agreements, Mortgagee, in its sole and absolute discretion, without
obligation so to do and without notice to or demand upon Mortgagor and without
releasing Mortgagor from any obligation, may make such payment or do such act
in such manner and to such extent as Mortgagee may deem necessary to protect
the security hereof.  In connection
therewith (without limiting Mortgagee’s general powers), Mortgagee shall have
and is hereby given the right, but not the obligation, (i) to enter upon
and take possession of the Mortgaged Property; (ii) to make additions,
alterations, repairs and Improvements to the Mortgaged Property which it may
consider necessary or proper to keep the Mortgaged Property in good condition
and repair; (iii) to appear and participate in any action or proceeding
which affects or may affect the security hereof or the rights or powers of
Mortgagee; (iv) to pay, purchase, contest or compromise any encumbrance,
claim, charge, lien or debt which, in Mortgagee’s judgment, may affect or
appear to affect the security of this Mortgage; and (v) in exercising such
powers, to employ counsel or other necessary or desirable experts or
consultants.  Mortgagor shall,
immediately upon demand therefor by Mortgagee, pay all reasonable costs and
expenses incurred by Mortgagee in connection with the exercise by Mortgagee of
the foregoing rights, including cost of evidence of title, court costs,
appraisals, surveys, and reasonable attorneys’ fees, together with interest
thereon from the date incurred at the interest rate then in effect under any
Note.  All such costs and expenses
together with interest thereon shall be secured by this Mortgage.

 

Section 5.12.   Due On Sale. 
In order to induce Mortgagee and Lenders to make the Loans and other
extensions of credit under the Credit Agreement and the Swap Counterparties to
enter into the Swap Agreements, Mortgagor agrees that, except as otherwise
expressly permitted pursuant to the Credit Agreement, in the event of any “transfer” of the Mortgaged Property without the prior
written consent of Mortgagee, Mortgagee has the absolute right at its option,
without prior demand or notice, to declare all sums secured by this Mortgage
immediately due and payable.  Consent to
one such transaction will not be deemed to be a waiver of the right to require
consent to future or successive transactions. 
Mortgagee may grant or deny such consent in its sole discretion and, if
consent is given, any such transfer will be subject to this Mortgage, and any
such transferee shall assume all obligations hereunder and agree to be bound by
all provisions contained herein.  Such
assumption will not, however, release Mortgagor, Borrower or any other maker or
guarantor of the Obligations from any liability thereunder without the prior
written consent of Mortgagee and Lenders. 
As used herein, 

 

	
   

  	
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  Mortgage

  

 

“transfer”
includes the direct or indirect sale, agreement to sell, transfer, conveyance,
pledge, collateral assignment or hypothecation of the Mortgaged Property, or
any portion thereof or interest therein, whether voluntary, involuntary, by
operation of law or otherwise, the execution of any installment land sale
contract or similar instrument affecting all or a portion of the Mortgaged
Property, or the lease of all or substantially all of the Mortgaged
Property.  The term “transfer”
also includes a Change in Control in Mortgagor.

 

ARTICLE 6

ASSIGNMENT
OF RENTS AND LEASES

 

Section 6.1.     Assignment. 
In furtherance of and in addition to the assignment made by Mortgagor in
Section 2.1 of this Mortgage, Mortgagor hereby absolutely and
unconditionally assigns, sells, transfers and conveys to Mortgagee all of its
right, title and interest in and to all Leases, whether now existing or
hereafter entered into, and all of its right, title and interest in and to all
Rents.  This assignment is an absolute
assignment and not an assignment for additional security only.  So long as no Event of Default shall have
occurred and be continuing, Mortgagor shall have a revocable license from
Mortgagee to exercise all rights extended to the landlord under the Leases,
including the right to receive and collect all Rents and  to
hold the Rents in trust for use in the payment of the Indebtedness and
performance of the Obligations and to otherwise use the same.  The foregoing license is granted subject to
the conditional limitation that no Event of Default shall have occurred and be
continuing.  Upon the occurrence and
during the continuance of an Event of Default, whether or not legal proceedings
have commenced, and without regard to waste, adequacy of security for the
Indebtedness or the Obligations or solvency of Mortgagor, the license herein
granted shall automatically expire and terminate, without notice to Mortgagor
by Mortgagee (any such notice being hereby expressly waived by Mortgagor to the
extent permitted by applicable law).

 

Section 6.2.     Perfection Upon Recordation.  Mortgagor covenants that upon recordation of this
Mortgage Mortgagee shall have, to the extent permitted under applicable law, a
valid and fully perfected, First Priority, present assignment of the Rents
arising out of the Leases and all security for such Leases. Mortgagor
acknowledges and agrees that upon recordation of this Mortgage Mortgagee’s
interest in the Rents shall be deemed to be fully perfected, “choate” and
enforced as to Mortgagor and all third parties following recovery of possession
of the Mortgaged Property by Mortgagee. 
For purposes of this Section 6.2, “possession” shall mean
any one of the following to the extent permitted by applicable law: (a) actual
possession of the Mortgaged Property or (b) taking affirmative actions to
gain possession of the Mortgaged Property that would constitute constructive
possession of the Mortgaged Property such as court authorization to collect
Rents or appointment of a receiver.  To
the extent permitted by applicable law, Mortgagee shall have the right to
collect Rents without taking possession of the Mortgaged Property.

 

Section 6.3.     Bankruptcy Provisions.  Without limitation of the absolute nature of the
assignment of the Rents hereunder, Mortgagor and Mortgagee agree that (a) this
Mortgage shall constitute a “security agreement” for purposes of Section 552(b) of
Title 11 of the United 

 

	
   

  	
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States Code (the “Bankruptcy Code”), (b) the security interest created by
this Mortgage extends to property of Mortgagor acquired before the commencement
of a case in bankruptcy and to all amounts paid as Rents and (c) such
security interest shall extend to all Rents acquired by the estate after the
commencement of any case in bankruptcy.

 

Section 6.4.     No Merger of Estates. 
So long as part of the Indebtedness and the Obligations secured hereby
remain unpaid and undischarged, the fee and leasehold estates to the Mortgaged
Property shall not merge, but shall remain separate and distinct,
notwithstanding the union of such estates either in Mortgagor, Mortgagee, any
tenant or any third party by purchase or otherwise.

 

ARTICLE 7

SECURITY AGREEMENT

 

Section 7.1.     Security Interest. 
This Mortgage constitutes a “security agreement” on personal property
within the meaning of the UCC and other applicable law and with respect to the
Fixtures, Deposit Accounts, Leases, Rents, Property Agreements, Tax Refunds,
Proceeds, Insurance and Condemnation Awards. To this end, Mortgagor grants to
Mortgagee a First Priority security interest in the Fixtures, Deposit Accounts,
Leases, Rents, Property Agreements, Tax Refunds, Proceeds, Insurance,
Condemnation Awards and all other Mortgaged Property which is personal property
to secure the payment of the Indebtedness and performance of the Obligations,
and agrees that Mortgagee shall have all the rights and remedies of a secured
party under the UCC with respect to such property.  Any notice of sale, disposition or other
intended action by Mortgagee with respect to the Fixtures, Deposit Accounts,
Leases, Rents, Property Agreements, Tax Refunds, Proceeds, Insurance and
Condemnation Awards sent to Mortgagor at least ten (10) days prior to any
action under the UCC shall constitute reasonable notice to Mortgagor.

 

Section 7.2.     Financing Statements. 
Mortgagor shall execute (if applicable) and deliver to Mortgagee, in
form and substance satisfactory to Mortgagee, such financing statements and
such further assurances as Mortgagee may, from time to time, reasonably
consider necessary to create, perfect and preserve Mortgagee’s security
interest hereunder and Mortgagee may cause such statements and assurances to be
recorded and filed, at such times and places as may be required or permitted by
law to so create, perfect and preserve such security interest.  Mortgagor is a corporation duly organized
under the laws of the State of Michigan and except as otherwise expressly
provided in the Credit Agreement, shall not change the state of its
organization without less than twenty (20) days prior written notice to
Mortgagee.

 

Section 7.3.     Fixture Filing. 
This Mortgage shall also constitute a “fixture filing” for the purposes
of the UCC against all of the Mortgaged Property which is or is to become
fixtures.  Mortgagor grants to Mortgagee
a security interest in all existing and future goods which are now or in the
future become fixtures relating to the Mortgaged Property and the proceeds
thereof.  For purposes of the UCC, the
following information concerning the security interest herein granted is
furnished:

 

	
   

  	
  XIV-11

  	
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(a)        The name of the Debtor (Mortgagor) is:
Florists’ Transworld Delivery, Inc., a Michigan corporation, having an
address as set forth in the first paragraph of this Mortgage, whose corporate
organizational number is 195-978.

 

(b)        The name of the Secured Party
(Mortgagee) is: Wells Fargo Bank, National Association, having an address as
set forth in the first paragraph of this Mortgage.

 

(c)        Information concerning the security
interest evidenced by this instrument may be obtained from the Secured Party at
its address above.

 

(d)        Mortgagor is the record owner of the
real estate described in this Security Instrument.

 

(e)        This document is to be filed in the real
estate records.  A description of the
real estate is attached hereto as Exhibit A.

 

 

ARTICLE 8

[Intentionally
Omitted]

 

ARTICLE 9

MISCELLANEOUS

 

Section 9.1.     Notices. 
Any notice required or permitted to be given under this Mortgage shall
be given in accordance with Section 10.8 of the Credit Agreement.

 

Section 9.2.     Covenants Running with the Land. 
All Obligations contained in this Mortgage are intended by Mortgagor and
Mortgagee to be, and shall be construed as, covenants running with the
Mortgaged Property.  As used herein, “Mortgagor”
shall refer to the party named in the first paragraph of this Mortgage and to
any subsequent owner of all or any portion of the Mortgaged Property.  All Persons who may have or acquire an
interest in the Mortgaged Property shall be deemed to have notice of, and be
bound by, the terms of the Credit Agreement and the other Loan Documents;
however, no such party shall be entitled to any rights thereunder without the
prior written consent of Mortgagee.

 

Section 9.3.     Attorney-in-Fact. 
Mortgagor hereby irrevocably appoints Mortgagee and its successors and
assigns, as its attorney-in-fact, which agency is coupled with an interest and
with full power of substitution, (a) to execute and/or record any notices
of completion, cessation of labor or any other notices that Mortgagee deems
appropriate to protect Mortgagee’s interest, if Mortgagor shall fail to do so
within ten (10) days after written request by Mortgagee, (b) upon the
issuance of a deed pursuant to the foreclosure of this Mortgage or the delivery
of a deed in lieu of foreclosure, to execute all instruments of assignment,
conveyance or further assurance with respect to the Leases, Rents, Deposit
Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance and
Condemnation Awards in favor of the grantee of any such deed and as may be
necessary or desirable for such purpose, (c) to prepare, execute and file or

 

	
   

  	
  XIV-12

  	
  Mortgage

  

 

record financing
statements, continuation statements, applications for registration and like
papers necessary to create, perfect or preserve Mortgagee’s security interests
and rights in or to any of the Mortgaged Property, and (d) while any Event
of Default exists, to perform any obligation of Mortgagor hereunder, however: (1) Mortgagee
shall not under any circumstances be obligated to perform any obligation of
Mortgagor; (2) any sums advanced by Mortgagee in such performance shall be
added to and included in the Indebtedness and shall bear interest at the rate
or rates at which interest is then computed on the Indebtedness; (3) Mortgagee
as such attorney-in-fact shall only be accountable for such funds as are
actually received by Mortgagee; and (4) Mortgagee shall not be liable to
Mortgagor or any other person or entity for any failure to take any action
which it is empowered to take under this Section 9.3.

 

Section 9.4.     Successors and Assigns. 
This Mortgage shall be binding upon and inure to the benefit of
Mortgagee and Mortgagor and their respective successors and assigns.  Mortgagor shall not, without the prior written
consent of Mortgagee, assign any rights, duties or obligations hereunder.

 

Section 9.5.     No Waiver. 
Any failure by Mortgagee to insist upon strict performance of any of the
terms, provisions or conditions of the Loan Documents shall not be deemed to be
a waiver of same, and Mortgagee shall have the right at any time to insist upon
strict performance of all of such terms, provisions and conditions.

 

Section 9.6.     Credit Agreement. 
If any conflict or inconsistency exists between this Mortgage and the
Credit Agreement, the Credit Agreement shall govern.

 

Section 9.7.     Release or Reconveyance. 
Upon payment in full of the Indebtedness and performance in full of the
Obligations or upon a sale or other disposition of the Mortgaged Property
permitted by the Credit Agreement, Mortgagee, at Mortgagor’s expense, shall
release the liens and security interests created by this Mortgage or reconvey
the Mortgaged Property to Mortgagor.

 

Section 9.8.     Waiver of Stay, Moratorium and Similar
Rights.  Mortgagor agrees, to the full extent that it
may lawfully do so, that it will not at any time insist upon or plead or in any
way take advantage of any stay, marshalling of assets, extension, redemption or
moratorium law now or hereafter in force and effect so as to prevent or hinder
the enforcement of the provisions of this Mortgage or the Indebtedness or
Obligations secured hereby, or any agreement between Mortgagor and Mortgagee or
any rights or remedies of Mortgagee.

 

Section 9.9.     Applicable Law. 
The provisions of this Mortgage regarding the creation, perfection and
enforcement of the liens and security interests herein granted shall be
governed by and construed under the laws of the state in which the Mortgaged
Property is located.  All other
provisions of this Mortgage shall be governed by the laws of the State of New
York (including, without limitation, Section 5-1401 of the General
Obligations Law of the State of New York), without regard to conflicts of laws
principles.

 

Section 9.10.   Headings. 
The Article, Section and Subsection titles hereof are inserted for
convenience of reference only and shall in no way alter, modify or define, or
be used in construing, the text of such Articles, Sections or Subsections.

 

	
   

  	
  XIV-13

  	
  Mortgage

  

 

Section 9.11.   Entire Agreement. 
This Mortgage, the other Loan Documents and the Swap Agreements embody
the entire agreement and understanding between Mortgagee and Mortgagor and
supersede all prior agreements and understandings between such parties relating
to the subject matter hereof and thereof. Accordingly, the Loan Documents and
the Swap Agreements may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties.  There are no unwritten oral agreements
between the parties.

 

Section 9.12.   Mortgagee as Administrative Agent; Successor
Agents.

 

(a)        Mortgagee  has been appointed to act as Administrative Agent hereunder
by the Lenders and by acceptance of any of the benefits hereunder, each
Counterparty under a Swap Agreement. Mortgagee  shall
have the right hereunder to make demands, to give notices, to exercise or
refrain from exercising any rights, and to take or refrain from taking any
action (including, without limitation, the release or substitution of the
Mortgaged Property) in accordance with the terms of the Credit Agreement, any
related agency agreement among Mortgagee  and the
Lenders or any such Counterparty (collectively, as amended, supplemented or
otherwise modified or replaced from time to time, the “Agency
Documents”) and this Mortgage. 
Mortgagor  and all other persons shall be
entitled to rely on releases, waivers, consents, approvals, notifications and
other acts of Mortgagee, without inquiry into the existence of required
consents or approvals of the Lenders or any such Counterparty therefor.

 

(b)        Mortgagee  shall
at all times be the same Person that is Administrative Agent under the Agency
Documents.  Written notice of resignation
by Administrative Agent pursuant to the Agency Documents shall also constitute
notice of resignation as Mortgagee  under this
Mortgage.  Removal of Administrative
Agent pursuant to any provision of the Agency Documents shall also constitute
removal as Mortgagee  under this
Mortgage.  Appointment of a successor
Administrative Agent pursuant to the Agency Documents shall also constitute
appointment of a successor Mortgagee  under this
Mortgage.  Upon the acceptance of any
appointment as Administrative Agent by a successor Administrative Agent under
the Agency Documents, that successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring or removed Mortgagee  under this
Mortgage, and the retiring or removed Mortgagee  shall
promptly (i) assign and transfer to such successor Mortgagee  all of its right, title and interest in and to this
Mortgage  and the Mortgaged Property, and (ii) execute
and deliver to such successor Mortgagee  such
assignments and amendments and take such other actions, as may be necessary or
appropriate in connection with the assignment to such successor Mortgagee  of the liens and security interests created under this
Mortgage. After any retired or removed Administrative Agent’s resignation or
removal hereunder as Mortgagee, the provisions of this Mortgage and the Agency
Documents shall inure to its benefit as to any actions taken or omitted to be
taken by it under this Mortgage  while it was
the Mortgagee  hereunder.

 

Section 9.13.   Severability. 
If any provision of this Mortgage is or becomes invalid, illegal or
unenforceable, such provision shall be deemed amended to conform to applicable
laws so as to be valid and enforceable or, if it cannot be so amended without
materially altering the intention of the parties, it shall be stricken and the
remainder of this Mortgage shall remain in full force and effect.

 

	
   

  	
  XIV-14

  	
  Mortgage

  

 

ARTICLE
10

LOCAL LAW
PROVISIONS

 

Section 10.1.   Inconsistencies. 
In the event of any
inconsistencies between the terms and conditions of this Article 10
and the other provisions of this Mortgage, the terms and conditions of this Article 10
shall control and be binding.

 

Section 10.2.   Maximum Principal Sum.  The
Indebtedness and Obligations may be secured by other mortgages and deeds of
trust on other real estate in other counties and other states.  Each and all of such mortgages and deeds of
trust are intended to and shall constitute security for the entire Indebtedness
and all of the Obligations without allocation. 
Notwithstanding anything herein to the contrary, it is agreed that the
maximum amount of Indebtedness secured by this Mortgage, including all
advancements, at any one time shall not exceed Eight Hundred and Fifty Million
Dollars ($850,000,000.00).

 

Section 10.3.   In Rem Proceedings.  Supplementing Section 5.1 hereof,
mortgage foreclosures and other In Rem
proceedings against Mortgagor may be brought in DuPage County, Illinois or
any federal court of competent jurisdiction in Illinois.

 

Section 10.4.    Future Advances; Revolving Credit.  In
accordance with the terms and provisions of 205 ILCS 5/5(d), this Mortgage
secures, among other things, “revolving credit” as that term is defined in 815
ILCS 205/4.1, and will secure not only existing indebtedness, but also future
advances, whether such advances are obligatory or to be made at the option of
the Mortgagor or the Lenders, or otherwise, as are made within twenty (20)
years from the date hereof, to the same extent as if such future advances were
made on the date of execution of this Mortgage, although there may be no
advance made at the time of execution hereof, and although there may be no
indebtedness outstanding at the time any advance is made.  The lien of this Mortgage shall be valid as
to all Indebtedness and Obligations, including any future advances, from the
time this Mortgage is recorded in the office of the Recorder of Deeds of DuPage County,
Illinois, as provided in Section 15-1302(b)(1) of the Illinois
Mortgage Foreclosure Law (as amended from time to time, the “Act”), 735 ILCS 5/15-1101, et seq.  This Mortgage shall be valid and shall have
priority over all subsequent liens and encumbrances, including all statutory
liens, except taxes and assessments levied on the Mortgaged Property, to the
extent of the maximum amount secured hereby. 
The total amount of the Indebtedness and Obligations may increase or
decrease from time to time, but the total unpaid principal balance of the
Indebtedness and Obligations at any time outstanding shall not exceed the
amount referred to in Section 10.2 above.

 

Section 10.5.    Use of Proceeds. The proceeds of the indebtedness secured
hereby referred to herein shall be used solely for business purposes (subject
to subsection 2.5 of the Credit Agreement), and the entire principal obligation
secured by this Mortgage constitutes (i) a “business loan” which comes
within the purview and operation of 815 ILCS 205/4 (1)(c), and (ii) a “loan
secured by a mortgage on real estate” within the purview and operation of 815
ILCS 205/4(1)(l).

 

Section 10.6.    Illinois Mortgage Foreclosure Law.  It is
the intention of Mortgagor and Mortgagee that the enforcement of the terms and
provisions of this Mortgage 

 

	
   

  	
  XIV-15

  	
  Mortgage

  

 

shall be accomplished in accordance with the Act, and with respect to
such Act Mortgagor agrees and covenants that:

 

(a)        Mortgagor and Mortgagee
shall have the benefit of all of the provisions of the Act, including all
amendments thereto which may become effective from time to time after the date
hereof.  In the event any provision of the
Act which is specifically referred to herein may be repealed, Mortgagee shall
have the benefit of such provision as most recently existing prior to such
repeal, as though the same were incorporated herein by express reference;

 

(b)        Wherever provision is
made in this Mortgage or the Credit Agreement for insurance policies to bear
mortgage clauses or other loss payable clauses or endorsements in favor of
Mortgagee, or to confer authority upon Mortgagee to settle or participate in
the settlement of losses under policies of insurance or to hold and disburse or
otherwise control use of insurance proceeds, from and after the entry of
judgment of foreclosure, all such rights and powers of Mortgagee shall continue
in Mortgagee as judgment creditor or mortgagee until confirmation of sale;

 

(c)        All advances,
disbursements and expenditures made or incurred by Mortgagee before and during
a foreclosure, and before and after judgment of foreclosure, and at any time
prior to sale, and, where applicable, after sale, and during the pendency of any
related proceedings, for the following purposes, in addition to those purposes
otherwise authorized by the Mortgage, or the Credit Agreement or by the Act
(collectively “Protective Advances”), shall have
the benefit of all applicable provisions of the Act:

 

(1)        (i) preserve, maintain, repair,
restore or rebuild the improvements upon the Mortgaged Property; (ii) preserve
the lien of the Mortgage or the priority thereof; (iii) enforce the
Mortgage, as referred to in Subsection (b) (5) of Section 5/15-1302
of the Act;

 

(2)        (i) principal, interest or other
obligations in accordance with the terms of any senior mortgage or other prior
lien or encumbrances; (ii) real estate taxes and assessments, general and
special, and all other taxes and assessments of any kind or nature whatsoever
which are assessed or imposed upon the Mortgaged Property or any part thereof; (iii) other
obligations authorized by the Mortgagee; (iv) with court approval, any
other amounts in connection with other liens, encumbrances or interests
reasonably necessary to preserve the status of title, as referred to in Section 5/15-1505
of the Act;

 

(3)        settlement or compromise of any claims
asserted by claimants under senior mortgages or any other prior liens;

 

(4)        reasonable attorneys’ fees and other
costs incurred: (i) in connection with the foreclosure of the Mortgage as
referred to in Section 5/15-1504(d)(2) and 5/15-1510 of the Act; (ii) in
connection with any action, suit, or proceeding brought by or against the
Mortgagee for the enforcement of the Mortgage or arising from the interest of
the Mortgagee hereunder; or (iii) in preparation for or in connection with
the commencement, prosecution or defense of any other action related to the
Mortgage or the Mortgaged Property;

 

	
   

  	
  XIV-16

  	
  Mortgage

  

 

(5)        Mortgagee’s fees and costs, including
reasonable attorneys’ fees, arising between the entry of judgment of
foreclosure and the confirmation hearings as referred to in Section 5/15-1508
(b)(1) of the Act;

 

(6)        expenses deductible from the proceeds of
sale as referred to in Section 5/15-1512 (a) and (b) of the Act;
and

 

(7)        expenses incurred and expenditures made
by Mortgagee for any one or more of the following: (i) if the Mortgaged
Property or any portion thereof constitutes one or more units under a
condominium declaration, assessments imposed on the unit owner thereof; (ii) if
Mortgagor’s interest in the Mortgaged Property is a leasehold estate under a
lease or sublease, rentals or other payments required to be made by the lessee
under the terms of the lease or sublease; (iii) premiums for casualty and
liability insurance paid by Mortgagee whether or not Mortgagee or a receiver is
in possession, if reasonably required in reasonable amounts, and all renewals
thereof, without regard to the limitation to maintaining of existing insurance
in effect at the time any receiver or mortgagee takes possession of the
Mortgage Property imposed by Section 5/15-1704(c)(1) of Act; (iv) repair
or restoration of damage or destruction in excess of available insurance
proceeds or condemnation awards; (v) payments  deemed by Mortgagee to be required for the
benefit of the Mortgaged Property or required to be made by the owner of the
Mortgaged Property under any grant or declaration of easement, easement
agreement, agreement with any adjoining land owners or instruments creating
covenants or restrictions for the benefit of or affecting the Mortgaged
Property; (vi) shared or common expense assessments payable to any
association or corporation in which the owner of the Mortgaged Property is a
member in any way affecting the Mortgaged Property; (vii) if the loan
secured hereby is a construction loan, as may be authorized by the applicable
commitment, loan agreement or other agreement; (viii) payments required to
be paid by Mortgagor or Mortgagee pursuant to any lease or other agreement for
occupancy of the Mortgaged Property; and (ix) if the Mortgage is insured,
payment of FHA or private mortgage insurance required to keep such insurance in
force.

 

All
Protective Advances shall be so much additional indebtedness secured by this
Mortgage, and shall become immediately due and payable without notice and with
interest thereon from the date of the advance until paid at the rate of
interest payable after default under the terms of the Credit Agreement.

 

This
Mortgage shall be a lien for all Protective Advances as to subsequent
purchasers and judgment creditors from the time this Mortgage is recorded
pursuant to Subsection (b)(5) of Section 15-1302 of the Act.

 

(d)        In addition to any
provision of this Mortgage authorizing the Mortgagee to take or be placed in
possession of the Mortgaged Property, or for the appointment of a receiver,
Mortgagee shall have the right, in accordance with Sections 15-1701 and 15-1702
of the Act, to be placed in possession of the Mortgaged Property or at its
request to have a receiver appointed, and such receiver, or Mortgagee, if and
when placed in possession, shall have, in addition to any other powers provided
in this Mortgage, all rights, powers, immunities, and duties as provided for in
Sections 15-1701, 15-1703 and 15-1704 of the Act; and

 

	
   

  	
  XIV-17

  	
  Mortgage

  

 

(e)        Mortgagor acknowledges
that the Mortgaged Property does not constitute agricultural real estate, as
said term is defined in Section 15-1201 of the Act or residential real
estate as defined in Section 15-1219 of the Act.  Pursuant to Section 15-1601(b) of
the Act, Mortgagor hereby waives any and all right of reinstatement or
redemption.

 

 

[The remainder of this page intentionally left blank]

 

	
   

  	
  XIV-18

  	
  Mortgage

  

 

 

IN
WITNESS WHEREOF,
Mortgagor has on the date set forth in the acknowledgement hereto, effective as
of the date first above written, caused this instrument to be duly EXECUTED AND
DELIVERED by authority duly given.

 

	
  MORTGAGOR:

  	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY,
  INC.,

  a Michigan corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

 

	
  STATE OF ______

  	
   

  	
  )

  
	
   

  	
   

  	
  ) ss.:

  
	
  COUNTY OF ______

  	
   

  	
  )

  

 

I, ___________________________,
a Notary Public in and for said County and State, DO HEREBY CERTIFY, that  on the _____ day of ______, 200_,
____________________, personally known to me to be the _____________________ of
_______________________, a _______________________, appeared before me and
first being duly sworn by me acknowledged that he/she signed the foregoing
instrument in the capacity therein set forth and acknowledged that he/she
signed and delivered the said instrument as his/her free and voluntary act and
as the free and voluntary act and deed of said corporation, for the uses and
purposes therein set forth and that the statements therein contained are true.

 

In
Witness Whereof, I have hereunto set my hand and Notarial Seal, this ____ day
of __________, 200_.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
  My Commission Expires:

  

 

 

EXHIBIT A

 

The permanent tax index
numbers for the Land are 05-36-202-011 (Lot 1) and 05-36-202-012 (Lot 2).

 

 

Legal Description of
premises located at 3113 Woodcreek Drive, Downers Grove, Illinois:

 

LOTS 1 AND 2 IN ESCHEM
SUBDIVISION OF LOT 7 IN THE WOODCREEK BUSINESS PARK, BEING A SUBDIVISION OF LOT
7 IN WOODCREEK BUSINESS PARK RESUBDIVISION OF LOTS 1 THROUGH 14 AND VACATED
EDGEBROOK PLACE, ALL IN WOODCREEK BUSINESS PARK, BEING A SUBDIVISION OF PARTS
OF SECTIONS 25 AND 36, TOWNSHIP 35 NORTH, RANGE 10, EAST OF THE THIRD PRINCIPAL
MERIDIAN, ACCORDING TO THE PLAT OF SAID ESCHEM SUBDIVISION RECORDED OCTOBER 22,
1985 AS DOCUMENT R85-91342 AND CERTIFICATE OF CORRECTION RECORDED DECEMBER 2,
1985 AS DOCUMENT R85-105018, IN DUPAGE COUNTY, ILLINOIS.

 

XIV-1

 

EXHIBIT
XV

 

 

[FORM OF]
NOTICE OF PREPAYMENT

 

Pursuant to that certain Credit Agreement
dated as of August 4, 2008, as amended, supplemented, amended and restated
or otherwise modified to the date hereof (said Credit Agreement, as so amended,
supplemented, amended and restated or otherwise modified, being the “Credit Agreement”, the terms defined therein and not
otherwise defined herein being used herein as therein defined), by and among
UNOLA Corp., a Delaware corporation (and following the Merger, FTD Group, Inc.,
a Delaware corporation, collectively, “Company”), the
financial institutions party thereto from time to time (each individually
referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders (in such capacity, “Administrative
Agent”), this represents Company’s notice of prepayment as follows:

 

	
  1.

  	
  Date of Notice:  _______________, 20__

  
	
   

  	
   

  
	
  2.

  	
  Type of
  Prepayment/Reduction/Termination:

  
	
   

  	
   

  
	
   

  	
  [  ]  a.

  	
  Voluntary Prepayment
  of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [  ] i.

  	
  Swing Line Loan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [  ] ii.

  	
  Tranche A Term Loan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [  ] iii.

  	
  Tranche B Term Loan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [  ] iv.

  	
  Revolving Loan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [  ]  b.

  	
  Voluntary
  Reduction/Termination of Revolving Loan Commitments

  
	
   

  	
   

  	
   

  
	
   

  	
  [  ]  c.

  	
  Mandatory Prepayment
  and/or Reduction of Revolving Loan Commitments1 (specify the circumstance requiring said
  prepayment and/or reduction by checking the appropriate box below):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [  ] i.

  	
  Receipt of Net Asset
  Sale Proceeds (check one of the options below)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [  ] 1.

  	
  Prepayment/Reduction of
  Revolving Loan Commitments with Net Asset Sale Proceeds that will not be
  reinvested

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [  ] 2.

  	
  Prepayment
  of Revolving Loans pending reinvestment of Net Asset Sale Proceeds

   

  
	
   

  	
   

  	
  [  ] ii.

  	
  Receipt of Net
  Insurance/Condemnation Proceeds

  
						

 

1 Mandatory prepayments or reductions in Revolving Loan
Commitments shall be applied as specified in subsections 2.4B(v) and 2.4D
of the Credit Agreement.

 

	
   

  	
  XV-1

  	
  Notice of Prepayment

  

 

 

	
   

  	
   

  	
  [  ] iii.

  	
  Receipt of Net
  Securities Proceeds from the issuance of equity securities

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [  ] iv.

  	
  Receipt of Net
  Securities Proceeds from the issuance of indebtedness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [  ] v.

  	
  Consolidated Excess
  Cash Flow

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Amount of prepayment/reduction
  of Revolving Loan Commitments (as applicable):

  
	
   

  	
   

  
	
   

  	
  [  ]  a.

  	
  Voluntary/Mandatory

  Prepayment:2

  	
  $________________________

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [  ]  b.

  	
  Reduction/Termination

  of Revolving Loan

  Commitments:3

  	
  $________________________

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  If applicable, specify
  desired application of voluntary prepayment:4

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Date of prepayment or
  date voluntary reduction/termination of Revolving Loan

  Commitments will take effect:  __________, 20__

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Attached hereto is (if
  applicable):

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [  ]  a.

  	
  Officer’s Certificate
  setting forth the portion of any Net Asset Sale Proceeds that Company or 

  
	
   

  	
   

  	
  any Subsidiary intends
  to reinvest in equipment or other productive assets of the general type used
  in the business of Company or its Subsidiaries.

  
	
   

  	
   

  
	
   

  	
  [  ]  b.

  	
  Officer’s Certificate
  demonstrating the calculation of the amount of the applicable Net Asset 

  
	
   

  	
   

  	
  Sale Proceeds, Net
  Insurance/Condemnation Proceeds, Net Securities Proceeds, or Consolidated
  Excess Cash Flow, as the case may be, that gave rise to a mandatory
  prepayment and/or reduction in Revolving Loan Commitments.

  
										

 

2 This option
should be selected for all voluntary and mandatory prepayments of the Loans.

3 This option should be selected only if a
voluntary termination or reduction of the Revolving Loan Commitments is the
subject of this notice.

4 Applications
specified by Company shall be subject to subsection 2.4B(v)(a) of the
Credit Agreement.

 

	
   

  	
  XV-2

  	
  Notice of Prepayment

  

 

 

IN WITNESS WHEREOF, the undersigned
authorized officer of Company has executed this notice as of the date set forth
above.

 

	
   

  	
  FTD GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

	
   

  	
  XV-3

  	
  Notice of Prepayment

  

 

EXHIBIT XVI

 

[FORM OF]
CLOSING DATE CERTIFICATE

 

This CLOSING DATE CERTIFICATE  is being delivered pursuant to subsection
4.2O of that certain Credit Agreement dated as of August 4, 2008 (the “Credit Agreement”) by and among UNOLA Corp., a Delaware
corporation (and following the Merger, FTD Group, Inc., a Delaware
corporation), the financial institutions party thereto from time to time (each
individually referred to herein as a “Lender” and
collectively as “Lenders”) and Wells Fargo Bank,
National Association, as sole lead arranger, sole book manager and
administrative agent for Lenders. 
Capitalized terms used herein without definition have the same meanings
as in the Credit Agreement.

 

I am the duly elected Chief Financial Officer
of FTD Group, Inc., a Delaware corporation (“FTD”),
and hereby certify that as of the Closing Date, the Closing Date Consolidated
Adjusted EBITDA of FTD and its Subsidiaries is at least $97,500,000 for the
most  recently completed trailing 12
month period ended at least 35 days prior to the Closing Date for which
financial statements have been delivered pursuant to subsection 4.2D of the
Credit Agreement.

 

	
   

  	
  XVI-1

  	
  Closing
  Date Certificate

  

 

The foregoing certification,
together with the computation set forth in Attachment No. 1 annexed hereto
and made a part hereof are made and delivered this [          ]
day of [          ],
2008 pursuant to subsection 4.2O of the Credit Agreement.

 

	
   

  	
  FTD
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title: Chief Financial Officer

  
					

 

	
   

  	
  XVI-2

  	
  Closing
  Date Certificate

  

 

 

ATTACHMENT NO. 1

TO CLOSING DATE CERTIFICATE

 

This Attachment No. 1 is attached to and
made a part of a Closing Date Certificate dated as of _____________, 2008 and
pertains to the period from ____________, _____ to ____________, ____.  Subsection references herein relate to
subsections of the Credit Agreement.

 

	
   

  	
  Closing Date Consolidated
  Adjusted EBITDA (for the most recently completed trailing
  12 month period ended at least 30 days prior to the Closing Date for which
  financial statements have been delivered pursuant to subsection 4.2D of the
  Credit Agreement):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Consolidated Net
  Income:

  	
   

  	
  $_____________

  
	
   

  	
  2.

  	
  Consolidated Interest
  Expense and any amounts referred to in subsection 2.3 payable on or before
  the Closing Date:1

  	
   

  	
  $_____________

  
	
   

  	
  3.

  	
  Provisions for Taxes
  based on income, (including provisions recorded to the extent necessary to
  permit any corporate parent (or any Affiliate of such corporate parent) to
  discharge the consolidated, combined or other group Tax liabilities of such
  corporate parent and its Subsidiaries):

  	
   

  	
  $_____________

  
	
   

  	
  4.

  	
  Total depreciation
  expense:

  	
   

  	
  $_____________

  
	
   

  	
  5.

  	
  Total amortization
  expense:

  	
   

  	
  $_____________

  
	
   

  	
  6.

  	
  Transaction Costs (not
  to exceed $10,000,000 in the aggregate):

  	
   

  	
  $_____________

  
	
   

  	
  7.

  	
  Management or employee
  retention or incentive expenses under any Loan Party’s cliff bonus plan or
  any other bonus or incentive plan:

  	
   

  	
  $_____________]

  
	
   

  	
  8.

  	
  Foreign currency
  translation or transaction gains or losses (including gains or losses related
  to currency remeasurements of Indebtedness):

  	
   

  	
  $_____________

  
	
   

  	
  9.

  	
  All extraordinary,
  unusual or non-recurring losses, charges or expenses (minus any
  extraordinary, unusual or non-recurring gains (other than the proceeds of
  business interruption insurance)) (it being understood and agreed that Item
  10(e) of Regulation S-K shall not constitute a limitation on any such
  determination and unusual or non-recurring losses, charges, expenses or gains
  shall be determined by Company in good faith):

  	
   

  	
  $_____________

  
	
   

  	
  10.

  	
  All other non-Cash
  items including, without limitation, non-Cash stock compensation expenses for
  officers, directors, employees and consultants (other than any such non-Cash
  item to the extent it represents an accrual of or reserve for Cash
  expenditures in any future period):

  	
   

  	
  $_____________

  

 

1 The amounts referenced in items F.2 through
F.12 should only be included to the extent deducted in the calculation of
Consolidated Net Income.

 

	
   

  	
  XVI-3

  	
  Closing
  Date Certificate

  

 

	
   

  	
  11.

  	
  All expenses incurred
  in connection with the prepayment, amendment or refinancing of Indebtedness:

  	
   

  	
  $_____________

  
	
   

  	
  12.

  	
  (A) Any impairment
  charge or asset write-off or write-down, in each case relating to an
  intangible asset, pursuant to Financial Accounting Standards Board Statements
  No. 142 and No. 144, (B) the amortization of intangible assets
  arising pursuant to Financial Accounting Standards Board Statement
  No. 141, (C) the amortization or write-off deferred financing fees
  and (D) the amortization of other intangible assets, but only, in the
  case of items 2 through 11 above, to the extent deducted in the calculation
  of Consolidated Net Income:

  	
   

  	
  $_____________

  
	
   

  	
  13.

  	
  Non-Cash items added in
  the calculation of Consolidated Net Income (other than any such non-Cash
  items to the extent expected to result in the receipt of Cash payments in any
  future period):

  	
   

  	
  $_____________

  
	
   

  	
  14.

  	
  Closing Date
  Consolidated Adjusted EBITDA (1+2+3+4+5+6+7+8+9+10+11+12-13):

  	
   

  	
  $_____________

  
	
   

  	
  15.

  	
  Minimum required under
  subsection 4.2O:

  	
   

  	
  $97,500,000

  

 

	
   

  	
  XVI-4

  	
  Closing
  Date Certificate

  

 

 

Schedule
2.1

Lenders’
Commitments and Pro Rate Shares

 

	
  Lender

  	
   

  	
  Tranche A

  Term Loan

  Commitment

  	
   

  	
  Pro Rata

  Share (re:

  Tranche A

  Term Loans)

  	
   

  	
  Tranche B

  Term Loan

  Commitment

  	
   

  	
  Pro Rata

  Share (re:

  Tranche B

  Term Loans)

  	
   

  	
  Revolving

  Loan

  Commitment

  	
   

  	
  Pro Rata

  Share (re:

  Rev. Loans)

  	
   

  	
  Pro Rata

  Share

  (Overall)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wells Fargo Bank,
  National Association

  	
   

  	
  $21,000,000

  	
   

  	
  28.00000000%

  	
   

  	
  $300,000,000

  	
   

  	
  100.00000000%

  	
   

  	
  $14,000,000

  	
   

  	
  28.00000000%

  	
   

  	
  78.82352941%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  American AgCredit, ACA

  	
   

  	
  15,000,000

  	
   

  	
  20.00000000%

  	
   

  	
  0

  	
   

  	
  0.00000000%

  	
   

  	
  10,000,000

  	
   

  	
  20.00000000%

  	
   

  	
  5.88235294%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LaSalle Bank National
  Association

  	
   

  	
  21,000,000

  	
   

  	
  28.00000000%

  	
   

  	
  0

  	
   

  	
  0.00000000%

  	
   

  	
  14,000,000

  	
   

  	
  28.00000000%

  	
   

  	
  8.23529412%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank USA, N.A.

  	
   

  	
  9,000,000

  	
   

  	
  12.00000000%

  	
   

  	
  0

  	
   

  	
  0.00000000%

  	
   

  	
  6,000,000

  	
   

  	
  12.00000000%

  	
   

  	
  3.52941176%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING (U.S.) Capital
  Corporation

  	
   

  	
  9,000,000

  	
   

  	
  12.00000000%

  	
   

  	
  0

  	
   

  	
  0.00000000%

  	
   

  	
  6,000,000

  	
   

  	
  12.00000000%

  	
   

  	
  3.52941176%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $75,000,000

  	
   

  	
  100.00000000%

  	
   

  	
  $300,000,000

  	
   

  	
  100.00000000%

  	
   

  	
  $50,000,000

  	
   

  	
  100.00000000%

  	
   

  	
  100.00000000%

  	
   

  

 

 

Schedule
3.1

Existing
Letters of Credit

 

 

Letter of Credit #S451433
issued by LaSalle Bank National Association on 2/20/02 for $1,000,000.00

Beneficiary: Toronto
Dominion Bank Windsor Branch, Ontario Canada

 

 

Schedule
4.2K

Closing
Date Mortgaged Properties

 

3113 Woodcreek Drive

Downers Grove, IL  60515

 

 

Schedule
5.1

Corporate
Structure

 

	
  Entity

   

  	
   

  	
   

  	
  Jurisdiction of

  Organization

   

  	
   

  	
   

  	
  Direct

  Parent(s)

   

  	
   

  	
   

  	
  Ownership

  By (Each)

  Direct Parent

   

  
	
  UNOL Intermediate, Inc.

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  N/A

  	
   

  	
   

  	
  N/A

  
	
  UNOLA Corp.1

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  UNOL Intermediate, Inc.

  	
   

  	
   

  	
  100%

  
	
  FTD Group, Inc.

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  UNOL Intermediate, Inc.

  	
   

  	
   

  	
  100%

  
	
  FTD, Inc.

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  FTD Group, Inc.

  	
   

  	
   

  	
  100%

  
	
  Value Network Service, Inc.*

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  FTD, Inc.

  	
   

  	
   

  	
  100%

  
	
  Florists’ Transworld Delivery, Inc.

  	
   

  	
   

  	
  Michigan

  	
   

  	
   

  	
  FTD, Inc.

  	
   

  	
   

  	
  100%

  
	
  FTD International Corporation*

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  FTD, Inc.

  	
   

  	
   

  	
  100%

  
	
  FTD UK Holdings Limited

  	
   

  	
   

  	
  United Kingdom

  	
   

  	
   

  	
  FTD, Inc.

  	
   

  	
   

  	
  100%

  
	
  FTD Holdings, Incorporated*

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  Florists’ Transworld Delivery, Inc.

  	
   

  	
   

  	
  100%

  
	
  FTD Canada, Inc.

  	
   

  	
   

  	
  Canada

  	
   

  	
   

  	
  Florists’ Transworld Delivery, Inc.

  	
   

  	
   

  	
  100%

  
	
  FTD.COM INC.

  	
   

  	
   

  	
  Delaware

  	
   

  	
   

  	
  Florists’ Transworld Delivery, Inc.

  	
   

  	
   

  	
  100%

  

 

1 On the Closing Date, UNOLA Corp. will merge
with and into FTD Group, Inc. with FTD Group, Inc. being the
surviving entity.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Florists’ Transworld Delivery, Inc.

  	
   

  	
   

  	
  33.33%

  
	
  Interflora, Inc.

  	
   

  	
   

  	
  Michigan

  	
   

  	
   

  	
  Interflora British Unit

  	
   

  	
   

  	
  33.33%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Fleurop-Interflora2

  	
   

  	
   

  	
  33.33%

  
	
  Renaissance Greeting Cards, Inc.*

  	
   

  	
   

  	
  Maine

  	
   

  	
   

  	
  FTD Holdings, Incorporated

  	
   

  	
   

  	
  100%

  
	
  Flowers USA, Inc.*

  	
   

  	
   

  	
  Connecticut

  	
   

  	
   

  	
  FTD.COM INC.

  	
   

  	
   

  	
  100%

  
	
  Interflora Holdings Limited

  	
   

  	
   

  	
  United Kingdom

  	
   

  	
   

  	
  FTD UK Holdings Limited

  	
   

  	
   

  	
  100%

  
	
  Interflora Group Limited

  	
   

  	
   

  	
  United Kingdom

  	
   

  	
   

  	
  Interflora Holdings Limited

  	
   

  	
   

  	
  100%

  
	
  Interflora Investments Limited

  	
   

  	
   

  	
  United Kingdom

  	
   

  	
   

  	
  Interflora Group Limited

  	
   

  	
   

  	
  100%

  
	
  Interflora British Unit

  	
   

  	
   

  	
  United Kingdom

  	
   

  	
   

  	
  Interflora Group Limited

  	
   

  	
   

  	
  50%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Interflora Investments Limited

  	
   

  	
   

  	
  50%

  

*Dormant entity.

 

2 Not an
affiliated entity.

 

 

Schedule
5.5B

Real
Property

 

3113 Woodcreek Drive

Downers Grove, IL  60515

 

 

Schedule
5.5C

Intellectual
Property

 

See attached.

 

U.S. Trademark
Portfolio — FTD.COM, Inc. (July 21, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  
	
  Matter ID

  	
   

  	
  Mark

  	
   

  	
  Country/State

  	
   

  	
  Application Date

  	
   

  	
  Reg. Date

  	
   

  	
  Status

  	
   

  	
  TM Class

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDCOM-0001-T

  	
   

  	
  FLOWERS USA

  	
   

  	
  United States of

  	
   

  	
  76/457,905

  	
   

  	
  2,962,760

  	
   

  	
  Registered

  	
   

  	
  35,39

  
	
   

  	
   

  	
   

  	
   

  	
  America

  	
   

  	
  10/7/2002

  	
   

  	
  6/21/2005

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDCOM-0002-T

  	
   

  	
  FLOWERS U.S.A. &
  Design

  	
   

  	
  United States of

  	
   

  	
  76/149,481

  	
   

  	
  2,619,889

  	
   

  	
  Registered

  	
   

  	
  35,39

  
	
   

  	
   

  	
   

  	
   

  	
  America

  	
   

  	
  10/18/2000

  	
   

  	
  9/17/2002

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDCOM-0005-T

  	
   

  	
  FLOWERS DIRECT

  	
   

  	
  United States of

  	
   

  	
  74/177,408

  	
   

  	
  1,779,145

  	
   

  	
  Registered

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
  America

  	
   

  	
  6/18/1991

  	
   

  	
  6/29/1993

  	
   

  	
   

  	
   

  	
   

  

 

 

FLORISTS’ TRANSWORLD DELIVERY, INC.

 

Schedule of U.S. Patents

(July 21, 2008)

 

	
  DESCRIPTION

  	
   

  	
  FILED

  	
   

  	
  REGDT

  	
   

  	
  REG/APP#

  	
   

  	
  STATUS

  	
   

  	
  TYPE

  	
   

  	
  JURSIDICTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Compact Disc Pic

  	
   

  	
  05/04/1999

  	
   

  	
  9/19/2000

  	
   

  	
  D431,036

  	
   

  	
  REGISTERED

  	
   

  	
  DESIGN

  	
   

  	
  United States

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Combined Tea Cup Holder & Pic

  	
   

  	
  10/15/1997

  	
   

  	
  3/14/2000

  	
   

  	
  D421,630

  	
   

  	
  REGISTERED

  	
   

  	
  DESIGN

  	
   

  	
  United States

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cardholder

  	
   

  	
  10/15/1997

  	
   

  	
  11/3/1998

  	
   

  	
  D400,595

  	
   

  	
  REGISTERED

  	
   

  	
  DESIGN

  	
   

  	
  United States

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quality Assurance in a Delivery

  	
   

  	
  10/10/2006

  	
   

  	
   

  	
   

  	
  App. 11/544935

  	
   

  	
  PENDING

  	
   

  	
  UTILITY

  	
   

  	
  United States

  

 

 

FLORISTS’ TRANSWORLD DELIVERY, INC.

 

Schedule of U.S. Copyright
Registrations

(as of July 28, 2008)

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Joy of Spring.

  	
  U.S.

  	
  VA677710

  19940920

  	
  Florists’ Transworld Delivery, Inc.

  
	
  1994-1995 annual floral resource guide FTD direct
  1-800-SEND-FTD.

  	
  U.S.

  	
  VA696401

  19950120

  	
  Florists’ Transworld Delivery, Inc.

  
	
  1995 Halloween boo-quet.

  	
  U.S.

  	
  VAu334361

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  1996 pumpkin canister.

  	
  U.S.

  	
  VA798560

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Accounts payable.

  	
  U.S.

  	
  TXu494409

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Accounts receivables/sales analysis.

  	
  U.S.

  	
  TXu494414

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Animal head pic number 1.

  	
  U.S.

  	
  VAu21791

  19800908

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Autumn harvest.

  	
  U.S.

  	
  VA648760

  19940516

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Autumn harvest.

  	
  U.S.

  	
  VAu334357

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Base of the Little snowflower bouquet.

  	
  U.S.

  	
  VA802660

  19960206

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Base of the Tender touch bouquet.

  	
  U.S.

  	
  VA802659

  19960404

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bassinet.

  	
  U.S.

  	
  VAu41763

  19821223

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bear.

  	
  U.S.

  	
  VAu304775

  19940711

  	
  Florists’ Transworld Delivery, Inc.

  

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Bear.

  	
  U.S.

  	
  VAu41761

  12/23/82

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Best boss bouquet.

  	
  U.S.

  	
  VAu337217

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Best boss.

  	
  U.S.

  	
  VA677709

  19940920

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bird.

  	
  U.S.

  	
  VAu21790

  19800908

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Block.

  	
  U.S.

  	
  VAu41767

  19821223

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bloom pen.

  	
  U.S.

  	
  VAu500563

  20000712

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bookends.

  	
  U.S.

  	
  VAu41762

  19821223

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Boo-quet.

  	
  U.S.

  	
  VA669143

  19940609

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bouquet of love.

  	
  U.S.

  	
  VAu298155

  19940609

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bowl with floral
  pattern.

  	
  U.S.

  	
  N/A

  	
  Assignment by Pinto Ribeiro to 10/2/79.

  
	
  Bowl with floral pattern.

  	
  U.S.

  	
  VAu9961

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bucky beaver number 1.

  	
  U.S.

  	
  VAu36299

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bucky beaver number 2.

  	
  U.S.

  	
  VAu36300

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bucky beaver number 3.

  	
  U.S.

  	
  VAu36301

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bucky beaver number 4.

  	
  U.S.

  	
  VAu36302

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bud vase number 1.

  	
  U.S.

  	
  VAu12003

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bud vase number 1.

  	
  U.S.

  	
  VAu30482

  19811102

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 2

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Bud vase number 2.

  	
  U.S.

  	
  VAu30483

  19811102

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bud vase number 3.

  	
  U.S.

  	
  VAu30484

  19811102

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bundle of joy.

  	
  U.S.

  	
  VA582854

  19930913

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bunny basket, 1996.

  	
  U.S.

  	
  VA753270

  19951201

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Bunny basket.

  	
  U.S.

  	
  VA624056

  19931102

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Celebrate bouquet!

  	
  U.S.

  	
  VA279000

  19870804

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Chicken soup bowl.

  	
  U.S.

  	
  VA253664

  19870122

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Chicken soup bowl.

  	
  U.S.

  	
  VA798567

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Christmas ’93 white sleigh.

  	
  U.S.

  	
  VA582852

  19930913

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Clown.

  	
  U.S.

  	
  VAu21792

  19800908

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Cookie jar with floral pattern number 1.

  	
  U.S.

  	
  VAu4651

  19790205

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Cookie jar with floral pattern number 2.

  	
  U.S.

  	
  VAu4649

  19790205

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Cookie jar with floral pattern number 3.

  	
  U.S.

  	
  VAu4650

  19790205

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Cup.

  	
  U.S.

  	
  N/A

  	
  Assignment by Rein Mozer to Florist’s Transworld
  Delivery Association signed 1/31/82.  

  
	
  Decoy duck number 1.

  	
  U.S.

  	
  VAu16106

  19800411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Decoy duck number 2.

  	
  U.S.

  	
  VAu16107

  19800411

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 3

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Designer’s workbook

  	
  U.S.

  	
  VA 1-400-214

  20050322

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Drum.

  	
  U.S.

  	
  VAu41764

  19821223

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Duck.

  	
  U.S.

  	
  VAu21788

  19800908

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Egg pic.

  	
  U.S.

  	
  VAu9964

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Electronic credit card interface.

  	
  U.S.

  	
  TXu494406

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Elements of design.

  	
  U.S.

  	
  VA657233

  19921214

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Elephant.

  	
  U.S.

  	
  VAu304774

  19940711

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Eskimo doll.

  	
  U.S.

  	
  VAu334030

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D Bunny Basket.

  	
  U.S.

  	
  VA335539

  19890316

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183656

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183657

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183658

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183659

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183660

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183661

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183662

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183663

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 4

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX1183664

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183665

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183666

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183667

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183668

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1183669

  19830906

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1216696

  19831103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1216697

  19831103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395976

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395977

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395978

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395979

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395980

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395981

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395982

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1395983

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1522121

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 5

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX1522122

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1522123

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1522125

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1522126

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1522127

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1579148

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1579149

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1579150

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1579151

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1628860

  19850731

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1628861

  19850731

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1676889

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1676890

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1676891

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1747254

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1747255

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1834553

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 6

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX1834554

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1834555

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1834556

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1834557

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1859654

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1933160

  19861028

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1942310

  19870330

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1944925

  19861028

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX1990353

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2014162

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2028699

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2048502

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2048503

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2048504

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2048505

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2124381

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2126791

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 7

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX2126792

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2203041

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2203042

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2203043

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2203044

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2203045

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2304179

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2304180

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2304181

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2304182

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2304183

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2372694

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2391588

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2441458

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2441459

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2441460

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2441461

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 8

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX2553625

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2553672

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2553673

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2553674

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2626907

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2629857

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2630860

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2630865

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2695846

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2695847

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2695848

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2695849

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2858116

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2858117

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2858118

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2858119

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2968946

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 9

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX2968947

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2968948

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX2968993

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3388902

  19920915

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3388903

  19920915

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3388904

  19920915

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3388914

  19920915

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3388915

  19920915

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3418812

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3418813

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3418814

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3419171

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3419172

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3419173

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3421309

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3421310

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3421311

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 10

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX3421312

  19921103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3455759

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3455760

  19931103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530640

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530641

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530642

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530643

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530644

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530645

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530646

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530647

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530648

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530649

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530650

  19930329

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3530651

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3597593

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3597594

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 11

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX3597595

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3597596

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3597597

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3610727

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3786841

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3786842

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3786843

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3786844

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3786845

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3786846

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3889837

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3889838

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3900494

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3900495

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3900496

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3900497

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3900498

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 12

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D family.

  	
  U.S.

  	
  TX3900499

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3953667

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3965958

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3965960

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3965961

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX3966300

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX4089330

  19951009

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX4089331

  19951009

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D family.

  	
  U.S.

  	
  TX4089332

  19951009

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1061554

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1166223

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1166224

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1166225

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1166233

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1166234

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1166237

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1166241

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 13

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D news.

  	
  U.S.

  	
  TX1216700

  19831103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1395993

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1395994

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1395995

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1395996

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1522129

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1522130

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1522131

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1522132

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1522133

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX155469

  19780918

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1569323

  19850226

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1579152

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1579153

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1628862

  19850731

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1689885

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1689886

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 14

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D news.

  	
  U.S.

  	
  TX1767580

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1767581

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1842243

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1842244

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1842245

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1945000

  19861028

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1998534

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX1998535

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX203116

  19790306

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX203119

  19790306

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2058394

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2058426

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2125518

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2125519

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2208611

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2241007

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2433492

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 15

 

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D news.

  	
  U.S.

  	
  TX2433620

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2455239

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2455786

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2455787

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2455788

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2558082

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2558083

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2626879

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2626880

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2699906

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2701850

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX271304

  19790615

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX27398

  19780313

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX27399

  19780313

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2874648

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2874651

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX2976188

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 16

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D news.

  	
  U.S.

  	
  TX2976189

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX307246

  19790529

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX307247

  19790529

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX327970

  19790913

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX343682

  19791012

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3496933

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3497074

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3530909

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3530910

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3530911

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3530912

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3534018

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3534019

  19921124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3574644

  19930709

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3574645

  19930709

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3574647

  19930709

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3585530

  19930622

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 17

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D news.

  	
  U.S.

  	
  TX3585533

  19930622

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3603228

  19930709

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3603420

  19930709

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3603421

  19930709

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3656586

  19930622

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3811765

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX382277

  19791218

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3824229

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3824789

  19940309

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3857721

  19940502

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3857722

  19940523

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3877554

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3877555

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3881266

  19940523

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX3966969

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX426390

  19800303

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX486288

  19800605

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 18

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D news.

  	
  U.S.

  	
  TX512230

  19800501

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX54687

  19780419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX55913

  19780619

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX55914

  19780619

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX562221

  19801007

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX562222

  19801007

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX655249

  19810225

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX655250

  19810225

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX767545

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX767546

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX767547

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX767548

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX860359

  19820125

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX860360

  19820125

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX882450

  19820125

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX963277

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D news.

  	
  U.S.

  	
  TX963278

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 19

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  F T D news.

  	
  U.S.

  	
  TX963279

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D Spectrum.

  	
  U.S.

  	
  TX192654

  19790221

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D Spectrum.

  	
  U.S.

  	
  TX192655

  19790221

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D Spectrum.

  	
  U.S.

  	
  TX192656

  19790221

  	
  Florists’ Transworld Delivery, Inc.

  
	
  F T D Spectrum.

  	
  U.S.

  	
  TX192657

  19790221

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Father’s cabin.

  	
  U.S.

  	
  VA677277

  19940920

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Floating pic with bell design.

  	
  U.S.

  	
  VAu9965

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Floating pic with cherubs.

  	
  U.S.

  	
  VAu9963

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Floating pic with man design.

  	
  U.S.

  	
  VAu10170

  19790830

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Floral selections.

  	
  U.S.

  	
  VA 1-401-598

  20050322

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Floral selections.

  	
  U.S.

  	
  VA1123408

  20020311

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist

  	
  U.S.

  	
  TX4411808

  19960903

  	
  Florists’ Transworld Delivery Association

  
	
  Florist

  	
  U.S.

  	
  TX4411809

  19960903

  	
  Florists’ Transworld Delivery Association

  
	
  Florist

  	
  U.S.

  	
  TX4411810

  19960903

  	
  Florists’ Transworld Delivery Association

  
	
  Florist

  	
  U.S.

  	
  TX4411811

  19960903

  	
  Florists’ Transworld Delivery Association

  
	
  Florist

  	
  U.S.

  	
  TX4411812

  19960903

  	
  Florists’ Transworld Delivery Association

  
	
  Florist

  	
  U.S.

  	
  TX4411813

  19970122

  	
  Florists’ Transworld Delivery Association

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 20

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX108909

  19780918

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166226

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166227

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166228

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166229

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166230

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166231

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166232

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166235

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166236

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166238

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166239

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1166240

  19830728

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1216698

  19831103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1216699

  19831103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1246270

  19831103

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395984

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 21

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX1395985

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395986

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395987

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395988

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395989

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395990

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395991

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1395992

  19840726

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX140111

  19781113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX140112

  19781113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1522118

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1522119

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1522120

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1522124

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1522128

  19850215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1579143

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1579144

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 22

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX1579145

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1579146

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1579147

  19850513

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1628863

  19850731

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1628864

  19850731

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1676892

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1676895

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1676896

  19851023

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1746137

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1750188

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1750189

  19860129

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1824973

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1824974

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1824975

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1825439

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1825437

  19860610

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1932891

  19861028

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 23

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX1932892

  19861028

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1932896

  19861028

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1969395

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1969396

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX1973104

  19870109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX203115

  19790306

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX203117

  19790306

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX203118

  19790306

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2048447

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2048500

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2048501

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2048518

  19870414

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2125517

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2126353

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2126354

  19870813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2202387

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2202391

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 24

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX2202392

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2202393

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2202394

  19871217

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2303501

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2303500

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2303502

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2303787

  19880512

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2371215

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2371216

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2371218

  19880815

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2433600

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2433601

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2433602

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2433616

  19881117

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3476371

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3476372

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3479324

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 25

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX2526928

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2526929

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2526930

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2526931

  19890411

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2629881

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2629882

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2629883

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2629885

  19890905

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2702166

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2702279

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2702280

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2702281

  19891215

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX271303

  19790615

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2843465

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2843468

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2843469

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2843470

  19900713

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 26

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX287152

  19790712

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2970907

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2970908

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2970909

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX307244

  19790529

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX307245

  19790529

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX327971

  19790913

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX327972

  19790913

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3360951

  19920804

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3360952

  19920804

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3360953

  19920804

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3360954

  19920804

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3360955

  19920804

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425520

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425521

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425522

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425523

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 27

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX3425524

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425525

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425526

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425527

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3425528

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3430863

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3430864

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX343681

  19791012

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3465086

  19921113

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3476368

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3476369

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3476370

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3479323

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3479325

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3479426

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3479427

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3479428

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 28

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX3479429

  19930211

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3597438

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3597439

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3597440

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3597441

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3597442

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3597443

  19930730

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3791402

  19940509

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3791403

  19940509

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3791404

  19940509

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3791405

  19940509

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3791406

  19940509

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3791407

  19940509

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX382275

  19791218

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX382276

  19791218

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX38872

  19780314

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3911473

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 29

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX3911474

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3911475

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3911476

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3911477

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3911478

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3911479

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3911480

  19940907

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3966799

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3966800

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3966801

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX3966802

  19941222

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX2970910

  19901231

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX4110224

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX4110225

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX4110226

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX4110227

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX4110228

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S. Copyright
Registrations 7/28/2008 - Page 30

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX4110229

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX4110230

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX4110231

  19950828

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX426388

  19800303

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX426389

  19800303

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX486286

  19800605

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX486287

  19800605

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX512229

  19800501

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX55085

  19780314

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX557036

  19800702

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX55851

  19780619

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX55852

  19780619

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX562217

  19801007

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX562218

  19801007

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX562219

  19801007

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX562220

  19801007

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX655244

  19810225

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 31

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX655245

  19810225

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX655246

  19810225

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX655247

  19810225

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX655248

  19810225

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX70244

  19780417

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX767538

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX767539

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX767540

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX767541

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX767542

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX767543

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX767544

  19810917

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX843022

  19820125

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX843023

  19820125

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX843024

  19820125

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX84804

  19780808

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX84805

  19780808

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 32

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Florist.

  	
  U.S.

  	
  TX89892

  19780714

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX963270

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX963271

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX963272

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX963273

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX963274

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX963275

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX963276

  19820820

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5282470

  20010322

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5760407

  20011115

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5760268

  20011115

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5439450

  20011207

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5115932

  20000328

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5110720

  20000626

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5171714

  20001013

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Florist.

  	
  U.S.

  	
  TX5235293

  20010126

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Flower bowl.

  	
  U.S.

  	
  VAu24997

  19801112

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 33

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Four sided bowl with fruit and vegetable motif on
  each side.

  	
  U.S.

  	
  VAu9868

  19790529

  	
  Florists’ Transworld Delivery, Inc.

  
	
  FTD designer’s workbooks; FTD floral selections.

  	
  U.S.

  	
  VA948804

  19981001

  	
  Florists’ Transworld Delivery, Inc.

  
	
  FTD floral selections.

  	
  U.S.

  	
  VA607060

  19930909

  	
  Florists’ Transworld Delivery, Inc.

  
	
  FTD floral selections.

  	
  U.S.

  	
  VA607061

  19930909

  	
  Florists’ Transworld Delivery, Inc.

  
	
  FTD floral selections.

  	
  U.S.

  	
  VA817002

  19961125

  	
  Florists’ Transworld Delivery, Inc.

  
	
  FTD home page.

  	
  U.S.

  	
  TXu809804

  19970612

  	
  Florists’ Transworld Delivery, Inc.

  
	
  FTD selections guide CD version 4.0

  	
  U.S.

  	
  VA 1-400-213

  20050322

  	
  Florists’ Transworld Delivery, Inc.

  
	
  General Ledger.

  	
  U.S.

  	
  TXu494407

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Giraffe.

  	
  U.S.

  	
  VAu304773

  19940711

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Grandparents Day.

  	
  U.S.

  	
  VA798563

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Heart shaped bowl with birds & flowers.

  	
  U.S.

  	
  VAu12004

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Heart shaped bowl with birds and hearts.

  	
  U.S.

  	
  VAu18921

  19800509

   

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Jardinere.

  	
  U.S.

  	
  VAu12005

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Joy to the world.

  	
  U.S.

  	
  VA669142

  19940609

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Luminary.

  	
  U.S.

  	
  VA802395

  19960724

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Mercury connect software program.

  	
  U.S.

  	
  TX4082385

  19950703

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 34

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Mercury interface.

  	
  U.S.

  	
  TXu494413

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Mercury pro software program.

  	
  U.S.

  	
  TXu788467

  19960801

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Mercury wings.

  	
  U.S.

  	
  TX5026572

  19990506

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Nutcracker and bowl.

  	
  U.S.

  	
  VAu11976

  19790813

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Old-fashioned assortment bowl.

  	
  U.S.

  	
  VAu9962

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  On-line wire service directory.

  	
  U.S.

  	
  TXu494411

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Order entry.

  	
  U.S.

  	
  TXu494404

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Oriental (ivory) container.

  	
  U.S.

  	
  VAu41766

  19821223

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Oriental (red) container.

  	
  U.S.

  	
  VAu41765

  19821223

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Pamper yourself bouquet.

  	
  U.S.

  	
  VA711168

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Payroll.

  	
  U.S.

  	
  TXu494408

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Pedestal bowl.

  	
  U.S.

  	
  VAu12006

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Pick me up 10th anniversary
  mug.

  	
  U.S.

  	
  VA645803

  19940609

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Pick me up.

  	
  U.S.

  	
  VA804405

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Pick me up.

  	
  U.S.

  	
  VA804406

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Pick me up.

  	
  U.S.

  	
  VA804407

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Planter, floral design number 1.

  	
  U.S.

  	
  VAu36298

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 35

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Planter, floral design
  number 2.

  	
  U.S.

  	
  N/A

  	
  Assignment by Alfted Campana to Florist’s Transworld
  Delivery Association signed 9/11/80.

  
	
  Planter, floral design
  number 3.

  	
  U.S.

  	
  N/A

  	
  Assignment by Alfted Campana to Florist’s Transworld
  Delivery Association signed 9/11/80.

  
	
  Planter, floral design
  number 4.

  	
  U.S.

  	
  N/A

  	
  Assignment by Alfted Campana to Florist’s Transworld
  Delivery Association signed 9/11/80.

  
	
  Planter, wicker design number 1.

  	
  U.S.

  	
  VAu36307

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Planter, wicker design number 2. 

  	
  U.S.

  	
  VAu36308

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Planter, wicker design number 3.

  	
  U.S.

  	
  VAu36309

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Planter, wicker design number 4.

  	
  U.S.

  	
  N/A

  	
  Assignment by Alfted Campana to Florist’s Transworld
  Delivery Association signed 9/11/80.

  
	
  Planter, wood design number 1.

  	
  U.S.

  	
  VAu36303

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Planter, wood design number 2.

  	
  U.S.

  	
  VAu36304

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Planter, wood design number 3.

  	
  U.S.

  	
  VAu36305

  19811208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Planter, wood design number 4.

  	
  U.S.

  	
  VAu36306

  19911208

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Point of sale/cash register.

  	
  U.S.

  	
  TXu494412

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Porcelain seal figurines.

  	
  U.S.

  	
  VAu334029

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Posy pail number 1.

  	
  U.S.

  	
  VAu9958

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Posy pail number 2.

  	
  U.S.

  	
  VAu9959

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 36

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Pumpkin candle holders.

  	
  U.S.

  	
  VA798565

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Pumpkin candy bowl.

  	
  U.S.

  	
  VA798566

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  1996 Pumpkin mugs.

  	
  U.S.

  	
  VA798561

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Rabbit.

  	
  U.S.

  	
  VAu304772

  19940711

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Ramekin with floral
  pattern.

  	
  U.S.

  	
  N/A

  	
  Assignment by Pinto Ribeiro to Florist’s Transworld
  Delivery Association signed 10/2/79.

  
	
  Ramekin with floral pattern.

  	
  U.S.

  	
  VAu9960

  19790827

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Ribbon & bell.

  	
  U.S.

  	
  VA798562

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Santa design.

  	
  U.S.

  	
  VA669141

  19940609

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Since 1910 : a history of Florists’ Transworld
  Delivery Association. 

  	
  U.S.

  	
  TX1688585

  19851010

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Snow pot cover.

  	
  U.S.

  	
  VAu337292

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Song of spring.

  	
  U.S.

  	
  VA624055

  19931102

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Spring gazebo.

  	
  U.S.

  	
  VAu348228

  19951013

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Spring metal window box.

  	
  U.S.

  	
  VAu348230

  19951013

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Spring trunk.

  	
  U.S.

  	
  VAu348229

  19951013

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Spring wheelbarrow.

  	
  U.S.

  	
  VAu348227

  19951013

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Stain glass pic number 1.

  	
  U.S.

  	
  VAu24814

  19801126

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 37

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  Stain glass pic number 2.

  	
  U.S.

  	
  VAu24815

  19801126

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Stain glass pic number 3.

  	
  U.S.

  	
  VAu24813

  19801126

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Stain glass pic number 4.

  	
  U.S.

  	
  VAu24811

  19801126

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Stain glass pic number 5.

  	
  U.S.

  	
  VAu24816

  19801126

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Stain glass pic number 6.

  	
  U.S.

  	
  VAu24812

  19801126

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Thanks a bunch.

  	
  U.S.

  	
  VA580725

  19930913

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Thanksgiving ’93 cornucopia.

  	
  U.S.

  	
  VA582853

  19930913

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Thanksgiving.

  	
  U.S.

  	
  VA798564

  19960717

  	
  Florists’ Transworld Delivery, Inc.

  
	
  The customer service challenge.

  	
  U.S.

  	
  VA524376

  19911118

  	
  Florists’ Transworld Delivery, Inc.

  
	
  The FTD anniversary bouquets.

  	
  U.S.

  	
  VA732942

  19931109

  	
  Florists’ Transworld Delivery, Inc.

  
	
  The FTD King For A Day bouquet.

  	
  U.S.

  	
  VA753269

  19951201

  	
  Florists’ Transworld Delivery, Inc.

  
	
  The holiday catalog FTD direct 1-800 SEND FTD.

  	
  U.S.

  	
  VA696402

  19950120

  	
  Florists’ Transworld Delivery, Inc.

  
	
  The new FTD floral selection guide.

  	
  U.S.

  	
  VA1058265

  20001003

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Toy soldier potcover.

  	
  U.S.

  	
  VAu334031

  19950419

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Ukrainian style egg.

  	
  U.S.

  	
  VAu41739

  199820809

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Wholesale accounts receivable/sales analysis.

  	
  U.S.

  	
  TXu494405

  1991

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Wholesale inventory control.

  	
  U.S.

  	
  TXu494410

  1991

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 38

 

 

	
   Title

   	
   Country

   	
   Reg.
   No. / Date

   	
   Owner

   
	
    

   	
    

   	
    

   	
    

   
	
  World class bears packaging.

  	
  U.S.

  	
  VA1058015

  20001003

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Worm.

  	
  U.S.

  	
  VAu21789

  19800908

  	
  Florists’ Transworld Delivery, Inc.

  
	
  You’re a picture perfect secretary!

  	
  U.S.

  	
  VA624054

  19931102

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Cookie jar with floral pattern

  	
  U.S.

  	
  VAu-5-011

  19781124

  	
  Florists’ Transworld Delivery, Inc.

  
	
  Songbird

  	
  U.S

  	
  VA-672-441

  19940920

  	
  Florists’ Transworld Delivery, Inc.

  
	
  FTD floral selections guide, 1994/95; 1994/95 floral
  favorites — share the feeling!

  	
  U.S

  	
  VA-684-614

  19941013

  	
  Florists’ Transworld Delivery, Inc.

  

 

Schedule of U.S.
Copyright Registrations 7/28/2008 - Page 39

 

 

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc.  (July 25, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDCOM-0010-T

  	
   

  	
  GIFTSENSE

  	
   

  	
  United States of America

  	
   

  	
  78/320,488

  10/29/2003

  	
   

  	
  2,953,675

  5/17/2005

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDCOM-0011-T

  	
   

  	
  BUTTERFIELD BLOOMS

  	
   

  	
  United States of America

  	
   

  	
  78/332,932

  11/25/2003

  	
   

  	
  3,216,226

  3/6/2007

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0002-T

  	
   

  	
  FTD FLOWERS ALL HOURS & Design

  	
   

  	
  United States of America

  	
   

  	
  76/423,692

  6/21/2002

  	
   

  	
  2,754,301

  8/19/2003

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0003-T

  	
   

  	
  FLOWERS ALL HOURS

  	
   

  	
  United States of America

  	
   

  	
  76/423,694

  6/21/2002

  	
   

  	
  2,757,371

  8/26/2003

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0006-T

  	
   

  	
  Design

  	
   

  	
  United States of America

  	
   

  	
  75/161,459

  9/5/1996

  	
   

  	
  2,173,656

  7/14/1998

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0008-T

  	
   

  	
  DOLLARS & SCENTS

  	
   

  	
  United States of America

  	
   

  	
  75/511,222

  6/30/1998

  	
   

  	
  2,349,091

  5/9/2000

  	
   

  	
  Registered

  	
   

  	
  36

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0012-T

  	
   

  	
  Design

  	
   

  	
  United States of America

  	
   

  	
  73/833,608

  10/24/1989

  	
   

  	
  1,602,751

  6/19/1990

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0013-T

  	
   

  	
  Design

  	
   

  	
  United States of America

  	
   

  	
  73/175,705

  6/23/1978

  	
   

  	
  1,142,116

  12/2/1980

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0015-T

  	
   

  	
  MERCURY DIRECT

  	
   

  	
  United States of America

  	
   

  	
  75/894,192

  1/9/2000

  	
   

  	
  2,494,001

  10/2/2001

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0017-T

  	
   

  	
  MERCURY WINGS

  	
   

  	
  United States of America

  	
   

  	
  75/818,921

  10/8/1999

  	
   

  	
  2,970,872

  7/19/2005

  	
   

  	
  Registered

  	
   

  	
  9

  	
   

  

 

 

U.S. Trademark Portfolio — Florists’
Transworld Delivery, Inc.  (July 25,
2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0018-T

  	
   

  	
  1-877-SENDVNS

  	
   

  	
  United States of America

  	
   

  	
  75/782,712

  8/24/1999

  	
   

  	
  2,664,996

  12/24/2002

  	
   

  	
  Registered

  	
   

  	
  36,38,39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0019-T

  	
   

  	
  FTD FLOWERS AFTER HOURS & Design

  	
   

  	
  United States of America

  	
   

  	
  76/006,207

  3/21/2000

  	
   

  	
  2,447,791

  5/1/2001

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0020-T

  	
   

  	
  INTERNATIONAL RETRANS BY FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  76/006,209

  3/21/2000

  	
   

  	
  2,493,561

  9/25/2001

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0022-T

  	
   

  	
  CASHFLO FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  76/006,211

  3/21/2000

  	
   

  	
  2,478,657

  8/14/2001

  	
   

  	
  Registered

  	
   

  	
  36

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0024-T

  	
   

  	
  FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  76/109,308

  8/15/2000

  	
   

  	
  2,672,801

  1/7/2003

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0026-T

  	
   

  	
  MERCURYDIRECT & Design

  	
   

  	
  United States of America

  	
   

  	
  76/006,208

  3/21/2000

  	
   

  	
  2,531,418

  1/22/2002

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0027-T

  	
   

  	
  DIRECTORY SERVICES FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  76/006,214

  3/21/2000

  	
   

  	
  2,534,819

  1/29/2002

  	
   

  	
  Registered

  	
   

  	
  16,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0028-T

  	
   

  	
  FTD MEMBER SERVICES & Design

  	
   

  	
  United States of America

  	
   

  	
  76/188,279

  12/29/2000

  	
   

  	
  2,731,148

  7/1/2003

  	
   

  	
  Registered

  	
   

  	
  35,36

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0029-T

  	
   

  	
  1800FTDFLOWERS.COM

  	
   

  	
  United States of America

  	
   

  	
  76/108,927

  8/11/2000

  	
   

  	
  2,933,470

  3/15/2005

  	
   

  	
  Registered

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0030-T

  	
   

  	
  NATIONAL FLORA

  	
   

  	
  United States of America

  	
   

  	
  76/378,043

  3/6/2002

  	
   

  	
  2,699,935

  3/25/2003

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0031-T

  	
   

  	
  MERCURY ADVANTAGE

  	
   

  	
  United States of America

  	
   

  	
  76/171,627

  11/27/2000

  	
   

  	
  2,712,593

  5/6/2003

  	
   

  	
  Registered

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0032-T

  	
   

  	
  FTD CONNECTIONS & Design

  	
   

  	
  United States of America

  	
   

  	
  76/249,947

  5/2/2001

  	
   

  	
  2,664,391

  12/17/2002

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  

 

 

Page: 2

 

U.S. Trademark Portfolio — Florists’
Transworld Delivery, Inc.  (July 25,
2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0033-T

  	
   

  	
  FTD FLORIST’S BULLETIN BOARD

  	
   

  	
  United States of America

  	
   

  	
  76/188,280

  12/29/2000

  	
   

  	
  2,581,506

  6/18/2002

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0034-T

  	
   

  	
  MERCURY

  	
   

  	
  United States of America

  	
   

  	
  75/304,956

  6/6/1997

  	
   

  	
  2,437,785

  3/27/2001

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0038-T

  	
   

  	
  FTD

  	
   

  	
  United States of America

  	
   

  	
  75/793,297

  9/7/1999

  	
   

  	
  2,385,454

  9/12/2000

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0039-T

  	
   

  	
  MERCURY

  	
   

  	
  United States of America

  	
   

  	
  75/210,036

  12/9/1996

  	
   

  	
  2,346,281

  5/2/2000

  	
   

  	
  Registered

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0042-T

  	
   

  	
  FTD

  	
   

  	
  United States of America

  	
   

  	
  75/185,738

  10/22/1996

  	
   

  	
  2,219,418

  1/19/1999

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0043-T

  	
   

  	
  FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  75/032,103

  12/13/1995

  	
   

  	
  2,157,241

  5/12/1998

  	
   

  	
  Registered

  	
   

  	
  8,14,16,20,21,25,35,36,38,39,41

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0044-T

  	
   

  	
  SINCE 1910 FTD FLORISTS’ TRANSWORLD DELIVERY &
  Design

  	
   

  	
  United States of America

  	
   

  	
  74/720,920

  8/25/1995

  	
   

  	
  2,130,968

  1/20/1998

  	
   

  	
  Registered

  	
   

  	
  35,36,38,39,41,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0045-T

  	
   

  	
  SINCE 1910 FTD FLORISTS’ TRANSWORLD DELIVERY &
  Design

  	
   

  	
  United States of America

  	
   

  	
  74/720,919

  8/25/1995

  	
   

  	
  2,053,519

  4/15/1997

  	
   

  	
  Registered

  	
   

  	
  31,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0051-T

  	
   

  	
  1-800-SEND-FTD

  	
   

  	
  United States of America

  	
   

  	
  74/429,231

  8/27/1993

  	
   

  	
  1,848,732

  8/9/1994

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0052-T

  	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY FTD SINCE 1910 &
  Design

  	
   

  	
  United States of America

  	
   

  	
  74/214,796

  10/23/1991

  	
   

  	
  1,729,683

  11/3/1992

  	
   

  	
  Registered

  	
   

  	
  42

  	
   

  

 

 

Page: 3

 

U.S. Trademark Portfolio — Florists’
Transworld Delivery, Inc.  (July 25,
2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0053-T 

  	
   

  	
  FLOWERS AFTER HOURS

  	
   

  	
  United States of America

  	
   

  	
  74/082,434

  7/27/1990

  	
   

  	
  1,693,488

  6/9/1992

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0054-T 

  	
   

  	
  FTD

  	
   

  	
  United States of America

  	
   

  	
  73/796,730

  5/1/1989

  	
   

  	
  1,576,429

  1/9/1990

  	
   

  	
  Registered

  	
   

  	
  21,22,25,28,38,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0055-T 

  	
   

  	
  FLORISTS’ TRANSWORLD DELIVERY

  	
   

  	
  United States of America

  	
   

  	
  73/711,904

  2/18/1988

  	
   

  	
  1,523,748

  2/7/1989

  	
   

  	
  Registered

  	
   

  	
  35,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0056-T 

  	
   

  	
  MERCURY

  	
   

  	
  United States of America

  	
   

  	
  73/708,271

  1/29/1988

  	
   

  	
  1,503,001

  9/6/1988

  	
   

  	
  Registered

  	
   

  	
  16,35,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0057-T 

  	
   

  	
  FTD FAMILY

  	
   

  	
  United States of America

  	
   

  	
  73/708,270

  1/29/1988

  	
   

  	
  1,503,884

  9/13/1988

  	
   

  	
  Registered

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0058-T 

  	
   

  	
  FLORIST

  	
   

  	
  United States of America

  	
   

  	
  73/610,664

  7/21/1986

  	
   

  	
  1,486,082

  4/26/1988

  	
   

  	
  Registered

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0059-T 

  	
   

  	
  RETRANS

  	
   

  	
  United States of America

  	
   

  	
  73/367,314

  6/1/1982

  	
   

  	
  1,269,424

  3/6/1984

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0060-T 

  	
   

  	
  FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  73/265,622

  6/9/1980

  	
   

  	
  1,231,300

  3/15/1983

  	
   

  	
  Registered

  	
   

  	
  35,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0061-T 

  	
   

  	
  FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  73/261,130

  5/7/1980

  	
   

  	
  1,226,443

  2/8/1983

  	
   

  	
  Registered

  	
   

  	
  16,25,27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0062-T 

  	
   

  	
  MERCURY NETWORK

  	
   

  	
  United States of America

  	
   

  	
  73/175,706

  6/23/1978

  	
   

  	
  1,116,187

  4/3/1979

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0063-T 

  	
   

  	
  FTD

  	
   

  	
  United States of America

  	
   

  	
  73/146,031

  12/19/1977

  	
   

  	
  1,108,614

  12/12/1978

  	
   

  	
  Registered

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0064-T 

  	
   

  	
  FTD

  	
   

  	
  United States of America

  	
   

  	
  72/238,070

  2/4/1966

  	
   

  	
  844,748

  2/20/1968

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  

 

 

Page: 4

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc.  (July 25, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0065-T 

  	
   

  	
  FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  72/236,983

  1/21/1966

  	
   

  	
  821,318

  12/27/1966

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0121-T 

  	
   

  	
  FTDI.COM

  	
   

  	
  United States of America

  	
   

  	
  76/299,109

  8/15/2001

  	
   

  	
  2,845,495

  5/25/2004

  	
   

  	
  Registered

  	
   

  	
  35,36

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0127-T 

  	
   

  	
  FTD FLY TACKLE DEALER

  	
   

  	
  United States of America

  	
   

  	
  75/406,456

  12/17/1997

  	
   

  	
  2,266,466

  8/3/1999

  	
   

  	
  Registered

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0128-T 

  	
   

  	
  IFTD-MEMBER SERVICES

  	
   

  	
  United States of America

  	
   

  	
  75/394,137

  11/21/1997

  	
   

  	
  2,275,503

  9/7/1999

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0258-T 

  	
   

  	
  FOL

  	
   

  	
  United States of America

  	
   

  	
  76/200,104

  1/26/2001

  	
   

  	
  2,729,940

  6/24/2003

  	
   

  	
  Registered

  	
   

  	
  38,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0259-T 

  	
   

  	
  FTDI.COM & Design

  	
   

  	
  United States of America

  	
   

  	
  76/485,872

  1/28/2003

  	
   

  	
  2,992,853

  9/6/2005

  	
   

  	
  Registered

  	
   

  	
  35,36,38,39,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0439-T 

  	
   

  	
  VNS & Design

  	
   

  	
  United States of America

  	
   

  	
  75/937,277

  3/7/2000

  	
   

  	
  2,535,652

  2/5/2002

  	
   

  	
  Registered

  	
   

  	
  36,38,39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0461-T 

  	
   

  	
  WE SEND FLOWERS WORLDWIDE

  	
   

  	
  United States of America

  	
   

  	
  76/165,662

  11/15/2000

  	
   

  	
  2,523,717

  12/25/2001

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0556-T 

  	
   

  	
  BE GOLD. SEND FTD.

  	
   

  	
  United States of America

  	
   

  	
  78/750,334

  11/9/2005

  	
   

  	
  3,426,821

  5/13/2008

  	
   

  	
  Registered

  	
   

  	
  35,36,38,39,41

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0562-T 

  	
   

  	
  FLOWERS DIRECT

  	
   

  	
  United States of America

  	
   

  	
  78/771,768

  12/12/2005

  	
   

  	
  3,232,754

  4/24/2007

  	
   

  	
  Registered

  	
   

  	
  35,39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0571-T 

  	
   

  	
  FTD

  	
   

  	
  United States of America

  	
   

  	
  78/813,337

  2/13/2006

  	
   

  	
   

  	
   

  	
  Allowed

  	
   

  	
  35

  	
   

  

 

 

Page: 5

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc.  (July 25, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0620-T 

  	
   

  	
  FTD FASTPAY

  	
   

  	
  United States of America

  	
   

  	
  77/192,137

  5/29/2007

  	
   

  	
   

  	
   

  	
  Pending

  	
   

  	
  9 & 36

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMS-0622-T 

  	
   

  	
  Design

  	
   

  	
  United States of America

  	
   

  	
  75/209,464

  12/6/1996

  	
   

  	
  2,194,180

  10/6/1998

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0003-T 

  	
   

  	
  FTD INTERNETLINK

  	
   

  	
  United States of America

  	
   

  	
  76/423,693

  6/21/2002

  	
   

  	
  2,721,035

  6/3/2003

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0007-T 

  	
   

  	
  FTDIMAIL

  	
   

  	
  United States of America

  	
   

  	
  76/443,002

  8/22/2002

  	
   

  	
  2,713,449

  5/6/2003

  	
   

  	
  Registered

  	
   

  	
  38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0010-T 

  	
   

  	
  FTD MERCURY

  	
   

  	
  United States of America

  	
   

  	
  78/237,331

  4/14/2003

  	
   

  	
  3,088,277

  5/2/2006

  	
   

  	
  Registered

  	
   

  	
  9,35,38,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0014-T 

  	
   

  	
  MERCURY TECHNOLOGY & Design

  	
   

  	
  United States of America

  	
   

  	
  76/523,291

  5/12/2003

  	
   

  	
  3,122,333

  8/1/2006

  	
   

  	
  Registered

  	
   

  	
  9,35,36,38,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0018-T 

  	
   

  	
  MERCURY ADVANTAGE & Design

  	
   

  	
  United States of America

  	
   

  	
  76/566,577

  12/23/2003

  	
   

  	
  3,265,468

  7/17/2007

  	
   

  	
  Registered

  	
   

  	
  9,35,36,38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0025-T 

  	
   

  	
  FTD FLOWERCAM

  	
   

  	
  United States of America

  	
   

  	
  78/735,271

  10/18/2005

  	
   

  	
   

  	
   

  	
  Allowed

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0026-T 

  	
   

  	
  FLORAL QUALITY YOU CAN SEE

  	
   

  	
  United States of America

  	
   

  	
  78/735,291

  10/18/2005

  	
   

  	
   

  	
   

  	
  Allowed

  	
   

  	
  9,38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0029-T 

  	
   

  	
  AUTOMATE. STREAMLINE. PROFIT. FTD MERCURY

  	
   

  	
  United States of America

  	
   

  	
  77/289,237

  9/26/2007

  	
   

  	
   

  	
   

  	
  Pending

  	
   

  	
  9,35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDIMT-0029-T 

  	
   

  	
  SIMPLY EASIER. SIMPLY BETTER. SIMPLY MERCURY.

  	
   

  	
  United States of America

  	
   

  	
  77/421,202

  3/13/2008

  	
   

  	
   

  	
   

  	
  Pending

  	
   

  	
  9,35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0004-T 

  	
   

  	
  THE FTD BELOVED BOUQUET

  	
   

  	
  United States of America

  	
   

  	
  76/441,203

  8/13/2002

  	
   

  	
  2,693,320

  3/4/2003

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0005-T 

  	
   

  	
  THE FTD MY ONE AND ONLY BOUQUET

  	
   

  	
  United States of America

  	
   

  	
  76/441,204

  8/13/2002

  	
   

  	
  2,693,321

  3/4/2003

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  

 

 

Page: 6

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc.  (July 25, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0006-T 

  	
   

  	
  THE FTD CARNIVAL BOUQUET

  	
   

  	
  United States of America

  	
   

  	
  76/441,202

  8/13/2002

  	
   

  	
  2,693,319

  3/4/2003

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0008-T 

  	
   

  	
  CANDY CANE LANE

  	
   

  	
  United States of America

  	
   

  	
  76/360,979

  1/22/2002

  	
   

  	
  2,639,421

  10/22/2002

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0009-T 

  	
   

  	
  AUTUMN SPLENDOR

  	
   

  	
  United States of America

  	
   

  	
  76/151,041

  10/20/2000

  	
   

  	
  2,560,342

  4/9/2002

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0010-T 

  	
   

  	
  SWEETHEARTS

  	
   

  	
  United States of America

  	
   

  	
  76/389,148

  4/1/2002

  	
   

  	
  2,669,048

  12/31/2002

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0011-T 

  	
   

  	
  FOR ALL YOU DO

  	
   

  	
  United States of America

  	
   

  	
  76/389,147

  4/1/2002

  	
   

  	
  2,669,047

  12/31/2002

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0015-T 

  	
   

  	
  BEST BOSS

  	
   

  	
  United States of America

  	
   

  	
  76/151,040

  10/20/2000

  	
   

  	
  2,568,404

  5/7/2002

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0016-T 

  	
   

  	
  FTD IN BLOOM

  	
   

  	
  United States of America

  	
   

  	
  76/043,091

  5/8/2000

  	
   

  	
  2,564,436

  4/23/2002

  	
   

  	
  Registered

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0017-T 

  	
   

  	
  LASTING ROMANCE

  	
   

  	
  United States of America

  	
   

  	
  76/389,172

  4/1/2002

  	
   

  	
  2,706,666

  4/15/2003

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0018-T 

  	
   

  	
  ESPECIALLY FOR DAD

  	
   

  	
  United States of America

  	
   

  	
  76/389,149

  4/1/2002

  	
   

  	
  2,674,897

  1/14/2003

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0019-T 

  	
   

  	
  TOUCH OF SPRING

  	
   

  	
  United States of America

  	
   

  	
  76/180,706

  12/14/2000

  	
   

  	
  2,767,362

  9/23/2003

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0021-T 

  	
   

  	
  INSPIRED LIVING FOR EVERYDAY

  	
   

  	
  United States of America

  	
   

  	
  76/135,516

  9/26/2000

  	
   

  	
  2,541,749

  2/19/2002

  	
   

  	
  Registered

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0023-T 

  	
   

  	
  WORLD CLASS BEARS BY FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  76/179,106

  12/11/2000

  	
   

  	
  2,529,629

  1/15/2002

  	
   

  	
  Registered

  	
   

  	
  28

  	
   

  

 

 

Page: 7

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc.  (July 25, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0024-T 

  	
   

  	
  FTD EXCLUSIVES COLLECTION

  	
   

  	
  United States of America

  	
   

  	
  76/249,689

  5/2/2001

  	
   

  	
  2,517,377

  12/11/2001

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0025-T 

  	
   

  	
  BASKET OF CHEER

  	
   

  	
  United States of America

  	
   

  	
  76/331,033

  10/30/2001

  	
   

  	
  2,803,066

  1/6/2004

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0027-T 

  	
   

  	
  FTD FRESHFLOWERS

  	
   

  	
  United States of America

  	
   

  	
  76/006,215

  3/21/2000

  	
   

  	
  2,478,658

  8/14/2001

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0028-T 

  	
   

  	
  GIFT CREATIONS BY FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  76/006,212

  3/21/2000

  	
   

  	
  2,489,400

  9/11/2001

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0030-T 

  	
   

  	
  FTD.COM & Design

  	
   

  	
  United States of America

  	
   

  	
  75/827,340

  10/20/1999

  	
   

  	
  2,450,168

  5/8/2001

  	
   

  	
  Registered

  	
   

  	
  36,38,39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0031-T 

  	
   

  	
  FTD.COM

  	
   

  	
  United States of America

  	
   

  	
  75/820,658

  10/12/1999

  	
   

  	
  2,403,957

  11/14/2000

  	
   

  	
  Registered

  	
   

  	
  36,38,39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0032-T 

  	
   

  	
  BE A HERO

  	
   

  	
  United States of America

  	
   

  	
  75/767,038

  8/3/1999

  	
   

  	
  2,454,005

  5/22/2001

  	
   

  	
  Registered

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0037-T 

  	
   

  	
  HOLIDAY CELEBRATIONS

  	
   

  	
  United States of America

  	
   

  	
  75/270,138

  4/7/1997

  	
   

  	
  2,179,618

  8/4/1998

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0038-T 

  	
   

  	
  SWEET DREAMS

  	
   

  	
  United States of America

  	
   

  	
  75/193,339

  11/5/1996

  	
   

  	
  2,171,870

  7/7/1998

  	
   

  	
  Registered

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0044-T 

  	
   

  	
  SWEET DREAMS

  	
   

  	
  United States of America

  	
   

  	
  75/166,673

  9/16/1996

  	
   

  	
  2,173,677

  7/14/1998

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  

 

 

Page: 8

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc.  (July 25, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter
  ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0046-T 

  	
   

  	
  TEA FOR TWO

  	
   

  	
  United States of America

  	
   

  	
  75/166,450

  9/16/1996

  	
   

  	
  2,162,738

  6/2/1998

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0047-T 

  	
   

  	
  GOOD NEIGHBOR DAY

  	
   

  	
  United States of America

  	
   

  	
  75/134,299

  7/15/1996

  	
   

  	
  2,055,537

  4/22/1997

  	
   

  	
  Registered

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0048-T 

  	
   

  	
  ESPECIALLY YOU

  	
   

  	
  United States of America

  	
   

  	
  75/126,966

  6/28/1996

  	
   

  	
  2,168,194

  6/23/1998

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0050-T 

  	
   

  	
  FTD SUNBURST

  	
   

  	
  United States of America

  	
   

  	
  75/098,294

  5/3/1996

  	
   

  	
  2,170,061

  6/30/1998

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0053-T 

  	
   

  	
  BIG HUG

  	
   

  	
  United States of America

  	
   

  	
  74/223,214

  11/19/1991

  	
   

  	
  1,712,040

  9/1/1992

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0054-T 

  	
   

  	
  BOO-QUET

  	
   

  	
  United States of America

  	
   

  	
  74/130,512

  1/15/1991

  	
   

  	
  1,754,588

  2/23/1993

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0055-T 

  	
   

  	
  SPRING GARDEN

  	
   

  	
  United States of America

  	
   

  	
  74/702,378

  7/14/1995

  	
   

  	
  2,044,937

  3/11/1997

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0056-T 

  	
   

  	
  LOVING THOUGHTS

  	
   

  	
  United States of America

  	
   

  	
  74/694,192

  6/26/1995

  	
   

  	
  1,988,401

  7/23/1996

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0070-T 

  	
   

  	
  SWEET SURPRISE

  	
   

  	
  United States of America

  	
   

  	
  74/436,242

  9/16/1993

  	
   

  	
  1,888,010

  4/4/1995

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0071-T 

  	
   

  	
  THANKS A BUNCH

  	
   

  	
  United States of America

  	
   

  	
  74/375,967

  4/6/1993

  	
   

  	
  1,823,059

  2/22/1994

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0073-T 

  	
   

  	
  FUN IN THE SUN

  	
   

  	
  United States of America

  	
   

  	
  74/324,864

  10/23/1992

  	
   

  	
  1,850,397

  8/16/1994

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0074-T 

  	
   

  	
  FTD MARKETPLACE & Design

  	
   

  	
  United States of America

  	
   

  	
  74/167,562

  5/17/1991

  	
   

  	
  1,679,759

  3/17/1992

  	
   

  	
  Registered

  	
   

  	
  42

  	
   

  

 

 

Page: 9

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc. (July 25,
2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application
  # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0076-T

  	
   

  	
  CHICKEN SOUP

  	
   

  	
  United States of America

  	
   

  	
  73/829,160

  10/3/1989

  	
   

  	
  1,601,243

  6/12/1990

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0077-T

  	
   

  	
  ESPECIALLY FOR YOU!

  	
   

  	
  United States of America

  	
   

  	
  73/718,361

  3/23/1988

  	
   

  	
  1,507,234

  10/4/1988

  	
   

  	
  Registered

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0078-T

  	
   

  	
  PERFECT PRESCRIPTION

  	
   

  	
  United States of America

  	
   

  	
  73/610,433

  7/21/1986

  	
   

  	
  1,479,854

  3/8/1988

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0079-T

  	
   

  	
  BIG HUG

  	
   

  	
  United States of America

  	
   

  	
  73/197,039

  12/15/1978

  	
   

  	
  1,147,784

  2/24/1981

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0080-T

  	
   

  	
  BIRTHDAY PARTY

  	
   

  	
  United States of America

  	
   

  	
  73/062,460

  9/8/1975

  	
   

  	
  1,040,212

  5/25/1976

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0081-T

  	
   

  	
  REMEMBRANCE BOUQUET

  	
   

  	
  United States of America

  	
   

  	
  73/010,814

  1/14/1974

  	
   

  	
  1,011,660

  5/27/1975

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0090-T

  	
   

  	
  FTD COLLECTIONS

  	
   

  	
  United States of America

  	
   

  	
  76/416,794

  6/4/2002

  	
   

  	
  2,813,816

  2/10/2004

  	
   

  	
  Registered

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0174-T

  	
   

  	
  BUNDLES OF JOY

  	
   

  	
  United States of America

  	
   

  	
  75/283,818

  4/30/1997

  	
   

  	
  2,242,418

  5/4/1999

  	
   

  	
  Registered

  	
   

  	
  28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0175-T

  	
   

  	
  FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  78/225,933

  3/14/2003

  	
   

  	
  3,006,400

  10/11/2005

  	
   

  	
  Registered

  	
   

  	
  1,31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0177-T

  	
   

  	
  WEBGIFTS

  	
   

  	
  United States of America

  	
   

  	
  76/531,464

  7/22/2003

  	
   

  	
  2,962,815

  6/21/2005

  	
   

  	
  Registered

  	
   

  	
  35,36,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0178-T

  	
   

  	
  WEBGIFTS & Design

  	
   

  	
  United States of America

  	
   

  	
  76/531,463

  7/22/2003

  	
   

  	
  2,959,048

  6/7/2005

  	
   

  	
  Registered

  	
   

  	
  35,36,42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0181-T

  	
   

  	
  ROSES WITH HUGS

  	
   

  	
  United States of America

  	
   

  	
  78/291,306

  8/22/2003

  	
   

  	
  2,953,583

  5/17/2005

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  

 

 

Page: 10

 

U.S.
Trademark Portfolio — Florists’ Transworld Delivery, Inc.  (July 25, 2008)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Application
  # /

  	
   

  	
  Registration # /

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matter ID

  	
   

  	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application
  Date

  	
   

  	
  Reg.
  Date

  	
   

  	
  Status

  	
   

  	
  TM
  Class

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0183-T

  	
   

  	
  TIMELESS TRIBUTE

  	
   

  	
  United States of America

  	
   

  	
  78/364,973

  2/9/2004

  	
   

  	
  2,946,070

  5/3/2005

  	
   

  	
  Registered

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FTDISS-0191-T

  	
   

  	
  FTD & Design

  	
   

  	
  United States of America

  	
   

  	
  78/704,511

  8/31/2005

  	
   

  	
   

  	
   

  	
  Pending

  	
   

  	
  16

  	
   

  

 

 

 

Schedule
5.6

Litigation

 

None.

 

 

Schedule
5.11

Certain
Employee Benefit Plans

 

Florists’ Transworld
Delivery, Inc. has a post-retirement health care benefit plan, which was
terminated in fiscal year 1997.  It
currently has less than 50 participants.

 

 

Schedule
7.1

Certain
Existing Indebtedness

 

Extensions of credit on
corporate credit cards related to business travel and other corporate expenses
incurred in the ordinary course of business of the Company and its Subsidiaries
(outstanding amount as of 6/30/08 = $225,000).

 

Indebtedness incurred in
connection with the equipment lien listed on Schedule 7.2.

 

Indebtedness evidenced by
that certain Promissory Note dated July 31, 2006 made by FTD UK Holdings
Limited in favor of FTD, Inc. in the principal amount of $48,000,000.

 

Intercompany receivable
in the ordinary course of business from FTD UK Holdings Limited (amount as of
6/30/08 = $195,000)

 

 

Schedule
7.2

Certain
Existing Liens

 

	
  Debtor

  	
   

  	
   

  	
  Secured
  Party

  	
   

  	
   

  	
  Filing
  Office

  	
   

  	
   

  	
  Filing
  Number

  	
   

  	
   

  	
  Filing

  Date

  	
   

  	
   

  	
  Collateral

  Description

  
	
  Florists’ Transworld
  Delivery, Inc.

  	
   

  	
   

  	
  General Electric
  Capital Corporation

  	
   

  	
   

  	
  Michigan Secretary of
  State

  	
   

  	
   

  	
  2004153843-0

  	
   

  	
   

  	
  8/2/04

  	
   

  	
   

  	
  Specified Equipment

  

 

 

Schedule
7.3

Certain
Existing Investments

 

FTD, Inc.’s foreign
currency forward exchange contract with Wells Fargo Bank, National Association outstanding
for £750,000, due August 1, 2008.

 

Interflora British Unit
(UK) owns an approximately 20% equity interest in IS Group Plc (UK).

 

Investments in
Subsidiaries listed on Schedule 5.1.

 

Indebtedness evidenced by
that certain Promissory Note dated July 31, 2006 made by FTD UK Holdings
Limited in favor of FTD, Inc. in the principal amount of $48,000,000.

 

Intercompany receivable
in the ordinary course of business from FTD UK Holdings Limited (amount as of
6/30/08 = $125,000)

 

Loans to customer members
in the United Kingdom (outstanding amount as of 6/30/08 = $52,922).

 

Loans and equipment
leases made to customers of Florists’ Transworld Delivery, Inc. to finance
the purchases of equipment sold by Florists’ Transworld Delivery, Inc.
(outstanding amount as of 6/30/08 = $20,456,605).

 

 

Schedule
7.4

Certain
Existing Contingent Obligations

 

None.Exhibit 10.1

 

 

 

$60,000,000 SENIOR SECURED CREDIT FACILITIES

 

 

CREDIT AGREEMENT

 

 

AMONG

 

 

UNITED ONLINE, INC.,

 

 

AS BORROWER,

 

 

THE SEVERAL LENDERS FROM TIME TO TIME PARTIES HERETO,

 

 

AND

 

 

SILICON VALLEY BANK,

 

 

AS ADMINISTRATIVE AGENT

 

 

DATED AS OF AUGUST 11, 2008

 

 

 

 

Table of Contents

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.2

  	
   

  	
  Other Definitional
  Provisions

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  AMOUNT
  AND TERMS OF COMMITMENTS

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Commitments

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  Procedure for Loan
  Borrowing

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Repayment of Loans

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  Loan Fees, etc.

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.5

  	
   

  	
  Optional Prepayments

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.6

  	
   

  	
  Mandatory Prepayments

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.7

  	
   

  	
  Conversion and
  Continuation Options

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.8

  	
   

  	
  Limitations on Eurodollar
  Tranches

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.9

  	
   

  	
  Interest Rates and Payment
  Dates

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.10

  	
   

  	
  Computation of Interest
  and Fees

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.11

  	
   

  	
  Inability to Determine
  Interest Rate

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.12

  	
   

  	
  Pro Rata Treatment and
  Payments

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.13

  	
   

  	
  Requirements of Law

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.14

  	
   

  	
  Taxes

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.15

  	
   

  	
  Indemnity

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.16

  	
   

  	
  Change of Lending Office

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.17

  	
   

  	
  Notes

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  INTENTIONALLY
  BLANK

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Financial
  Condition

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  No Change

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Existence; Compliance with
  Law

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Power, Authorization;
  Enforceable Obligations

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.5

  	
   

  	
  No Legal Bar

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.6

  	
   

  	
  Litigation

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.7

  	
   

  	
  No Default

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.8

  	
   

  	
  Ownership of Property;
  Liens

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.9

  	
   

  	
  Intellectual Property

  	
   

  	
  28

  

 

i

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.10

  	
   

  	
  Taxes

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.11

  	
   

  	
  Federal Regulations

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.12

  	
   

  	
  Labor Matters

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.13

  	
   

  	
  ERISA

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.14

  	
   

  	
  Investment Company Act;
  Other Regulations

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.15

  	
   

  	
  Subsidiaries

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.17

  	
   

  	
  Environmental Matters

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.18

  	
   

  	
  Accuracy of Information,
  etc.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.19

  	
   

  	
  Security Documents

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.20

  	
   

  	
  Solvency

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.21

  	
   

  	
  Designated Senior
  Indebtedness

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.22

  	
   

  	
  Brokerage Commissions

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.23

  	
   

  	
  Anti-Terrorism Laws

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  CONDITIONS
  PRECEDENT

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Conditions to Extension of
  Credit

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Financial Statements

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  Certificates; Other
  Information

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  Payment of Obligations

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Maintenance of Existence;
  Compliance

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.5

  	
   

  	
  Maintenance of Property;
  Insurance

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.6

  	
   

  	
  Inspection of Property;
  Books and Records; Discussions

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.7

  	
   

  	
  Notices

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.8

  	
   

  	
  Environmental Laws

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.9

  	
   

  	
  Operating Accounts

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.11

  	
   

  	
  Additional Collateral,
  etc.

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  NEGATIVE
  COVENANTS

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Financial
  Condition Covenants

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  Indebtedness

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.3

  	
   

  	
  Liens

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.4

  	
   

  	
  Fundamental Changes

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.5

  	
   

  	
  Disposition of Property

  	
   

  	
  44

  

 

ii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.6

  	
   

  	
  Restricted Payments

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.7

  	
   

  	
  Reserved

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.8

  	
   

  	
  Investments

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.9

  	
   

  	
  Optional Payments and
  Modifications of Certain Preferred Stock and Debt Instruments

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.10

  	
   

  	
  Transactions with
  Affiliates

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.11

  	
   

  	
  Sale Leaseback
  Transactions

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.12

  	
   

  	
  Swap Agreements

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.13

  	
   

  	
  Changes in Fiscal Periods

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.14

  	
   

  	
  Negative Pledge Clauses

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.15

  	
   

  	
  Clauses Restricting
  Subsidiary Distributions

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.16

  	
   

  	
  Lines of Business

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.17

  	
   

  	
  Amendments to
  Organizational Agreements and Material Contracts

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.18

  	
   

  	
  Anti-Terrorism Law

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.19

  	
   

  	
  Embargoed Person

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.20

  	
   

  	
  Anti-Money Laundering

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  EVENTS
  OF DEFAULT

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Events of Default

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  THE
  ADMINISTRATIVE AGENT

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Appointment and Authority

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Delegation of Duties

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.4

  	
   

  	
  Reliance by the
  Administrative Agent

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.5

  	
   

  	
  Notice of Default

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.6

  	
   

  	
  Non-Reliance on the
  Administrative Agent and Other Lenders

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.7

  	
   

  	
  Indemnification

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.8

  	
   

  	
  Agent in Its Individual
  Capacity

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.9

  	
   

  	
  Successor Administrative
  Agent

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Amendments and Waivers

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.2

  	
   

  	
  Notices

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.3

  	
   

  	
  No Waiver; Cumulative
  Remedies

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.4

  	
   

  	
  Survival of Representations
  and Warranties

  	
   

  	
  57

  

 

iii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.5

  	
   

  	
  Payment of Expenses and
  Taxes

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.6

  	
   

  	
  Successors and Assigns;
  Participations and Assignments

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.7

  	
   

  	
  Adjustments; Set-off

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.8

  	
   

  	
  Counterparts

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.9

  	
   

  	
  Severability

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.10

  	
   

  	
  Integration

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.11

  	
   

  	
  GOVERNING LAW

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.12

  	
   

  	
  Submission To
  Jurisdiction; Waivers

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.13

  	
   

  	
  Acknowledgements

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.14

  	
   

  	
  Releases of Guarantees and
  Liens

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.15

  	
   

  	
  Confidentiality

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.16

  	
   

  	
  Patriot Act

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.17

  	
   

  	
  Publicity and Related
  Matters

  	
   

  	
  64

  

 

iv

 

	
  SCHEDULES:

  
	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Commitments

  
	
  4.15

  	
   

  	
  Subsidiaries

  
	
  4.19(a)

  	
   

  	
  UCC Filing Jurisdictions

  
	
  7.2(d)

  	
   

  	
  Existing Indebtedness

  
	
  7.3(f)

  	
   

  	
  Existing Liens

  
	
  7.8(i)

  	
   

  	
  Existing Investments

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Form of Guarantee and
  Collateral Agreement

  
	
  B

  	
   

  	
  Form of Compliance
  Certificate

  
	
  C

  	
   

  	
  Form of Closing
  Certificate

  
	
  D

  	
   

  	
  Form of Assignment
  and Assumption

  
	
  E

  	
   

  	
  Form of Exemption
  Certificate

  
	
  F

  	
   

  	
  Form of Addendum

  
	
  G

  	
   

  	
  Form of Note

  

 

v

 

CREDIT AGREEMENT (this “Agreement”),
dated as of August 11, 2008, among UNITED ONLINE, INC., a Delaware
corporation (the “Borrower”), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the “Lenders”)
and SILICON VALLEY BANK (“SVB”), as administrative agent (in such
capacity, the “Administrative Agent”).

 

W  I  T  N  E  S
S  E  T  H:

 

WHEREAS, Borrower, UNOLA
CORP., a Delaware corporation (“Merger Sub”) and FTD Group, Inc. (“Target”)
have entered into the Agreement and Plan of Merger dated as of April 30,
2008 (the “Merger Agreement”), pursuant to which Merger Sub shall merge
with and into Target, whereupon the separate existence of Merger Sub shall
cease, and Target shall be the surviving corporation;

 

WHEREAS, the Borrower
desires to obtain financing for working capital requirements, to fund the
acquisition of the Target (the “Acquisition”) and for other corporate
purposes of the Loan Parties (including Investments to the extent permitted
hereunder);

 

WHEREAS, the Lenders have
agreed to extend Loans to the Borrower in aggregate principal amount of
$60,000,000;

 

WHEREAS, the Borrower has
agreed to secure all of its Obligations by granting to the Administrative
Agent, for the benefit of the Secured Parties, a First Priority lien on
substantially all of its assets;

 

WHEREAS, each of the
Guarantors has agreed to guarantee the Obligations of the Borrower and to
secure their respective Obligations by granting to the Administrative Agent,
for the benefit of the Secured Parties, a First Priority lien on substantially
all of its assets; and

 

WHEREAS, the proceeds of the
extensions of credit under this Agreement may be used in part to enable the
Borrower to make valuable transfers to one or more of the Guarantors in
connection with the operation of their respective businesses.

 

NOW, THEREFORE, the parties
hereto hereby agree as follows:

 

SECTION 1.  DEFINITIONS

 

1.1  Defined Terms.  As used in this Agreement (including the
recitals hereof), the terms listed in this Section 1.1 shall have
the respective meanings set forth in this Section 1.1.

 

“ABR”:  for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the Prime Rate in
effect on such day.  Any change in the
ABR due to a change in the Prime Rate shall be effective as of the opening of
business on the effective day of such change in the Prime Rate.

 

“ABR Loans”:  Loans the rate of interest applicable to
which is based upon the ABR.

 

“Acquisition”:  as defined in the preamble hereto.

 

“Addendum”:  an instrument, substantially in the form of Exhibit F,
by which a Lender becomes a party to this Agreement.

 

1

 

“Administrative Agent”:  SVB, together with its affiliates, as the
administrative agent under this Agreement and the other Loan Documents,
together with any of its successors in such capacity.

 

“Affiliate”:  as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person.  For purposes
of this definition, “control” of a Person means the power, directly or
indirectly, either to (a) vote 10% or more of the securities having
ordinary voting power for the election of directors (or persons performing
similar functions) of such Person or (b) direct or cause the direction of
the management and policies of such Person, whether by contract or otherwise.

 

“Agreement”:  as defined in the preamble hereto.

 

“Anti-Terrorism Laws”:  as defined in Section 4.23(a).

 

“Applicable Margin”:  for each Type of Loan, the rate per annum set
forth under the relevant column heading below:

 

	
  Eurodollar Loans

  	
   

  	
  ABR Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.50%

  	
   

  	
  2.00%

  	
   

  

 

“Approved Fund”:  as defined in Section 10.6(b).

 

“Assignee”:  as defined in Section 10.6(b).

 

“Assignment and
Assumption”:  an Assignment and
Assumption, substantially in the form of Exhibit D.

 

“Benefitted Lender”:  as defined in Section 10.7(a).

 

“Board”:  the Board of Governors of the Federal Reserve
System of the United States (or any successor).

 

“Borrower”:  as defined in the preamble hereto.

 

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the relevant Lenders to make Loans
hereunder.

 

“Business”:  as defined in Section 4.17(b).

 

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in the State of California are authorized or
required by law to close, provided, that with respect to notices and
determinations in connection with, and payments of principal and interest on,
Eurodollar Loans, such day is also a day for trading by and between banks in
Dollar deposits in the interbank eurodollar market.

 

“California UCC”:  the Uniform Commercial Code as in effect from
time to time in the State of California.

 

“Capital Lease
Obligations”:  as to any Person, the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal 

 

2

 

property, or a combination thereof, which obligations are required to
be classified and accounted for as capital leases on a balance sheet of such
Person under GAAP and, for the purposes of this Agreement, the amount of such
obligations at any time shall be the capitalized amount thereof at such time
determined in accordance with GAAP.

 

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.

 

“Cash Equivalents”:  (a) marketable direct obligations issued
by, or unconditionally guaranteed by, the United States Government or issued by
any agency or instrumentality thereof, in each case maturing within one year
from the date of acquisition; (b) certificates of deposit, time deposits,
eurodollar time deposits or overnight bank deposits having maturities of six
months or less from the date of acquisition issued at the time of acquisition
by any Lender or by any commercial bank organized under the laws of the United
States or any state thereof having combined capital and surplus of not less
than $250,000,000; (c) commercial paper of an issuer rated at the time of
acquisition at least A-1 by S&P or P-1 by Moody’s, or carrying an
equivalent rating by a nationally recognized rating agency and maturing within
nine months from the date of acquisition; (d) repurchase obligations of
any Lender or of any commercial bank for underlying securities of the types
described in clauses (a) and (b) of this definition at the time of acquisition,
having a term of not more than 30 days; (e) securities with maturities of
two years or less from the date of acquisition issued or fully guaranteed by
any state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or
by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at the time of acquisition at least A by S&P or
A by Moody’s; (f) securities with maturities of six months or less from
the date of acquisition backed by standby letters of credit issued by any
Lender or any commercial bank satisfying the requirements of clause (b) of
this definition at the time of acquisition; (g) money market mutual or
similar funds that invest at least  95%
of their assets satisfying the requirements of clauses (a) through (f) of
this definition; or (h) money market funds that (i) comply with the
criteria set forth in SEC Rule 2a-7 under the Investment Company Act of
1940, as amended, at the time of acquisition (ii) are rated AAA by S&P
and Aaa by Moody’s and (iii) have portfolio assets of at least
$500,000,000 at the time of acquisition.

 

“Change of Control”:  (a) at any time, a “person” or “group”
within the meaning of Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) becomes the direct or indirect
“beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of
shares of the Capital Stock representing more than 35% of the voting power of
the Capital Stock entitled to vote generally in the election of board of
directors of the Borrower or (b) at any time, the board of directors of
Borrower shall cease to consist of a majority of Continuing Directors.

 

“Classmates”:
Classmates Media Corporation.

 

“Classmates IPO”: the
initial public offering of Classmates.

 

“Closing Date”:  the date on which the conditions precedent
set forth in Section 5.1 shall have been satisfied, which date is August 11,
2008.

 

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

 

3

 

“Collateral”:  all property of the Loan Parties, now owned
or hereafter acquired, upon which a Lien is purported to be created by any
Security Document.

 

“Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make a Loan to the Borrower in a principal amount not to
exceed the amount set forth under the heading “Commitment” opposite such
Lender’s name on Schedule 1.1. 
The original aggregate amount of the Commitments is $60,000,000.

 

“Commonly Controlled
Entity”:  any trade or business,
whether or not incorporated, that is under common control with Borrower within
the meaning of Section 4001 of ERISA or is part of a group that includes
Borrower and that is treated as a single employer under Section 414 of the
Code.

 

“Compliance Certificate”:  a certificate duly executed by a Responsible
Officer substantially in the form of Exhibit B.

 

“Consolidated Capital
Expenditures”:  for any period, with
respect to any Person, the aggregate of (a) all expenditures (whether paid
in cash or other consideration or accrued as a liability and including that
portion of Capital Lease Obligations which is capitalized on the consolidated
balance sheet of the Group Members by such Person and its Subsidiaries) during
such period for the acquisition or leasing (pursuant to a capital lease) of
fixed or capital assets or additions to equipment (including replacements,
capitalized repairs, improvements and building expenses during such period)
that, in conformity with GAAP, are included in “additions to property, plant or
equipment” or comparable items reflected in the consolidated statement of cash
flows of such Person and its Subsidiaries and (b) all capitalized software
costs of such Person accrued in respect of such period in conformity with GAAP,  minus the sum of the following to
the extent included in calculating Consolidated Capital Expenditures during
such period: (i) any Permitted Acquisition consummated during such period,
(ii) capital expenditures in respect of the reinvestment of net asset sale
proceeds during such period, (iii) capital expenditures in respect of the
reinvestment of insurance/condemnation proceeds during such period and (iv) capital
expenditures funded with the proceeds of equity issuances.  For purposes of this definition, the
purchase price of equipment that is purchased simultaneously with the trade-in
of existing equipment or with insurance proceeds shall be deemed to be a
Consolidated Capital Expenditure only to the extent of the gross amount of such
purchase price less the credit granted by the seller of such equipment for the
equipment being traded in at such time or the amount of such proceeds, as the
case may be.

 

“Consolidated Cash
Interest Expense”:  for any period,
Consolidated Interest Expense for such period excluding (x) interest
expense not payable in cash and (y) amortization of discount and
amortization of debt issuance costs.

 

“Consolidated EBITDA”:  for any period, (a) the sum, without
duplication, of the amounts for such period of (i) Consolidated Net
Income, (ii) Consolidated Interest Expense, (iii) provisions for
taxes based on income (including provisions to the extent necessary to permit
Borrower and the Restricted Subsidiaries to discharge their consolidated,
combined or other group tax liabilities), (iv) total depreciation expense,
(v) total amortization expense, (vi) costs associated with the
transactions contemplated by the Merger Agreement (including for the avoidance
of doubt transaction costs paid by Borrower or a Restricted Subsidiary in
connection with the financings by Target with respect to the Merger Agreement)
and hereunder, (vii) all extraordinary, unusual or non-recurring losses,
charges or expenses (minus any extraordinary, unusual or non-recurring gains
(other than the proceeds of business interruption insurance)), (viii) all
other non-cash items, including, without limitation, non-cash stock compensation
expenses for officers, directors, employees and consultants (other than any
such non-cash item to the extent it represents an accrual of or reserve for
cash expenditures in any future period), (ix)(A) any non-cash impairment
charge or asset write-off or write-down, in each case relating to an intangible

 

4

 

asset, pursuant to Financial Accounting Standards Board Statements No. 142
and No. 144, (B) the amortization of intangible assets arising
pursuant to Financial Accounting Standards Board Statement No. 141, (C) the
amortization or write-off deferred financing fees and (D) the amortization
of other intangible assets and (x) restructuring expenses, severance costs
and integration costs incurred during such period (provided however, such
expenses and costs shall not exceed $4,000,000 in any trailing four quarter
period), but only, in the case of clauses (ii)-(x), to the extent deducted in
the calculation of Consolidated Net Income, minus (b) interest income
(other then interest income relating to Swap Agreements), minus (c) an
amount equal to the amount by which payments made pursuant to Section 7.6(c)(ii) exceed
$10,000,000 in the current fiscal year, all of the foregoing as determined on a
consolidated basis for Borrower and its Restricted Subsidiaries in conformity
with GAAP.

 

“Consolidated Fixed
Charge Coverage Ratio”:  for any
period, the ratio of (a) Consolidated EBITDA for such period, minus (i) the
aggregate amount of Consolidated Capital Expenditures for such period
(excluding Consolidated Capital Expenditures financed other than from
internally generated cash), minus (ii) all cash payments in respect of
income taxes of Borrower and its Restricted Subsidiaries made during such
period (net of any cash refund(s) in respect of income taxes actually
received during such period) therein during such period to (b) Consolidated
Fixed Charges for such period. The foregoing notwithstanding, for any fiscal
quarter after the Closing Date but prior to the anniversary thereof, the
amounts in clause (b) above for such period shall be annualized and
calculated as follows: from the Closing Date through such fiscal quarter, such
amount during such period shall be divided by the number of days in such period
and then multiplied by 365 days.

 

“Consolidated Fixed
Charges”:  for any period, the sum
(without duplication) of (a) Consolidated Cash Interest Expense for such
period and (b) scheduled amortization payments made during such period on
account of principal of Indebtedness of Borrower and the Restricted
Subsidiaries (including scheduled principal payments in respect of the Loans
and the principal component of all Capital Lease Obligation, but excluding any
“bullet” payments or payments at final maturity to the extent the Indebtedness
giving rise to such payments is being refinanced with Indebtedness permitted
under this Agreement).

 

“Consolidated Interest
Expense”:  for any period, total
interest expense in such period (including that attributable to Capital Lease
Obligations), of Borrower and the Restricted Subsidiaries for such period with
respect to all outstanding Indebtedness of Borrower and the Restricted
Subsidiaries (including all commissions, discounts and other fees and charges
owed with respect to letters of credit and bankers’ acceptance financing and
net costs under Swap Agreements in respect of interest rates to the extent such
net costs are allocable to such period in accordance with GAAP).

 

“Consolidated Leverage
Ratio”:  as at the last day of any
period, the ratio of (a) the aggregate (without duplication) stated
balance sheet amount of all Indebtedness of Borrower and the Restricted
Subsidiaries (other than Indebtedness in respect of Swap Agreements),
determined on a consolidated basis in accordance with GAAP, on such day to (b) Consolidated
EBITDA for such period.

 

“Consolidated Net Income”:  for any period, the consolidated net income
(or loss) of Borrower and the Restricted Subsidiaries, determined on a
consolidated basis in accordance with GAAP; provided that there shall be
excluded (a) the income (or deficit) of any Person accrued prior to the
date it becomes a Subsidiary or is merged into or consolidated with Borrower
and the Restricted Subsidiaries, (b) the income (or deficit) of any Person
(other than a Restricted Subsidiary) in which Borrower or the Restricted
Subsidiaries has an ownership interest, except to the extent that any such
income is actually received by Borrower or such Restricted Subsidiary in the
form of dividends or similar distributions and (c) the undistributed
earnings of any Restricted Subsidiary to the extent that the declaration or payment
of dividends or similar distributions by such Restricted Subsidiary is not at
the time permitted by the terms 

 

5

 

of any Contractual Obligation (other than under any Loan Document) or
Requirement of Law applicable to such Restricted Subsidiary.

 

“Continuing Directors”:  the directors of Borrower on the Closing Date
and each other director, if, in each case, such other director’s nomination for
election to the board of directors of Borrower is recommended by at least a
majority of the then Continuing Directors in his or her election by the
shareholders of Borrower.

 

“Contractual Obligation”:  as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other undertaking
to which such Person is a party or by which it or any of its property is bound.

 

“Control Agreement”:  an agreement, reasonably satisfactory in form
and substance to the Administrative Agent and executed by the financial
institution or securities intermediary at which a Deposit Account or a
Securities Account, as the case may be, is maintained, pursuant to which such
financial institution or securities intermediary confirms and acknowledges the
Administrative Agent’s security interest in such account, and agrees that the
financial institution or securities intermediary, as the case may be, will
comply with instructions originated by the Administrative Agent as to
disposition of funds in such account, without further consent by Borrower or
any Subsidiary Guarantor, as applicable.

 

“Declined Amount”:  as defined in Section 2.6(c).

 

“Default”:  any of the events specified in Section 8.1,
whether or not any requirement for the giving of notice, the lapse of time, or
both, has been satisfied.

 

“Deposit Account”: a
demand, time, savings, passbook or similar account maintained with a Person
engaged in the business of banking, including a savings bank, savings and loan
association, credit union or trust company.

 

“Designated Senior
Indebtedness”:  as defined in Section 4.21.

 

“Disposition”:  with respect to any property (including,
without limitation, Capital Stock of Borrower or any Restricted Subsidiary, any
sale, lease, Sale Leaseback Transaction, assignment, conveyance, transfer or
other disposition thereof and any issuance of Capital Stock of any Restricted
Subsidiary).  The terms “Dispose”
and “Disposed of” shall have correlative meanings.

 

“Dollars” and “$”:  dollars in lawful currency of the United
States.

 

“Domestic Subsidiary”:  any Restricted Subsidiary of the Borrower
organized under the laws of any jurisdiction within the United States.

 

“Eligible Assignee”:  any commercial bank, insurance company,
investment or mutual fund or other entity that is an “accredited investor” (as
defined in Regulation D under the Securities Act) and which extends credit or
buys loans as one of its businesses; provided that neither the Borrower
nor any Affiliate of the Borrower shall be an Eligible Assignee.

 

“Embargoed Person”:
as defined in Section 7.19.

 

“Environmental Laws”:  any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of
Law (including common law) regulating, relating to or imposing liability or 

 

6

 

standards of conduct concerning protection of human health or the
environment, as now or may at any time hereafter be in effect.

 

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time.

 

“Eurocurrency Reserve
Requirements”:  for any day as
applied to a Eurodollar Loan, the aggregate (without duplication) of the
maximum rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including basic, supplemental, marginal and emergency
reserves) under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

 

“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined by
reference to the British Bankers’ Association Interest Settlement Rates for
deposits (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period in Dollars, determined as of approximately
11:00 A.M. (London, England time) two (2) Business Days prior to the
beginning of such Interest Period (as set forth by Bloomberg Information
Service or any successor thereto or any other service selected by the
Administrative Agent which has been nominated by the British Bankers’
Association as an authorized information vendor for the purpose of displaying
such rates).  In the event that the rate
referenced in the preceding sentence is not available, the “Eurodollar Base
Rate” shall be determined by reference to the rate per annum equal to the
offered quotation rate to first class banks in the London interbank market by
SVB for deposits (for delivery on the first day of the relevant Interest
Period) in Dollars of amounts in same day funds comparable to the principal
amount of the Loans for which the Eurodollar Base Rate is then being determined
with maturities comparable to such period as of approximately 11:00 A.M.
(London, England time) two (2) Business Days prior to the beginning of
such Interest Period.

 

“Eurodollar Loans”:  Loans the rate of interest applicable to
which is based upon the Eurodollar Rate.

 

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula:

 

	
   

  	
  Eurodollar
  Base Rate

  	
   

  
	
   

  	
  1.00
  - Eurocurrency Reserve Requirements

  	
   

  

 

; provided however,
in no event shall the Eurodollar Rate be less than 3.00%.

 

“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
under the Facility the then current Interest Periods with respect to all of
which begin on the same date and end on the same later date.

 

“Event of Default”:  any of the events specified in Section 8.1;
provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.

 

“Excess Cash Flow”:  for any fiscal quarter of Borrower, the
excess, if any, of Consolidated EBITDA for such fiscal quarter over the
sum, without duplication:

 

7

 

(i) the aggregate
amount actually paid by Borrower and the Restricted Subsidiaries during such
fiscal quarter on account of Consolidated Capital Expenditures to the extent
paid in cash and permitted hereunder (excluding the principal amount of any
Loan incurred in connection with such expenditures), plus

 

(ii) Consolidated Cash
Interest Expense for such fiscal quarter, plus

 

(iii) provisions for
taxes based on income payable in cash by Borrower and the Restricted
Subsidiaries in respect of such fiscal quarter, plus

 

(iv) the aggregate
amount of all regularly scheduled principal payments of Funded Debt (including
the Loans) of Borrower and the Restricted Subsidiaries made during such fiscal
quarter (or other period) (other than in respect of any revolving credit
facility to the extent there is not an equivalent permanent reduction in
commitments thereunder), plus

 

(v) to the extent
permitted under Section 7.6, cash dividends (or an equivalent
amount in connection with restricted stock units) in an amount not to exceed
$0.10 per share per quarter which are declared by Borrower during such fiscal
quarter, plus

 

(vi) to the extent
permitted under Section 7.6, taxes that are due in connection with
the vesting of restricted stock units and stock grants to officers, directors
and employees of Borrower and its Subsidiaries that are (A) in accordance
with a plan approved by its respective Board of Directors, and (B) in the
ordinary course of business, which are paid by Borrower during such fiscal
quarter, except to the extent such payments are deducted in the calculation of
Consolidated EBITDA, plus

 

(vii) Investments
permitted by Section 7.8(k) (to the extent paid in cash and up
to an aggregate amount not to exceed $10,000,000) and made during such fiscal
quarter.

 

“Excess Cash Flow
Application Date”:  as defined in Section 2.6(b).

 

“Exchange Rate”: on
any date when an amount expressed in a currency other than Dollars is to be
determined, the nominal rate of exchange of Administrative Agent (or another
financial institution selected by the Administrative Agent and reasonably
acceptable to Borrower) in the New York foreign exchange market for the sale of
such currency in exchange for Dollars at 12:00 Noon, Pacific time, one Business
Day prior to such date, expressed as a number of units of such currency per one
Dollar.

 

“Excluded Perfection
Assets”:  (i) any equipment that
is covered by a certificate of title, (ii) any foreign intellectual
property, (iii) any deposit account or securities account of a Loan Party used
solely for payroll, payroll taxes and other employee wage and benefit payments,
(iv) deposit accounts or securities accounts of the Loan Parties that in
the aggregate contain less that than $1,000,000, (v) assets subject to
Liens permitted by Sections 7.3(c), (d), (g), (q) and
(r) and (vi) any other assets as to which the Administrative
Agent shall determine in their reasonable discretion that the cost of obtaining
or perfecting such lien on such assets is excessive in relation to the benefits
to Lenders of the security afforded thereby.

 

“Excluded Subsidiaries”:  UNOL Intermediate, Inc., Target and
their respective Subsidiaries; provided that Classmates and its
Subsidiaries will be an Excluded Subsidiary upon the consummation of the
Classmates IPO.

 

“Executive Order”:  as defined in Section 4.23(a).

 

8

 

“Executive Orders”:  as defined in Section 7.19.

 

“Facility”:  the Commitments and the Loans made
thereunder.

 

“Federal Funds Effective
Rate”:  for any day, the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published on
the next succeeding Business Day by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day of such transactions received by SVB from
three federal funds brokers of recognized standing selected by it.

 

“Fee Letter”:  the letter agreement dated July 2, 2008
among the Borrower and the Administrative Agent.

 

“First Priority”:  with respect to any Lien created in any
Collateral pursuant to any Security Document, that (i) such Lien is
perfected and has priority over any other Lien on such Collateral (other than
Liens permitted pursuant to Section 7.3) and (ii) such Lien is
the only Lien (other than Liens permitted pursuant to Section 7.3)
to which such Collateral is subject.

 

 “Foreign Subsidiary”:  any Restricted Subsidiary of Borrower that is
not a Domestic Subsidiary.

 

“Funded Debt”:  as to any Person, all Indebtedness of such
Person that matures more than one year from the date of its creation or matures
within one year from such date but is renewable or extendible, at the option of
such Person, to a date more than one year from such date or arises under a
revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year from such date, including
all current maturities and current sinking fund payments in respect of such
Indebtedness whether or not required to be paid within one year from the date
of its creation and, in the case of the Borrower, Indebtedness in respect of
the Loans.

 

“Funding Office”:  the office of the Administrative Agent
specified in Section 10.2 or such other office as may be specified
from time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.

 

“GAAP”:  generally accepted accounting principles in
the United States as in effect from time to time, except that for purposes of Section 7.1,
GAAP shall be determined on the basis of such principles in effect on the date
hereof and consistent with those used in the preparation of the most recent
audited financial statements referred to in Section 4.1(b).  In the event that any “Accounting Change” (as
defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Borrower and the Administrative Agent agree to enter into negotiations in
order to amend such provisions of this Agreement so as to reflect equitably
such Accounting Changes with the desired result that the criteria for
evaluating the Borrower’s financial condition shall be the same after such
Accounting Changes as if such Accounting Changes had not been made.  Until such time as such an amendment shall
have been executed and delivered by the Borrower, the Administrative Agent and
the Required Lenders, all financial covenants, standards and terms in this
Agreement shall continue to be calculated or construed as if such Accounting
Changes had not occurred.  “Accounting
Changes” refers to changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial
Accounting Standards Board of the American Institute of Certified Public
Accountants or, if applicable, the SEC.

 

9

 

“Governmental Approval”:  any consent, authorization, approval, order,
license, franchise, permit, certificate, accreditation, registration, filing or
notice, of, issued by, from or to, or other act by or in respect of, any
Governmental Authority.

 

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

 

“Group Members”:  the collective reference to Borrower and its
Subsidiaries (other than the Excluded Subsidiaries).

 

“Guarantee and Collateral
Agreement”:  the Guarantee and
Collateral Agreement to be executed and delivered by the Borrower and each
Subsidiary Guarantor, substantially in the form of Exhibit A.

 

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar
obligation, of the guaranteeing person that guarantees or in effect guarantees,
or which is given to induce the creation of a separate obligation by another
Person that guarantees or in effect guarantees, any Indebtedness (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital
or equity capital of the primary obligor or otherwise to maintain the net worth
or solvency of the primary obligor, (iii) to purchase property, securities
or services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation or (iv) otherwise to assure or hold harmless the owner
of any such primary obligation against loss in respect thereof; provided,
however, that the term Guarantee Obligation shall not include endorsements
of instruments for deposit or collection in the ordinary course of
business.  The amount of any Guarantee
Obligation of any guaranteeing person shall be deemed to be the lower of (a) an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee Obligation is made and (b) the maximum
amount for which such guaranteeing person may be liable pursuant to the terms
of the instrument embodying such Guarantee Obligation, unless such primary
obligation and the maximum amount for which such guaranteeing person may be
liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as determined by the Borrower in good
faith.

 

“Guarantor”:  any Subsidiary Guarantor.

 

“Guarantors”:  the collective reference to the Subsidiary
Guarantors.

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than current trade payables incurred in the ordinary course of
such Person’s business) which is due more than six months from the date of
incurrence of the obligation in respect thereof, (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar instruments,
(d) all indebtedness created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such
Person (except where the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such 

 

10

 

property), (e) all Capital Lease Obligations and all Synthetic
Lease Obligations of such Person, (f) all obligations of such Person,
contingent or otherwise, as an account party or applicant under or in respect
of acceptances, letters of credit, surety bonds or similar arrangements, (g) all
Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (f) above, (h) all
obligations of the kind referred to in clauses (a) through (g) above
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person
has assumed or become liable for the payment of such obligation, and (i) all
obligations of such Person in respect of Swap Agreements.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness expressly provide
that such Person is not liable therefor. 
The amount of any Indebtedness that is only recourse to specific assets
of Borrower and/or the Restricted Subsidiaries (and not to Borrower or any
Restricted Subsidiary generally) shall be deemed to be equal to the lesser of (x) the
principal amount of such Indebtedness and (y) the fair market value of the
assets of Borrower and/or the Restricted Subsidiaries to which such
Indebtedness has recourse.  The amount of
any net obligation under any Swap Agreement on any date shall be deemed to be
the Swap Termination Value thereof as of such date.

 

“Indemnified Liabilities”:  as defined in Section 10.5.

 

“Indemnitee”:  as defined in Section 10.5.

 

“Insolvency”:  with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245
of ERISA.

 

“Insolvent”:  pertaining to a condition of Insolvency.

 

“Intellectual Property”:  as defined in the Guarantee and Collateral
Agreement.

 

“Intellectual Property
Security Agreement”:  any patent,
copyright or trademark security agreement to be executed and delivered by the
Borrower or a Subsidiary Guarantor in favor of the Administrative Agent.

 

“Interest Payment Date”:  (a) as to any ABR Loan, the first
Business Day of each month to occur while such Loan is outstanding and the
final maturity date of such Loan, (b) as to any Eurodollar Loan having an
Interest Period of three months or less, the last Business Day of such Interest
Period, (c) as to any Eurodollar Loan having an Interest Period longer
than three months, each day that is three months, or a whole multiple thereof,
after the first day of such Interest Period and the last day of such Interest
Period,  and (d) as to any
Loan, the date of any repayment or prepayment made in respect thereof.

 

“Interest Period”:  as to any Eurodollar Loan, (a) initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 10:00 A.M., Pacific time, on the date
that is three (3) Business Days prior to the last day of the then current
Interest Period with respect thereto; provided that all of the foregoing
provisions relating to Interest Periods are subject to the following:

 

11

 

(i)            if any Interest Period would
otherwise end on a day that is not a Business Day, such Interest Period shall
be extended to the next succeeding Business Day unless the result of such
extension would be to carry such Interest Period into another calendar month in
which event such Interest Period shall end on the immediately preceding
Business Day;

 

(ii)           the Borrower may not select an
Interest Period under the Facility that would extend beyond the date final
payment is due on the Loans (in the case of Loans);

 

(iii)          any Interest Period that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of a calendar month; and

 

(iv)          the Borrower shall select Interest
Periods so as not to require a payment or prepayment of any Eurodollar Loan
during an Interest Period for such Loan.

 

“Investments”:  as defined in Section 7.8.

 

“Lenders”:  as defined in the preamble hereto.

 

“Lien”:  any mortgage, deed of trust, pledge,
hypothecation, collateral assignment, deposit arrangement, encumbrance, lien
(statutory or other), charge or other security interest or any other security
agreement (including any conditional sale or other title retention agreement
and any capital lease having substantially the same economic effect as any of
the foregoing).

 

“Loan”:  any loan made or maintained by any Lender
pursuant to this Agreement.

 

“Loan Documents”:  this Agreement, the Security Documents, the
Notes, the Fee Letter and any amendment, waiver, supplement or other
modification to any of the foregoing.

 

“Loan Parties”:  each Group Member that is a party to a Loan
Document.

 

“Mandatory Prepayment
Date”:  as defined in Section 2.6(c).

 

“Material Adverse Effect”:
(A) a material adverse change in, or a material adverse effect on, the
operations, business, assets, liabilities (actual or contingent), or financial
condition of Borrower and the Restricted Subsidiaries, taken as a whole; (B) a
material impairment of the rights and remedies of the Administrative Agent or
any Lender under the Loan Documents taken as a whole, or of the ability of the
Borrower and the Guarantors to satisfy the Obligations under any Loan Document;
or (C) a material adverse effect upon the legality, validity, binding
effect or enforceability against the Borrower and the Guarantors of the Loan
Documents, taken as a whole, to which it is a party.

 

“Materials of
Environmental Concern”:   any
substance, material or waste that is defined, regulated, governed or otherwise
characterized under any Environmental Law as hazardous or toxic or as a
pollutant or contaminant (or by words of similar meaning and regulatory
effect), any petroleum or petroleum products, asbestos, polychlorinated
biphenyls, urea-formaldehyde insulation, molds or fungus, and radioactivity and
radiofrequency radiation at levels known to be hazardous to human health and
safety.

 

12

 

“Maturity Date”:  August 10, 2012.

 

“Merger Agreement”:  as defined in the recitals.

 

“Merger Sub”:  as defined in the preamble hereto.

 

“Moody’s”:  Moody’s Investors Service, Inc.

 

“Mortgaged Properties”:  the real properties as to which, pursuant to Section 6.11(b) or
otherwise, the Administrative Agent, for the benefit of the Secured Parties,
shall be granted a Lien pursuant to the Mortgages.

 

“Mortgages”:  each of the mortgages, deeds of trust, deeds
to secure debt or such equivalent documents hereafter entered into and executed
and delivered by one or more of the Loan Parties to the Administrative Agent,
in each case, as such documents may be amended, amended and restated, supplemented
or otherwise modified, renewed or replaced from time to time and in form and
substance reasonably acceptable to the Administrative Agent.

 

“Multiemployer Plan”:  a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

 

“Non-Excluded Taxes”:  as defined in Section 2.14(a).

 

“Non-U.S. Lender”:  as defined in Section 2.14(d).

 

“Note”:  a promissory note in the form of Exhibit G,
as it may be amended, supplemented or otherwise modified from time to time.

 

“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Loans and interest
accruing after the filing of any petition in bankruptcy, or the commencement of
any insolvency, reorganization or like proceeding, relating to the Borrower or
any Guarantor, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding) the Loans and all other obligations and
liabilities of the Borrower or any other Loan Party to the Administrative Agent
or to any Lender, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under, out
of, or in connection with, this Agreement, any other Loan Document or any other
document made, delivered or given in connection herewith or therewith, whether
on account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses (including all fees, charges and disbursements of
counsel to the Administrative Agent or to any Lender that are required to be
paid by the Borrower or any Guarantor pursuant hereto) or otherwise.

 

“Other Taxes”:  any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or any other
Loan Document.

 

“Participant”:  as defined in Section 10.6(c).

 

“Patriot Act”:  the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA
PATRIOT ACT) Act of 2001, Title III of Pub. L. 107-56, signed into law October 26,
2001.

 

13

 

“PBGC”:  the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA (or any successor).

 

“Pension Act”: the
Pension Protection Act of 2006.

 

“Pension Funding Rules”:
the rules of the Code and ERISA regarding minimum required contributions
(including any installment payment thereof) to Single Employer Plans and
Multiemployer Plans and set forth in, with respect to plan years ending prior
to the effective date as to such Plan of the Pension Act, Section 412 of
the Code and Section 302 of ERISA, each as in effect prior to the Pension
Act  and, thereafter, Section 412
and 430 of the Code and Sections 302 and 303 of ERISA.

 

“Permitted Acquisition”:  as defined in Section 7.8(k).

 

“Person”:  an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or other
entity of whatever nature.

 

“Plan”:  any employee benefit plan that is covered by
ERISA and in respect of which the Borrower or a Commonly Controlled Entity is
(or, if such plan were terminated at such time, would under Section 4069
of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

 

“Pledged Collateral”:  collectively, the “Pledged Stock” and
“Pledged Notes” as defined in the Guarantee and Collateral Agreement and any
foreign pledge agreement.

 

“Preferred Stock”:  the preferred Capital Stock of the Borrower.

 

“Prime Rate”:  the rate of interest per annum announced from
time to time by SVB as its prime rate in effect at its principal office in the
State of California (the Prime Rate not being intended to be the lowest rate of
interest charged by SVB in connection with extensions of credit to debtors).

 

“Projections”:  as defined in Section 6.2(b).

 

“Properties”:  as defined in Section 4.17(a).

 

“Purchaser Material
Adverse Effect”:  has the meaning set
forth in the Merger Agreement.

 

“Register”:  as defined in Section 10.6(b).

 

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

 

“Related Parties”:  with respect to any Person, such Person’s
Affiliates and the partners, directors, officers, employees, agents and
advisors of such Person and of such Person’s Affiliates.

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.

 

“Reportable Event”:  any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the thirty day notice period is
waived.

 

“Required Lenders”:  at any time, the holders of more than 50% of
the aggregate unpaid principal amount of the Loans then outstanding.

 

14

 

“Requirement of Law”:  as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of
an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

 

“Responsible Officer”:  the chief executive officer, president, chief
financial officer, chief accounting officer, treasurer, controller, senior vice
president finance or other similar officer of the Borrower or a Subsidiary
Guarantor, as applicable, but in any event, with respect to financial matters,
the chief financial officer, chief accounting officer, treasurer, controller,
senior vice president finance or other similar officer of the Borrower or a
Subsidiary Guarantor, as applicable.

 

“Restricted Subsidiary”:
means each of Borrower’s Subsidiaries, other than an Excluded Subsidiary.

 

“Restricted Payments”:  as defined in Section 7.6.

 

“SEC”:  the Securities and Exchange Commission, any
successor thereto and any analogous Governmental Authority.

 

“S&P”:  Standard & Poor’s Ratings Services.

 

“Sale Leaseback
Transaction”:  any arrangement with
any Person or Persons, whereby in contemporaneous or substantially
contemporaneous transactions a Loan Party sells substantially all of its right,
title and interest in any property and, in connection therewith, acquires,
leases or licenses back the right to use all or a material portion of such
property.

 

“Secured Parties”:  the collective reference to the
Administrative Agent and the Lenders.

 

“Securities Act”:  the Securities Act of 1933, as amended from
time to time and any successor statute.

 

“Securities Account”:
an account to which a financial asset is or may be credited in accordance with
an agreement under which the Person maintaining the account undertakes to treat
the Person for whom the account is maintained as entitled to exercise the
rights that comprise the financial asset.

 

“Security Documents”:  the collective reference to the Guarantee and
Collateral Agreement, the Mortgages and all other security documents hereafter
delivered to the Administrative Agent granting a Lien on any property of any
Person to secure the obligations and liabilities of any Loan Party under any
Loan Document.

 

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

 

“Solvent”:  when used with respect to any Person, means
that, as of any date of determination, (a) the amount of the “fair value”
of the assets of such Person will, as of such date, exceed the amount of all
“liabilities of such Person, contingent or otherwise”, as of such date, as such
quoted terms are determined in accordance with applicable federal and state
laws governing determinations of the insolvency of debtors, (b) the
“present fair saleable value” of the assets of such Person will, as of such
date, be greater than the amount that will be required to pay the liability of
such Person on its debts as such debts become absolute and matured, as such
quoted terms are determined in accordance with 

 

15

 

applicable federal and state laws governing determinations of the insolvency
of debtors, (c) such Person will not have, as of such date, an
unreasonably small amount of capital with which to conduct its business, and (d) such
Person will be able to pay its debts as they mature.  For purposes of this definition, (i) “debt”
means liability on a “claim”, and (ii) “claim” means any (x) right to
payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured or (y) right to an equitable remedy
for breach of performance if such breach gives rise to a right to payment,
whether or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured or unmatured, disputed, undisputed, secured or unsecured.

 

“Specified
Representations”:  the
representations and warranties contained in Section 4.4 (other than
the third sentence thereof), Section 4.11, the first and second
sentence of Section 4.14, Section 4.18 and Section 4.19.

 

“Subordinated Indebtedness”:  any Indebtedness that has been subordinated
to all of the Obligations pursuant to a written agreement or written terms
acceptable to the Administrative Agent.

 

“Subsidiary”:  as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of
a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrower or Guarantor.

 

“Subsidiary Guarantor”:  each Domestic Subsidiary of the Borrower; provided
that an Excluded Subsidiary shall not be deemed to be a Subsidiary Guarantor or
otherwise be required to guarantee the Obligations of Borrower.

 

“Surety Indebtedness”:  as of any date of determination, indebtedness
(contingent or otherwise) owing to sureties arising from bid, performance or
surety bonds or letters of credit supporting such bid, performance or surety
obligations issued on behalf of Borrower and the Restricted Subsidiaries as
support for, among other things, their contracts with customers, whether such
indebtedness is owing directly or indirectly by Borrower and the Restricted
Subsidiaries.

 

“SVB”:  as defined in the preamble hereto.

 

“Swap Agreement”:  (a) any and all rate swap transactions,
basis swaps, credit derivative transactions, forward rate transactions,
commodity swaps, commodity options, forward commodity contracts, equity or
equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether
or not any such transaction is governed by or subject to any master agreement,
and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

 

16

 

“Swap Termination Value”
in respect of any one or more Swap Agreements, after taking into account the
effect of any legally enforceable netting agreement relating to such Swap
Agreements, (a) for any date on or after the date such Swap Agreements
have been closed out and termination value(s) determined in accordance
therewith, such termination value(s), and (b) for any date prior to the
date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Agreements, as determined based upon
one or more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Agreements.

 

“Synthetic Lease
Obligation”:  the monetary obligation
of a Person under (a) a so-called synthetic, off-balance sheet or tax
retention lease or (b) an agreement for the use of property creating
obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

 

“Target”:  as defined in the preamble hereto.

 

“Term Percentage”:  as to any Lender at any time, the percentage
which such Lender’s Commitment then constitutes of the aggregate Commitments
(or, at any time after the Closing Date, the percentage which the aggregate
principal amount of such Lender’s Loans then outstanding constitutes of the
aggregate principal amount of the Loans then outstanding).

 

“Transferee”:  any Assignee or Participant.

 

“Type”:  as to any Loan, its nature as an ABR Loan or
a Eurodollar Loan.

 

“Uniform Commercial Code”
or “UCC”:  the Uniform Commercial
Code (or any similar or equivalent legislation) as in effect from time to time
in any applicable jurisdiction.

 

“United States”:  the United States of America.

 

1.2  Other Definitional Provisions.

 

(a)           Unless otherwise specified therein,
all terms defined in this Agreement shall have the defined meanings when used
in the other Loan Documents or any certificate or other document made or
delivered pursuant hereto or thereto.

 

(b)           As used herein and in the other Loan Documents, and any
certificate or other document made or delivered pursuant hereto or thereto, (i) accounting
terms relating to any Group Member not defined in Section 1.1 and
accounting terms partly defined in Section 1.1, to the extent not
defined, shall have the respective meanings given to them under GAAP, (ii) the
words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”, (iii) the word “incur” shall be construed
to mean incur, create, issue, assume, become liable in respect of or suffer to
exist (and the words “incurred” and “incurrence” shall have correlative
meanings), (iv) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, Capital Stock, securities,
revenues, accounts, leasehold interests and contract rights, (v) references
to agreements (including this Agreement) or other Contractual Obligations
shall, unless otherwise specified, be deemed to refer to such agreements or
Contractual Obligations as amended, supplemented, restated, amended and
restated or otherwise modified from time to time and (vi) references to
persons shall include such person’s successors and assigns.

 

17

 

(c)           The words “hereof”, “herein” and “hereunder” and words of
similar import, when used in this Agreement, shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.

 

(d)           The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

 

(e)           For purposes of this Agreement and the other Loan
Documents, where the permissibility of a transaction or determination of
required actions or circumstances depends upon compliance with, or is
determined by reference to, amounts stated in Dollars, any requisite currency translation
shall be based on the applicable Exchange Rate with respect to the date of such
transaction or determination or the date Borrower or any of its Subsidiaries
enters into a definitive agreement with respect to a transaction (as determined
by Borrower) and shall not be affected by subsequent fluctuations in the
Exchange Rate.  For purposes of
determining compliance with any Dollar denominated restriction on the
incurrence of Indebtedness, the Dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
applicable Exchange Rate with respect to the date such Indebtedness was
incurred; provided that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing
would cause the applicable Dollar-denominated restriction to be exceeded if
calculated based on the applicable Exchange Rate with respect to the date of
such refinancing, such Dollar-denominated restriction shall be deemed not to
have been exceeded so long as the Dollar- equivalent principal amount of such
refinancing Indebtedness does not exceed the Dollar-equivalent principal amount
of such Indebtedness being refinanced (plus the amount of interest, fees
and expenses associated therewith). 
Notwithstanding any other provision of this Agreement, (i) the
maximum amount of Indebtedness that Borrower or any Subsidiary may incur shall
not be deemed to be exceeded solely as a result of fluctuations in the Exchange
Rate, (ii) this provision shall not apply to the calculation of
Consolidated EBITDA, the Consolidated Leverage Ratio or the Consolidated Fixed
Charge Coverage Ratio, and (iii) in the event that the Dollar-equivalent
principal amount of Indebtedness that Borrower and its Subsidiaries has
incurred exceeds the maximum amount of permitted Indebtedness under any clause
of subsection 7.1 at any time as a result of fluctuations in the applicable
Exchange Rate, no additional Indebtedness (other than the refinancing of
existing Indebtedness as provided above) may be incurred under such clause
until such maximum amount is no longer exceeded.

 

SECTION 2.  AMOUNT AND TERMS OF COMMITMENTS

 

2.1  Commitments.  Subject to the terms and conditions hereof,
each Lender severally agrees to make a Loan to the Borrower on the Closing Date
in an amount not to exceed the amount of the Commitment of such Lender.  The Loans may from time to time be Eurodollar
Loans or ABR Loans, as determined by the Borrower and notified to the
Administrative Agent in accordance with Sections 2.2 and 2.7.

 

2.2  Procedure for Loan Borrowing.  The Borrower shall give the Administrative
Agent irrevocable notice (which notice must be received by the Administrative
Agent prior to 10:00 A.M., Pacific time, one Business Day prior to the
anticipated Closing Date (with originals to follow within 30 days)) requesting
that the Lenders make the Loans on the Closing Date and specifying the amount
to be borrowed.  Upon receipt of such
notice the Administrative Agent shall promptly notify each Lender thereof.  Not later than 12:00 P.M., Pacific time,
on the Closing Date each Lender shall make available to the Administrative
Agent at the Funding Office an amount in immediately available funds equal to
the Loan or Loans to be made by such Lender. 
The Administrative Agent shall credit the account of the Borrower on the
books of such office of the Administrative Agent with the aggregate of the
amounts made 

 

18

 

available to the Administrative Agent by the Lenders in immediately
available funds or make such amounts available to Borrower at such account as
Borrower has provided in the notice referred to above.

 

2.3  Repayment of Loans.  Beginning on December 31, 2008, the
Loans of each Lender shall be repaid on consecutive quarterly installments,
each of which shall be in an amount equal to such Lender’s Term Percentage
multiplied by the amount set forth below opposite such installment:

 

	
  Installment

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The last day
  of each calendar quarter commencing December 31, 2008 through the
  Maturity Date

  	
   

  	
  $

  	
  3,750,000

  	
   

  

 

To the extent not previously
paid, all Loans shall be due and payable on the Maturity Date, together with
accrued and unpaid interest on the principal amount to be paid to but excluding
the date of payment.

 

2.4  Loan Fees, etc.   The Borrower agrees to pay to Silicon Valley
Bank the fees in the amounts and on the dates as set forth in the Fee Letter
with Silicon Valley Bank and to perform any other obligations contained
therein.

 

2.5  Optional Prepayments.  The Borrower may at any time and from time to
time prepay the Loans, in whole or in part, without premium or penalty, upon
irrevocable notice delivered to the Administrative Agent no later than 10:00 A.M.,
Pacific time, three Business Days prior thereto, in the case of Eurodollar
Loans, and no later than 10:00 A.M., Pacific time, one Business Day prior
thereto, in the case of ABR Loans, which notice shall specify the date and
amount of prepayment; provided, that if a Eurodollar Loan is prepaid on
any day other than the last day of the Interest Period applicable thereto, the
Borrower shall also pay any amounts owing pursuant to Section 2.15.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each relevant Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with accrued interest to such date on the amount prepaid; provided
that if such notice indicates that all or a portion of such prepayment will be
funded from an incurrence of Indebtedness, issuance of Capital Stock or
Disposition, such notice may be withdrawn by notice from the Borrower to the
Administrative Agent  (in which case no
amounts specified in such notice will be due and payable) in the event such
incurrence of Indebtedness, issuance of Capital Stock or Disposition does not
occur on or prior to the date specified for such prepayment.  Partial prepayments of Loans shall be in an
aggregate principal amount of at least $1,000,000.

 

2.6  Mandatory Prepayments.

 

(a)           Upon the consummation of the
Classmates IPO, an amount equal to:  (i) the
greater of (x) 50% of the net cash proceeds received by the Borrower in
connection with the Classmates IPO and (y) $30,000,000 shall be applied on
the date of the Classmates IPO toward the prepayment of the Loans and other
amounts as set forth in Section 2.6(c).

 

(b)           If, for any fiscal quarter of Borrower beginning with the
fiscal quarter ending March 31, 2009, there shall be Excess Cash Flow, the
Borrower shall, on the relevant Excess Cash Flow Application Date, apply 50% of
such Excess Cash Flow toward the prepayment of the Loans and other amounts as
set forth in Section 2.6(c). 
Each such prepayment shall be made on a date (an “Excess Cash Flow
Application Date”) no later than 45 days after each fiscal quarter end for
the first three fiscal quarters and 90 days in the case of the fourth quarter
of any fiscal year end.  Notwithstanding
the 

 

19

 

foregoing and without duplication under the definition of Excess Cash
Flow, the amount of Loans required to be repaid pursuant to this clause (b) for
any fiscal quarter shall be reduced on a dollar for dollar basis by the amount
of optional prepayments of Loans made pursuant to Section 2.5
during such fiscal quarter.

 

(c)           Amounts to be applied in connection with prepayments made
pursuant to Section 2.6 shall be applied, to the prepayment of the
Loans in accordance with Section 2.12(b) (unless otherwise
agreed to in writing by and among Lenders); (provided that any Lender
may decline any such prepayment (collectively, the “Declined Amount”),
in which case the Declined Amount shall be distributed to the prepayment, on a pro rata basis, of the Loans held by Lenders
that have elected to accept such Declined Amounts.  Each prepayment of the Loans under Section 2.6
shall be accompanied by accrued interest to the date of such prepayment on the
amount prepaid; provided, that if a Eurodollar Loan is prepaid on any
day other than the last day of the Interest Period applicable thereto, the
Borrower shall also pay any amounts owing pursuant to Section 2.15.  The Borrower shall deliver to the
Administrative Agent and each Lender notice of each prepayment of Loans in
whole or in part pursuant to Section 2.6(d) not less than
three (3) Business Day prior to the date such prepayment shall be made
(each, a “Mandatory Prepayment Date”). 
Such notice shall set forth (i) the Mandatory Prepayment Date, (ii) the
aggregate amount of such prepayment and (iii) the option of each Lender to
(x) decline its share of such prepayment or (y) accept Declined
Amounts.  Any Lender that wishes to
exercise its option to decline such prepayment or to accept Declined Amounts
shall notify the Administrative Agent by facsimile not later than the Mandatory
Prepayment Date.

 

(d)           The Borrower shall deliver to the Administrative Agent, at
the time of each prepayment required under this Section 2.6, a
certificate signed by a Responsible Officer of the Borrower setting forth in
reasonable detail the calculation of the amount of such prepayment or reduction
(and the Administrative Agent shall promptly provide the same to each
Lender).  Each notice of prepayment shall
specify the prepayment or reduction date, the Type of each Loan being prepaid
and the principal amount of each Loan (or portion thereof) to be prepaid.

 

2.7  Conversion and Continuation Options.

 

(a)           The Borrower may elect from time to
time to convert Eurodollar Loans to ABR Loans by giving the Administrative
Agent prior irrevocable notice of such election no later than 10:00 A.M.,
Pacific time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
The Borrower may elect from time to time to convert ABR Loans to
Eurodollar Loans by giving the Administrative Agent prior irrevocable notice of
such election no later than 10:00 A.M., Pacific time, on the third
Business Day preceding the proposed conversion date (which notice shall specify
the length of the initial Interest Period therefor), provided that no
ABR Loan may be converted into a Eurodollar Loan when any Event of Default has
occurred and is continuing.  Upon receipt
of any such notice the Administrative Agent shall promptly notify each relevant
Lender thereof.

 

(b)           Any Eurodollar Loan may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the
Borrower giving irrevocable notice to the Administrative Agent, in accordance
with the applicable provisions of the term “Interest Period” set forth in Section 1.1,
of the length of the next Interest Period to be applicable to such Loans, provided
that no Eurodollar Loan may be continued as such when any Event of Default has
occurred and is continuing, and provided, further, that if the
Borrower shall fail to give any required notice as described above in this
paragraph or if such continuation is not permitted pursuant to the preceding
proviso such Loans shall be automatically converted to ABR Loans on the last
day of such then expiring Interest Period. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each relevant Lender thereof.

 

20

 

2.8  Limitations on Eurodollar Tranches.  Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar
Loans and all selections of Interest Periods shall be in such amounts and be
made pursuant to such elections so that, (a) after giving effect thereto,
the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $1,000,000 or a multiple thereof and (b) no
more than 10 Eurodollar Tranches shall be outstanding at any one time.

 

2.9  Interest Rates and Payment Dates.

 

(a)           Each Eurodollar Loan shall bear
interest for each day during each Interest Period with respect thereto at a
rate per annum equal to the Eurodollar Rate determined for such day plus the
Applicable Margin.

 

(b)           Each ABR Loan shall bear interest at a rate per annum
equal to the ABR plus the Applicable Margin.

 

(c)           (i)  If all or a portion of the principal amount of
any Loan shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), all outstanding Loans shall bear interest at a rate
per annum equal to the rate that would otherwise be applicable thereto pursuant
to the foregoing provisions of this Section plus 2%, and (ii) if
all or a portion of any interest payable on any Loan or any commitment fee or
other amount payable hereunder shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to ABR Loans
under the Facility plus 2%, in each case, with respect to clauses (i) and
(ii) above, from the date of such non-payment until such amount is paid in
full (as well after as before judgment).

 

(d)           Interest shall be payable in arrears on each Interest
Payment Date; provided that interest accruing pursuant to Section 2.9(c) shall
be payable from time to time on demand.

 

2.10  Computation of Interest and Fees.

 

(a)           Interest and fees payable pursuant
hereto shall be calculated on the basis of a 360-day year for the actual days
elapsed, except that, with respect to ABR Loans the rate of interest on which
is calculated on the basis of the Prime Rate, the interest thereon shall be
calculated on the basis of a 365- (or 366-, as the case may be) day year for
the actual days elapsed.  The
Administrative Agent shall as soon as practicable notify the Borrower and the
relevant Lenders of each determination of a Eurodollar Rate.  Any change in the interest rate on a Loan
resulting from a change in the ABR or the Eurocurrency Reserve Requirements
shall become effective as of the opening of business on the day on which such
change becomes effective.  The
Administrative Agent shall as soon as practicable notify the Borrower and the
relevant Lenders of the effective date and the amount of each such change in
interest rate.

 

(b)           Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative Agent
shall, at the request of the Borrower, deliver to the Borrower a statement
showing the quotations used by the Administrative Agent in determining any
interest rate pursuant to Section 2.10(a).

 

2.11  Inability to Determine Interest Rate.  If prior to the first day of any Interest
Period:

 

(a)           The Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market, 

 

21

 

adequate and reasonable
means do not exist for ascertaining the Eurodollar Rate for such Interest
Period, or

 

(b)           The Administrative Agent shall have received notice from
the Required Lenders that the Eurodollar Rate determined or to be determined
for such Interest Period will not adequately and fairly reflect the cost to
such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period, the
Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the relevant Lenders as soon as practicable thereafter.  If such notice is given (x) any
Eurodollar Loans under the Facility requested to be made on the first day of
such Interest Period shall be made as ABR Loans, (y) any Loans under the
Facility that were to have been converted on the first day of such Interest
Period to Eurodollar Loans shall be continued as ABR Loans and (z) any
outstanding Eurodollar Loans under the Facility shall be converted, on the last
day of the then-current Interest Period, to ABR Loans.  Until such notice has been withdrawn by the
Administrative Agent, no further Eurodollar Loans under the Facility shall be
made or continued as such, nor shall the Borrower have the right to convert
Loans under the Facility to Eurodollar Loans.

 

2.12  Pro Rata Treatment and Payments.

 

(a)           Each borrowing by the Borrower from
the Lenders hereunder, shall be made pro  rata according to the
respective Term Percentages of the relevant Lenders.

 

(b)           Except as otherwise provided herein, each payment
(including each prepayment) by the Borrower on account of principal of and
interest on the Loans shall be made pro  rata according to the
respective outstanding principal amounts of the Loans then held by the
Lenders.  The amount of each principal
prepayment of the Loans shall be applied to reduce the remaining installments
of the Loans in the inverse order of maturity. 
Except as otherwise may be agreed by the Borrower and the Required
Lenders, any prepayment of Loans shall be applied first to the then outstanding
ABR Loans to the full extent thereof before application to Eurodollar Loans, in
each case in a manner which minimizes the amount of any payments required to be
made by Borrower pursuant to Section 2.15. Amounts prepaid on
account of the Loans may not be reborrowed.

 

(c)           All payments (including prepayments) to be made by the
Borrower hereunder, whether on account of principal, interest, fees or
otherwise, shall be made without setoff or counterclaim and shall be made prior
to 10:00 A.M., Pacific time, on the due date thereof to the Administrative
Agent, for the account of the Lenders, at the applicable Funding Office, in
Dollars and in immediately available funds. 
The Administrative Agent shall distribute such payments to the Lenders
promptly upon receipt in like funds as received.  If any payment hereunder (other than payments
on the Eurodollar Loans) becomes due and payable on a day other than a Business
Day, such payment shall be extended to the next succeeding Business Day.  If any payment on a Eurodollar Loan becomes
due and payable on a day other than a Business Day, the maturity thereof shall
be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which
event such payment shall be made on the immediately preceding Business Day.  In the case of any extension of any payment
of principal pursuant to the preceding two sentences, interest thereon shall be
payable at the then applicable rate during such extension.

 

(d)           Unless the Administrative Agent shall have been notified
in writing by the Borrower prior to the date of any payment due to be made by
the Borrower hereunder that the Borrower will not make such payment to the
Administrative Agent, the Administrative Agent may assume that the Borrower is
making such payment, and the Administrative Agent may, but shall not be
required to, in reliance upon such assumption, make available to the Lenders
their respective pro  rata shares of a corresponding amount.  If such payment is not made to the
Administrative Agent by the Borrower within 

 

22

 

three Business Days after such due date, the Administrative Agent shall
be entitled to recover, on demand, from each Lender to which any amount which
was made available pursuant to the preceding sentence, such amount with
interest thereon at the rate per annum equal to the daily average Federal Funds
Effective Rate.  Nothing herein shall be
deemed to limit the rights of the Administrative Agent or any Lender against
the Borrower.

 

2.13  Requirements of Law.

 

(a)           If the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

 

(i)            shall subject any Lender to any tax
of any kind whatsoever with respect to this Agreement, any Eurodollar Loan made
by it, or change the basis of taxation of payments to such Lender in respect
thereof (except for Non-Excluded Taxes covered by Section 2.14 and
changes in the rate of tax on the overall net income or franchise taxes of such
Lender);

 

(ii)           shall impose, modify or hold applicable any reserve,
special deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or
other extensions of credit by, or any other acquisition of funds by, any office
of such Lender that is not otherwise included in the determination of the
Eurodollar Rate; or

 

(iii)          shall impose on such Lender any other condition;

 

and the result of any of the
foregoing is to increase the cost to such Lender, by an amount that such Lender
deems to be material, of making, converting into, continuing or maintaining
Eurodollar Loans, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall promptly pay such Lender,
upon its demand, any additional amounts necessary to compensate such Lender for
such increased cost or reduced amount receivable.  If any Lender becomes entitled to claim any
additional amounts pursuant to this paragraph, it shall promptly notify the
Borrower (with a copy to the Administrative Agent) of the event by reason of
which it has become so entitled.

 

(b)           If any Lender shall have determined
that the adoption of or any change in any Requirement of Law regarding capital
adequacy or in the interpretation or application thereof or compliance by such
Lender or any corporation controlling such Lender with any request or directive
regarding capital adequacy (whether or not having the force of law) from any
Governmental Authority made subsequent to the date hereof shall have the effect
of reducing the rate of return on such Lender’s or such corporation’s capital
as a consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s
policies with respect to capital adequacy) by an amount deemed by such Lender
to be material, then from time to time, after submission by such Lender to the
Borrower (with a copy to the Administrative Agent) of a written request
therefor, the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender or such corporation for such reduction.

 

(c)           A certificate as to any additional amounts payable
pursuant to this Section submitted by any Lender to the Borrower (with a
copy to the Administrative Agent) shall be conclusive in the absence of
manifest error.  Notwithstanding anything
to the contrary in this Section, the Borrower 

 

23

 

shall not be required to compensate a Lender pursuant to this Section for
any amounts incurred more than six months prior to the date that such Lender
notifies the Borrower of such Lender’s intention to claim compensation
therefor; provided that, if the circumstances giving rise to such claim
have a retroactive effect, then such six-month period shall be extended to
include the period of such retroactive effect. 
The obligations of the Borrower pursuant to this Section shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

 

(d)           If any Lender requests compensation
under this Section 2.13, or if Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.14, or if Borrower exercises
its replacement rights under Section 10.1(c), then Borrower may, at
its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in, and consents
required by Section 10.6), all of its interest, rights and
obligations under this Agreement and the other Loan Documents to an Eligible
Assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that:

 

(i)            Borrower shall have paid to the
Administrative Agent the processing and recordation fee specified in Section 10.6(b)(ii)(B);

 

(ii)           such assigning Lender shall have received payment of an
amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder as of the
date of such assignment and under the other Loan Documents (including any
amounts under Section 2.15);

 

(iii)          in the case of any such assignment resulting from a claim
for compensation under Section 2.13 or payments required to be made
pursuant to Section 2.14, such assignment will result in a reduction
in such compensation or payments thereafter; and

 

(iv)          such assignment does not conflict with applicable
Requirements of Law.

 

2.14  Taxes.

 

(a)           All payments made by the Borrower
under this Agreement shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other
taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now
or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority (including any interest, additions to tax or penalties
applicable hereto) (collectively “Taxes”), excluding (i) income,
franchise, or similar Taxes imposed on (or measured by) the net income, net
profits or capital of the Administrative Agent or any Lender (a) by any
Government Authority under the laws of which any such Lender is organized, has
its principal office, maintains its applicable lending office, or otherwise
engages in business, or (b) by any Government Authority as a result of a
present or former connection between the Administrative Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any other Loan Document), and (ii) any
branch profits taxes imposed upon the Administrative Agent or any Lender by any
jurisdiction in which Borrower is located (other than any such taxes imposed
solely based on the Administrative Agent or any Lender having executed,
delivered or performed its obligations or received a payment under or enforced
this Agreement or any other Loan Document) (“Non-Excluded Taxes”).  If any such 

 

24

 

Non-Excluded Taxes or Other
Taxes are required to be deducted or withheld from any amounts payable to the
Administrative Agent or any Lender hereunder, the amounts so payable to the
Administrative Agent or such Lender shall be increased to the extent necessary
to ensure that, after making the required deductions or withholdings the
Administrative Agent or such Lender, as the case may be, receives on the due
date a net amount equal to the sum it would have received had no such deduction
or withholding been required or made, provided, however, that the
Borrower shall not be required to increase any such amounts payable to any
Lender with respect to any Non-Excluded Taxes that (i) are imposed on
amounts payable to such Lender at the time it becomes a party to this Agreement
(or designates a new lending office other than at the Borrower’s request) or (ii) are
attributable to such Lender’s failure to comply with the requirements of
paragraph (d), (e) or (f) of this Section, except to the extent that
such Lender’s assignor (if any) was entitled, at the time of assignment, to
receive additional amounts from the Borrower with respect to such Non-Excluded
Taxes pursuant to this paragraph.

 

(b)           In addition, the Borrower shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

 

(c)           Whenever any Non-Excluded Taxes or Other Taxes are payable
by the Borrower, the Borrower shall (i) notify Administrative Agent of any
such requirement as soon as Borrower becomes aware of it; and (ii) after
the due date of any such payment and upon the written request of Administrative
Agent, shall deliver a certified copy of an original official receipt received
by the Borrower showing payment thereof or such other documentation reasonably
satisfactory to the other affected parties to evidence the payment and its
remittance to the relevant Government Authority.  If the Borrower fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority or fails to
remit to the Administrative Agent the required receipts or other required
documentary evidence, the Borrower shall indemnify the Administrative Agent and
the Lenders for any incremental taxes, interest or penalties paid by the
Administrative Agent or any Lender as a result of any such failure.

 

(d)           Each Lender (or Transferee) that is not a “U.S. Person” as
defined in Section 7701(a)(30) of the Code (a “Non-U.S. Lender”)
shall deliver to the Borrower and the Administrative Agent (or in the case of a
Participant, to the Lender from which the related participation shall have been
purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN
or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption
from U.S. federal withholding tax under Section 871(h) or 881(c) of
the Code with respect to payments of “portfolio interest”, a statement
substantially in the form of Exhibit E and a Form W-8BEN, or
any subsequent versions thereof or successors thereto, properly completed and
duly executed by such Non-U.S. Lender claiming complete exemption from, or a
reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents (or otherwise indicate that
no such exemption or reduction is applicable). 
Such forms (and any other forms prescribed by applicable law to enable
the Borrower or the Administrative Agent to determine the withholding or
deduction required to be made, if any) shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the
case of any Participant, on or before the date such Participant purchases the
related participation).  In addition,
each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender.  Each Non-U.S. Lender shall promptly notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).
Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall
not be required to deliver any form pursuant to this paragraph that such
Non-U.S. Lender is not legally able to deliver.

 

(e)           A Lender that is entitled to an exemption from or
reduction of non-U.S. withholding tax under the law of the jurisdiction in
which the Borrower is located, or any treaty to which 

 

25

 

such jurisdiction is a party, with respect to payments under this
Agreement shall deliver to the Borrower (with a copy to the Administrative Agent),
at the time or times prescribed by applicable law or reasonably requested by
the Borrower, such properly completed and executed documentation prescribed by
applicable law as will permit such payments to be made without withholding or
at a reduced rate, provided that in the case of a Lender that is not
entitled to an exemption from or reduction of any Non-U.S. withholding tax as
described in this paragraph, no such documentation is required to be delivered.

 

(f)            If the Administrative Agent or any Lender determines, in
its sole discretion, that it has received a refund of any Non-Excluded Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect
to which the Borrower has paid additional amounts pursuant to this Section 2.14,
it shall pay over such refund to the Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this
Section 2.14 with respect to the Non-Excluded Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided, that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay the amount paid over to
the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or such Lender in
the event the Administrative Agent or such Lender is required to repay such
refund to such Governmental Authority. This paragraph shall not be construed to
require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

 

(g)           The agreements in this Section shall survive the
termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

2.15  Indemnity.  The Borrower agrees to indemnify each Lender
for, and to hold each Lender harmless from, any loss or expense (excluding loss
of anticipated profit) that such Lender actually sustains or incurs as a
consequence of (a) default by the Borrower in making a borrowing of,
conversion into or continuation of Eurodollar Loans after the Borrower has
given a notice requesting the same in accordance with the provisions of this
Agreement, (b) default by the Borrower in making any prepayment of or
conversion from Eurodollar Loans after the Borrower has given a notice thereof
in accordance with the provisions of this Agreement or (c) the making of a
prepayment of Eurodollar Loans on a day that is not the last day of an Interest
Period with respect thereto.  Subject to
the foregoing, such indemnification may include an amount equal to the excess,
if any, of (i) the amount of interest that would have accrued on the
amount so prepaid, or not so borrowed, reduced, converted or continued, for the
period from the date of such prepayment or of such failure to borrow, reduce,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, reduce, convert or continue, the Interest Period that
would have commenced on the date of such failure) in each case at the applicable
rate of interest or other return for such Loans provided for herein (excluding,
however, the Applicable Margin included therein, if any) over (ii) the
amount of interest (as reasonably determined by such Lender) that would have
accrued to such Lender on such amount by placing such amount on deposit for a
comparable period with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall be
conclusive in the absence of manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

 

2.16  Change of Lending Office.  Each Lender agrees that, upon the occurrence
of any event giving rise to the operation of Section 2.13 or 2.14(a) with
respect to such Lender, it will, if requested by the Borrower, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Loans affected by such event with the object of
avoiding the 

 

26

 

consequences of such event; provided,
that such designation is made on terms that, in the sole judgment of such
Lender, cause such Lender and its lending office(s) to suffer no economic,
legal or regulatory disadvantage, and provided, further, that
nothing in this Section shall affect or postpone any of the obligations of
the Borrower or the rights of any Lender pursuant to Section 2.13
or 2.14(a).

 

2.17
 Notes.  If so requested by any Lender by written
notice to the Borrower (with a copy to the Administrative Agent), the Borrower
shall execute and deliver to such Lender (and/or, if applicable and if so
specified in such notice, to any Person who is an assignee of such Lender
pursuant to Section 10.6) (promptly after the Borrower’s receipt of
such notice) a Note or Notes to evidence such Lender’s Loans.

 

SECTION 3.  INTENTIONALLY BLANK

 

SECTION 4.  REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative
Agent and the Lenders to enter into this Agreement and to make the Loans, the
Borrower hereby represents and warrants to the Administrative Agent and each
Lender that:

 

4.1  Financial Condition.

 

(a)           The audited consolidated balance
sheets of the Borrower as of December 31, 2007, and the related
consolidated statements of income and of cash flows for the fiscal years ended
on such dates, reported on by and accompanied by an unqualified report from
PricewaterhouseCoopers, LLP present fairly in all material respects the
consolidated financial condition of the Borrower and its Subsidiaries as at
such date, and the consolidated results of its operations and its consolidated
cash flows for the respective fiscal years then ended.  The audited statements of income of the
Borrower for the fiscal years ended on December 31, 2005, December 31,
2006 and December 31, 2007 present fairly in all material respects the
consolidated financial condition of the Borrower and its Subsidiaries as at
such date, and the results of its operations (on a consolidated basis) for the
respective fiscal years then ended.  The
unaudited consolidated balance sheet of the Borrower as at March 31, 2008,
and the related unaudited consolidated statements of income and cash flows for
the three-month period ended on such date, present fairly in all material
respects the consolidated financial condition of the Borrower and its
Subsidiaries as at such date, and the consolidated results of their operations
and their consolidated cash flows for the three-month period then ended
(subject to normal year-end audit adjustments). 
All such financial statements, including the related schedules and notes
thereto, have been prepared in accordance with GAAP.  Except with respect to any Obligations and
the obligations to acquire Target, no Group Member has, as of the Closing Date,
any material Guarantee Obligations, contingent liabilities and liabilities for
taxes, or any long-term leases or unusual forward or long-term commitments,
including any interest rate or foreign currency swap or exchange transaction or
other obligation in respect of derivatives, that are not reflected in the most
recent financial statements referred to in this paragraph.  During the period from December 31, 2007
to and including the date hereof there has been no Disposition by any Group
Member of any material part of its business or property.

 

4.2  No Change.  Since December 31, 2007, there has been
no Material Adverse Effect.

 

4.3  Existence; Compliance with Law.  Each Group Member (a) except as
permitted by Section 7.4, is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (b) has
the corporate, limited partnership or other entity power and authority, and the
legal right, to own and operate its property, to lease the property it operates
as lessee and to conduct the business in which it is currently engaged, (c) is
duly qualified as a foreign corporation or other 

 

27

 

organization and in good standing under the laws of each jurisdiction
where the failure to be so qualified could reasonably be expected to have a
Material Adverse Effect and (d) is in compliance with all Requirements of
Law except where the failure to do so would not reasonably be expected to
result in a Material Adverse Effect.

 

4.4  Power, Authorization; Enforceable
Obligations.  Each Loan Party has the
corporate, limited partnership or other entity power and authority to make,
deliver and perform the Loan Documents to which it is a party and, in the case
of the Borrower, to obtain extensions of credit hereunder.  Each Loan Party has taken all necessary
organizational action to authorize the execution, delivery and performance of the
Loan Documents to which it is a party and, in the case of the Borrower, to
authorize the extensions of credit on the terms and conditions of this
Agreement.  No Governmental Approval or
consent or authorization of, filing with, notice to or other act by or in
respect of, any other Person is required in connection with the extensions of
credit hereunder or with the execution, delivery, performance, validity or
enforceability of this Agreement or any of the Loan Documents, except for any
of the foregoing which has previously been obtained or made.  Each Loan Document has been duly executed and
delivered on behalf of each Loan Party party thereto.  This Agreement constitutes, and each other
Loan Document upon execution will constitute, a legal, valid and binding
obligation of each Loan Party party thereto, enforceable against each such Loan
Party in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

 

4.5  No Legal Bar.  The execution, delivery and performance of
this Agreement and the other Loan Documents, the borrowings hereunder and the
use of the proceeds thereof will not violate any material Requirement of Law or
any material Contractual Obligation of any Group Member and will not result in,
or require, the creation or imposition of any Lien on any of their respective
properties or revenues pursuant to any Requirement of Law or any such
Contractual Obligation (other than the Liens created by the Security
Documents).

 

4.6  Litigation.  No litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against any Group Member or against
any of their respective properties or revenues (a) with respect to any of
the Loan Documents or any of the transactions contemplated hereby or thereby,
or (b) that could reasonably be expected to have a Material Adverse
Effect.

 

4.7  No Default.  No Group Member is in default under or with
respect to any of its Contractual Obligations in any respect that could
reasonably be expected to have a Material Adverse Effect.  No Event of Default has occurred and is
continuing.

 

4.8  Ownership of Property; Liens.  Each Group Member has title in fee simple to,
or a valid leasehold interest in, all its real property, good title to, or a
valid leasehold interest in, or license to use, all its other property, in each
case, as would not result in a Material Adverse Effect, and none of such
property is subject to any Lien except as permitted by Section 7.3.

 

4.9  Intellectual Property.  Each Group Member owns, or is licensed to
use, all Intellectual Property used in the conduct of its business as currently
conducted except where the failure to own such Intellectually Property or such
license would not reasonably be expected to have a Material Adverse Effect.  No claim has been asserted in writing and is
pending by any Person against any Group Member challenging or questioning such
Group Member’s use of Intellectual Property or the validity or effectiveness of
such Group Member’s Intellectual Property (other than routine office actions in
the course of prosecution of applications to register Intellectual Property),
nor does the Borrower know of any valid 

 

28

 

basis for any such claim, unless such claim would not reasonably be
expected to have a Material Adverse Effect. 
To the Borrower’s knowledge, the use of Intellectual Property by each
Group Member, and the conduct of such Group Member’s business, as currently
conducted, does not infringe on or otherwise violate the rights of any Person,
unless such infringement would not reasonably be expected to have a Material
Adverse Effect, and there are no claims pending or, to the knowledge of the
Borrower, threatened to such effect which would reasonably be expected to
result in a Material Adverse Effect.

 

4.10  Taxes. 
(a) Each Group Member has filed or caused to be filed all material
Federal, state and other material tax returns that are required to be filed and
has paid all taxes shown to be due and payable on said returns or on any
assessments made against it or any of its property and all other material
taxes, fees or other charges imposed on it or any of its property by any
Governmental Authority (other than any taxes (i) currently payable without
penalty or (ii) the validity of which are currently being contested in
good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of the relevant Group
Member); and (b) no material tax Lien has been filed (other than in
respect of taxes not yet due and payable). Borrower is not aware of any
material written tax assessment against any Group Member that is not being
contested in good faith and by appropriate proceedings.

 

4.11  Federal Regulations.  No part of the proceeds of any Loans, and no
other extensions of credit hereunder, will be used (a) for “buying” or
“carrying” any “margin stock” within the respective meanings of each of the
quoted terms under Regulation U as now and from time to time hereafter in
effect for any purpose that violates the provisions of the Regulations of the
Board or (b) for any purpose that violates the provisions of the
Regulations of the Board.  If requested
by any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form G-3 or FR Form U-1, as
applicable, referred to in Regulation U.

 

4.12  Labor Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor
disputes against any Group Member pending or, to the knowledge of the Borrower,
threatened; (b) hours worked by and payment made to employees of each
Group Member have not been in violation of the Fair Labor Standards Act or any
other applicable Requirement of Law dealing with such matters; and (c) all
payments due from any Group Member on account of employee health and welfare
insurance have been paid or accrued as a liability on the books of the relevant
Group Member.

 

4.13  ERISA. 
Neither a Reportable Event or, with respect to a Single Employer Plan, a
failure to make any required material contribution (including any required
installment) under the Pension Funding Rules, has occurred during the five-year
period prior to the date on which this representation is made or deemed made
with respect to any Plan, and each Plan has complied in all material respects
with the applicable provisions of ERISA and the Code. Each Plan sponsored,
maintained or contributed to by Borrower that is intended to meet the
requirements of a “qualified plan” under Code Section 401(a) has
received a determination from the Internal Revenue Service that such plan is so
qualified or may rely on an opinion letter issued by the Internal Revenue
Service that such plan is so qualified, and nothing has occurred since the date
of such determination that could reasonably be expected to adversely affect the
qualified status of such plan in any material respect.  No distress termination of a Single Employer
Plan has occurred, and no Lien in favor of the PBGC or a Plan has arisen,
during such five-year period.  The
present value of all accrued benefits under all Single Employer Plans (based on
those assumptions used to fund each such Plan) do not, as of the last annual
valuation date prior to the date on which this representation is made or deemed
made, exceed the value of the assets of such each Plan allocable to such
accrued benefits by more than $2,000,000. 
Neither the Borrower nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multiemployer Plan during the past five
years, that has 

 

29

 

resulted or could reasonably be expected to result in a material liability
under ERISA, and neither the Borrower nor any Commonly Controlled Entity would
become subject to any material liability under ERISA if the Borrower or any
such Commonly Controlled Entity were to withdraw completely from all
Multiemployer Plans as of the valuation date most closely preceding the date on
which this representation is made or deemed made.  To the knowledge of the Borrower, no such
Multiemployer Plan is in Reorganization or Insolvent and there has been no
determination that any Multiemployer Plan is in endangered or critical status
within the meaning of Section 432 of the Code or Section 305 of
ERISA.  Neither the Borrower nor any
Commonly Controlled Entity has engaged in a “prohibited transaction”, as
defined in Section 406 of ERISA and Section 4975 of the Code, in
connection with any Plan, that could reasonably be expected to subject the
Borrower to a material tax or penalty by under Section 502(i) of
ERISA or Section 4975 of the Code. 
Except to the extent required by Section 4980B of the Code or
similar state law, as of the date hereof, the present value of the
Liability to provide health or welfare benefits (through the purchase of
insurance or otherwise) for any retired or former employee, officer or director
of the Borrower pursuant to any Plan sponsored, maintained or contributed to by
Borrower does not exceed $2 million.

 

4.14  Investment Company Act; Other Regulations.  No Loan Party is an “investment company”, or
a company “controlled” by an “investment company”, within the meaning of the
Investment Company Act of 1940, as amended. 
No Loan Party is subject to regulation under any Requirement of Law
(other than Regulation X of the Board) that limits its ability to incur
Indebtedness. No Loan Party is subject to regulation under the Energy Policy
Act of 2005 or the Federal Power Act or under any other federal or state
statute or regulation in a manner, in each case, which limits its ability to
incur Indebtedness or which otherwise renders all or any portion of the
Obligations unenforceable.

 

4.15  Subsidiaries.   (a) Schedule 4.15 sets forth, as
of the Closing Date, the name and jurisdiction of organization of each
Restricted Subsidiary and, as to each such Restricted Subsidiary, the
percentage of each class of Capital Stock owned by Borrower or any Restricted
Subsidiary as of the Closing Date, and (b) as of the Closing Date, there
are no outstanding subscriptions, options, warrants, calls, rights or other
agreements or commitments (other than stock options granted to employees or directors
and directors’ qualifying shares) of any nature relating to any Capital Stock
of any Subsidiary, except as created by the Loan Documents.

 

4.16  Use of Proceeds.  The proceeds of the Loans shall be used to
finance a portion of the Acquisition, to repay certain indebtedness of the
Target and its Subsidiaries and to pay related fees and expenses and for
general working capital needs and other general corporate purposes (including
making Investments to the extent permitted hereunder and Permitted Acquisitions).

 

4.17  Environmental Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:

 

(a)           to the knowledge of the Borrower, the
facilities and properties owned, leased or operated by any Group Member (the “Properties”)
do not contain, and have not previously contained, any Materials of
Environmental Concern in amounts or concentrations or under circumstances that
constitute or constituted a violation of, or could give rise to liability
under, any Environmental Law;

 

(b)           no Group Member has received or is aware of any notice of
violation, alleged violation, non-compliance, liability or potential liability
regarding environmental matters or compliance with Environmental Laws with
regard to any of the Properties or the business operated by any Group Member
(the “Business”), nor does the Borrower have knowledge or reason to
believe that any such notice will be received or is being threatened;

 

30

 

(c)           to the knowledge of the Borrower, Materials of Environmental Concern
have not been transported or disposed of from the Properties in violation of,
or in a manner or to a location that could give rise to liability under, any
Environmental Law, nor have any Materials of Environmental Concern been
generated, treated, stored or disposed of at, on or under any of the Properties
in violation of, or in a manner that could give rise to liability under, any
applicable Environmental Law;

 

(d)           no judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Borrower, threatened, under any
Environmental Law to which any Group Member is or will be named as a party with
respect to the Properties or the Business, nor are there any consent decrees or
other decrees, consent orders, administrative orders or other orders, or other
administrative or judicial requirements outstanding under any Environmental Law
with respect to the Properties or the Business;

 

(e)           to the knowledge of the Borrower, there has been no release or threat
of release of Materials of Environmental Concern at or from the Properties, or
arising from or related to the operations of any Group Member in connection
with the Properties or otherwise in connection with the Business, in violation
of or in amounts or in a manner that could give rise to liability under
Environmental Laws;

 

(f)            the Properties and all operations at the
Properties are in compliance, and have in the last five years been in
compliance, with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the Business; and

 

(g)           no Group Member has assumed any liability of any other Person under Environmental
Laws.

 

4.18  Accuracy of Information, etc.  (i) All
written information, other than the Financial Projections (as defined below),
forward looking information and information of a general economic or industry
nature, which has been made available to Administrative Agent or the Lenders by
Borrower or any of its representatives in connection with the transactions
contemplated by this Agreement or the other Loan Documents (the “Information”)
was, as of the date such Information was provided, when taken as a whole,
complete and correct in all material respects did not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements contained therein not materially misleading in light of the
circumstances under which such statements were made, and (ii) all
financial projections concerning the Borrower and the Restricted Subsidiaries
that have been or are hereafter made available to Administrative Agent or the
Lenders by Borrower or any of its representatives in connection with the
transactions contemplated by this Agreement or the other Loan Documents (the “Financial
Projections”) were prepared in good faith based upon assumptions that were
believed by the preparer thereof to be reasonable at the time made, it being
understood and agreed that the Financial Projections are not a guarantee of
financial performance and actual results may differ from the Financial
Projections and such differences may be material.

 

4.19  Security Documents.

 

(a)           The Guarantee and Collateral Agreement is effective to create in favor
of the Administrative Agent, for the benefit of the Secured Parties, a legal,
valid and enforceable security interest in the Collateral described therein and
proceeds thereof.   In the case of the
Pledged Stock as defined in the Guarantee and Collateral Agreement that are
securities represented by stock certificates or otherwise constituting
certificated securities within the meaning of Section 8-102(a)(15) of the
California UCC or the corresponding code or statute of any other applicable
jurisdiction (“Certificated Securities”), 

 

31

 

when certificates
representing such Pledged Stock are to be delivered to the Administrative
Agent, in the case of any Securities Account or Deposit Account of the Borrower
or Subsidiary Guarantor (as applicable), upon effectiveness of appropriate
Control Agreements in accordance with Section 6.11 with respect
thereto, and in the case of the other Collateral constituting personal property
described in the Guarantee and Collateral Agreement which may be perfected
through the filing of a UCC financing statement, when financing statements and
other filings (when filed in accordance with Section 6.11)
specified on Schedule 4.19(a) in appropriate form are filed in the
offices specified on Schedule 4.19(a), the Administrative Agent, for the
benefit of the Secured Parties, shall have a fully perfected Lien on, and
security interest in, all right, title and interest of the Loan Parties in such
Collateral and the proceeds thereof, as security for the Obligations prior and
superior in right to any other Person (except, in the case of Collateral other
than Pledged Stock, Liens permitted by Section 7.3).  As of the Closing Date, none of the Capital
Stock of the Borrower or any Restricted Subsidiary that is a limited liability
company or partnership is a Certificated Security.

 

(b)           Each of the Mortgages, if any, delivered after the Closing Date will
be, upon execution, effective to create in favor of the Administrative Agent,
for the benefit of the Secured Parties, a legal, valid and enforceable Lien on
the Mortgaged Properties described therein and proceeds thereof, and when the
Mortgages are filed in the offices for the applicable jurisdictions in which
the Mortgaged Properties are located, each such Mortgage shall constitute a
fully perfected First Priority Lien on, and security interest in, all right,
title and interest of the Loan Parties in the Mortgaged Properties and the
proceeds thereof, as security for the Obligations (as defined in the relevant
Mortgage).

 

4.20  Solvency.  The Loan Parties, taken as a
consolidated group, after giving effect to the incurrence of all Indebtedness
and obligations being incurred in connection herewith are Solvent.

 

4.21  Designated Senior Indebtedness.  The
Loan Documents and all of the Obligations shall be deemed “Designated Senior
Indebtedness” or a similar concept thereof for purposes of any Subordinated
Indebtedness (if such concept is applicable therein) of the Loan Parties.

 

4.22  Brokerage Commissions.  No
Person is entitled to receive any brokerage commission, finder’s fee or similar
fee or payment in connection with the extensions of credit contemplated by this
Agreement (other than fees paid to SVB).

 

4.23  Anti-Terrorism Laws.

 

(a)           None of the Group Members and, to the knowledge of the Group Members,
none of their respective Affiliates is in violation of any laws relating to
terrorism or money laundering (“Anti-Terrorism Laws”), including Executive
Order No. 13224 on Terrorist Financing, effective September 24, 2001
(the “Executive Order”), and the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Public Law 107-56.

 

(b)           None of the Group Members and, to the knowledge of the Group Members,
none of their respective Affiliates or their respective brokers or other agents
acting or benefiting in any capacity in connection with the Loans is any of the
following:

 

(i)            a Person or entity that is listed in the
annex to, or is otherwise subject to the provisions of, the Executive Order;

 

(ii)           a Person or entity owned or controlled by, or acting for or on behalf
of, any Person or entity that is listed in the annex to, or is otherwise subject
to the provisions of, the Executive Order;

 

32

 

(iii)          a Person or entity with which any Lender is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law;

 

(iv)          a Person or entity that commits, threatens or conspires to commit or
supports “terrorism” as defined in the Executive Order; or

 

(v)           a Person or entity that is a Designated Person.

 

(c)           No Group Member or, to the knowledge of any Group Member, any of its
brokers or other agents acting in any capacity in connection with the Loans (i) conducts
any business or engages in making or receiving any contribution of funds, goods
or services to or for the benefit of any Person described in clause (b) above,
(ii) deals in, or otherwise engages in any transaction relating to, any
property or interests in property blocked pursuant to the Executive Order, or (iii) engages
in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in any Anti-Terrorism Law.

 

SECTION 5.  CONDITIONS
PRECEDENT

 

5.1  Conditions to Extension of Credit.  The
agreement of each Lender to make the Loans requested to be made by it is
subject to the satisfaction, prior to or concurrently with the making of such
extension of credit on the Closing Date, of the following conditions precedent:

 

(a)           Loan Documents.  The
Administrative Agent shall have received (i) this Agreement or, in the
case of the Lenders, an Addendum, executed and delivered by the Administrative
Agent, Holdings, the Borrower and each Person listed on Schedule 1.1, (ii) the
Guarantee and Collateral Agreement, executed and delivered by the Borrower,
Holdings and each Subsidiary Guarantor, (iii) the Fee Letter executed and
delivered by the Borrower and Silicon Valley Bank, (iv) an Acknowledgement
and Consent in the form attached to the Guarantee and Collateral Agreement,
executed and delivered by each Issuer (as defined therein), if any, that is not
a Loan Party, (v) the Intellectual Property Security Agreements, executed
and delivered by the applicable Loan Parties, and (vi) the other fully
executed Loan Documents (including without limitation, the Security Documents).

 

(b)           Financial Statements.  The
Lenders shall have received (i) an audited consolidated financial
statements of the Borrower as of December 31, 2005, December 31, 2006
and December 31, 2007, and (ii) unaudited interim balance sheet of
the Borrower as of March 31, 2008 and the related unaudited interim
statements of income and cash flows of the Borrower for the fiscal quarter then
ended.

 

(c)           [Reserved].

 

(d)           [Reserved].

 

(e)           Fees.  The Lenders, the
Administrative Agent shall have received all fees required to be paid, and all
expenses required to be paid hereunder for which invoices have been presented
(including the reasonable fees and expenses of legal counsel), on or before the
Closing Date.  All such amounts will be
paid with proceeds of Loans made on the Closing Date and will be reflected in
the funding instructions given by the Borrower to the Administrative Agent on
or before the Closing Date.

 

(f)            Closing Certificate; Certified Certificate of
Organization; Good Standing Certificates.  The Administrative Agent shall
have received (i) a certificate of each Loan Party, dated the 

 

33

 

Closing Date, substantially in the form of Exhibit C, with
appropriate insertions and attachments, including the certificate of
incorporation or other similar organizational document of each Loan Party
certified by the relevant authority of the jurisdiction of organization of such
Loan Party and the bylaws or other similar organizational document of each Loan
Party, and (ii) a long form good standing certificate (to the extent
available) for each Loan Party from its jurisdiction of organization.

 

(g)           Legal Opinions.  The
Administrative Agent shall have received the executed legal opinions of
Skadden, Arps, Slate, Meagher & Flom LLP, counsel to Borrower and the
Subsidiary Guarantors, in a form reasonably satisfactory to the Administrative
Agent (and such local counsel as may be necessary in jurisdictions other than
Delaware and New York).  Such legal
opinion shall cover such other matters incident to the transactions
contemplated by this Agreement as the Administrative Agent may reasonably
require.

 

(h)           Pledged Stock; Stock Powers.  The
Administrative Agent shall have received the certificates (other than the
certificates representing the shares of the Capital Stock of United Online
Software Development Private Limited and MyPoint.com Japan Co., Ltd.)
representing the shares of Capital Stock pledged pursuant to the Guarantee and
Collateral Agreement together with an undated stock power for each such certificate
executed in blank by a duly authorized officer of the pledgor thereof.

 

(i)            Filings.  Each Uniform Commercial Code
financing statement required in order to create in favor of the Administrative
Agent, for the benefit of the Secured Parties, a perfected Lien on the
Collateral described therein (and which is capable of being perfected through
the filing of a Uniform Commercial Code financing statement), prior and
superior in right to any other Person (other than with respect to Liens
expressly permitted by Section 7.3), shall be in proper form for
filing.

 

(j)            Solvency Certificate.  The
Administrative Agent shall have received a solvency certificate in form and
substance reasonably satisfactory to the Administrative Agent, from the chief
financial officer or treasurer of Borrower certifying that the Borrower and its
Restricted Subsidiaries, on a consolidated basis, after giving effect to the
transactions contemplated hereby, are Solvent.

 

(k)           Patriot Act.  The Administrative Agent shall
have received, prior to the Closing Date, all documentation and other
information required by Governmental Authorities under applicable “know your
customer” and anti-money-laundering rules and regulations, including the
Patriot Act.

 

(l)            Insurance.  The Administrative Agent shall
have received insurance certificates in a form reasonably satisfactory to the
Administrative Agent.

 

(m)          Adjusted OIBDA.  The
Borrower shall deliver to the Administrative Agent a Closing Date Certificate
signed by the Borrower’s chief financial officer, demonstrating in reasonable
detail that adjusted OIBDA (calculated in a manner consistent with Borrower’s
prior practices) of the Borrower and the Restricted Subsidiaries for the most
recently completed trailing four quarter period ended prior to the Closing Date
for which financial statements are available of not less than $100,000,000.

 

(n)           No Purchaser Material Event of Default. 
Since December 31, 2007, no Purchaser Material Adverse Effect has
occurred.

 

(o)           Representations and Warranties.  The
Specified Representations shall be true, correct and complete in all material
respects (provided  that if such Specified Representation is
qualified as to materiality, such Specified Representation shall be required to
be true and correct) on and as of the Closing Date except to the extent such
Specified Representations specifically relate to an earlier date, in 

 

34

 

which case such Specified Representations shall have been true, correct
and complete in all material respects on and as of such earlier date (provided
that, if a Specified Representation as of an earlier date is qualified
as to materiality, such Specified Representation shall be required to be true
and correct as of such earlier date).

 

SECTION 6.  AFFIRMATIVE
COVENANTS

 

Borrower hereby agrees that,
until all Commitments have been terminated and the principal of and interest on
each Loan, all fees and all other expenses or amounts payable under any Loan
Document shall have been paid in full, the Borrower shall and shall cause each
Restricted Subsidiary to:

 

6.1  Financial Statements. 
Furnish to the Administrative Agent, for distribution to each Lender:

 

(a)           as soon as available, but in any event within 75 days after the
end of each fiscal year of Borrower, a copy of the unaudited consolidating and
consolidated balance sheet of Borrower and its Restricted Subsidiaries
(excluding, for the avoidance of doubt, the Excluded Subsidiaries) as at the
end of such year, the related unaudited consolidating and consolidated
statement of income and unaudited consolidated statements of cash flows of
Borrower and its Restricted Subsidiaries (excluding, for the avoidance of
doubt, the Excluded Subsidiaries) for such year, certified by a Responsible
Officer as being fairly stated in all material respects and derived from the
consolidated financial statements as of such date and for such period of the
Borrower and its Subsidiaries; and

 

(b)           as soon as available, but in any event within 45 days after the
end of each fiscal quarter of Borrower (other than the last fiscal quarter
of any fiscal year), commencing with the fiscal quarter ended September 30,
2008, a copy of the unaudited consolidating and consolidated balance sheet of
Borrower and its Restricted Subsidiaries (excluding, for the avoidance of
doubt, the Excluded Subsidiaries) as at the end of such quarter, the
related unaudited consolidating and consolidated statement of income and
unaudited consolidated statement of cash flows of Borrower and its Restricted
Subsidiaries (excluding, for the avoidance of doubt, the Excluded Subsidiaries)
for such quarter certified by a Responsible Officer as being fairly stated
in all material respects and derived from the consolidated financial
statements as of such date and for such period of the Borrower and its
Subsidiaries.

 

All such financial
statements shall be complete and correct in all material respects and shall be
derived from the financial statements of the Borrower and its Subsidiaries.

 

6.2  Certificates; Other Information. 
Furnish to the Administrative Agent, for distribution to each Lender:

 

(a)           Within 50 days after the end of the first three fiscal quarters of each
fiscal year (90 days after the end of each fiscal year), (i) a certificate
of a Responsible Officer stating that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such
certificate and (ii), (x) a Compliance Certificate containing all
information and calculations necessary for determining compliance by each Group
Member with the provisions of this Section 7.1 as of the last day of the
fiscal quarter or fiscal year of Borrower, as the case may be, and (y) to
the extent not previously disclosed to the Administrative Agent, a description
of any change in the jurisdiction of organization of any Loan Party and a list
of any material Intellectual Property acquired by any Loan Party since the date
of the most recent report delivered pursuant to this clause (y) (or, in
the case of the first such report so delivered, since the Closing Date);

 

35

 

(b)           as soon as available, and in any event no later than 90 days after the
end of each fiscal year of Borrower, a detailed consolidated budget for the
following fiscal year (including a projected consolidated and consolidating
income statement and balance sheet of Borrower and the Restricted Subsidiaries
(excluding, for the avoidance of doubt, the Excluded Subsidiaries) as of the
end of each fiscal quarter of such fiscal year, the related consolidated
statements of projected cash flow, projected changes in financial position and
projected income and a description of the material underlying assumptions
applicable thereto), and, promptly following their becoming available, significant
revisions, if any, of such budget and projections with respect to such fiscal
year (collectively, the “Projections”), which Projections shall in each
case be accompanied by a certificate of a Responsible Officer stating that such
Responsible Officer has no reason to believe that such Projections are based on
unreasonable assumptions as of the date of such Projections; it being
recognized by Lenders that such Projections as to future events are not to be
viewed as facts and that actual results during the period or periods covered by
any such projections may differ materially from the Projections;

 

(c)           within five days after the same are sent, copies of all material
financial statements and material reports that any Subsidiary Guarantor or the
Borrower sends to all of the holders of any class of its debt securities or
public equity securities that are not filed with the SEC;

 

(d)           upon request by the Administrative Agent, within five days after the
same are sent or received, copies of all correspondence, reports, documents and
other filings with any Governmental Authority regarding compliance with or
maintenance of Governmental Approvals or Requirements of Law that could
reasonably be expected to have a Material Adverse Effect on the operations of the
Group Members; and

 

(e)           promptly, such additional financial and other information as any Lender
may from time to time reasonably request.

 

6.3  Payment of Obligations.  Pay,
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its obligations (including all taxes,
assessments and governmental charges or levies imposed upon the Collateral) of
whatever nature, except where the failure to do so would not result in a
Material Adverse Effect or where the amount or validity thereof is currently
being contested in good faith by appropriate proceedings and reserves in
conformity with GAAP with respect thereto have been provided on the books of
the relevant Group Member.

 

6.4  Maintenance of Existence; Compliance.  (a) (i) 
Preserve, renew and keep in full force and effect its organizational existence
and (ii) take all commercially reasonable action to maintain or obtain all
Governmental Approvals and all other rights, privileges and franchises
necessary or desirable in the normal conduct of its business, except, in each
case, as otherwise permitted by Section 7.4 and except, in the case
of clause (ii) above, to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect; (b) comply with
all Contractual Obligations and Requirements of Law except to the extent that
failure to comply therewith could not, in the aggregate, reasonably be expected
to have a Material Adverse Effect; (c) comply with all Governmental
Approvals, and any term, condition, rule, filing or fee obligation, or other
requirement related thereto, except to the extent that failure to do so could
not reasonably be expected to have a Material Adverse Effect; and (d) prevent
any of the Governmental Approvals from being revoked, rescinded, suspended,
modified in an adverse manner or not renewed in the ordinary course for a full
term to the extent such revocation, rescission, suspension, modification or
nonrenewal has, or could reasonably be expected to have, a Material Adverse
Effect.

 

6.5  Maintenance of Property; Insurance.  (a) To
the extent commercially reasonable, keep all property necessary in its business
in good working order and condition, ordinary wear and tear, force majeure and
other unforeseen events excepted and (b) maintain with financially sound
and reputable 

 

36

 

insurance companies property and liability insurance in at least such
amounts and against at least such risks as are usually insured against by
companies engaged in the same or a similar business.

 

6.6  Inspection of Property; Books and Records;
Discussions.  (a)  Keep proper books of records and
account in which full, true and correct (in all material respects) entries in
conformity in all material respects with GAAP and all Requirements of Law shall
be made of material dealings and transactions in relation to its business and
activities and (b) permit representatives of any Lender to visit and
inspect any of its properties and examine and make abstracts from any of its
books and records at any reasonable time (and at the Loan Parties’ expense,
which expenses shall in no event exceed $7,500 per inspection if no Event of
Default has occurred and is continuing) and to discuss the business, operations,
properties and financial and other condition of the Group Members with officers
and employees of the Group Members and with their independent certified public
accountants (in which such officers and representatives of Group Members may be
present).  Such inspections shall not
exceed once per year, unless an Event of Default has occurred and is
continuing.

 

6.7  Notices.  Promptly give notice to the Administrative
Agent of:

 

(a)           the occurrence of any Default or Event of Default;

 

(b)           any (i) default or event of default under any Contractual
Obligation of any Group Member or (ii) litigation, investigation or
proceeding that may exist at any time between any Group Member and any
Governmental Authority, that in either case, if not cured or if adversely determined,
as the case may be, could reasonably be expected to have a Material Adverse
Effect;

 

(c)           upon any Responsible Officer becoming aware of the same, any litigation
or proceeding affecting any Group Member and which Group Member has received
service of process (i) in which the liability of the Loan Parties would,
in the reasonable judgment of Borrower, be expected to exceed $2,500,000, (ii) in
which injunctive or similar relief is sought and which could reasonably be
expected to have a Material Adverse Effect or (iii) which relates to any
Loan Document;

 

(d)           the following events, as soon as possible and in any event within
thirty (30) days after any Responsible Officer knows thereof:  (A) the occurrence of any Reportable
Event with respect to any Single Employer Plan, a failure to make any required
contribution to a Single Employer Plan, the creation of any Lien in favor of
the PBGC or a Single Employer Plan, any withdrawal from, or the termination,
Reorganization or Insolvency of, any Multiemployer Plan, the determination that
any Multiemployer Plan is in endangered or critical status within the meaning
of Section 432 of the Code or Section 305 of ERISA, the adoption of
any new Single Employer Plan by Borrower or any Commonly Controlled Entity, the
adoption of any amendment to a Single Employer Plan, if such amendment will
result in a material increase in benefits or unfunded benefit liabilities (as
defined in Section 4001(a)(18) of ERISA), or the commencement of
contributions by Borrower or any Commonly Controlled Entity to any Plan that is
subject to the Pension Funding Rules, or (B) the institution of
proceedings or the taking of any other action by the PBGC or the Borrower or
any Commonly Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan;

 

(e)           any other development or event that has had or could reasonably be
expected to have a Material Adverse Effect;

 

(f)            copies of all information required to be
reported to the PBGC under Section 4010 of ERISA and such other documents
or governmental reports of filings relating to any Plan as the Administrative
Agent shall reasonably request; and

 

37

 

(g)           promptly following any request therefore, copies of any documents or
notices described in Sections 101 (k) or (l) of ERISA that any
Borrower or any Commonly Controlled Entity has received with respect to any
Multiemployer Plan; provided, that if any Borrower or any Commonly Controlled
Entity has not requested such documents or notices from the administrator or
sponsor of the applicable Multiemployer Plan, the applicable Borrower or
Commonly Controlled Entity shall, upon request from the Administrative Agent,
promptly make a request for such documents or notices from such administrator
or sponsor and shall provide copies of such documents and notices promptly upon
receipt thereof.

 

Each notice pursuant to this
Section 6.7 shall be accompanied by a statement of a Responsible
Officer setting forth details of the occurrence referred to therein and stating
what action the relevant Group Member proposes to take with respect thereto.

 

6.8  Environmental Laws.

 

(a)           Comply with, and use reasonable efforts to ensure compliance by all
tenants and subtenants, if any, with, all applicable Environmental Laws, and
obtain and comply with and maintain, and use reasonable efforts to ensure that
all tenants and subtenants obtain and comply with and maintain, any and all
licenses, approvals, notifications, registrations or permits required by
applicable Environmental Laws except in any such case to the extent failure to
do so would not reasonably be expected to result in a Material Adverse Effect.

 

(b)           Conduct and complete all investigations, studies, sampling and testing,
and all remedial, removal and other actions required under Environmental Laws
and promptly comply with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws except in any such case to the extent
failure to do so would not reasonably be expected to result in a Material
Adverse Effect.

 

6.9  Operating Accounts. 
Subject to SVB providing reasonable terms, maintain the Borrower’s and
the Subsidiary Guarantors’ primary depository and operating accounts with SVB
and SVB’s Affiliates.

 

6.10  [Reserved].

 

6.11  Additional Collateral, etc.

 

(a)           With respect to any property (to the extent included in the definition
of Collateral) owned after the Closing Date by any Loan Party (other than (x) any
property described in paragraph (b), (c) or (d) below, and (y) any
property subject to a Lien expressly permitted by Sections 7.3 (c), (d),
(g), (q) and (r)) as to which the Administrative
Agent, for the benefit of the Secured Parties, does not have a perfected Lien,
promptly (i) execute and deliver to the Administrative Agent such
amendments to the Guarantee and Collateral Agreement or such other documents as
the Administrative Agent reasonably deems necessary or advisable to grant to
the Administrative Agent, for the benefit of the Secured Parties, a security
interest in such property and (ii) take all reasonable actions necessary
or advisable to grant to the Administrative Agent, for the benefit of the
Secured Parties, a perfected First Priority security interest in such property
(other than Excluded Perfection Assets), including the filing of Uniform
Commercial Code financing statements in such jurisdictions as may be required
by the Guarantee and Collateral Agreement or by law or as may be reasonably requested
by the Administrative Agent.

 

38

 

(b)           With respect to any fee interest in any real property having a value
(together with improvements thereof) of at least $5,000,000 acquired after the
Closing Date by any Loan Party (other than any such real property subject to a
Lien expressly permitted by Sections 7.3(g) or (q)),
promptly (i) execute and deliver a First Priority Mortgage, in favor of
the Administrative Agent, for the benefit of the Secured Parties, covering such
real property, (ii) if requested by the Administrative Agent, provide the
Lenders with (x) title and extended coverage insurance covering such real
property in an amount at least equal to the purchase price of such real
property (or such other amount as shall be reasonably specified by the
Administrative Agent), and (y) any consents or estoppels reasonably deemed
necessary or advisable by the Administrative Agent in connection with such
Mortgage, each of the foregoing in form and substance reasonably satisfactory
to the Administrative Agent and (iii) if requested by the Administrative
Agent, deliver to the Administrative Agent legal opinions in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

 

(c)           With respect to any new Domestic Subsidiary created or acquired after
the Closing Date by Borrower or any Subsidiary Guarantor (which, for the
purposes of this Section 6.11(c), shall include any Restricted
Subsidiary that ceases to be a Foreign Subsidiary), promptly (i) execute
and deliver to the Administrative Agent such amendments to the Guarantee and
Collateral Agreement as the Administrative Agent deems necessary or advisable
to grant to the Administrative Agent, for the benefit of the Secured Parties, a
perfected First Priority security interest in the Capital Stock of such new
Subsidiary that is owned by any Loan Party, (ii) deliver to the
Administrative Agent the certificates representing such Capital Stock (if any),
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the Borrower or such Subsidiary Guarantor, as applicable,
(iii) cause such new Subsidiary (a) to become a party to the
Guarantee and Collateral Agreement and (b) to take such actions reasonably
necessary or advisable to grant to the Administrative Agent for the benefit of
the Secured Parties a perfected First Priority security interest in the
Collateral (other than Excluded Perfection Assets) described in the Guarantee
and Collateral Agreement, with respect to such new Subsidiary, including the
filing of Uniform Commercial Code financing statements in such jurisdictions as
may be required by the Guarantee and Collateral Agreement or by law or as may
be requested by the Administrative Agent and (c) to deliver to the
Administrative Agent a certificate of such Subsidiary, in a from reasonably
satisfactory to the Administrative Agent, with appropriate insertions and
attachments as to such Subsidiary’s organizational documents, incumbency and
resolutions authorizing such Subsidiary to enter into the Guarantee and
Collateral Agreement, and (iv) if requested by the Administrative Agent,
deliver to the Administrative Agent legal opinions with relating to the matters
described above, which opinion shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent.

 

(d)           With respect to any new Foreign Subsidiary created or acquired and
directly held by Borrower or a Subsidiary Guarantor after the Closing Date,
promptly (i) execute and deliver to the Administrative Agent such
amendments to the Guarantee and Collateral Agreement as the Administrative
Agent deems necessary or advisable to grant to the Administrative Agent, for
the benefit of the Secured Parties, a perfected First Priority security
interest in 66% of the total outstanding voting Capital Stock of such new
Subsidiary, (ii) deliver to the Administrative Agent the certificates, if
any, representing such Capital Stock, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of the Borrower or
any Subsidiary Guarantor, as applicable, and take such other action as may be
necessary or, in the reasonable opinion of the Administrative Agent, desirable
to perfect the Administrative Agent’s security interest therein, and (iii) if
reasonably requested by the Administrative Agent, deliver to the Administrative
Agent legal opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to
the Administrative Agent. 
Notwithstanding the foregoing, if any of the foregoing actions would
subject any Group Member to any material tax, cost or expense in relation to
the benefit afforded thereby, as reasonably determined by the Required Lenders
the obligation of the Group Member to take such actions shall be inapplicable.

 

39

 

(e)           Upon Administrative Agent’s reasonable request, the Loan Parties shall
use commercially reasonable efforts (which shall not require any Group Member
to agree to any modification to any lease or to payment of any fees in excess
of $2,500) to obtain a landlord’s agreement or bailee letter reasonably
satisfactory in form and substance to the Administrative Agent, as applicable,
from the lessor of each leased property, including with respect to Borrower’s
21301 Burbank Boulevard, Woodland Hills, California 91367 location, or bailee
with respect to any warehouse, processor or converter facility or other
location where material Collateral is stored or located, excluding co-location
facilities.

 

(f)            To the extent not satisfied prior to the
Closing Date, not later than the date that is 45 days (or if foreign regulatory
or governmental approvals or processes make the satisfaction of this
requirement commercially impracticable within the specified period, such longer
period as is reasonably necessary to satisfy such requirements) after the
Closing Date (or such longer period as Administrative Agent may agree),
Borrower shall take or cause to be taken all such actions, executed and
delivered or cause to be executed and delivered all such agreements, documents
and instruments, and made or caused to be made all such filings and recordings
that may be necessary or, in the opinion of Administrative Agent, desirable in
order to perfect Administrative Agent’s (for the benefit of Lenders) First
Priority security interest in the entire personal and mixed property Collateral
(other than Excluded Perfection Assets), including without limitation, Control
Agreements (in form and substance reasonably satisfactory to the Administrative
Agent) with respect to the Deposit Accounts and Securities Accounts).

 

SECTION 7.  NEGATIVE
COVENANTS

 

The Borrower hereby agrees
that, until the principal of and interest on each Loan, all fees and all other
expenses or amounts payable under any Loan Document shall have been paid in
full, the Borrower shall not, nor permit any Restricted Subsidiary to, directly
or indirectly:

 

7.1  Financial
Condition Covenants.

 

(a)           Consolidated Fixed Charge Coverage Ratio. 
Permit the Consolidated Fixed Charge Coverage Ratio as at the last day
of any period of four consecutive quarters of Borrower ending in any period set
forth below to be less than the ratio set forth below opposite such quarter:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated Fixed
  Charge 

  Coverage Ratio

  
	
   

  	
   

  	
   

  
	
  September 30,
  2008 and each 

  quarter thereafter

  	
   

  	
  1.50

  

 

(b)           Consolidated Leverage Ratio. 
Permit the Consolidated Leverage Ratio as at the last day of any period
of four consecutive quarters of Borrower ending in any period set forth below
to exceed the ratio set forth below opposite such quarter:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated Leverage
  Ratio

  
	
   

  	
   

  	
   

  
	
  September 30,
  2008 and each 

  quarter thereafter

  	
   

  	
  1.25

  

 

(c)           Consolidated EBITDA. 
Permit Consolidated EBITDA as at the last day of any period of four
consecutive quarters of Borrower ending in any period set forth below to be
less than the amount set forth below opposite such quarter:

 

40

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated EBITDA

  
	
   

  	
   

  	
   

  
	
  September 30,
  2008 and each 

  quarter thereafter

  	
   

  	
  $100,000,000
  adjusted to $50,000,000 

  upon the Classmates IPO

  

 

7.2  Indebtedness. 
Create, issue, incur, assume, become liable in respect of or suffer to
exist any Indebtedness, except:

 

(a)           Indebtedness of any Loan Party pursuant to any Loan Document;

 

(b)           Indebtedness of (i) the Borrower or any Subsidiary Guarantor to
any other Loan Party, or (ii) any Foreign Subsidiary of the Borrower to
any other Foreign Subsidiary of the Borrower;

 

(c)           Guarantee Obligations of any Loan Party in respect of Indebtedness
otherwise permitted by this Section 7.2;

 

(d)           Indebtedness outstanding on the date hereof and listed on Schedule
7.2(d) and any refinancings, refundings, renewals or extensions
thereof (without shortening the maturity thereof or increasing the principal
amount thereof);

 

(e)           Indebtedness (including, without limitation, Capital Lease Obligations)
secured by Liens permitted by Section 7.3(g) in an aggregate
principal amount not to exceed $2,500,000 at any one time outstanding and any
refinancings, refundings, renewals or extensions thereof (without shortening
the maturity thereof or increasing the principal amount thereof except to the
extent of interest, fees and premiums relating to such Indebtedness or such
refinancing, refunding, renewal or extension);

 

(f)            Surety Indebtedness;

 

(g)           additional Indebtedness of Borrower or any Restricted Subsidiaries in
an aggregate principal amount (for Borrower and all Restricted Subsidiaries)
not to exceed $5,000,000 at any one time outstanding;

 

(h)           Indebtedness arising in connection with endorsement of instruments for
deposit in the ordinary course of business;

 

(i)            Indebtedness permitted by Section 7.8;

 

(j)            Indebtedness arising from the honoring by a
bank or other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business; provided, however,
that such Indebtedness is extinguished within three Business Days of
incurrence;

 

(k)           other unsecured Subordinated Indebtedness; provided, however,
that (i) the Loan Parties are in pro forma compliance with the financial
covenants set forth in Section 7.1 after giving effect to the
incurrence of such Subordinated Indebtedness and (ii) no Default or Event
of Default shall exist immediately prior to the incurrence of such Subordinated
Indebtedness or would result therefrom;

 

(l)            Indebtedness of any Person that becomes a
Subsidiary of the Borrower in a Permitted Acquisition (or Indebtedness assumed
at the time, and as a result, of a Permitted Acquisition), which Indebtedness
is existing at the time such Person becomes a Subsidiary of the Borrower, and
any 

 

41

 

related refinancing, refunding, renewal or extension of such
Indebtedness in an aggregate amount not to exceed $5,000,000 at any time
outstanding; provided that such Indebtedness was not incurred in
connection with, or in anticipation or contemplation of, such Permitted
Acquisition;

 

(m)          Indebtedness incurred in connection with letters of credit issued to
support the obligations referred to in Sections  7.3(c) and (d),
obligations under leases and other obligations (excluding debt for borrowed
money) in each case incurred in the ordinary course of business;

 

(n)           Indebtedness of any Person in connection with Swap Agreements permitted
by Section 7.12; and

 

(o)           Borrower or any Restricted Subsidiary may become and remain liable with
respect to Indebtedness consisting of insurance premium financing.

 

Any Indebtedness of any Loan
Party to its employees, directors and officers of any Group Member shall be
subordinated to the prior payment in full of all of the Obligations pursuant to
a written agreement or written terms reasonably acceptable to the Administrative
Agent.

 

7.3  Liens.  Create, incur, assume or
suffer to exist any Lien upon any of its property, whether now owned or
hereafter acquired, except:

 

(a)           Liens for taxes, assessments or governmental charges or levies not yet
due or delinquent or that are being contested in good faith by appropriate
proceedings; provided that adequate reserves with respect thereto are
maintained on the books of Borrower and the Restricted Subsidiaries, as the
case may be, in conformity with GAAP;

 

(b)           carriers’, warehousemen’s, landlord’s, mechanics’, materialmen’s,
repairmen’s, workmen’s, suppliers’ or other like Liens arising in the ordinary
course of business that are not overdue for a period of more than 30 days or
that are being contested in good faith by appropriate proceedings;

 

(c)           pledges or deposits in connection with workers’ compensation,
unemployment insurance and other social security legislation or Liens to secure
letters of credit issued to support obligations relating to workers’
compensation, insurance and other social security legislation;

 

(d)           deposits to secure the performance of bids, tenders, trade contracts
(other than for borrowed money), leases, government contracts, statutory
obligations, surety, stay, customs and appeal bonds, performance and return of
money bonds and other obligations of a like nature incurred in the ordinary
course of business (or Liens to secure letters of credit issued for such
purpose);

 

(e)           easements, rights-of-way, restrictions (including zoning restrictions),
covenants, licenses, encroachments, protrusions and other similar charges or
encumbrances or minor title deficiencies incurred in the ordinary course of
business that, in the aggregate, are not substantial in amount and that do not
in any case materially detract from the value of the property subject thereto
or materially interfere with the ordinary conduct of the business of Borrower
and the Restricted Subsidiaries;

 

(f)            Liens in existence on the date hereof listed
on Schedule 7.3(f) (and replacements of such Liens), securing
Indebtedness permitted by Section 7.2(d); provided that no
such Lien is spread to cover any additional property after the Closing Date
(other than accessions thereto) and that the amount of Indebtedness secured
thereby is not increased;

 

42

 

(g)           Liens securing Indebtedness of Borrower or any Restricted Subsidiary
incurred pursuant to Section 7.2(e) to finance the acquisition
of fixed or capital assets (as any Liens securing any such Indebtedness which
has been refinanced); provided that (i) such Liens shall be created
substantially simultaneously with or within ninety days after the acquisition
of such fixed or capital assets (or substantially concurrently with any
refinancing (including successive refinancings) of Indebtedness originally
incurred for such purpose), (ii) such Liens do not at any time encumber
any property other than the property financed by such Indebtedness (as
refinanced from time to time) (and accessions thereto) and (iii) in the
case of a refinancing, the amount of Indebtedness secured thereby is not
increased except to the extent of interest, fees and premiums relating to the
Indebtedness refinanced and such refinancing Indebtedness;

 

(h)           Liens created pursuant to the Security Documents;

 

(i)            any interest or title of a lessor, lessee or
licensor under any lease or license entered into by Borrower or any Restricted
Subsidiary in the ordinary course of its business and covering only the assets
so leased or licensed;

 

(j)            Liens in respect of judgments that do not
constitute a Default or Event of Default under Section 8(h) of
this Agreement;

 

(k)           Liens not otherwise permitted by this Section so long as the
aggregate fair market value (determined as of the date such Lien is incurred) of
the assets subject thereto does not exceed (as to Borrower and the Restricted Subsidiaries) $1,000,000 at any
one time;

 

(l)            Liens in favor of customs and revenue
authorities arising as a matter of law to secure payment of custom duties in
connection with the importation of goods;

 

(m)          Liens arising out of conditional sale, title retention, consignment or
similar arrangements for the sale of goods entered into by any Group Member in
the ordinary course of business in accordance with the past practices of such
Group Member;

 

(n)           bankers’ Liens, rights of setoff and other similar Liens existing
solely with respect to cash and Cash Equivalents on deposit in one or more
accounts maintained by any Group Member, in each case granted in the ordinary
course of business in favor of the bank or banks with which such accounts are
maintained, securing amounts owing to such bank with respect to cash
management, bank accounts, securities accounts and operating account
arrangements, including those involving pooled accounts and netting
arrangements;

 

(o)           licenses of intellectual property or intellectual property rights
granted by any Group Member in the ordinary course of business and not
interfering in any material respect with the ordinary conduct of business of
the Group Members;

 

(p)           the filing of UCC financing statements solely as a precautionary
measure in connection with operating leases or consignment of goods;

 

(q)           Liens securing assets subject to capital lease or purchase money
security interests in respect of Indebtedness permitted under Section 7.2(l) in
an aggregate principal amount not to exceed $2,500,000; and

 

(r)            Liens on cash collateral (or cash
equivalents) in respect of Indebtedness permitted under Section 7.2(m).

 

43

 

7.4  Fundamental Changes. 
Enter into any merger, consolidation or amalgamation, or liquidate, wind
up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of
all or substantially all of its property or business, except that:

 

(a)           any Subsidiary of the Borrower or any Subsidiary Guarantor may be
merged or consolidated with or into the Borrower or any Subsidiary Guarantor (provided
that the Borrower or such Subsidiary Guarantor shall be the continuing or
surviving corporation);

 

(b)             any Foreign Subsidiary of the Borrower may be
merged or consolidated with or into another Foreign Subsidiary of the Borrower;

 

(c)           the Borrower or any Subsidiary of Borrower may Dispose of any or all of
its assets (i) to the Borrower or any Subsidiary Guarantor (upon voluntary
liquidation, dissolution or otherwise), or (ii) in the case of a Foreign
Subsidiary of the Borrower, to another Foreign Subsidiary of the Borrower (upon
liquidation, dissolution or otherwise);

 

(d)           any Investment expressly permitted by Section 7.8 may be
structured as a merger, consolidation or amalgamation; and

 

(e)           Dispositions permitted by Section 7.5 may be made.

 

7.5          Disposition of Property. 
Dispose of any of its property, whether now owned or hereafter acquired,
or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary’s Capital Stock to any Person, except:

 

(a)           the Disposition of obsolete, worn out, used or surplus property in the
ordinary course of business and the abandonment or other Disposition of
Intellectual Property that is, in the reasonable judgment of the Borrower, no
longer economically practicable to maintain or useful in the ordinary course of
business of the Group Members taken as a whole;

 

(b)           the sale of inventory in the ordinary course of business;

 

(c)           Dispositions permitted by Section 7.4(c);

 

(d)           the sale or issuance of any Subsidiary’s Capital Stock to the Borrower
or any Subsidiary Guarantor;

 

(e)           the sale or issuance of any Foreign Subsidiary’s Capital Stock to any
Group Member;

 

(f)            the use or transfer of money or Cash
Equivalents in a manner that is not prohibited by the terms of this Agreement
or the other Loan Documents;

 

(g)           the licensing of patents, trademarks, copyrights, and other
intellectual property rights;

 

(h)           the Disposition of other property sold at fair market value not to
exceed $10,000,000 during the term of this Agreement;

 

(i)            leases of real or personal property in the
ordinary course of business; and

 

44

 

(j)            Dispositions of delinquent accounts
(including settlements thereof) in the ordinary course of business; and

 

(k)           Disposition of Swap Agreements.

 

7.6  Restricted Payments.  Make
any payment or prepayment of principal of, premium, if any, or interest on, or
redemption, purchase, retirement, defeasance (including in-substance or legal
defeasance), sinking fund or similar payment with respect to, any Subordinated
Indebtedness of Borrower or any Subsidiary (secured or unsecured), declare or
pay any dividend (other than dividends payable solely in common stock of the
Person making such dividend) on, or make any payment on account of, or set
apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any Capital Stock
of Borrower or any Restricted Subsidiary, whether now or hereafter outstanding,
or make any other distribution in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of any Group Member
(collectively, “Restricted Payments”), except that:

 

(a)           (i) any Subsidiary of Borrower may make Restricted Payments to the
Borrower or any Subsidiary Guarantor or (ii) any Foreign Subsidiary of the
Borrower may make Restricted Payments to any other Foreign Subsidiary of the
Borrower, or (iii) Borrower or any Subsidiary Guarantor may purchase or
otherwise acquire Capital Stock of any Subsidiary of Borrower, or (iv) any
Foreign Subsidiary of Borrower may purchase or otherwise acquire Capital Stock
of any Foreign Subsidiary of Borrower or (v) any Subsidiary of Borrower
may pay dividends or distributions to the holders of its Capital Stock on a pro
rata basis;

 

(b)           so long as no Default or Event of Default shall have occurred and be
continuing, the Borrower may purchase common stock or common stock options from
present or former directors, officers or employees of any Group Member upon the
death, disability, retirement, severance or termination of employment of any
such director, officer or employee, in each case, in accordance with a plan
approved by its respective Board of Directors, provided, that the aggregate
amount of payments under this clause shall not exceed $2,000,000 during any
fiscal year of Borrower; provided further that that no more than $250,000 of
such $2,000,000 shall be used in connection with the purchase of common stock
or common stock options in connection with the severance or termination (other
than as a result of death, disability or retirement) of any directors, officers
or employees of any Group Member;

 

(c)           the Borrower may (i) declare and pay quarterly dividends up to
$0.20 per share with respect to its outstanding common stock (and an equivalent
amount with respect to restricted stock units) so long as (x) no Default
or Event of Default shall have occurred and be continuing when such dividend is
declared, (y) the Borrower shall be in compliance with Section 7.1
at the time such dividend is declared for the most recently ended fiscal
quarter for which financial results have been provided under Section 6.1,
calculated to give pro forma effect to such dividend (so long as such dividend
is paid within 45 days of the date of declaration thereof) and (z) a
Responsible Officer has certified, to the best of such Responsible Officer’s
knowledge in their capacity as an officer, the conditions in clauses (x) and
(y) above; (ii) pay taxes that are due on behalf of officers,
directors and employees in connection with the vesting of restricted stock
units and stock grants to its employees and taxes with respect to dividends (or
dividend equivalent payments) to holders of restricted stock units in
accordance with a plan approved by its respective Board of Directors and in the
ordinary course of business; (iii) convert vested restricted stock units
into common stock to the extent deemed a stock repurchase; and (iv) make
Restricted Payments deemed to occur upon exercise of stock options including
the settlement of such options net of the exercise price thereof;

 

(d)           the Borrower may make regularly scheduled payments of interest in
respect of any Subordinated Indebtedness in accordance with the terms of, and
only to the extent required therein 

 

45

 

and subject to the subordination provisions contained in the documents in
connection therewith pursuant to which such Subordinated Indebtedness was
issued and the Borrower may repay or redeem Subordinated Indebtedness with the
proceeds of Subordinated Indebtedness issued to refinance such Subordinated
Indebtedness; and

 

(e)           Investments permitted under Section 7.8 may be consummated
as Restricted Payments.

 

7.7  Reserved.

 

7.8  Investments.  Make any advance, loan,
extension of credit (by way of guarantee or otherwise) or capital contribution
to, or purchase any Capital Stock, bonds, notes, debentures or other debt
securities of, or any assets constituting a business unit of, or make any other
investment in, any other Person (all of the foregoing, “Investments”),
except:

 

(a)           extensions of trade credit in the ordinary course of business;

 

(b)           Investments in cash and Cash Equivalents;

 

(c)           Guarantee Obligations permitted by Section 7.2;

 

(d)           loans and advances to employees, directors and officers of any Group
Member in the ordinary course of business (including for travel, entertainment
and relocation expenses);

 

(e)           intercompany Investments by (i) any Group Member in the Borrower
or any Person that, prior to such investment, is a Subsidiary Guarantor, (ii) any
Foreign Subsidiary of the Borrower to any other Foreign Subsidiary of the
Borrower, (iii) Borrower or any Restricted Subsidiary in UNOL Intermediate, Inc.
or any of its Subsidiaries in an amount outstanding not to exceed $15,000,000
(excluding the acquisition of Target) on a trailing 12 month basis so long as
no Default or Event of Default shall have occurred and be continuing (including
pro forma compliance with the financial covenants set forth in Section 7.1
to give effect to such Investment) after making such Investment, and (iv) Borrower
or any Subsidiary Guarantor in any Restricted Subsidiary that is not a
Subsidiary Guarantor in an aggregate amount not to exceed $7,500,000 at any
time outstanding;

 

(f)            Investments in the ordinary course of
business consisting of endorsements of negotiable instruments for collection or
deposit;

 

(g)           Investments received in settlement of amounts due to Borrower or any
Restricted Subsidiary effected in the ordinary course of business paid to
Borrower or any Restricted Subsidiaries as a result of Insolvency proceedings
involving an account debtor or upon the foreclosure or enforcement of any Lien
in favor of Borrower or the Restricted Subsidiaries, or upon the settlement of
delinquent accounts and disputes with customers or suppliers;

 

(h)           in addition to Investments otherwise expressly permitted by this
Section, Investments (other than Investments in any Excluded Subsidiaries) by
Borrower or any Restricted Subsidiaries in an aggregate amount outstanding not
to exceed $5,000,000 during the term of this Agreement;

 

(i)            Investments outstanding on the date hereof
and listed on Schedule 7.8(i);

 

46

 

(j)            any Group Member may (i) acquire and
hold accounts receivables owing to any of them if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary terms, (ii) invest in, acquire and hold cash and Cash
Equivalents, (iii) endorse negotiable instruments held for collection in
the ordinary course of business or (iv) make lease, utility, insurance
premium and other similar deposits in the ordinary course of business;

 

(k)           acquisitions by the Borrower or any Restricted Subsidiary of all of the
outstanding Capital Stock of Persons or of assets constituting an ongoing
business (each a “Permitted Acquisition”) in an amount not to exceed
$30,000,000 (plus any equity of the Borrower issued in connection with such
Permitted Acquisition and proceeds of equity issued by the Borrower after the
Closing Date) in the aggregate during the term of this Agreement; provided
that not more than $7,500,000 (plus any equity of the Borrower issued in
connection with such Permitted Acquisition and proceeds of equity issued by the
Borrower after the Closing Date) of such Permitted Acquisition is made by a
Subsidiary other than the Borrower or a Subsidiary Guarantor or is an
acquisition of a foreign Person or is a business engaged in business activities
not conducted primarily within the United States; provided  further
that (i) each such Permitted Acquisition is of a Person or ongoing
business engaged in business activities in which the acquiror is permitted to
engage pursuant to Section 7.16; (ii) any domestic Person so
acquired complies with the other requirements of Section 6.11 and
the Security Documents are satisfied within the applicable time periods set
forth therein; and (iii) no Default or Event of Default has occurred or is
continuing both before and after giving effect to such Permitted Acquisition
and after giving effect to each such Permitted Acquisition, the Loan Parties
shall be in pro forma compliance with the
covenants and agreements set forth in this Agreement (including Section 7.1);

 

(l)            Investments in UNOLA Corp. to finance the
transactions contemplated by the Merger Agreement, including the payment of
consideration to Target’s shareholders, the refinancing, repayment, purchase or
defeasance of Indebtedness of Target and its Subsidiaries to provide working
capital to Target on the date of the Acquisition and to pay fees and expenses
related to the Merger, the financings related to the Merger and the repurchase
and defeasance of Indebtedness in connection therewith; and

 

(m)          Investments in connection with the acquisition of a company previously
disclosed to the Administrative Agent (redacted for confidentiality purposes)
in an aggregate amount not to exceed $1,000,000.

 

The amount of any Investment
shall be the original cost of such Investment plus the cost of all
additions thereto, without any adjustments for increases or decreases in value,
or write-ups, write-downs or write-offs with respect to such Investment; provided
that the amount of any Investment shall be reduced by the amount of all cash
payments received with respect thereto, whether as principal, interest,
dividends, repayments or otherwise.

 

7.9  Optional Payments and Modifications of
Certain Preferred Stock and Debt Instruments.  (a)  Amend, modify, waive
or otherwise change, or consent or agree to any amendment, modification, waiver
or other change to, any of the terms of the Preferred Stock (i) that would
move to an earlier date the scheduled redemption date or increase the amount of
any scheduled redemption payment or increase the rate or move to an earlier
date any date for payment of dividends thereon or (ii) that would be
otherwise materially adverse to any Lender or any other Secured Party; or (b) amend,
modify, waive or otherwise change, or consent or agree to any amendment,
modification, waiver or other change to, any of the terms of any Subordinated
Indebtedness permitted by Section 7.2 that would shorten the
maturity (to a date earlier than 90 days following the Maturity Date) or
increase the amount of any payment of principal (to a date earlier than 90 days
following the Maturity Date) thereof or the rate of interest thereon prior to a
date earlier than 90 days following the Maturity Date or shorten any date for
payment of interest thereon 

 

47

 

(to a date earlier than 90
days following the Maturity Date) or that would be otherwise materially adverse
to any Lender or any other Secured Party.

 

7.10  Transactions with Affiliates. 
Enter into any transaction, including any purchase, sale, lease or
exchange of property, the rendering of any service or the payment of any
management, advisory or similar fees, with any Affiliate (other than the
Borrower or any Restricted Subsidiary) unless such transaction is upon fair and
reasonable terms no less favorable to the relevant Group Member than it would
obtain in a comparable arm’s length transaction with a Person that is not an
Affiliate; provided  that the foregoing restriction shall not
apply to:

 

(a)           Investments permitted by Section 7.8;

 

(b)           Restricted Payments permitted by Section 7.6;

 

(c)           indemnification payments (including reimbursement of fees and expenses)
to officers, directors, employees or consultants of Borrower or any of its
Subsidiaries);

 

(d)           employment agreements, employee benefit plans, officer or director
indemnification agreements or any similar arrangements entered into by Borrower
or any of its Subsidiaries in the ordinary course of business;

 

(e)           marketing, advertising and cross promotional arrangements regarding the
promotion and sale of products and services of Borrower or any of its
Subsidiaries, on one side, and the promotion and sale of products and services
of (x) Target or any of is Subsidiaries, on the other side or (y) following
a Classmates IPO, Classmates or any of its Subsidiaries, on the other side;

 

(f)            agreements among Borrower and its
Subsidiaries with respect to good faith allocations of expenses relating to,
and cost sharing arrangements relating to, general and administrative matters;

 

(g)           transactions involving consideration of $2,000,000 in the aggregate or
less per annum;

 

(h)           any tax sharing agreements entered by a Group Member with any of its
direct or indirect Subsidiaries; provided  that all such
agreements allocate among the parties thereto proportionately each such party’s
relative contribution to Borrower’s consolidated tax liabilities; and

 

(i)            the existence of, or performance by Borrower
or any of its Subsidiaries of its obligations under the terms of the Merger Agreement
as in existence on the date hereof.

 

7.11  Sale Leaseback Transactions. 
Enter into any Sale Leaseback Transaction.

 

7.12  Swap Agreements. 
Enter into any Swap Agreement, except (a) Swap Agreements entered
into to hedge or mitigate risks to which Borrower or any Restricted Subsidiary
has actual exposure and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with
respect to any interest-bearing liability or investment of Borrower or any
Restricted Subsidiary.

 

7.13  Changes in Fiscal Periods. 
Permit the fiscal year of Borrower to end on a day other than December 31
or change the Borrower’s method of determining fiscal quarters.

 

48

 

7.14  Negative Pledge Clauses. 
Enter into or suffer to exist or become effective any agreement that
prohibits or limits the ability of any Loan Party to create, incur, assume or
suffer to exist any Lien upon any of its property or revenues, whether now
owned or hereafter acquired, to secure its obligations under the Loan Documents
to which it is a party other than (a) this Agreement and the other Loan
Documents, (b) any agreements governing any purchase money Liens or
Capital Lease Obligations otherwise permitted hereby (in which case, any
prohibition or limitation shall only be effective against the assets financed
thereby), (c) any agreements evidencing Indebtedness secured by Liens permitted
hereunder, (d) provisions restricting Liens on assets of and interests in
joint ventures, (e) customary restrictions and conditions contained in any
agreement governing Indebtedness or Liens permitted under Sections 7.3(c),
7.3(d), 7.3(f), 7.3(q) and 7.3(r), (f) customary
restrictions on the assignment of leases, licenses and other agreements, (g) any
agreement (i) prohibiting only the creation of Liens securing Subordinated
Indebtedness or (ii) containing an “equal and ratable” clause, and (h) any
agreement evidencing an asset sale, as to the assets being sold.

 

7.15  Clauses Restricting Subsidiary Distributions. 
Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Restricted Subsidiary of the
Borrower to (a) make Restricted Payments in respect of any Capital Stock
of such Restricted Subsidiary held by, or pay any Indebtedness owed to, the
Borrower or any Restricted Subsidiary, (b) make loans or advances to, or
other Investments in, the Borrower or any Restricted Subsidiary or (c) transfer
any of its assets to the Borrower or any Restricted Subsidiary, except for such
encumbrances or restrictions existing under or by reason of:

 

(a)           any restrictions existing under the Loan Documents;

 

(b)           any restrictions with respect to a Subsidiary imposed pursuant to an
agreement that has been entered into in connection with the Disposition of all
or substantially all of the Capital Stock or assets of such Subsidiary;

 

(c)           customary restrictions on the assignment of leases, licenses and other
agreements;

 

(d)           any restriction with respect to any Liens permitted hereunder or any
other Loan Document;

 

(e)           as to transfers of assets, as may be provided in an agreement with
respect to a sale of such assets;

 

(f)            encumbrances or restrictions relating to
joint ventures; and

 

(g)           restrictions of the nature referred to in clause (c) above under
agreements governing purchase money liens or Capital Lease Obligations
otherwise permitted hereby which restrictions are only effective against the
assets financed thereby.

 

7.16        Lines of Business.  Enter into any principal line of business,
either directly or through any Restricted Subsidiary, except for those
businesses in which Borrower or any Subsidiary is engaged on the date of this
Agreement or that are reasonably related or ancillary thereto.

 

7.17  Amendments to Organizational Agreements and
Material Contracts.  No Loan Party shall terminate, amend,
supplement or otherwise modify any of its organizational documents (including (x) by
the filing or modification of any certificate of designation and (y) any
election to treat any Equity Interests described in the Guarantee and
Collateral Agreement as a “security” under 

 

49

 

Section 8-103 of the
UCC other than concurrently with the delivery of certificates representing such
Equity Interests to the Administrative Agent) or any agreement to which it is a
party with respect to its Equity Interests (including any stockholders’
agreement), or enter into any new agreement with respect to its Equity
Interests, other than any such amendments, supplements or other modifications
or such new agreements which are not materially adverse to the interests of the
Lenders.

 

7.18  Anti-Terrorism Law. 
Directly or indirectly, (i) knowingly conduct any business or
engage in making or receiving any contribution of funds, goods or services to
or for the benefit of any Designated Person, (ii) knowingly deal in, or
otherwise knowingly engage in any transaction relating to, any property or
interests in property blocked pursuant to the Executive Order or any other
Anti-Terrorism Law, or (iii) knowingly engage in or knowingly conspire to
engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law (and each of the Group Members shall deliver to the Lenders
any certification or other evidence requested from time to time by
Administrative Agent in its reasonable discretion, confirming the Group Members’
compliance with this Section 7.18).

 

7.19  Embargoed Person.  Fail
to ensure that none of the funds or assets of the Group Members that are used
to repay the Obligations shall, to the knowledge of any Group Member,
constitute property of, or shall be beneficially owned directly or indirectly
by, any Person subject to sanctions or trade restrictions under United States
law (“Embargoed Person” or “Embargoed Persons”) that is
identified on (i) the “List of Specially Designated Nationals and
Blocked Persons” maintained by OFAC, and/or to the knowledge of any Group
Member, as of the date thereof, on any other similar list (“Other List”)
maintained by OFAC pursuant to any authorizing statute including, but not limited
to, the International Emergency Economic Powers Act, 50 U.S.C.  §§ 1701 et seq., The Trading with the Enemy
Act, 50 U.S.C.  App. 1 et seq., and any
Executive Order or regulation promulgated thereunder, with the result that the
investment in any Group Member (whether directly or indirectly) is prohibited
by law, or the Loans made by the Lenders would be in violation of law, or (ii) the
Executive Order, any related enabling legislation or any other similar
Executive Orders (collectively, “Executive Orders”).

 

7.20  Anti-Money Laundering.  No Group
Member shall knowingly use any funds derived from any unlawful activity to
repay the Loans or other Obligations, the repayment of which causes the making
of the Loans to violate any Requirement of Law.

 

SECTION 8.  EVENTS
OF DEFAULT

 

8.1  Events of Default.    If
any of the following events shall occur and be continuing:

 

(a)           the Borrower shall fail to pay any principal of any Loan when due in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan, or any other amount payable hereunder or under any other
Loan Document, within three days after any such interest or other amount
becomes due in accordance with the terms hereof; or

 

(b)           any representation or warranty made by any Loan Party herein or in any
other Loan Document or that is contained in any certificate, document or
financial or other statement furnished by it at any time under or in connection
with this Agreement or any such other Loan Document shall prove to have been
inaccurate in any material respect on or as of the date made or deemed made (or
if any representation or warranty is expressly stated to have been made as of a
specific date, inaccurate in any material respect as of such specific date); or

 

50

 

(c)           any Loan Party shall default in the observance or performance of any
agreement contained in clause (i) of Section 6.4(a) (with
respect to any Guarantor and the Borrower only), Section 6.7(a) or
Section 7 of this Agreement; or

 

(d)           any Loan Party shall default in the observance or performance of any
other agreement contained in this Agreement or any other Loan Document (other
than as provided in paragraphs (a) through (c) of this Section), and
such default shall continue unremedied for a period of 30 days thereafter; or

 

(e)           (i) any Group Member shall default in making any payment of any
principal of any Indebtedness (including any Guarantee Obligation with respect
to Indebtedness, but excluding the Loans) on the scheduled or original due date
with respect thereto; or (ii) any Group Member shall default in making any
payment of any interest on any such Indebtedness beyond the period of grace, if
any, provided in the instrument or agreement under which such Indebtedness was
created; (iii) there occurs under any Swap Agreement an Early Termination
Date (as defined in such Swap Agreement) resulting from (A) any event of
default under such Swap Agreement as to which a Loan Party or any Restricted
Subsidiary thereof is the Defaulting Party (as defined in such Swap Agreement)
or (B) any Termination Event (as so defined) under such Swap Agreement as
to which a Loan Party or any Restricted Subsidiary thereof is an Affected Party
(as so defined); or (iv) any Group Member shall default in the observance
or performance of any other agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event shall occur or condition exist, the effect
of which default or other event or condition is to (x) cause, or to permit
the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf
of such holder or beneficiary) to cause such Indebtedness to become due prior
to its stated maturity or (in the case of any such Indebtedness constituting a
Guarantee Obligation) to become payable or (y) to cause, with the giving
of notice if required, any Group Member to purchase or redeem  (excluding any such purchase, redemption
or offer relating to asset sales) or make an offer to purchase or redeem such
Indebtedness prior to its stated maturity; provided, that a default,
event or condition described in clause (i), (ii), (iii) or (iv) of
this paragraph (e) shall not at any time constitute an Event of Default
unless, at such time, one or more defaults, events or conditions of the type
described in clauses (i), (ii), (iii) or (iv) of this paragraph (e) shall
have occurred and be continuing with respect to Indebtedness the outstanding
principal amount of which exceeds in the aggregate $5,000,000; or

 

(f)            (i)  any Group Member shall commence any
case, proceeding or other action (a) under any existing or future law of
any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (b) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or any Group Member shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against any
Group Member any case, proceeding or other action of a nature referred to in
clause (i) above that (a) results in the entry of an order for relief
or any such adjudication or appointment or (b) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) there shall be
commenced against any Group Member any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process against
all or any substantial part of its assets that results in the entry of an order
for any such relief that shall not have been vacated, discharged, or stayed or
bonded pending appeal within 60 days from the entry thereof; or (iv) any
Group Member shall generally not, or shall be unable to, or shall admit in
writing its inability to, pay its debts as they become due; or

 

51

 

(g)           (i)  any Person shall engage in any “prohibited transaction” (as
defined in Section 406 of ERISA or Section 4975 of the Code)
involving any Plan, (ii) any failure to satisfy the minimum funding
standards under the Pension Funding Rules, whether or not waived in accordance
with the Pension Funding Rules, shall exist with respect to any Plan or any
Lien in favor of the PBGC or a Single Employer Plan shall arise on the assets
of any Group Member or any Commonly Controlled Entity, (iii) a Reportable
Event shall occur with respect to, or proceedings shall commence to have a
trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Single Employer
Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan
shall terminate for purposes of Title IV of ERISA, (v) any Group Member or
any Commonly Controlled Entity shall incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan
or (vi) any other event or condition shall occur or exist with respect to
a Plan; and in each case in clauses (i) through (vi) above, such
event or condition, together with all other such events or conditions, if any,
could, in the reasonable judgment of the Required Lenders, reasonably be
expected to have a Material Adverse Effect; or

 

(h)           one or more judgments or decrees shall be entered against any Group
Member involving in the aggregate a liability (not paid or fully covered by
insurance) of $5,000,000 or more, and all such judgments or decrees shall not
have been vacated, discharged, stayed or bonded pending appeal within sixty
(60) days from the entry thereof; or

 

(i)            any of the Security Documents shall cease,
for any reason, to be in full force and effect (except in accordance with the
terms thereof and hereof), or any Loan Party shall so assert, or any material
Lien created by any of the Security Documents shall cease to be enforceable and
of the same effect and priority (subject to Liens permitted hereunder)
purported to be created thereby; or

 

(j)            the guarantee contained in Section 2
of the Guarantee and Collateral Agreement shall cease, for any reason (except
in accordance with the terms thereof and hereof), to be in full force and
effect or any Loan Party shall so assert; or

 

(k)           a Change of Control shall occur; or

 

then, and in any such event,
subject to the agreements set forth in the Side Letter between Borrower and SVB
dated July 3, 2008 (the “Side Letter”),
(a) if such event is an Event of Default specified in clause (i) or (ii) of
paragraph (f) above with respect to the Borrower, the Commitments shall
immediately terminate automatically and the Loans (with accrued interest
thereon) and all other amounts owing under this Agreement and the other Loan
Documents shall automatically immediately become due and payable, and (b) if
such event is any other Event of Default, with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the Required
Lenders, the Administrative Agent shall declare the Loans (with accrued
interest thereon) and all other amounts owing under this Agreement and the
other Loan Documents to be due and payable forthwith, whereupon the same shall
immediately become due and payable. Presentment, demand, protest and all other
notices of any kind are hereby expressly waived by the Borrower.

 

SECTION 9.  THE
ADMINISTRATIVE AGENT

 

9.1  Appointment and Authority.

 

(a)           Each of the Lenders hereby irrevocably appoints SVB to act on its
behalf as the Administrative Agent hereunder and under the other Loan Documents
and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the 

 

52

 

Administrative Agent by the
terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto.

 

(b)           The provisions of Section 9 (excluding Section 9.9)
are solely for the benefit of the Administrative Agent and the Lenders, and
neither the Borrower nor any other Loan Party shall have rights as a third
party beneficiary of any of such provisions. 
Notwithstanding any provision to the contrary elsewhere in this Agreement,
the Administrative Agent shall not have any duties or responsibilities to any
Lender or any other Person, except those expressly set forth herein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

9.2  Delegation of Duties.  The
Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this Section shall
apply to any such sub-agent and to the Related Parties of the Administrative
Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as the Administrative Agent.

 

9.3  Exculpatory Provisions.  The
Administrative Agent shall have no duties or obligations except those expressly
set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent shall not:

 

(a)           be subject to any fiduciary or other implied duties, regardless of
whether any Default or any Event of Default has occurred and is continuing;

 

(b)           have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Administrative
Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly
provided for herein or in the other Loan Documents), as applicable; provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

 

(c)           except as expressly set forth herein and in the other Loan Documents,
have any duty to disclose, and the Administrative Agent shall not be liable for
the failure to disclose, any information relating to the Borrower or any of its
Affiliates that is communicated to or obtained by any Person serving as the
Administrative Agent or any of its Affiliates in any capacity.

 

The Administrative Agent
shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as the Administrative Agent
shall believe in good faith shall be necessary, under the circumstances as
provided in Section 10.1) or (ii) in the absence of its own
gross negligence or willful misconduct.

 

The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of 

 

53

 

any of the covenants, agreements or other terms or conditions set forth
herein or therein or the occurrence of any Default or Event of Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Section 5 or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

 

9.4  Reliance by the Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, internet or intranet website posting or other distribution) believed
by it to be genuine and to have been signed, sent or otherwise authenticated by
the proper Person.  The Administrative
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan,
that by its terms must be fulfilled to the satisfaction of a Lender, the
Administrative Agent may presume that such condition is satisfactory to such
Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender prior to the making of such Loan.  The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants and
other experts selected by it, and shall not be liable for any action taken or
not taken by it in accordance with the advice of any such counsel, accountants
or experts.  The Administrative Agent may
deem and treat the payee of any Note as the owner thereof for all purposes
unless a written notice of assignment, negotiation or transfer thereof shall
have been filed with the Administrative Agent. 
The Administrative Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Required Lenders (or such
other number or percentage of Lenders as shall be provided for herein or in the
other Loan Documents) as it deems appropriate or it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense
that may be incurred by it by reason of taking or continuing to take any such
action.  The Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
this Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or such other number or percentage of Lenders as shall be
provided for herein or in the other Loan Documents), and such request and any
action taken or failure to act pursuant thereto shall be binding upon the
Lenders and all future holders of the Loans.

 

9.5  Notice of Default.  The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default unless the Administrative Agent
has received notice from a Lender, any Guarantor or the Borrower referring to
this Agreement, describing such Default or Event of Default and stating that
such notice is a “notice of default”.  In
the event that the Administrative Agent receives such a notice, the
Administrative Agent shall give notice thereof to the Lenders.  The Administrative Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders (or, if so specified by this Agreement, all
Lenders); provided that unless and until the Administrative Agent shall
have received such directions, the Administrative Agent may (but shall not be
obligated to) take such action or refrain from taking such action with respect
to such Default or Event of Default as it shall deem advisable in the best
interests of the Lenders.

 

9.6  Non-Reliance on the Administrative Agent and
Other Lenders.  Each Lender expressly acknowledges that
neither the Administrative Agent nor any of its officers, directors, employees,
agents, attorneys in fact or affiliates has made any representations or
warranties to it and that no act by the Administrative Agent hereafter taken,
including any review of the affairs of a Group Member or any affiliate of a
Group Member, shall be deemed to constitute any representation or warranty by
the Administrative Agent to any Lender. 
Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such 

 

54

 

documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Group Members and
their affiliates and made its own decision to make its Loans hereunder and
enter into this Agreement.  Each Lender also
represents that it will, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigation as
it deems necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of the Group Members and
their affiliates.  Except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent hereunder, the Administrative Agent shall have no
duty or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Group Member or any affiliate
of a Group Member that may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys in fact or
affiliates.

 

9.7  Indemnification.  Each
of the Lenders agrees to indemnify the Administrative Agent in its capacity as
such (to the extent not reimbursed by any Guarantor, the Borrower or any other
Loan Party and without limiting the obligation of any Guarantor, the Borrower
or any other Loan Party to do so, according to its Term Percentage in effect on
the date on which indemnification is sought under this Section 9.7
(or, if indemnification is sought after the date upon which the Commitments
shall have terminated and the Loans shall have been paid in full, in accordance
with its Term Percentage immediately prior to such date), from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever that
may at any time (whether before or after the payment of the Loans) be imposed
on, incurred by or asserted against the Administrative Agent in any way relating
to or arising out of, the Commitments, this Agreement, any of the other Loan
Documents or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or any action taken or omitted
by the Administrative Agent under or in connection with any of the foregoing; provided
that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements that are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
primarily from the Administrative Agent’s gross negligence or willful
misconduct.  The agreements in this Section shall
survive the payment of the Loans and all other amounts payable hereunder.

 

9.8  Agent in Its Individual Capacity.  The
Person serving as the Administrative Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include each such Person serving as the Administrative Agent
hereunder in its individual capacity. 
Such Person and its Affiliates may accept deposits from, lend money to,
act as the financial advisor or in any other advisory capacity for and
generally engage in any kind of business with the Borrower or any Restricted
Subsidiary or other Affiliate thereof as if such Person were not the
Administrative Agent hereunder and without any duty to account therefor to the
Lenders.

 

9.9  Successor Administrative Agent.  The
Administrative Agent may at any time give notice of its resignation to the
Lenders and the Borrower.  Upon receipt
of any such notice of resignation, the Required Lenders shall have the right
subject to the prior approval of Borrower, unless an Event of Default has then
occurred and is continuing, to appoint a successor acceptable to the Borrower,
which shall be a bank with an office in the State of California, or an
Affiliate of any such bank with an office in the State of California.  If no such successor shall have been so
appointed by the Required Lenders and 

 

55

 

shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders, appoint a successor
Administrative Agent meeting the qualifications set forth above provided that
if the retiring Administrative Agent shall notify the Borrower and the Lenders
that no qualifying Person has accepted such appointment, then such resignation
shall nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of
the Secured Parties under any of the Loan Documents, the retiring
Administrative Agent shall continue to hold such collateral security until such
time as a successor Administrative Agent is appointed and such collateral
security is assigned to such successor Administrative Agent) and (2) all
payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by or to each Lender
directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this paragraph.  Upon the acceptance of a successor’s
appointment as the Administrative Agent hereunder, such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of
the retiring (or retired) Administrative Agent, and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents (if not already discharged therefrom as provided
above in this paragraph).  The fees
payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor.  After the
retiring Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of Section 9 and Section 10.5
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as the Administrative Agent.

 

SECTION 10.  MISCELLANEOUS

 

10.1  Amendments and Waivers.

 

(a)           Neither this Agreement, any other Loan Document, nor any terms hereof
or thereof may be amended, supplemented or modified except in accordance with
the provisions of this Section 10.1.  The Required Lenders and each Loan Party to
the relevant Loan Document may, or, with the written consent of the Required
Lenders, the Administrative Agent and each Loan Party to the relevant Loan
Document may, from time to time, (i) enter into written amendments,
supplements or modifications hereto and to the other Loan Documents for the
purpose of adding any provisions to this Agreement or the other Loan Documents
or changing in any manner the rights of the Lenders or of the Loan Parties
hereunder or thereunder or (ii) waive, on such terms and conditions as the
Required Lenders or the Administrative Agent, as the case may be, may specify in
such instrument, any of the requirements of this Agreement or the other Loan
Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or
modification shall (A) forgive the principal amount or extend the final
scheduled date of maturity of any Loan, extend the scheduled date of any
scheduled amortization payment in respect of any Loan, reduce the stated rate
of any interest or fee payable hereunder (except that any amendment or
modification of defined terms used in the financial covenants in this Agreement
shall not constitute a reduction in the rate of interest or fees for purposes
of this clause (A)), in each case without the written consent of each Lender
directly affected thereby; (B) eliminate or reduce the voting rights of
any Lender under this Section 10.1 without the written consent of
such Lender; (C) reduce any percentage specified in the definition of
Required Lenders, consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement and the other Loan
Documents, release all or substantially all of the Collateral or release all or
substantially all of the Subsidiary Guarantors from their obligations under the
Guarantee and Collateral Agreement, in each case without the written consent of
all Lenders; (D) amend, modify or

 

56

 

waive the pro rata
requirements of Section 2.12 in a manner that adversely affects
Lenders without the written consent of each Lender directly affected thereby;
or (E) amend, modify or waive any provision of Section 9
without the written consent of the affected Agent.  Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Loan Parties, the Lenders, the Administrative Agent and all
future holders of the Loans.  In the case
of any waiver, the Loan Parties, the Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder and under the other
Loan Documents, and any Default or Event of Default waived shall be deemed to
be cured and not continuing during the period such waiver is effective; but no
such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

 

(b)           Notwithstanding the foregoing, this Agreement may be amended (or
amended and restated) with the written consent of the Required Lenders, the
Administrative Agent, the Borrower, (i) to
add one or more additional credit facilities to this Agreement and to permit
the extensions of credit from time to time outstanding thereunder and the
accrued interest and fees in respect thereof to share ratably in the benefits
of this Agreement and the other Loan Documents with the Loans and the accrued
interest and fees in respect thereof and (ii) to include appropriately the
Lenders holding such credit facilities in any determination of the Required
Lenders.

 

(c)           If, in connection with any proposed change, waiver, discharge or
termination of the provisions of this Agreement as contemplated by Section 10.1,
the consent of the Required Lenders is obtained but the consent of one or more
of such Lender whose consent is required is not obtained, then Borrower shall
have the right to replace all, but not less than all, of such non-consenting
Lender or Lenders (so long as all non-consenting Lenders are so replaced) with
one or more persons pursuant to Section 2.13(d) so long as at the
time of such replacement each such new Lender consents to the proposed change,
waiver, discharge or termination.  Each
Lender agrees that, if Borrower elects to replace such Lender in accordance
with this Section, it shall promptly execute and deliver to the Administrative
Agent an Assignment and Assumption to evidence such sale and purchase and shall
deliver to the Administrative Agent any Note (if Notes have been issued in
respect of such Lender’s Loans) subject to such Assignment and Assumption; provided
that the failure of any such non-consenting Lender to execute an Assignment and
Assumption shall not render such sale and purchase (and the corresponding
assignment) invalid and such assignment shall be recorded in the Register.

 

10.2  Notices.  All notices, requests and
demands (including with respect to Collateral and prepayments) to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, addressed as follows in the case of the Borrower and the
Administrative Agent, and as set forth in an administrative questionnaire
delivered to the Administrative Agent in the case of the Lenders, or to such
other address as may be hereafter notified by the respective parties hereto:

 

	
  Borrower:

  	
  United
  Online, Inc.

  21301 Burbank Boulevard

  Woodland
  Hills, California 91367

  Attention:  Chief Financial Officer

  Facsimile No.: (818) 287-3011

  Email:  SRay@corp.untd.com

  

 

57

 

	
  Administrative Agent:

  	
  Silicon Valley Bank

  5820 Canoga Avenue, #210

  Woodland Hills, California
  91367

  Attention:  Mark Turk

  Facsimile No.: (818)
  340-0395

  Email: mturk@svb.com

  

 

Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant
to Section 2 unless otherwise agreed by the Administrative Agent
and the applicable Lender.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it; provided that approval of such
procedures may be limited to particular notices or communications.  Unless the Administrative Agent otherwise
prescribes, (a) notices and other communications sent to an email address
shall be deemed received upon the sender’s receipt of an acknowledgment from
the intended recipient (such as by the “return receipt requested” function, as
available, return email or other written acknowledgment), provided that
if such notice or other communication is not sent during the normal business
hours of the recipient, such notice or communication shall be deemed to have
been sent at the opening of business on the next Business Day for the
recipient, and (b) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its email address as described in the foregoing clause (a) of
notification that such notice or communication is available and identifying the
website address therefor.

 

10.3  No Waiver; Cumulative Remedies.  No
failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, any right, remedy, power or privilege
hereunder or under the other Loan Documents shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. 
The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

 

10.4  Survival of Representations and Warranties.  All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the making of the Loans and other extensions of credit hereunder.

 

10.5  Payment of Expenses and Taxes.  The
Borrower agrees (a) to pay or reimburse the Administrative Agent for all
its reasonable, documented out-of-pocket costs and expenses incurred in
connection with the development, preparation and execution of, and any
amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including the reasonable fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
statements with respect to the foregoing to be submitted to the Borrower prior
to the Closing Date (in the case of amounts to be paid on the Closing Date) and
from time to time thereafter on a quarterly basis or such other periodic basis
as the applicable  Agent shall deem
appropriate, (b) to pay or reimburse each Lender and the Administrative
Agent for all its costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other Loan
Documents and any such other documents, including the fees and disbursements of
counsel (including the allocated fees and expenses of in-house counsel) to each
Lender and of counsel to the Administrative Agent, (c) to pay, indemnify,
and hold each Lender and the Administrative Agent harmless from, any and all
recording and filing fees and any and all liabilities with 

 

58

 

respect to, or resulting from any delay in paying, stamp, excise and
other taxes excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) which do not constitute Non-Excluded Taxes or Other Taxes, if
any, that may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or any amendment, supplement or modification of,
or any waiver or consent under or in respect of, this Agreement, the other Loan
Documents and any such other documents, and (d) to pay, indemnify, and
hold each Lender and the Administrative Agent and their respective officers,
directors, employees, affiliates, agents and controlling persons (each, an “Indemnitee”)
harmless from and against any and all other liabilities, obligations, losses
(other than losses on the trading value of the Loans), damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to or arising out of or in connection with the
execution, delivery, enforcement, performance and administration of this
Agreement, the other Loan Documents and any such other documents (regardless of
whether any Indemnitee is a party hereto and regardless or whether any such
matter is initiated by a third party, the Borrower, any other Loan Party or any
other Person), including any of the foregoing relating to the use of proceeds
of the Loans or the violation of, noncompliance with or liability under, any
Environmental Law applicable to the operations of any Group Member or any of
the Properties and the reasonable fees and expenses of legal counsel in
connection with claims, actions or proceedings by any Indemnitee against any
Loan Party under any Loan Document (all the foregoing in this clause (d),
collectively, the “Indemnified Liabilities”), provided, that the
Borrower shall have no obligation hereunder to any Indemnitee with respect to
Indemnified Liabilities to the extent such Indemnified Liabilities are
determined by a final judgment of a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such Indemnitee, or
breach of the terms of the Loan Documents by such Indemnitee.  Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to cause
its Restricted Subsidiaries not to assert, and hereby waives and agrees to
cause its Restricted Subsidiaries to waive, all rights for contribution or any
other rights of recovery with respect to all claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or
nature, under or related to Environmental Laws, that any of them might have by
statute or otherwise against any Indemnitee (except those resulting from the
gross negligence or willful misconduct of such Indemnitee, or breach of the
terms of the Loan Documents by such Indemnitee).  All amounts due under this Section 10.5
shall be payable not later than 10 days after written demand therefor.  The agreements in this Section 10.5
shall survive repayment of the Loans and all other amounts payable hereunder.

 

10.6  Successors and Assigns; Participations and
Assignments.

 

(a)           The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void).

 

(b)           (i)            Subject to the conditions set forth below in Section 10.6(b)(ii),
any Lender may assign to one or more banks, mutual funds or financials
institutions or entities (each, an “Assignee”) all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Commitments and the Loans at the time owing to it) with the prior written
consent of:

 

(A)          the Administrative Agent (such consent not to be unreasonably withheld
or delayed);

 

(B)           the Borrower (such consent not be unreasonably withheld or delayed); provided
that the consent of the Borrower shall not be required to any 

 

59

 

assignment (i) during
the continuance of any Default or Event of Default, or (ii) to a Lender or
an Affiliate of a Lender.

 

(ii)           Assignments shall be subject to the following additional conditions:

 

(A)          except in the case of an assignment to a
Lender, an affiliate of a Lender or an Approved Fund or an assignment of the
entire remaining amount of the assigning Lender’s Commitments or Loans under
the Facility, the amount of the Commitments or Loans of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent) shall not be less than $1,000,000 (provided that simultaneous
assignments to or by two or more Approved Funds shall be aggregated for
purposes of determining such amount), unless each of the Borrower and the
Administrative Agent otherwise consent; provided that no such consent of
the Borrower shall be required if an Event of Default has occurred and is
continuing;

 

(B)           the parties to each assignment of all or a portion of any Commitment or
Loans shall (1) electronically execute and deliver to the Administrative
Agent an Assignment and Assumption via an electronic settlement system
acceptable to the Administrative Agent or (2) manually execute and deliver
to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500, payable by the assigning or assignee
Lender as they shall mutually agree; and

 

(C)           the Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an administrative questionnaire.

 

(D)          Any assignment or participation (or prospects thereof) prior to the
earlier to occur of (i) 90 days following the date of the Acquisition and (ii) the
termination of the Merger Agreement shall be coordinated with Wells Fargo Bank,
National Association.

 

For the purposes of this Section 10.6,
the term “Approved Fund” means any Person (other than a natural person)
that is engaged in making, purchasing, holding or investing in bank loans and
similar extensions of credit in the ordinary course of its business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages
a Lender.

 

(iii)          Subject to acceptance and recording thereof pursuant to Section 10.6(b)(iv) below,
from and after the effective date specified in each Assignment and Assumption
the Assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections
2.13, 2.14, 2.15 and 10.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 10.6
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 10.6(c).

 

(iv)          The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders and Participants, and the 

 

60

 

Commitments of, and principal amount of the Loans owing to, each Lender
or Participant pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

 

(v)           Upon its receipt of a duly completed Assignment and Assumption executed
by an assigning Lender and an Assignee, the Assignee’s completed administrative
questionnaire (unless the Assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in Section 10.6(b) and
any written consent to such assignment required by Section 10.6(b) (in
each case to the extent required), the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the
Register.  No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.

 

(vi)          (i) Any Lender may, without the consent of the Borrower or the
Administrative Agent, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Commitments and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent and the Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement may provide that such Lender will not, without the consent of
the Participant, agree to any amendment, modification or waiver that (1) requires
the consent of each Lender directly affected thereby pursuant to the proviso to
the second sentence of Section 10.1(a) and (2) directly
affects such Participant.  Subject to Section 10.6(c)(ii),
the Borrower agrees that each Participant shall be entitled to the benefits and
subject to the obligations of Sections 2.13, 2.14 and 2.15
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 10.6(b).  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.7(b) as
though it were a Lender, provided such Participant shall be subject to Section 10.7(a) as
though it were a Lender. Notwithstanding anything to the contrary herein, a
Participant shall not be entitled to any of the benefits provided in this
paragraph until such time that the name and address of such Participant has
been recorded in the Register as provided in clause (iv) above.

 

(ii)           A Participant shall not be entitled to receive any greater payment
under Section 2.13,  2.14
or 2.15 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written
consent.  A Participant shall not be
entitled to the benefits of Section 2.14 unless such Participant
complies with Section 2.14(d) and (e).

 

(c)           Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or Assignee for such
Lender as a party hereto.

 

61

 

(d)           The Borrower, upon receipt of written notice from the relevant Lender,
agrees to issue Notes to any Lender requiring Notes to facilitate transactions
of the type described in Section 10.6(d) above.

 

(e)           Each Lender, upon execution and delivery hereof or upon succeeding to
an interest in the Commitments or Loans, as the case may be, represents and
warrants as of the Closing Date or as of the effective date of the applicable
Assignment and Assumption that (i) it is an Eligible Assignee; (ii) it
has experience and expertise in the making of or investing in commitments,
loans or investments such as the Commitments and Loans; and (iii) it will
make or invest in its Commitments and Loans for its own account in the ordinary
course of its business and without a view to distribution of such Commitments
and Loans within the meaning of the Securities Act or the Securities Exchange
Act of 1934, or other federal securities laws (it being understood that,
subject to the provisions of this Section 10.6, the disposition of
such Commitments and Loans or any interests therein shall at all times remain
within its exclusive control).

 

10.7  Adjustments; Set-off.

 

(a)           Except to the extent that this Agreement expressly provides for
payments to be allocated to a particular Lender or to the Lenders under the
Facility, if any Lender (a “Benefitted Lender”) shall, at any time after
the Loans and other amounts payable hereunder shall immediately become due and
payable pursuant to Section 8, receive any payment of all or part
of the Obligations owing to it, or receive any collateral in respect thereof
(whether voluntarily or involuntarily, by set-off, pursuant to events or
proceedings of the nature referred to in Section 8(f), or
otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of the Obligations owing to
such other Lender, such Benefitted Lender shall purchase for cash from the
other Lenders a participating interest in such portion of the Obligations owing
to each such other Lender, or shall provide such other Lenders with the
benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with
each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

(b)           In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to the Borrower, any
such notice being expressly waived by the Borrower to the extent permitted by
applicable law, upon any amount becoming due and payable by the Borrower
hereunder (whether at the stated maturity, by acceleration or otherwise), to
set off and appropriate and apply against such amount any and all deposits
(general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case whether
direct or indirect, absolute or contingent, matured or unmatured, at any time
held or owing by such Lender or any branch or agency thereof to or for the
credit or the account of  the Borrower.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such setoff and application
made by such Lender; provided that the failure to give such notice shall
not affect the validity of such setoff and application.

 

10.8  Counterparts.  This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts, and all of said counterparts taken
together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of
this Agreement by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof.  A
set of the copies of this Agreement signed by all the parties shall be lodged
with the Borrower and the Administrative Agent.

 

62

 

10.9  Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

10.10  Integration.  This Agreement, the Side
Letter and the other Loan Documents represent the entire agreement of the
Borrower, the Administrative Agent and the Lenders with respect to the subject
matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Lender relative
to the subject matter hereof not expressly set forth or referred to herein or
in the other Loan Documents.

 

10.11  GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA.

 

10.12  Submission To Jurisdiction; Waivers.  Each
party hereto hereby irrevocably and unconditionally:

 

(a)           submits to the exclusive jurisdiction of the State and Federal courts
in the Northern District of the State of California; provided, however,
that nothing in this Agreement shall be deemed to operate to preclude the
Administrative Agent or any Lender from bringing suit or taking other legal
action in any other jurisdiction to realize on the Collateral or any other
security for the Obligations, or to enforce a judgment or other court order in
favor of the Administrative Agent or such Lender;

 

(b)           expressly submits and consents in advance to such jurisdiction in any
action or suit commenced in any such court, and hereby waives any objection
that they may have based upon lack of personal jurisdiction, improper venue, or
forum non conveniens and hereby consents to the granting of such legal or
equitable relief as is deemed appropriate by such court;

 

(c)           waives personal service of the summons, complaints, and other process
issued in such action or suit and agrees that service of such summons,
complaints, and other process may be made by registered or certified mail
addressed to such party at the addresses set forth in Section 10.2
of this Agreement and that service so made shall be deemed completed upon the
earlier to occur of such party’s actual receipt thereof or three (3) days
after deposit in the U.S. mails, proper postage prepaid;

 

(d)           TO THE EXTENT PERMITTED BY
APPLICABLE LAW, WAIVES THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR
ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL
OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER
INTO THIS AGREEMENT.  EACH PARTY HAS
REVIEWED THIS WAIVER WITH ITS COUNSEL;

 

(e)           WITHOUT INTENDING IN ANY WAY TO LIMIT ANY PARTY’S AGREEMENT TO WAIVE
ITS RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a
trial by jury is not enforceable, agrees that any and all disputes or
controversies of any nature between them arising at any time shall be decided
by a reference to a private judge, mutually selected by the Borrower, the
Administrative Agent and the Lenders (or, if they cannot agree, by the
Presiding Judge in the Northern District of the State of California) appointed
in accordance with 

 

63

 

California Code of Civil Procedure Section 638 (or pursuant to
comparable provisions of federal law if the dispute falls within the exclusive
jurisdiction of the federal courts), sitting without a jury, in the Northern
District of the State of California; and the parties hereby submit to the
jurisdiction of such court.  The
reference proceedings shall be conducted pursuant to and in accordance with the
provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive.  The private judge shall have the power, among
others, to grant provisional relief, including without limitation, entering
temporary restraining orders, issuing preliminary and permanent injunctions and
appointing receivers.  All such
proceedings shall be closed to the public and confidential and all records
relating thereto shall be permanently sealed. 
If during the course of any dispute, a party desires to seek provisional
relief, but a judge has not been appointed at that point pursuant to the judicial
reference procedures, then such party may apply to the in the Northern District
of the State of California for such relief. The proceeding before the private
judge shall be conducted in the same manner as it would be before a court under
the rules of evidence applicable to judicial proceedings.  The parties shall be entitled to discovery
which shall be conducted in the same manner as it would be before a court under
the rules of discovery applicable to judicial proceedings. The private
judge shall oversee discovery and may enforce all discovery rules and
order applicable to judicial proceedings in the same manner as a trial court
judge.  The parties agree that the
selected or appointed private judge shall have the power to decide all issues
in the action or proceeding, whether of fact of law, and shall report a
statement of decision thereon pursuant to the California Code of Civil
Procedure § 644(a).  Nothing in this
paragraph shall limit the right of the Administrative Agent or any Lender at
any time to exercise self-help remedies, foreclose against collateral, or
obtain provisional remedies in each case to the extent under the Loan Documents
and applicable law.  The private judge
shall also determine all issues relating to the applicability, interpretation
and enforceability of this paragraph; and

 

(f)            waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or
consequential damages.

 

10.13  Acknowledgements.  The
Borrower hereby acknowledges that:

 

(a)           it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;

 

(b)           none of the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to the Borrower arising out of or in connection with
this Agreement or any of the other Loan Documents, and the relationship between
the Administrative Agent and Lenders, on one hand, and the Borrower, on the
other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

 

(c)           no joint venture is created hereby or by the other Loan Documents or
otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Borrower and the Lenders.

 

10.14  Releases of Guarantees and Liens.

 

(a)           Notwithstanding anything to the contrary contained herein or in any
other Loan Document, upon the consummation of any transaction not prohibited by
any Loan Document (including any sale or other disposition of Collateral or
sale of Capital Stock of a Guarantor) or that has been consented to in
accordance with Section 10.1, Administrative Agent’s security
interest in such Collateral or the Guarantee Obligation of such Subsidiary
Guarantor, as applicable, shall be automatically released without any further
act or action by Administrative Agent or the Lenders simultaneously with the
consummation of such sale or other disposition; provided  however,
in connection therewith, a Loan Party 

 

64

 

may not file a termination
or release, as applicable, without the Administrative Agent’s authorization,
which shall be provided upon such Loan Party’s request and at such Loan Party’s
expense.  The Administrative Agent is
hereby irrevocably authorized by each Lender (without requirement of notice to
or consent of any Lender except as expressly required by Section 10.1)
to take any other action requested by the Borrower having the effect of
releasing any Collateral or guarantee obligations (1) in respect of any
transaction not prohibited by any Loan Documents (including any sale or
disposition of Collateral or sale of Capital Stock of a Guarantor) or that has
been consented to in accordance with Section 10.1 or (2) under
the circumstances described in Section 10.14(b) and (c) below.

 

(b)           At such time as the Loans and the other obligations under the Loan
Documents shall have been paid in full and the Commitments have been
terminated, the Collateral shall be released from the Liens created by the
Security Documents, and the Security Documents and all obligations (other than
those expressly stated to survive such termination) of the Administrative Agent
and each Loan Party under the Security Documents shall terminate, all without
delivery of any instrument or performance of any act by any Person.

 

(c)           Notwithstanding anything to the contrary contained herein or in any
other Loan Document, upon the consummation of the Classmates IPO, Classmates
and its Subsidiaries shall be automatically released from the Loan Documents
and shall have no further liability thereunder. 
The Guarantee Obligations of Classmates and its Subsidiaries under the
Loan Documents shall automatically be released and all Liens granted by Classmates
and its Subsidiaries to secure the Obligations or under any Loan Document shall
automatically terminate.

 

(d)           The Administrative Agent agrees, for the benefit of the Borrower and
its Subsidiaries, to take such actions, at the Borrower’s expense, as the
Borrower may reasonably request, to terminate and release the Guarantee
Obligations and Liens entitled to be terminated and released as provided in
this Section 10.14 (and to evidence such termination and release),
including filing UCC3 termination statements, terminating control agreements
and taking such other actions as may be reasonably requested by the Borrower; provided
however, in connection therewith, a Loan Party may not file a
termination or release, as applicable, without the Administrative Agent’s
authorization, which shall be provided upon such Loan Party’s request and at
such Loan Party’s expense.

 

(e)           The Administrative Agent agrees to take such actions as the Borrower
may reasonably request to release and terminate its Liens on any assets subject
to Liens permitted under Sections 7.3(c), (d), (g), (q) and
(r) (to the extent the Administrative Agent’s Lien is prohibited
thereunder).

 

10.15  Confidentiality.  The
Administrative Agent and each Lender agrees to keep confidential all non-public
information provided to it by any Loan Party, the Administrative Agent or any
Lender pursuant to or in connection with this Agreement that is designated by
the provider thereof as confidential; provided that nothing herein shall
prevent the Administrative Agent or any Lender from disclosing any such
information (a) to the Administrative Agent, any other Lender or any
affiliate thereof (to the extent such affiliate is bound by the terms hereof), (b) subject
to an agreement to comply with the provisions of this Section, to any actual or
prospective Transferee or any direct or indirect counterparty to any Swap
Agreement (or any professional advisor to such counterparty), (c) to its
employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its affiliates (to the extent such affiliate is
bound by the terms hereof), (d) upon the request or demand of any
Governmental Authority, (e) in response to any order of any court or other
Governmental Authority or as may otherwise be required pursuant to any
Requirement of Law, (f) if required to do so in connection with any
litigation or similar proceeding, (g) that has been publicly disclosed, (h) to
the National Association of Insurance Commissioners or any similar organization
or any nationally recognized rating agency that requires access 

 

65

 

to information about a
Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, or (i) in connection with the exercise of any remedy hereunder
or under any other Loan Document.

 

10.16  Patriot Act.  Each Lender and the
Administrative Agent (for itself and not on behalf of any other party) hereby
notifies the Borrower that, pursuant to the requirements of the Patriot Act, it
is required to obtain, verify and record information that identifies the
Borrower, which information includes the names and addresses and other
information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the Patriot Act.  The Borrower will, and will cause the
Restricted Subsidiaries to, provide, to the extent commercially reasonable or
required by any Requirement of Law, such information and take such actions as
are reasonably requested by the Administrative Agent or any Lender to assist
the Administrative Agent and the Lenders in maintaining compliance with the
Patriot Act.

 

10.17  Publicity and Related Matters. 
Borrower consents to the publication and use by SVB Financial Group and
any of its member businesses and Affiliates of (i) Borrower’s name and
logo and a hyperlink to Borrower’s web site, separately or together, in written
and oral presentations, advertising, promotional and marketing materials,
client lists, public relations materials or on its web site (together, the “Publicity
Materials”) and (ii) Borrower’s name, trademarks and servicemarks in
any news release concerning Borrower, provided, that Administrative Agent shall
provide a draft of any such news release to Borrower prior to the release thereof
for Borrower’s review and approval, such approval not to be unreasonably
withheld.  Administrative Agent reserves
the right to provide to industry trade organizations information necessary and
customary for inclusion in league table measurements.

 

[Remainder of page left blank intentionally]

 

66

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by
their proper and duly authorized officers as of the day and year first above
written.

 

	
   

  	
  BORROWER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED ONLINE, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Mark R. Goldston

  
	
   

  	
   

  	
  Name: Mark R. Goldston

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
				

 

[Signature Page to Credit Agreement]

 

 

	
   

  	
  SILICON VALLEY BANK,

  
	
   

  	
  as Administrative Agent and
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Mark Turk

  
	
   

  	
   

  	
  Name: Mark Turk

  
	
   

  	
   

  	
  Title: Senior Relationship
  Manager

  

 

[Signature Page to Credit Agreement]

 

 

SCHEDULE
1.1

 

Commitments

 

 

Commitment

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Commitment

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Silicon Valley Bank

  	
   

  	
  $60,000,000.00

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $60,000,000.00

  

 

 

SCHEDULE
4.15

 

Restricted
Subsidiaries

 

	
  Name
  of Subsidiary

  	
  State
  or

  Jurisdiction of

  Formation

  or Organization

  	
  Percentage

  Owned

  by Entity

  	
   

  	
  Owned
  by

  	
   

  
	
  

  Classmates International, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  Classmates
  Online, Inc.

  	
   

  
	
  

  Classmates Media Corporation

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  Classmates Online, Inc.

  	
  Washington

  	
  100%

  	
   

  	
  Classmates Media
  Corporation

  	
   

  
	
  

  Classmates Yearbooks, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  Classmates
  Online, Inc.

  	
   

  
	
  

  FreeInternet.com, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  Juno Internet Services, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  Juno Online Services, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  MyPoints.com, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  Classmates Media
  Corporation

  	
   

  
	
  

  NetZero, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  Opobox, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  Classmates
  Online, Inc.

  	
   

  
	
  

  United Online Advertising Network, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  United Online Communications, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  United Online Web Services, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  United
  Online, Inc.

  	
   

  
	
  

  UOL Advertising, Inc.

  	
  Delaware

  	
  100%

  	
   

  	
  NetZero, Inc.

  	
   

  
	
  

  United Online Software Development Private Limited1

  	
  India

  	
  100%

  	
   

  	
  

  Juno Online Services, Inc. (99.98% owner)  

  

  NetZero, Inc.
  (0.02% owner)

  	
   

  
	
  

  Klasstraffen Sweden AB

  	
  Sweden

  	
  100%

  	
   

  	
  Classmates
  International, Inc.

  	
   

  
	
  

  StayFriends GmbH

  	
  Germany

  	
  100%

  	
   

  	
  Classmates
  International, Inc.

  	
   

  
	
  

  Trombi Acquisition SARL

  	
  

  France

  	
  100%

  	
   

  	
  Classmates
  International, Inc.

  	
   

  

 

1 Stock certificate representing 66% of the
Foreign Subsidiary Voting Stock will be delivered post-closing pursuant to the
Credit Agreement.

 

 

SCHEDULE
4.1(a)

 

Filing
Offices

 

 

Secretary of State of the
State of Delaware

 

Washington Department of
Licensing

 

United States Copyright
Office

 

United States Patent and
Trademark Office

 

 

SCHEDULE
7.2(d)

 

Existing
Indebtedness

 

Indebtedness incurred in
connection with the equipment lien listed on Schedule 7.3(f).

 

Indebtedness evidenced by
that certain (i) Promissory Note dated August 8, 2007 made by
Classmates Online, Inc in favor of United Online, Inc. in the principal amount
of $30,000,000 and (ii) Promissory Note dated August 8, 2007 made by
MyPoints.com, Inc. in the principal amount of $20,000,000.

 

 

SCHEDULE 7.3(f)

 

Existing
Liens

 

	
  Debtor

  	
   

  	
  Secured
  Party

  	
   

  	
  Filing
  Office

  	
   

  	
  Filing
  Number

  	
   

  	
  Filing

  Date

  	
   

  	
  Collateral  Description

  	
   

  
	
  MyPoints.com, Inc.

  	
   

  	
  Phoenix Leasing American Business Fund, LP

  	
   

  	
  Delaware Secretary of State

  	
   

  	
  4136714 5

  	
   

  	
  5/17/04

  	
   

  	
  Specified Equipment

  	
   

  
	
  MyPoints.com, Inc.

  	
   

  	
  Phoenix Leasing Cash Distribution Fund V, L.P.

  	
   

  	
  Delaware Secretary of State

  	
   

  	
  4136754 1

  	
   

  	
  5/17/04

  	
   

  	
  Specified Equipment

  	
   

  
	
  Classmates Online, Inc.

  	
   

  	
  General Electric Capital Corporation

  	
   

  	
  WA Department of Licensing

  	
   

  	
  2004-212-0152-3

  	
   

  	
  7/30/04

  	
   

  	
  Specified Equipment

  	
   

  

 

 

SCHEDULE
7.8(i)

 

Existing
Investments

 

Investments in the Capital
Stock of its Restricted Subsidiaries listed on Schedule 4.15 and in UNOL
Intermediate, Inc., Target and their respective Subsidiaries.

 

Indebtedness evidenced by
that certain (i) Promissory Note dated August 8, 2007 made by Classmates
Online, Inc in favor of United Online, Inc. in the principal amount of
$30,000,000 and (ii) Promissory Note dated August 8, 2007 made by
MyPoints.com, Inc. in the principal amount of $20,000,000.

 

MyPoints.com, Inc. owns
an approximately 19% equity interest in MyPoint.com Japan Co., Ltd.

 

 

EXHIBIT
A

 

 

 

 

 

FORM OF

 

GUARANTEE AND COLLATERAL
AGREEMENT

 

 

Dated as of August 11,
2008

 

 

made by

 

 

UNITED ONLINE, INC.,

 

and

 

THE OTHER GRANTORS referred
to herein

 

 

in favor of

 

 

SILICON VALLEY BANK,

as Administrative Agent

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.

  	
  

  	
  DEFINED TERMS

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.2

  	
  Other
  Definitional Provisions

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
  

  	
  Guarantee

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Guarantee

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.2

  	
  Right of
  Contribution

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.3

  	
  No Subrogation

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.4

  	
  Amendments, etc.
  with respect to the Borrower Obligations

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.5

  	
  Guarantee
  Absolute and Unconditional

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.6

  	
  Reinstatement

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.7

  	
  Payments

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
  

  	
  GRANT OF
  SECURITY INTEREST

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
  

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Title; No Other
  Liens

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
  Perfected Liens

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
  Jurisdiction of
  Organization; Chief Executive Office

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.4

  	
  Inventory and
  Equipment

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.5

  	
  Farm Products

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.6

  	
  Investment
  Property

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.7

  	
  Investment Accounts

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.8

  	
  Receivables

  	
  11

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.9

  	
  Intellectual
  Property

  	
  11

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
  

  	
  COVENANTS

  	
  12

  
										

 

i

 

	
  5.1

  	
  Delivery of
  Instruments, Certificated Securities and Chattel Paper

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.2

  	
  Maintenance of
  Insurance

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.3

  	
  Payment of
  Obligations

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.4

  	
  Maintenance of
  Perfected Security Interest; Further Documentation

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.5

  	
  Changes in
  Locations, Name, etc.

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.6

  	
  Notices

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.7

  	
  Investment
  Property

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.8

  	
  Investment
  Accounts

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.9

  	
  Intellectual
  Property

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
  

  	
  REMEDIAL
  PROVISIONS

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Certain Matters
  Relating to Receivables

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.2

  	
  Communications
  with Obligors; Grantors Remain Liable. (a)

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.3

  	
  Investment Property

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.4

  	
  Proceeds to be
  Turned Over To Administrative Agent

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.5

  	
  Application of
  Proceeds

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.6

  	
  Code and Other
  Remedies

  	
  19

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.7

  	
  Intellectual Property License

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.8

  	
  Deficiency

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
  

  	
  THE ADMINISTRATIVE
  AGENT

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Administrative
  Agent’s Appointment as Attorney-in-Fact, etc.

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.2

  	
  Duty of
  Administrative Agent

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.3

  	
  Authorization of
  Financing Statements

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.4

  	
  Authority of
  Administrative Agent

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.

  	
  

  	
  MISCELLANEOUS

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
  Amendments in
  Writing

  	
  23

  	
   

  
							

 

ii

 

	
  8.2

  	
  Notices

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.3

  	
  No Waiver by
  Course of Conduct; Cumulative Remedies

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.4

  	
  Enforcement
  Expenses; Indemnification

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.5

  	
  Successors and
  Assigns

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.6

  	
  Set-Off

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.7

  	
  Counterparts

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.8

  	
  Severability

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.9

  	
  Section Headings

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.10

  	
  Integration

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.11

  	
  GOVERNING
  LAW

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.12

  	
  Submission To
  Jurisdiction; Waivers

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.13

  	
  Acknowledgements

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.14

  	
  Additional
  Grantors

  	
  26

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.15

  	
  Releases

  	
  26

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.16

  	
  WAIVER
  OF JURY TRIAL

  	
  27

  	
   

  

 

 

SCHEDULES

 

Schedule 1        Notice Addresses

Schedule 2        Investment Property

Schedule 3        Jurisdictions of Organization and Chief
Executive Offices, etc.

Schedule 4        Equipment and Inventory Locations

Schedule 5        Intellectual Property

 

iii

 

GUARANTEE
AND COLLATERAL AGREEMENT (this “Agreement”), dated as of August 11,
2008, made by each of the signatories hereto (together with any other entity
that may become a party hereto as provided herein, each a “Grantor” and
collectively, the “Grantors”), in favor of SILICON VALLEY BANK, as
Administrative Agent (together with its successors, in such capacity, the “Administrative
Agent”) for the banks and other financial institutions or entities (the “Lenders”;
together with Administrative Agent, each a “Secured Party” and
collectively, the “Secured Parties”)) from time to time parties to the
Credit Agreement, dated as of the date hereof (as amended, amended and
restated, supplemented, restructured or otherwise modified, renewed or replaced
from time to time, the “Credit Agreement”), among United Online, Inc.,
a Delaware corporation (the “Borrower”), the Lenders party thereto and
the Administrative Agent.

 

INTRODUCTORY STATEMENTS

 

WHEREAS,
Borrower is a member of an affiliated group of companies that includes each
other Grantor;

 

WHEREAS,
the Borrower and the other Grantors are engaged in related businesses, and each
Grantor derives substantial direct and indirect benefit from the extensions of
credit under the Credit Agreement; and

 

WHEREAS,
it is a condition precedent to the Closing Date that the Grantors shall have
executed and delivered this Agreement to the Administrative Agent for the
ratable benefit of the Secured Parties.

 

NOW,
THEREFORE, in consideration of the above premises, the parties hereto hereby
agree as follows:

 

SECTION 1.     DEFINED TERMS

 

1.1        Definitions.  (a)  Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement, and the
following terms are used herein as defined in the California UCC:  Accounts, Certificated Security, Chattel
Paper, Commercial Tort Claims, Commodities Accounts, Documents, Equipment, Farm
Products, Fixtures, General Intangibles, Goods, Instruments, Inventory,
Letter-of-Credit Rights, Securities Accounts and Supporting Obligations.

 

(b)        The following terms shall have the
following meanings:

 

“Agreement”:  as defined in the preamble hereto.

 

“Borrower
Obligations”:  the Obligations of the
Borrower.

 

“California
UCC”:  the Uniform Commercial Code as
from time to time in effect in the State of California.

 

 

2

 

“Collateral”:
as defined in Section 3.

 

“Collateral
Account”:  any collateral account
established by the Administrative Agent as provided in Section 6.1
or 6.4.

 

“Copyright
Licenses”:  any written agreement (i) naming
any Grantor as licensor or licensee (including, without limitation, those
listed on Schedule 5), and (ii) granting any right under any
Copyright, including, without limitation, the grant of rights to manufacture,
distribute, exploit and sell materials incorporating any Copyrighted work.

 

“Copyrights”:  (i) all copyrights arising under the
laws of the United States, any other country or any political subdivision
thereof, whether registered or unregistered and whether published or
unpublished (including, without limitation, those listed on Schedule 5),
all registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to
obtain all renewals thereof.

 

“Deposit
Account”:  as defined in the
California UCC and, in any event, including, without limitation, any demand,
time, savings, passbook or similar account maintained with a bank (as defined
in the California UCC).

 

“Discharge
of Obligations”: as defined in Section 2.1(d).

 

“Exempt Deposit
Accounts”: (i) Deposit Accounts the balance of which consists
exclusively of (a) withheld income taxes and federal, state or local
employment taxes in such amounts as are required to be paid to the Internal
Revenue Service or state or local government agencies within the following two
months with respect to employees of the Grantor, and (b) amounts required
to be paid over to an employee benefit plan pursuant to DOL Reg. Sec.
2510.3-102 on behalf of or for the benefit of employees of the Grantor, (ii) all
Deposit Accounts constituting exclusively (and the balance of which consists
solely of funds set aside in connection with) of tax accounts, payroll accounts
and trust accounts, (iii) Deposit Accounts subject to Liens under Sections
7.3(c), (d), or (r) of the Credit Agreement and (iv) the
Deposit Accounts of the Grantors (combined with the aggregate amount deposited
in Exempt Securities Accounts of the Grantors referred to in clause (i) of
the definition thereof) that in the aggregate contain less than $1,000,000 at
anytime.

 

“Exempt Securities
Accounts”: (i) the Securities Accounts or Securities Entitlement of
the Grantors (combined with the aggregate amount deposited in Exempt Deposit
Accounts of the Grantors referred to in clause (iv) of the definition
thereof) that in the aggregate contain less than $1,000,000 at anytime and (ii) Securities
Accounts subject to Liens under Sections 7.3(c), (d), or (r)
of the Credit Agreement.

 

“Foreign
Subsidiary Voting Stock”:  the voting
Capital Stock of any Foreign Subsidiary.

 

“Guarantor
Obligations”:  the collective
reference to the Obligations of the Guarantors.

 

 

3

 

“Intellectual
Property”:  the collective reference
to the intellectual property of any Grantor, whether arising under United
States, multinational or foreign laws or otherwise, including, without
limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent
Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at
law or in equity for any infringement or other violation thereof, including the
right to receive all proceeds and damages therefrom.

 

“Investment
Accounts”:  the collective reference
to all Securities Accounts, all Commodities Accounts and all Deposit Accounts.

 

“Investment
Property”:  the collective reference
to (i) all “investment property” as such term is defined in Section 9-102(a)(49)
of the California UCC (other than the Capital Stock of UNOL Intermediate, Inc.
and any Foreign Subsidiary Voting Stock excluded from the definition of “Pledged
Stock”) and (ii) whether or not constituting “investment property” as so
defined, all Pledged Notes and all Pledged Stock.

 

“Issuers”:  the collective reference to each issuer of
any Investment Property.

 

“Obligations”:  shall have the meaning assigned to such term
in the Credit Agreement.

 

“Patent
License”:  any written agreement (i) naming
any Grantor as licensor or licensee (including without limitation, those listed
on Schedule 6) and (ii) granting any right under any Patent,
including, without limitation, the right to manufacture, use or sell any
invention covered in whole or in part by a Patent.

 

“Patents”:  (i) all letters patent of the United
States, any other country or any political subdivision thereof, all reissues
and extensions, including, without limitation, any of the foregoing referred to
on Schedule 6, (ii) all applications for letters patent of the
United States or any other country and all divisions, continuations and
continuations-in-part thereof, including, without limitation, any of the
foregoing referred to on Schedule 6, and (iii) all rights to obtain
any reissues or extensions of the foregoing.

 

“Pledged
Notes”:  all promissory notes listed
on Schedule 2 and all other promissory notes issued or payable to any
Grantor.

 

“Pledged
Stock”:  the shares of Capital Stock
listed on Schedule 2, together with any other shares, stock
certificates, options, interests or rights of any nature whatsoever in respect
of the Capital Stock of any Person that may be issued or granted to, or held
by, any Grantor while this Agreement is in effect; provided that in no
event shall (a) the Capital Stock of UNOL Intermediate, Inc. and (b) more
than 66% of the total outstanding Foreign Subsidiary Voting Stock of any
Foreign Subsidiary be required to be pledged hereunder.

 

“Proceeds”:  all “proceeds” as such term is defined in Section 9-102(a)(64)
of the California UCC and, in any event, shall include, without limitation, all
dividends or other income from the Investment Property, collections thereon or
distributions or payments with respect thereto.

 

 

4

 

“Receivable”:  any right to payment for goods sold or leased
or for services rendered, whether or not such right is evidenced by an
Instrument or Chattel Paper and whether or not it has been earned by
performance (including, without limitation, any Account).

 

“Trademark
License”:  any written agreement (i) naming
any Grantor as licensor or licensee (including, without limitation, those
listed on Schedule 5), and (ii) granting any right to use any
Trademark.

 

“Trademarks”:  (i) all trademarks, trade names,
corporate names, company names, business names, fictitious business names,
trade styles, service marks, logos, Internet domain names and other source or
business identifiers, and all goodwill connected with the use of and symbolized
thereby, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in
the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof, or any other country or any
political subdivision thereof, or otherwise, and all common-law rights related
thereto, including, without limitation, any of the foregoing referred to on Schedule
5, and (ii) the right to obtain all renewals thereof.

 

1.2        Other
Definitional Provisions.  (a)  The
words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement, and Section and Schedule references
are to the Sections and Schedules of this Agreement unless otherwise specified.

 

(b)        The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of
such terms.

 

(c)        Where the context requires, terms relating to the
Collateral or any part thereof, when used in relation to a Grantor, shall refer
to such Grantor’s Collateral or the relevant part thereof.

 

SECTION 2.     GUARANTEE

 

2.1  Guarantee.

 

(a)  Each
of the Guarantors hereby, jointly and severally, unconditionally and
irrevocably, guarantees to the Administrative Agent, for the ratable benefit of
the Secured Parties and their respective successors, indorsees, transferees and
assigns, the prompt and complete payment and performance by the Borrower when
due (whether at the stated maturity, by acceleration or otherwise) of the
Borrower Obligations.

 

(b)  Anything herein or in any other Loan Document
to the contrary notwithstanding, the maximum liability of each Guarantor hereunder
and under the other Loan Documents shall in no event exceed the amount which
can be guaranteed by such Guarantor under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of
contribution established in Section 2.2).

 

 

5

 

(c)  Each Guarantor agrees that the Borrower
Obligations may at any time and from time to time exceed the amount of the
liability of such Guarantor hereunder without impairing the guarantee contained
in this Section 2 or affecting the rights and remedies of the
Administrative Agent or any other Secured Party hereunder.

 

(d)  The guarantee contained in this Section 2
shall remain in full force and effect until all the Borrower Obligations and
the obligations of each Guarantor under the guarantee contained in this Section 2
shall have been satisfied by payment in full of the Borrower Obligations and
the Commitments shall be terminated (the “Discharge of Obligations”),
notwithstanding that from time to time during the term of the Credit Agreement
the Borrower may be free from any Borrower Obligations.

 

(e)  No payment made by the Borrower, any of the
Guarantors, any other guarantor or any other Person or received or collected by
the Administrative Agent or any other Secured Party from the Borrower, any of
the Guarantors, any other guarantor or any other Person by virtue of any action
or proceeding or any set-off or appropriation or application at any time or
from time to time in reduction of or in payment of the Borrower Obligations
shall be deemed to modify, release or otherwise affect the liability of any
Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the Borrower Obligations or
any payment received or collected from such Guarantor in respect of the
Borrower Obligations), remain liable for the Borrower Obligations up to the
maximum liability of such Guarantor hereunder until the Discharge of
Obligations.

 

2.2  Right
of Contribution.  Each Guarantor hereby
agrees that to the extent that a Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such Guarantor shall be
entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall
be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2
shall in no respect limit the obligations and liabilities of any Guarantor to
the Administrative Agent and the other Secured Parties, and each Guarantor
shall remain liable to the Administrative Agent and the other Secured Parties
for the full amount guaranteed by such Guarantor hereunder.

 

2.3  No
Subrogation.  Notwithstanding any payment
made by any Guarantor hereunder or any set-off or application of funds of any
Guarantor by the Administrative Agent or any other Secured Party, no Guarantor
shall be entitled to be subrogated to any of the rights of the Administrative
Agent or any other Secured Party against the Borrower or any other Guarantor or
any collateral security or guarantee or right of offset held by the
Administrative Agent or any other Secured Party for the payment of the Borrower
Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Borrower or any other Guarantor in
respect of payments made by such Guarantor hereunder, in each case, until the
Discharge of Obligations.  If any amount
shall be paid to any Guarantor on account of such subrogation rights at any
time when all of the Borrower Obligations shall not have been paid in full,
such amount (up to the amount of Borrower Obligations) shall be held by such
Guarantor in trust for the Administrative Agent and the other Secured Parties,
segregated from other funds of such Guarantor, and shall, forthwith upon
receipt by such Guarantor, be turned over to the Administrative Agent in the
exact form received by such Guarantor (duly indorsed by such 

 

 

6

 

Guarantor to the Administrative Agent, if required),
to be applied in such order as set forth in Section 6.5 hereof.

 

2.4  Amendments,
etc. with respect to the Borrower Obligations. 
Each Guarantor shall remain obligated hereunder notwithstanding that,
without any reservation of rights against any Guarantor and without notice to
or further assent by any Guarantor, any demand for payment of any of the
Borrower Obligations made by the Administrative Agent or any other Secured
Party may be rescinded by the Administrative Agent or such Secured Party and
any of the Borrower Obligations continued, and the Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by the
Administrative Agent or any other Secured Party, and the Credit Agreement and
the other Loan Documents and any other documents executed and delivered in
connection therewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Administrative Agent (or the Required Lenders or all
Lenders, as the case may be) may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the
Administrative Agent or any other Secured Party for the payment of the Borrower
Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Administrative Agent nor any
other Secured Party shall have any obligation to protect, secure, perfect or
insure any Lien at any time held by it as security for the Borrower Obligations
or for the guarantee contained in this Section 2 or any property
subject thereto.

 

2.5  Guarantee
Absolute and Unconditional.  Each
Guarantor waives any and all notice of the creation, renewal, extension or
accrual of any of the Borrower Obligations and notice of or proof of reliance
by the Administrative Agent or any other Secured Party upon the guarantee
contained in this Section 2 or acceptance of the guarantee
contained in this Section 2; the Borrower Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon the
guarantee contained in this Section 2; and all dealings between the
Borrower and any of the Guarantors, on the one hand, and the Administrative
Agent and the other Secured Parties, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Section 2.  Each Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
Borrower or any of the Guarantors with respect to the Borrower
Obligations.  Each Guarantor waives the
benefits of California Civil Code sections 2809, 2810, 2819, 2845, 2847, 2848,
2849, 2850, 2899 and 3433.  Each
Guarantor understands and agrees that the guarantee contained in this Section 2
shall be construed as a continuing, absolute and unconditional guarantee of
payment without regard to (a) the validity or enforceability of the Credit
Agreement or any other Loan Document, any of the Borrower Obligations or any
other collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative Agent or
any other Secured Party, (b) any defense, set-off or counterclaim (other
than a defense of payment or performance) which may at any time be available to
or be asserted by the Borrower or any other Person against the Administrative
Agent or any other Secured Party, or (c) any other circumstance whatsoever
(with or without notice to or knowledge of the Borrower or such Guarantor)
which constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee 

 

 

7

 

contained in this Section 2, in bankruptcy
or in any other instance.  When making
any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, the Administrative Agent or any other Secured Party may,
but shall be under no obligation to, make a similar demand on or otherwise
pursue such rights and remedies as it may have against the Borrower, any other
Guarantor or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and
any failure by the Administrative Agent or any other Secured Party to make any
such demand, to pursue such other rights or remedies or to collect any payments
from the Borrower, any other Guarantor or any other Person or to realize upon
any such collateral security or guarantee or to exercise any such right of
offset, or any release of the Borrower, any other Guarantor or any other Person
or any such collateral security, guarantee or right of offset, shall not
relieve any Guarantor of any obligation or liability hereunder, and shall not
impair or affect the rights and remedies, whether express, implied or available
as a matter of law, of the Administrative Agent or any other Secured Party
against any Guarantor.  For the purposes
hereof “demand” shall include the commencement and continuance of any legal
proceedings.  Each Guarantor acknowledges
that all or any portion of the Guarantor Obligations and Borrower Obligations
may now or hereafter be secured by a Lien or Liens upon real property owned by
Borrower or any Guarantor and evidenced by certain documents including, without
limitation, deeds of trust and assignment of rents.  The Administrative Agent may, upon the
occurrence and during the continuance of an Event of Default and pursuant to
the terms of said real property security documents and applicable law,
foreclose under all or any portion of one or more of said Liens by means of judicial
or nonjudicial sale or sales.  Each
Guarantor agrees that upon the occurrence and during the continuance of an
Event of Default, any Secured Party may exercise whatever rights and remedies
it may have with respect to said real property security, all without affecting
the liability of any Guarantor hereunder, except to the extent such Secured
Party realizes payment by such action or proceeding.  No election to proceed in one form of action
or against any party, or on any obligation shall constitute a waiver of any
Secured Party’s right to proceed in any other form of action or against any
Guarantor or any other Person, or diminish the liability of any Guarantor, or
affect the right of such Secured Party to proceed against any Guarantor for any
deficiency, except to the extent such Secured Party realizes payment by such
action, notwithstanding the effect of such action upon any Guarantor’s rights
of subrogation, reimbursement or indemnity, if any, against Borrower, any other
Guarantor or any other Person.  Without
limiting the generality of the foregoing, each Guarantor expressly waives all
rights, benefits and defenses, if any, applicable or available to such
Guarantor under either California Code of Civil Procedure Sections 580a or 726,
which provide, among other things, that the amount of any deficiency judgment
which may be recovered following either a judicial or nonjudicial foreclosure
sale is limited to the difference between the amount of any Indebtedness owed
and the greater of the fair value of the security or the amount for which the
security was actually sold.  Without
limiting the generality of the foregoing, each Guarantor further expressly
waives all rights, benefits and defenses, if any, applicable or available to
such Guarantor under either California Code of Civil Procedure Sections 580b,
providing that no deficiency may be recovered on a real property purchase money
obligation, or 580d, providing that no deficiency may be recovered on a note
secured by a deed of trust on real property if the real property is sold under
a power of sale contained in the deed of trust.

 

2.6  Reinstatement.  The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any 

 

 

8

 

of the Borrower Obligations is rescinded or must
otherwise be restored or returned by the Administrative Agent or any other
Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Borrower or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.

 

2.7  Payments.  Each Guarantor hereby guarantees that
payments hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the Funding Office.

 

SECTION 3.                  GRANT
OF SECURITY INTEREST

 

Each Grantor
hereby grants to the Administrative Agent, for the ratable benefit of the
Secured Parties, a security interest in, all of the following property now
owned or at any time hereafter acquired by such Grantor or in which such
Grantor now has or at any time in the future may acquire any right, title or
interest (collectively, the “Collateral”), as collateral security for
the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

(a)        all Accounts;

 

(b)        all Chattel Paper;

 

(c)        all Deposit Accounts;

 

(d)        all Documents;

 

(e)        all Equipment;

 

(f)         all Fixtures;

 

(g)        all General Intangibles;

 

(h)        all Goods;

 

(i)         all Instruments;

 

(j)         all Intellectual Property;

 

(k)        all Inventory;

 

(l)         all investment property (as defined in
the California UCC);

 

(m)       all Letter-of-Credit Rights;

 

(n)        all other property not otherwise
described above;

 

(o)        all books and records;

 

 

9

 

(p)        all Commercial Tort Claims; and

 

(q)        to the extent not otherwise included,
all Proceeds, Supporting Obligations and products of any and all of the
foregoing and all collateral security and guarantees given by any Person with
respect to any of the foregoing;

 

provided,
however, that notwithstanding any of the other provisions set forth in
this Section 3, this Agreement shall not constitute a grant of a
security interest in the following: (i) any property to the extent that
such grant of a security interest is prohibited by any Requirement of Law or
Governmental Authority or constitutes a breach or default under or results in
the termination of or requires any consent not obtained under, any contract, license,
agreement, instrument or other document evidencing or giving rise to such
property, except to the extent that such Requirement of Law, Governmental
Authority action or the term in such contract, license, agreement, instrument
or other document providing for such prohibition, breach, default or
termination or requiring such consent is ineffective under Section 9-406,
9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of
any relevant jurisdiction or any other applicable law (including the Bankruptcy
Code) or principles of equity; provided, however, that such
security interest shall attach immediately at such time as such Requirement of
Law is not effective or applicable, or such prohibition, breach, default or
termination is no longer applicable or is waived, and to the extent severable,
shall attach immediately to any portion of the Collateral that does not result
in such consequences; (ii) all Capital Stock issued by UNOL Intermediate, Inc.;
(iii) any of the outstanding equity or other ownership interests of a
Foreign Subsidiary in excess of 66% of the voting power of all classes of
equity or other ownership interests of such Foreign Subsidiary entitled to
vote; and (iv) any applications for trademarks or service marks filed in the
United States Patent and Trademark Office (the “PTO”) pursuant to 15 U.S.C.
§1051 Section 1(b) unless and until evidence of use of the mark in
interstate commerce is submitted to the PTO pursuant to 15 U.S.C. §1051 Section 1(c) or
Section 1(d).

 

SECTION 4.     REPRESENTATIONS AND WARRANTIES

 

To
induce the Administrative Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby represents and warrants
to the Administrative Agent and each other Secured Party that:

 

4.1        Title;
No Other Liens.  Except for the Liens
permitted to exist on the Collateral by the Credit Agreement, such Grantor owns
each item of the Collateral free and clear of any and all Liens or claims of
others.  No financing statement, fixture
filing or other public notice with respect to all or any part of the Collateral
is on file or of record or will be filed in any public office, except such as
have been filed as permitted by the Credit Agreement, or for which termination
statements have been delivered to the Administrative Agent.  For the avoidance of doubt, it is understood
and agreed that any Grantor may, as part of its business, grant licenses to
third parties to use Intellectual Property owned or developed by a
Grantor.  For purposes of this Agreement
and the other Loan Documents, such licensing activity shall not constitute a “Lien”
on such Intellectual Property.  The
Administrative Agent and each other Secured Party understands that any such
licenses may be exclusive to the applicable licensees, and such 

 

 

10

 

exclusivity provisions may limit the ability of the
Administrative Agent to utilize, sell, lease or transfer the related
Intellectual Property or otherwise realize value from such Intellectual
Property pursuant hereto.

 

4.2        Perfected Liens.  The execution and delivery of the Security
Documents by each Grantor, together with the delivery to Administrative Agent
of any Pledged Collateral (together with the actions required under Section 4.7(c))
are effective to create in favor of Administrative Agent for the benefit of
Lenders, as security for the Obligations, a valid First Priority Lien on all of
the Collateral (other than Excluded Perfection Assets, Pledged Collateral not
required to be delivered on the Closing Date and any other Collateral where the
priority of a Lien is not determined by filing a UCC financing statement or the
delivery of Pledged Collateral to the Administrative Agent), and all filings of
UCC financing statements necessary to perfect and maintain the perfection and
First Priority status of such Liens that can be perfected by filing UCC
financing statements have been duly made or taken and remain in full force and
effect, other than the filing of any UCC financing statements delivered to
Administrative Agent for filing (but not yet filed) and the periodic filing of
UCC continuation statements in respect of UCC financing statements filed by or
on behalf of Administrative Agent.

 

4.3        Jurisdiction
of Organization; Chief Executive Office. 
On the date hereof, such Grantor’s jurisdiction of organization,
identification number from the jurisdiction of organization (if any), and the
location of such Grantor’s chief executive office or sole place of business, as
the case may be, are specified on Schedule 3.

 

4.4        Inventory
and Equipment.  On the date hereof (a) the
Inventory and (b) the Equipment (other than mobile goods), in each case
with an aggregate fair market value of at least $250,000, are kept at the
locations listed on Schedule 4.

 

4.5        Farm
Products.  None of the Collateral
constitutes, or is the Proceeds of, Farm Products.

 

4.6        Investment
Property.  (a)  As of the date
hereof, the shares of Pledged Stock pledged by such Grantor hereunder
constitute all the issued and outstanding shares of all classes of the Capital
Stock of each Issuer owned by such Grantor or, in the case of any Foreign
Subsidiary, 66% of the outstanding Foreign Subsidiary Voting Stock of each
relevant Issuer.  All the shares of the
Pledged Stock have been duly and validly issued.

 

(a)        Such Grantor is the record and
beneficial owner of, and has title to, the Pledged Stock and Pledged Notes
pledged by it hereunder, free of any and all Liens (other than Liens existing
by operation of law) or options in favor of, or adverse claims of, any other
Person, except the security interests created by this Agreement.

 

4.7        Investment
Accounts. (a)  Schedule 2 sets forth, under the headings “Securities
Accounts” and “Commodities Accounts”, respectively, all of the Securities
Accounts and Commodities Accounts (each as defined in the UCC) in which each  Grantor has an interest as of the date
hereof.  Each  Grantor, as applicable, is the sole entitlement holder of
each such Securities Account and Commodities Account, and such Grantor has not
consented to, and is not otherwise aware of, any Person (other than the
Administrative Agent) having “control” (within 

 

 

11

 

the meanings of Sections 8-106 and 9-106 of the
UCC) over, or any other interest in, any such Securities Account or Commodity
Account or any securities or other property credited thereto;

 

(b)        Schedule 2 sets forth, under the
heading “Deposit Accounts” all of the Deposit Accounts in which each  Grantor has an interest as of the date hereof and each  Grantor is the sole account holder of each such Deposit
Account and such Grantor has not consented to, and is not otherwise aware of,
any Person (other than the Administrative Agent) having either sole dominion
and control (within the meaning of common law) or “control” (within the meaning
of Section 9-104 of the UCC) over, or any other interest in, any such
Deposit Account or any money or other property deposited therein; and

 

(c)        Each  Grantor
(i) has taken all actions required under Section 5.8 to (A) establish
the Administrative Agent’s “control” (within the meanings of Sections 8-106 and
9-106 of the UCC) over any Certificated Securities (as defined in the UCC) (other
than any Certificated Securities representing the Capital Stock of United
Online Software Development Private Limited and MyPoint.com Japan Co., Ltd.)
and (B) deliver all Instruments (as defined in the UCC) to the
Administrative Agent, in each case, to the extent required hereunder; and (ii) will
take, within 45 days of the Closing Date (or such longer period provided under
the Credit Agreement), all actions required under Section 5.8 to
establish (A) the Administrative Agent’s “control” (within the meanings of
Sections 8-106 and 9-106 of the UCC) over any portion of the Investment
Accounts constituting Securities Accounts, Commodities Accounts, Securities
Entitlements or Uncertificated Securities (each as defined in the UCC), other
than Exempt Securities Accounts; and (B) the Administrative Agent’s “control”
(within the meaning of Section 9-104 of the UCC) over all Deposit
Accounts, other than Exempt Deposit Accounts; and (iii) deliver all
Instruments (as defined in the UCC) to the Administrative Agent to the extent
required under Section 5.1.

 

4.8        Receivables.  No amount payable to the Grantor under or in
connection with any Receivable is evidenced by Instruments (other than checks,
drafts or other Instruments that will be promptly deposited in an Investment
Account) or Chattel Papers with an aggregate face value in excess of
$1,000,000, which has not been delivered to the Administrative Agent.

 

4.9        Intellectual
Property.  (a)  Schedule 5
lists all registrations and applications for Intellectual Property (including,
without limitation, registered Copyrights, Patents, Trademarks and all
applications therefor) as well as all material Copyright Licenses, Patent
Licenses and Trademark Licenses, in each case owned by such Grantor in its own
name on the date hereof and excluding for the avoidance of doubt, any licenses
for off-the-shelf software.

 

(b)        Each Grantor owns, is licensed to use,
or otherwise has valid rights to use all Intellectual Property that is material
to the conduct of its business as currently conducted.  The use of such Intellectual Property by each
Grantor does not, to the knowledge of the Grantors, infringe on the rights of
any Person where such infringement could reasonably be expected to have a
Material Adverse Effect.  No claim that
could reasonably be expected to have a Material Adverse Effect has been
asserted in writing and is pending against any Grantor by any Person
challenging or questioning such Grantor’s use of any Intellectual Property or
the validity or enforceability of any of its Intellectual Property, nor does
any Grantor know of any valid basis for any such claim with respect to
Intellectual Property that is currently in use.

 

 

12

 

(c)        No holding, decision or judgment has
been rendered by any Governmental Authority which limits, cancels or questions
the validity of, or such Grantor’s rights in, any Intellectual Property in any
respect that could reasonably be expected to have a Material Adverse Effect.

 

(d)        No action or proceeding is pending, or,
to the knowledge of such Grantor, threatened, on the date hereof seeking to
limit or cancel any material Intellectual Property or such Grantor’s ownership
interest therein which, if adversely determined, would have a material adverse
effect on the value of any material Intellectual Property.

 

SECTION 5.     COVENANTS

 

Each
Grantor covenants and agrees with the Administrative Agent and the other
Secured Parties that, from and after the date of this Agreement until the
Discharge of Obligations:

 

5.1        Delivery
of Instruments, Certificated Securities and Chattel Paper.  If any amount payable under or in connection
with any of the Collateral shall be or become evidenced by Instruments (other
than checks, drafts or other Instruments that will be promptly deposited in an
Investment Account), Certificated Securities or Chattel Paper evidencing an
aggregate face value in excess of $1,000,000, all such Instrument, Certificated
Security or Chattel Paper in excess of $1,000,000 shall be promptly delivered
to the Administrative Agent, duly indorsed in a manner satisfactory to the
Administrative Agent, to be held as Collateral pursuant to this Agreement
(including the $50,000,000 9.625% note issued by Classmates and MyPoints.com in
favor of Borrower).

 

5.2        Maintenance
of Insurance. Each Grantor will maintain such insurance as is required pursuant
to Section 6.5 of the Credit Agreement. 
All such insurance shall, to the extent commercially practicable,
(i) provide that no cancellation, material reduction in amount or material
change in coverage thereof shall be effective until at least 30 days after
receipt by the Administrative Agent of written notice thereof (except in the
case of non-payment of premiums, such Grantor shall use commercially reasonably
efforts to cause such insurer or broker to provide 10 days’ prior written
notice of such cancellation) and (ii) name the Administrative Agent as an
additional insured party or loss payee.  Payment
of Obligations.  Each Grantor will pay
and discharge or otherwise satisfy its obligations as required pursuant to Section 6.3
of the Credit Agreement.

 

5.3       Payment
of Obligations.  Each Grantor will pay
and discharge or otherwise satisfy its obligations as required pursuant to
Section 6.3 of the Credit Agreement.

 

5.4        Maintenance
of Perfected Security Interest; Further Documentation.  (a)  Such Grantor shall maintain the
security interests created by this Agreement as perfected security interests
having at least the priority described in Section 4.2 and shall
defend such security interests against the claims and demands of all Persons
whomsoever, subject to the rights of such Grantor under the Loan Documents to
dispose of the Collateral or to have Collateral released pursuant to the terms
of the Loan Documents.

 

(b)        Such Grantor will furnish to the
Administrative Agent from time to time statements and schedules further
identifying and describing the assets and property of such Grantor and such
other reports in connection therewith as the Administrative Agent may 

 

 

13

 

reasonably
request, all in reasonable detail; provided  that, so long as no
Event of Default has occurred and is continuing, Administrative Agent shall be
entitled to no more than one such request each fiscal quarter.

 

(c)        At any time and from time to time, upon
the written request of the Administrative Agent, and at the sole expense of
such Grantor, such Grantor will promptly and duly execute and deliver, and have
recorded, such further instruments and documents and take such further actions
as the Administrative Agent may reasonably request for the purpose of obtaining
or preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) filing any financing or
continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests
created hereby and (ii) in the case of Investment Property, Investment
Accounts, Letter-of-Credit Rights and any other relevant Collateral, taking any
actions necessary to enable the Administrative Agent to obtain “control”
(within the meaning of the applicable Uniform Commercial Code) with respect
thereto to the extent required hereunder.

 

5.5        Changes in Locations, Name, etc.  (a) Such Grantor will not, except upon
substantially simultaneous written notice to the Administrative Agent:

 

(i)         change its jurisdiction of organization, identification
number from the jurisdiction of organization (if any) or the location of its
chief executive office or sole place of business, as appropriate, from that
referred to in Section 4.3; or

 

(ii)        change its name.

 

(b).       No later than 30 days after any such
change in Section 5.5(a) above, such Grantor will deliver to the
Administrative Agent (a) all additional financing statements and other
documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for herein
and (b) if applicable, a written supplement to Schedule 4 showing
the relevant new jurisdiction of organization, location of chief executive
office or sole place of business, as appropriate. Such Grantor shall use
commercially reasonable efforts to notify the Administrative Agent of entering into
any new lease where material tangible Collateral is located.

 

5.6        Notices 
Such Grantor will advise the Administrative Agent promptly, in
reasonable detail, of the occurrence of any event which could reasonably be
expected to have a material adverse effect on the aggregate value of the
Collateral or on the security interests created hereby.

 

5.7        Investment
Property.  (a) If such Grantor shall
become entitled to receive or shall receive any certificate (including, without
limitation, any certificate representing a dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any
certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any shares of the
Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Administrative Agent and the other Secured Parties,
hold the same in trust for the Administrative Agent and the other Secured
Parties and deliver the same within 30 

 

 

14

 

days of the receipt thereof to the Administrative
Agent in the exact form received, duly indorsed by such Grantor to the
Administrative Agent, if required, together with an undated stock power
covering such certificate duly executed in blank by such Grantor and with, if
the Administrative Agent so requests, signature guaranteed, to be held by the
Administrative Agent, subject to the terms hereof, as additional collateral
security for the Obligations; provided  that this requirement
shall not apply if it would result in the Administrative Agent holding in
excess of 66% of Capital Stock of any Foreign Subsidiary.  Any sums paid upon or in respect of the
Investment Property upon the liquidation or dissolution of any Issuer shall,
unless otherwise subject to a perfected security interest in favor of the
Administrative Agent, be paid over to the Administrative Agent to be held by it
hereunder as additional collateral security for the Obligations, and in case
any distribution of capital shall be made on or in respect of the Investment
Property or any property shall be distributed upon or with respect to the Investment
Property pursuant to the recapitalization or reclassification of the capital of
any Issuer or pursuant to the reorganization thereof, the property so
distributed shall, unless otherwise subject to a perfected security interest in
favor of the Administrative Agent, be delivered to the Administrative Agent to
be held by it hereunder as additional collateral security for the
Obligations.  If any sums of money or
property so paid or distributed in respect of such Investment Property shall be
received by such Grantor, such Grantor shall, until such money or property is
paid or delivered to the Administrative Agent, unless otherwise subject to a
perfected security interest in favor of the Administrative Agent, hold such
money or property in trust for the Administrative Agent and the other Secured
Parties, segregated from other funds of such Grantor, as additional collateral
security for the Obligations.  Such collateral security may be utilized by
the Grantor in accordance with the Loan Documents.

 

5.8        Investment
Accounts.  With respect to any Investment
Accounts consisting of Securities Accounts or Securities Entitlements (other
than any Exempt Securities Account) not maintained with the Administrative
Agent, it shall enter into and shall cause the securities intermediary
maintaining such Securities Account or Securities Entitlement to enter into an
agreement in form and substance reasonably satisfactory to the Administrative
Agent pursuant to which it shall agree to comply with the Administrative Agent’s
“entitlement orders” without further consent by such Grantor.  With respect to any Investment Account that
is a “Deposit Account,” (other than any Exempt Deposit Account) not maintained
with the Administrative Agent it shall enter into and shall cause the depositary
institution maintaining such account to enter into an agreement in form and
substance reasonably satisfactory to the Administrative Agent, pursuant to
which the Administrative Agent shall have “control” (within the meaning of Section 9-104
of the UCC) over such Deposit Account.

 

5.9        Intellectual
Property.  (a)  Such Grantor (either
itself or through licensees) will (i) except in the exercise of its
reasonable business judgment continue to use each material Trademark in order
to maintain such material Trademark in full force free from any claim of
abandonment for non-use, (ii) except in the exercise of its reasonable
business judgment maintain as in the past the quality of products and services
offered under such material Trademark, (iii) use such material Trademark
with the appropriate notice of registration and all other notices and legends
required by applicable Requirements of Law, (iv) not adopt or use any mark
which is confusingly similar or a colorable imitation of such material
Trademark unless the Administrative Agent, for the ratable benefit of the
Secured Parties, shall obtain a perfected security interest in such mark
pursuant to this Agreement, and (v) not (and not knowingly permit 

 

 

15

 

any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby such material Trademark is likely to
become invalidated or impaired in any way.

 

(b)        Such Grantor (either itself or through
licensees) will not do any act, or knowingly omit to do any act, whereby any
material Patent is likely to become forfeited, abandoned or dedicated to the
public.

 

(c)        Such Grantor (either itself or through
licensees) will not (and will not permit any licensee or sublicensee thereof
to) do any act or knowingly omit to do any act whereby any material Copyrights may become invalidated or otherwise
impaired.

 

(d)        Such Grantor (either itself or through
licensees) will not knowingly do any act that uses any material Intellectual
Property to infringe the intellectual property rights of any other Person in
any material respect.

 

(e)        Such Grantor will notify the
Administrative Agent promptly if it knows, or has reason to know, that any
application or registration relating to any material Intellectual Property may become
forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including, without limitation, the institution
of, or any such determination or development in, any proceeding in the United
States Patent and Trademark Office, the United States Copyright Office or any
court or tribunal in any country but excluding any routine office action in the
course of prosecution of any application to register Intellectual Property)
regarding such Grantor’s ownership of, or the validity of, any material
Intellectual Property or such Grantor’s right to register or to own and
maintain the same.

 

(f)         Whenever such Grantor, either by itself
or through any agent, employee, licensee or designee, shall file an application
for the registration of any Intellectual Property with the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, such
Grantor shall report such filing to the Administrative Agent within 45 days
after the last day of the fiscal quarter in which such filing occurs, or, in
the case of registration of a copyright, not less than 5 days prior to such
registration to the extent that the Grantor is provided such notice from the
Copyright Office.  Upon request of the
Administrative Agent, such Grantor shall execute and deliver, and have
recorded, any and all agreements, instruments, documents, and papers as the
Administrative Agent may reasonably request to evidence the Administrative
Agent’s and the other Secured Parties’ security interest in any Copyright,
Patent or Trademark, general intangibles of such Grantor represented thereby,
and with respect to any Trademark, the goodwill of the business connected with
the use thereof or symbolized thereby.

 

(g)        Such Grantor will take all commercially
reasonable steps, including, without limitation, in any proceeding before the
United States Patent and Trademark Office, the United States Copyright Office
or any similar office or agency in any other country or any political
subdivision thereof, to maintain and pursue each material application (and to
obtain the relevant registration) and to maintain each registration of the
material Intellectual Property, including, without limitation, filing of
applications for renewal, affidavits of use and affidavits of incontestability.

 

 

16

 

(h)        In the event that any material
Intellectual Property is infringed, misappropriated or diluted by a third
party, such Grantor shall take such actions as such Grantor shall reasonably
deem appropriate under the circumstances to protect its rights in such
Intellectual Property.

 

SECTION 6.     REMEDIAL PROVISIONS

 

Each Grantor covenants
and agrees with the Administrative Agent and the other Secured Parties that,
from and after the date of this Agreement until the Discharge of Obligations:

 

6.1        Certain
Matters Relating to Receivables.  (a) 
If required by the Administrative Agent at any time after the occurrence and during
the continuance of an Event of Default, any payments of Receivables, when
collected by any Grantor, (i) shall be forthwith (and, in any event,
within two Business Days) deposited by such Grantor in the exact form received,
duly indorsed by such Grantor to the Administrative Agent if required, in a
Collateral Account over which the Administrative Agent has control, subject to
withdrawal by the Administrative Agent for the account of the Secured Parties
only as provided in Section 6.5, and (ii) until so turned
over, shall be held by such Grantor in trust for the Administrative Agent and
the other Secured Parties, segregated from other funds of such Grantor.  After the occurrence and during the
continuance of an Event of Default, each such deposit of Proceeds of
Receivables shall be accompanied, to the extent commercially practicable, by a
report identifying in reasonable detail the nature and source of the payments
included in the deposit.

 

(b)        At the Administrative Agent’s request,
after the occurrence and during the continuance of an Event of Default each
Grantor shall deliver to the Administrative Agent all original and other
documents evidencing, and relating to, the agreements and transactions which
gave rise to the Receivables, including, without limitation, all original
orders, invoices and shipping receipts.

 

6.2        Communications with Obligors; Grantors
Remain Liable.  (a)  The
Administrative Agent in its own name or in the name of others may at any time
after the occurrence and during the continuance of an Event of Default
communicate with obligors under the Receivables to verify with them to the
Administrative Agent’s satisfaction the existence, amount and terms of any
Receivables.

 

(b)        Upon the request of the Administrative
Agent, at any time after the occurrence and during the continuance of an Event
of Default, each Grantor shall notify obligors on the Receivables that the
Receivables have been assigned to the Administrative Agent for the ratable
benefit of the Secured Parties and that payments in respect thereof shall be
made directly to the Administrative Agent.

 

(c)        Anything herein to the contrary
notwithstanding, each obligor under the Receivables shall remain liable under
each of the Receivables to observe and perform all the conditions and obligations
to be observed and performed by it thereunder, all in accordance with the terms
of any agreement giving rise thereto. 
Neither the Administrative Agent nor any other Secured Party shall have
any obligation or liability under any Receivable (or any agreement giving rise
thereto) by reason of or arising out of this Agreement or the receipt by the 

 

 

17

 

Administrative
Agent or any Lender of any payment relating thereto, nor shall the
Administrative Agent or any other Secured Party be obligated in any manner to
perform any of the obligations of any Grantor under or pursuant to any
Receivable (or any agreement giving rise thereto), to make any payment, to make
any inquiry as to the nature or the sufficiency of any payment received by it
or as to the sufficiency of any performance by any party thereunder, to present
or file any claim, to take any action to enforce any performance or to collect
the payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times.

 

6.3        Investment
Property.  (a)  Unless an Event of
Default shall have occurred and be continuing and the Administrative Agent
shall have given notice to the relevant Grantor of the Administrative Agent’s
intent to exercise its corresponding rights pursuant to Section 6.3(b),
each Grantor shall be permitted to receive all cash dividends paid in respect
of the Pledged Stock and all payments made in respect of the Pledged Notes, to
the extent permitted in the Credit Agreement, and to exercise all voting and
corporate or other organizational rights with respect to the Investment
Property; provided, however, that no vote shall be cast or
corporate or other organizational right exercised or other action taken which
would materially impair the Collateral, taken as a whole, or which would
violate any provision of the Credit Agreement, this Agreement or any other Loan
Document.

 

(b)        If an Event of Default shall occur and
be continuing and the Administrative Agent shall give notice of its intent to
exercise such rights to the relevant Grantor or Grantors, (i) the
Administrative Agent shall have the right to receive any and all cash
dividends, payments or other Proceeds paid in respect of the Investment
Property and make application thereof to the Obligations in such order as set
forth in Section 6.5, and (ii) any or all of the Investment
Property shall be registered in the name of the Administrative Agent or its
nominee, and the Administrative Agent or its nominee may thereafter exercise (x) all
voting, corporate and other rights pertaining to such Investment Property at
any meeting of shareholders of the relevant Issuer or Issuers or otherwise and (y) any
and all rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to such Investment Property as if it were the
absolute owner thereof (including, without limitation, the right to exchange at
its discretion any and all of the Investment Property upon the merger,
consolidation, reorganization, recapitalization or other fundamental change in
the corporate or other organizational structure of any Issuer, or upon the
exercise by any Grantor or the Administrative Agent of any right, privilege or
option pertaining to such Investment Property, and in connection therewith, the
right to deposit and deliver any and all of the Investment Property with any
committee, depositary, transfer agent, registrar or other designated agency
upon such terms and conditions as the Administrative Agent may determine), all
without liability except to account for property actually received by it, but
the Administrative Agent shall have no duty to any Grantor to exercise any such
right, privilege or option and shall not be responsible for any failure to do so
or delay in so doing.

 

(c)        Each Grantor hereby authorizes and
instructs each Issuer of any Pledged Stock or Pledged Notes pledged by such
Grantor hereunder to (i) comply with any instruction received by it from
the Administrative Agent in writing that (x) states that an Event of
Default has occurred and is continuing and (y) is otherwise in accordance
with the terms of this Agreement, without any other or further instructions
from such Grantor, and each Grantor agrees that each Issuer 

 

 

18

 

shall
be fully protected in so complying, and (ii) unless otherwise expressly
permitted hereby, pay any dividends or other payments with respect to the
Pledged Stock and Pledged Notes directly to the Administrative Agent.

 

(d)        If an Event of Default shall have
occurred and be continuing, the Administrative Agent shall have the right to
apply the balance from any Deposit Account or instruct the bank at which any
Deposit Account is maintained to pay the balance of any Deposit Account to or
for the benefit of the Administrative Agent.

 

6.4        Proceeds
to be Turned Over To Administrative Agent. 
In addition to the rights of the Administrative Agent and the other
Secured Parties specified in Section 6.1 with respect to payments
of Receivables, if an Event of Default shall occur and be continuing, upon the
request of the Administrative Agent, all Proceeds received by any Grantor
consisting of cash, checks, Cash Equivalents and other near-cash items shall be
held by such Grantor in trust for the Administrative Agent and the other
Secured Parties, segregated from other funds of such Grantor, and shall,
forthwith upon receipt by such Grantor, be turned over to the Administrative
Agent in the exact form received by such Grantor (duly indorsed by such Grantor
to the Administrative Agent, if required). 
All Proceeds received by the Administrative Agent hereunder shall be
held by the Administrative Agent in a Collateral Account over which it
maintains control, within the meaning of the UCC.  All Proceeds while held by the Administrative
Agent in a Collateral Account (or by such Grantor in trust for the
Administrative Agent and the other Secured Parties) shall continue to be held
as collateral security for all the Obligations and shall not constitute payment
thereof until applied as provided in Section 6.5.

 

6.5        Application
of Proceeds.  If an Event of Default
shall have occurred and be continuing, at any time at the Administrative Agent’s
election, the Administrative Agent may apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, in
payment of the Obligations in the following order:

 

(a)        First, to the payment of all costs and
expenses of any sale, collection or other realization on the Collateral,
including reasonable compensation to the Administrative Agent’s agents and
counsel, and reimbursement for all other costs, expenses, liabilities and
advances made or incurred by Administrative Agent in connection therewith
(including as described in Section 6.6 hereof), and all amounts for
which Administrative Agent is entitled to indemnification hereunder and all
advances made by Administrative Agent hereunder for the account of the
applicable Grantor, and to the payment of all costs and expenses paid or
incurred by Administrative Agent in connection with the exercise of any right
or remedy hereunder or under the Credit Agreement or any other Loan Document
and to the payment or reimbursement of all indemnification obligations, fees,
costs and expenses owing to the Administrative Agent hereunder or under the
Credit Agreement or any other Loan Document, all in accordance with the terms
hereof or thereof;

 

(b)        Second, for application by it towards all
other Obligations, pro rata among
the Secured Parties according to the amounts of the Obligations then held by
the Secured Parties; and

 

(c)        Third, any balance of such Proceeds
remaining after the Discharge of Obligations shall be paid over to or upon the
order of such Grantor or to whosoever may be lawfully entitled to receive the
same or as a court of competent jurisdiction may direct.

 

 

19

 

6.6        Code and Other Remedies.  (a) If an Event of Default shall occur
and be continuing, the Administrative Agent, on behalf of the Secured Parties,
may exercise, in addition to all other rights and remedies granted to them in
this Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under
the California UCC or any other applicable law. 
Without limiting the generality of the foregoing, the Administrative
Agent, without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law) to or
upon any Grantor or any other Person (all and each of which demands, defenses
(other than the defenses of payment and performance), advertisements and
notices are hereby waived), may in such circumstances forthwith collect,
receive, appropriate and realize upon the Collateral, or any part thereof,
and/or may forthwith sell, lease, assign, give option or options to purchase,
or otherwise dispose of and deliver the Collateral or any part thereof (or
contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of the
Administrative Agent or any other Secured Party or elsewhere upon such terms
and conditions as it may deem advisable and at such prices as it may deem
commercially reasonable, for cash or on credit or for future delivery without
assumption of any credit risk.  The
Administrative Agent or any other Secured Party shall have the right upon any
such public sale or sales, and, to the extent permitted by law, upon any such
private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in any Grantor, which right or
equity is hereby waived and released. 
Each Grantor further agrees, at the Administrative Agent’s request, to
assemble the Collateral and make it available to the Administrative Agent at
places which the Administrative Agent shall reasonably select, whether at such
Grantor’s premises or elsewhere.  The
Administrative Agent shall apply the net proceeds of any action taken by it
pursuant to this Section 6.6, after deducting all reasonable costs
and expenses of every kind incurred in connection therewith or incidental to
the care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the Administrative Agent and the other Secured
Parties hereunder, including, without limitation, reasonable attorneys’ fees
and disbursements, to the payment in whole or in part of the Obligations, in
such order as set forth in Section 6.5, and only after such
application and after the payment by the Administrative Agent of any other
amount required by any provision of law, including, without limitation, Section 9615(a)(3) of
the California UCC, need the Administrative Agent account for the surplus, if
any, to any Grantor.  To the extent
permitted by applicable law, each Grantor waives all claims, damages and
demands it may acquire against the Administrative Agent or any other Secured
Party arising out of the exercise by them of any rights hereunder.  If any notice of a proposed sale or other
disposition of Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other
disposition.

 

(b)        Each Grantor recognizes that the
Administrative Agent may during
the exercise of its rights and remedies upon the occurrence and during the
continuance of an Event of Default, be unable to effect a public sale of
any or all the Pledged Stock, by reason of certain prohibitions contained in
the Securities Act and applicable state securities laws or otherwise, and may
be compelled to resort to one or more private sales thereof to a restricted
group of purchasers which will be obliged to agree, among other things, to
acquire such securities for their own account for investment and not with a
view to the distribution or resale thereof. 
Each Grantor acknowledges and agrees that any such private sale may
result in prices and other terms less favorable than if such sale were a public
sale and, notwithstanding such circumstances, agrees that any such private sale
shall be deemed to have been made in a commercially reasonable manner.  The 

 

 

20

 

Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.

 

(c)        Each Grantor agrees to use its best
efforts to do or cause to be done all such other acts as may be necessary to
make such sale or sales of all or any portion of the Pledged Stock pursuant to
this Section 6.7 valid and binding and in compliance with any
applicable Requirement of Law.  Each
Grantor further agrees that a breach of any of the covenants contained in this Section 6.7
will cause irreparable injury to the Administrative Agent and the other Secured
Parties, that the Administrative Agent and the other Secured Parties have no
adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section 6.7 shall be
specifically enforceable against such Grantor, and such Grantor hereby waives
and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred and is continuing under the Credit Agreement.

 

6.7        Intellectual
Property License.  Solely for the purpose
of enabling the Administrative Agent to exercise rights and remedies under this
Section 6 and at such time as the Administrative Agent shall be lawfully
entitled to exercise such rights and remedies following the occurrence and
during the continuance of an Event of Default and until it has been cured or
waived, each Grantor hereby grants to the Administrative Agent, to the extent
that such Grantor is legally able to do so, for the benefit of the Secured
Parties, an irrevocable during the term of this Agreement, non-exclusive,
worldwide license (exercisable without payment of royalty or other compensation
to such Grantor but subject to the payment of any third party royalties under
license agreements to which Grantor is a Party), subject, in the case of
Trademarks, to sufficient rights to quality control and inspection in favor of
such Grantor to avoid the risk of invalidation of said Trademarks, to use,
operate under, license, or sublicense any Intellectual Property now owned or
hereafter acquired by the Grantors, and subject to the rights of any other
licensee of Grantors under an exclusive license in effect as of the date hereof
and as contemplated under Section 4.1.

 

6.8        Deficiency.  Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay its Obligations and the fees and disbursements of any
attorneys employed by the Administrative Agent or any other Secured Party to
collect such deficiency.

 

SECTION 7.     THE ADMINISTRATIVE AGENT

 

Each Grantor covenants
and agrees with the Administrative Agent and the other Secured Parties that:

 

7.1        Administrative
Agent’s Appointment as Attorney-in-Fact, etc. 
(a)  Each Grantor hereby irrevocably constitutes and appoints the
Administrative Agent and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power and
authority in the place and stead of such Grantor and in the name of such
Grantor or in its own name, for the purpose of carrying out the terms of this
Agreement, to take any and all appropriate action and to execute any and all
documents and instruments which may be necessary or desirable to accomplish the
purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Administrative Agent the power and 

 

 

21

 

right, on behalf of such Grantor, without notice to or
assent by such Grantor, to do any or all of the following:

 

(i)         in the name of such Grantor or its own name, or otherwise,
take possession of and indorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under any
Receivable or with respect to any other Collateral and file any claim or take
any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Administrative Agent for the purpose of collecting
any and all such moneys due under any Receivable or with respect to any other
Collateral whenever payable;

 

(ii)        in the case of any Intellectual Property included in the
Collateral, execute and deliver, and have recorded, any and all agreements,
instruments, documents and papers as the Administrative Agent may reasonably
request to evidence the Administrative Agent’s and the other Secured Parties’
security interest in such Intellectual Property, general intangibles of such
Grantor represented thereby and, with respect to any Trademarks in the goodwill
connected with the use thereof and symbolized thereby;

 

(iii)       pay or discharge taxes and Liens levied or placed on or
threatened against the Collateral, effect any repairs or any insurance called
for by the terms of this Agreement and pay all or any part of the premiums
therefor and the costs thereof;

 

(iv)       execute, in connection with any sale provided for in Section 6.6
or 6.7, any indorsements, assignments or other instruments of conveyance
or transfer with respect to the Collateral; and

 

(v)        (1)  direct any party liable for any payment under
any of the Collateral to make payment of any and all moneys due or to become
due thereunder directly to the Administrative Agent or as the Administrative
Agent shall direct; (2) ask or demand for, collect, and receive payment of
and receipt for, any and all moneys, claims and other amounts due or to become
due at any time in respect of or arising out of any Collateral; (3) sign
and indorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications, notices
and other documents in connection with any of the Collateral; (4) commence
and prosecute any suits, actions or proceedings at law or in equity in any
court of competent jurisdiction to collect the Collateral or any portion
thereof and to enforce any other right in respect of any Collateral; (5) defend
any suit, action or proceeding brought against such Grantor with respect to any
Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as
the Administrative Agent may deem appropriate; (7) assign any Copyright,
Patent or Trademark (along with the goodwill of the business connected with the
use of or symbolized by any Trademark), throughout the world for such term or
terms, on such conditions, and in such manner, as the Administrative Agent
shall in its sole discretion determine; and (8) generally, sell, transfer,
pledge and make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though the Administrative Agent were the
absolute owner thereof for all purposes, and do, at the Administrative Agent’s
option and such Grantor’s expense, at any time, or from time to time, all acts
and things which the Administrative Agent deems necessary to protect, preserve
or 

 

 

22

 

realize upon the Collateral and the Administrative Agent’s and the
other Secured Parties’ security interests therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do.

 

(b)        The expenses of the Administrative Agent
incurred in connection with actions undertaken as provided in this Section 7.1,
together with interest thereon at a rate per annum equal to the rate per annum
at which interest would then be payable on any category of past due ABR Loans
under the Credit Agreement, from the date of payment by the Administrative
Agent to the date reimbursed by the relevant Grantor, shall be payable by such
Grantor to the Administrative Agent on demand.

 

(c)        Each Grantor hereby ratifies all that
said attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby
are released.

 

Anything in this Section 7.1 to the contrary
notwithstanding, the Administrative Agent agrees that it will not exercise any
rights under the power of attorney provided for in this Section 7.1 unless
an Event of Default shall have occurred and be continuing.

 

7.2        Duty
of Administrative Agent.  The
Administrative Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession, under Section 9207
of the California UCC or otherwise, shall be to deal with it in the same manner
as the Administrative Agent deals with similar property for its own
account.  Neither the Administrative
Agent, any other Secured Party nor any of their respective officers, directors,
employees or agents shall be liable for failure to demand, collect or realize
upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
any Grantor or any other Person or to take any other action whatsoever with
regard to the Collateral or any part thereof. 
The powers conferred on the Administrative Agent and the other Secured
Parties hereunder are solely to protect the Administrative Agent’s and the
other Secured Parties’ interests in the Collateral and shall not impose any
duty upon the Administrative Agent or any other Secured Party to exercise any
such powers.  The Administrative Agent
and the other Secured Parties shall be accountable only for amounts that they
actually receive as a result of the exercise of such powers, and neither they
nor any of their officers, directors, employees or agents shall be responsible
to any Grantor for any act or failure to act hereunder, except for their own gross
negligence, bad faith or willful misconduct or their breach of this Agreement.

 

7.3        Authorization
of Financing Statements.  Pursuant to any
applicable law, each Grantor authorizes the Administrative Agent to file or
record financing statements and other filing or recording documents or
instruments with respect to the Collateral without the signature of such
Grantor in such form and in such offices as the Administrative Agent determines
appropriate to perfect the security interests of the Administrative Agent under
this Agreement.  Each Grantor authorizes
the Administrative Agent to use the collateral description “all personal
property, whether now owned or hereafter acquired” or any other similar
collateral description in any such financing statements.  Each Grantor hereby ratifies and authorizes
the filing by the 

 

 

23

 

Administrative Agent of any financing statement with
respect to the Collateral made prior to the date hereof.

 

7.4        Authority
of Administrative Agent.  Each Grantor
acknowledges that the rights and responsibilities of the Administrative Agent
under this Agreement with respect to any action taken by the Administrative
Agent or the exercise or non-exercise by the Administrative Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as between the Administrative
Agent and the other Secured Parties, be governed by the Credit Agreement and by
such other agreements with respect thereto as may exist from time to time among
them, but, as between the Administrative Agent and the Grantors, the
Administrative Agent shall be conclusively presumed to be acting as agent for
the Secured Parties with full and valid authority so to act or refrain from
acting, and no Grantor shall be under any obligation, or entitlement, to make
any inquiry respecting such authority.

 

SECTION 8.     MISCELLANEOUS

 

8.1        Amendments
in Writing.  None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise
modified except in accordance with Section 10.1 of the Credit
Agreement.

 

8.2        Notices.  All notices, requests and demands to or upon
the Administrative Agent or any Grantor hereunder shall be effected in the
manner provided for in Section 10.2 of the Credit Agreement; provided
that any such notice, request or demand to or upon any Guarantor shall be
addressed to such Guarantor at its notice address set forth on Schedule 1.

 

8.3        No
Waiver by Course of Conduct; Cumulative Remedies.  Neither the Administrative Agent nor any
other Secured Party shall by any act (except by a written instrument pursuant
to Section 8.1), delay, indulgence, omission or otherwise be deemed
to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default, as applicable. 
No failure to exercise, nor any delay in exercising, on the part of the
Administrative Agent or any other Secured Party, any right, power or privilege
hereunder shall operate as a waiver thereof. 
No single or partial exercise of any right, power or privilege hereunder
shall preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.  A
waiver by the Administrative Agent or any other Secured Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Administrative Agent or such other Secured Party
would otherwise have on any future occasion. 
The rights and remedies herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies
provided by law.

 

8.4        Enforcement
Expenses; Indemnification.  (a) 
Each Guarantor agrees to pay or reimburse the Administrative Agent and each other
Secured Party for all its costs and expenses incurred in collecting against
such Guarantor under the guaranty contained in Section 2 of this
Agreement or otherwise enforcing or preserving any rights under this Agreement
and the other Loan Documents to which such Guarantor is a party, including,
without limitation, the fees and disbursements of counsel (including the
allocated fees and expenses of in-house counsel) to the Administrative Agent
and of counsel to each other Secured Party.

 

 

24

 

(b)        Each Guarantor agrees to pay, and to
save the Administrative Agent and each other Secured Party harmless from, any
and all liabilities with respect to, or resulting from any delay in paying, any
and all stamp, excise, sales or other taxes which may be payable or determined
to be payable with respect to any of the Collateral or in connection with any
of the transactions contemplated by this Agreement.

 

(c)        Each Guarantor agrees to pay, and to
save the Administrative Agent and each other Secured Party harmless from, any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance
and administration of this Agreement to the extent the Borrower would be
required to do so pursuant to the Credit Agreement.

 

(d)        The agreements in this Section 8.4
shall survive repayment of the Obligations and any other amounts payable under
the Credit Agreement and the other Loan Documents.

 

8.5        Successors
and Assigns.  This Agreement shall be
binding upon the successors and assigns of each Grantor and shall inure to the
benefit of the Administrative Agent and each other Secured Party and their
respective successors and assigns; provided that no Grantor may assign,
transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Administrative Agent (it being
understood that this Section 8.5 shall not require Administrative
Agent consent to a merger or consolidation permitted under the Credit
Agreement).

 

8.6        Set-Off.  Each Grantor hereby irrevocably authorizes
the Administrative Agent and each other Secured Party at any time and from time
to time after the occurrence and during the continuance of an Event of Default,
without notice to such Grantor or any other Grantor, any such notice being
expressly waived by each Grantor, to set-off and appropriate and apply any and
all deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by the Administrative Agent or such
Secured Party to or for the credit or the account of such Grantor, or any part
thereof in such amounts as the Administrative Agent or such Secured Party may
elect, against and on account of the Obligations and liabilities of such
Grantor to the Administrative Agent or such Secured Party hereunder and under
the other Loan Documents and claims of every nature and description of the
Administrative Agent or such Secured Party against such Grantor, in any
currency, whether arising hereunder, under the Credit Agreement, any other Loan
Document or otherwise, as the Administrative Agent or such Secured Party may
elect, whether or not the Administrative Agent or any other Secured Party has
made any demand for payment and although such obligations, liabilities and
claims may be contingent or unmatured. 
The rights of the Administrative Agent and each other Secured Party
under this Section 8.6 are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which the
Administrative Agent or such other Secured Party may have.

 

8.7        Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

 

 

25

 

8.8        Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

8.9        Section Headings.  The Section headings used in this
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation
hereof.

 

8.10      Integration.  This Agreement and the other Loan Documents
represent the agreement of the Grantors, the Administrative Agent and the other
Secured Parties with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the
Administrative Agent or any other Secured Party relative to subject matter
hereof and thereof not expressly set forth or referred to herein or in the
other Loan Documents.

 

8.11     GOVERNING LAW.  THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF CALIFORNIA.

 

8.12      Submission
To Jurisdiction; Waivers.  Each Grantor
hereby irrevocably and unconditionally:

 

(a)        submits for itself and its property in
any legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of California, the courts of the United States of
America for the Northern District of California, and appellate courts from any
thereof;

 

(b)        consents that any such action or
proceeding may be brought in such courts and waives any objection that it may
now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

 

(c)        agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such Grantor at its address referred to in Section 8.2
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

 

(d)        agrees that nothing herein shall affect
the right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and

 

(e)        waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

 

8.13      Acknowledgements.  Each Grantor hereby acknowledges that:

 

 

26

 

(a)        neither the Administrative Agent nor any
other Secured Party has any fiduciary relationship with or duty to any Grantor
arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Grantors, on the one hand, and the
Administrative Agent and the other Secured Parties, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

 

(b)        no joint venture is created hereby or by
the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among any of the Secured Parties or among the Grantors and
any of the Secured Parties.

 

8.14      Additional
Grantors.  Each Subsidiary of the
Borrower that is required to become a party to this Agreement pursuant to Section 6.11
of the Credit Agreement shall become a Grantor for all purposes of this
Agreement upon execution and delivery by such Subsidiary of an Assumption
Agreement in the form of Annex 1 hereto.

 

8.15      Releases. 
Upon the Discharge of Obligations, the Collateral shall be released from
the Liens in favor of the Administrative Agent and the other Secured Parties
created hereby, this Agreement shall terminate with respect to the
Administrative Agent and the other Secured Parties, and all obligations (other
than those expressly stated to survive such termination) of each Grantor to the
Administrative Agent or any other Secured Party hereunder shall automatically
terminate and all rights to the Collateral shall revert to each such Grantor
all without delivery of any instrument or performance of any act by any
Person.  At the sole expense of any
Grantor following any such termination, the Administrative Agent shall deliver to each Grantor any Collateral held by the
Administrative Agent hereunder and execute and deliver to each Grantor such
documents as such Grantor shall reasonably request to evidence such termination
and the release of the Administrative Agent’s security interest in the
Collateral.  If any
of the Collateral shall be sold, transferred or otherwise disposed of by any
Grantor in a transaction permitted by the Credit Agreement or that has been
consented to in accordance with Section 10.1 of the Credit
Agreement, (i) the Liens granted herein on the property so disposed of
shall be deemed to be automatically released simultaneously with the
consummation of such sale, transfer or other disposition with no further action
on the part of any Person and (ii) the Administrative Agent, at the
request and sole expense of such Grantor, shall execute and deliver to such
Grantor all releases or other documents reasonably necessary or desirable for
the release of the Liens created hereby on such Collateral, as applicable or
otherwise authorize the filing of such documents; provided  however,
in connection therewith, a Grantor may not file a termination or release, as
applicable, without the Administrative Agent’s authorization, which shall be
provided upon such Grantor’s request and at such Grantor’s expense.

 

A Guarantor shall be automatically released from its obligations
hereunder in the event that all the Capital Stock of such Guarantor shall be
sold, transferred or otherwise disposed of to a Person other than a Loan Party
in a transaction permitted by Section 7 the Credit Agreement; provided
that a Grantor may not file a termination or release, as applicable,
without the Administrative Agent’s authorization, which shall be provided upon
such Grantor’s request and at such Grantor’s expense.  The Administrative Agent will return to the
Borrower any such Capital Stock of a Guarantor in its possession that is so
sold, transferred or disposed of.

 

 

27

 

The Administrative Agent agrees to take such actions as any Grantor may
reasonably request to release and terminate its Liens on any assets subject to
Liens permitted under Sections 7.3(c), (d), (g), (q) and
(r) of the Credit Agreement (to the extent the Administrative Agent’s
Lien is prohibited thereunder).

 

Notwithstanding anything to the contrary contained herein or in any
other Loan Document, upon the consummation of the Classmates IPO, Classmates
and its Subsidiaries shall be automatically released from the Loan Documents
and shall have no further liability thereunder. 
The Guarantee Obligations of Classmates and its Subsidiaries under the
Loan Documents shall automatically be released and all Liens granted by
Classmates and its Subsidiaries to secure the Obligations or under any Loan
Document shall automatically terminate upon the consummation of the Classmates
IPO. The Administrative agent shall take such actions at the Borrower’s expense
as the Borrower may reasonably request to evidence such release and termination
and shall return any Collateral in its possession or control granted by
Classmates or its Subsidiaries upon the consummation of the Classmates IPO; for
clarification, to the extent that the Borrower or any Subsidiary Guarantor owns
any Capital Stock of Classmates after consummation of the Classmates IPO, the
Administrative Agent shall continue to have its Lien hereunder on such Capital
Stock.

 

8.16        WAIVER OF JURY
TRIAL.  EACH GRANTOR AND THE ADMINISTRATIVE AGENT
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.  WITHOUT INTENDING
IN ANY WAY TO LIMIT ANY GRANTOR’S AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO
A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not
enforceable, each Grantor and the Administrative Agent agree that any and all
disputes or controversies of any nature between them arising at any time shall
be decided by a reference to a private judge, mutually selected by Grantors,
the Administrative Agent and the Lenders (or, if they cannot agree, by the
Presiding Judge of the Santa Clara County, California Superior Court) appointed
in accordance with California Code of Civil Procedure Section 638 (or
pursuant to comparable provisions of federal law if the dispute falls within
the exclusive jurisdiction of the federal courts), sitting without a jury, in
Santa Clara County, California; and each Grantor hereby submits to the
jurisdiction of such court.  The
reference proceedings shall be conducted pursuant to and in accordance with the
provisions of California Code of Civil Procedure §§ 638 through 645.1,
inclusive.  The private judge shall have
the power, among others, to grant provisional relief, including without limitation,
entering temporary restraining orders, issuing preliminary and permanent
injunctions and appointing receivers. 
All such proceedings shall be closed to the public and confidential and
all records relating thereto shall be permanently sealed.  If during the course of any dispute, a party
desires to seek provisional relief, but a judge has not been appointed at that
point pursuant to the judicial reference procedures, then such party may apply
to the Santa Clara County, California Superior Court for such relief. The
proceeding before the private judge shall be conducted in the same manner as it
would be before a court under the rules of evidence applicable to judicial
proceedings.  Grantors shall be entitled
to discovery which shall be conducted in the same manner as it would be before
a court under the rules of discovery applicable to judicial proceedings.
The private judge shall oversee discovery and may enforce all discovery rules and
order applicable to judicial proceedings in the same manner as a trial court
judge.  Grantors agree that the selected
or appointed private judge shall have the power to decide all issues in the
action or proceeding, whether of fact of law, and shall report a statement of
decision thereon pursuant to the California 

 

28

 

Code
of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of
the Administrative Agent or any Lender at any time to exercise self-help
remedies, foreclose against collateral, or obtain provisional remedies. The
private judge shall also determine all issues relating to the applicability,
interpretation and enforceability of this paragraph.

 

[remainder of page intentionally
left blank]

 

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Guarantee and
Collateral Agreement to be duly executed and delivered as of the date first
above written.

 

	
   

  	
  Grantors:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED ONLINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CLASSMATES INTERNATIONAL,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CLASSMATES MEDIA
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CLASSMATES ONLINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CLASSMATES YEARBOOKS,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  FREEINTERNET.COM, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  JUNO INTERNET SERVICES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

[Signature
Page to Guarantee and Collateral Agreement]

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
   

  	
  JUNO ONLINE SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  MYPOINTS.COM, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  NETZERO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  OPOBOX, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED ONLINE
  ADVERTISING NETWORK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED ONLINE
  COMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED ONLINE WEB
  SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

[Signature
Page to Guarantee and Collateral Agreement]

 

 

3

	
   

  	
   

  	
   

  
	
   

  	
  UOL ADVERTISING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

[Signature Page to Guarantee and Collateral Agreement]

 

	
   

  	
   

  	
   

  
	
   

  	
  SILICON VALLEY BANK,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

[Signature Page to Guarantee and Collateral Agreement]

 

 

Schedule
1

 

 

NOTICE ADDRESSES OF GUARANTORS

 

 

Schedule
2

 

 

DESCRIPTION OF INVESTMENT PROPERTY

 

Pledged Stock:

 

	
  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Class of
  Capital

  Stock

  	
   

  	
  Certificate No.

  	
   

  	
  No. of
  Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Notes:

 

	
  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Date of Issuance

  	
   

  	
  Payee

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Securities
Accounts:

 

	
  Grantor

  	
   

  	
  Securities
  Intermediary

  	
   

  	
  Address

  	
   

  	
  Account
  Number(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Commodities
Accounts:

 

	
  Grantor

  	
   

  	
  Commodities
  Intermediary

  	
   

  	
  Address

  	
   

  	
  Account

  Number(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Deposit
Accounts:

 

	
  Grantor

  	
   

  	
   

  	
   

  	
  Depositary Bank

  	
   

  	
  Address

  	
   

  	
  Account

  Number(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule
3

 

 

LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE,
ETC.

 

	
  Grantor

  	
   

  	
   

  	
   

  	
  Jurisdiction

  of

  Organization

  	
   

  	
  Organizational

  Identification

  Number

  	
   

  	
  Location of

  Chief

  Executive

  Office

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule 4

 

 

LOCATIONS OF EQUIPMENT AND INVENTORY

 

	
  Grantor

  	
   

  	
  Locations

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule
5

 

COPYRIGHTS AND COPYRIGHT LICENSES

 

 

PATENTS AND PATENT LICENSES

 

 

TRADEMARKS
AND TRADEMARK LICENSES

 

 

Annex 1 to

Guarantee and Collateral Agreement

 

 

ASSUMPTION
AGREEMENT, dated as of                                 ,
        , made by                                                             
(the “Additional Grantor”), in favor of SILICON VALLEY BANK, as
Administrative Agent (in such capacity, the “Administrative Agent”) for
the banks and other financial institutions or entities (the “Lenders”)
from time to time parties to the Credit Agreement, dated as of August 11,
2008 (as amended, amended and restated, supplemented, restructured or otherwise
modified, renewed or replaced from time to time, the “Credit Agreement”),
among United Online, Inc., a Delaware corporation (the “Borrower”),
the other Grantors party thereto, the Lenders and the Administrative Agent.  All capitalized terms not defined herein
shall have the meaning ascribed to them in such Credit Agreement.

 

W  I  T  N  E
S  S  E  T  H :

 

WHEREAS,
in connection with the Credit Agreement, the Borrower and certain of its
Affiliates (other than the Additional Grantor) have entered into the Guarantee
and Collateral Agreement, dated as of August 11, 2008, in favor of the
Administrative Agent for the benefit of the Secured Parties defined therein
(the “Guarantee and Collateral Agreement”);

 

WHEREAS,
the Credit Agreement requires the Additional Grantor to become a party to the
Guarantee and Collateral Agreement; and

 

WHEREAS,
the Additional Grantor has agreed to execute and deliver this Assumption
Agreement in order to become a party to the Guarantee and Collateral Agreement;

 

NOW,
THEREFORE, IT IS AGREED:

 

1.  Guarantee and Collateral Agreement.  By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 8.14 of the
Guarantee and Collateral Agreement, (a) hereby becomes a party to the
Guarantee and Collateral Agreement as a Grantor thereunder with the same force
and effect as if originally named therein as a Grantor and, without limiting
the generality of the foregoing, hereby expressly assumes all obligations and
liabilities of a Grantor thereunder, and (b) hereby grants to the
Administrative Agent, for the benefit of the Secured Parties, as security for
the Obligations of such Additional Grantor, a security interest in all of the
Additional Grantor’s right, title and interest in any and to all Collateral of
Additional Grantor, in each case whether now owned or hereafter acquired or in
which Additional Grantor now has or hereafter acquires an interest and wherever
the same may be located, but subject in all respects to the terms, conditions
and exclusions set forth in the Guarantee and Collateral Agreement.  The information set forth in Annex 1-A
hereto is hereby added to the information set forth in the Schedules to the
Guarantee and Collateral Agreement.  The
Additional Grantor hereby represents and warrants that each of the
representations and

 

 

2

 

warranties contained in Section 4 of the
Guarantee and Collateral Agreement is true and correct in all material respects
(solely as to the Additional Grantor) on and as the date hereof (after giving
effect to this Assumption Agreement) as if made on and as of such date.

 

2.  Governing Law.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
CALIFORNIA.

 

IN WITNESS WHEREOF, the undersigned has caused this
Assumption Agreement to be duly executed and delivered as of the date first
above written.

	
   

  	
  [ADDITIONAL
  GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Annex 1-A to

Assumption Agreement

 

 

Supplement to Schedule 1

 

 

Supplement to Schedule 2

 

 

Supplement to Schedule 3

 

 

Supplement to Schedule 4

 

 

Supplement to Schedule 5

 

 

EXHIBIT
B

 

FORM OF

COMPLIANCE CERTIFICATE

 

This
Compliance Certificate is delivered pursuant to Section 6.2(a) of the
Credit Agreement, dated as of                         
[  ],
2008, among United Online, Inc., as Borrower, the Lenders party thereto,
and Silicon Valley Bank, as Administrative Agent (as amended, restated, amended
and restated, supplemented, restructured or otherwise modified from time to
time, the “Credit Agreement”). 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

1.   I am the duly elected, qualified and acting [Insert Title of
applicable Responsible Officer] of the Borrower.

 

2.   I have reviewed and am familiar with the contents of this
Compliance Certificate.

 

3.   I have reviewed the terms of the Credit Agreement and the other
Loan Documents and have made, or caused to be made under our supervision, a
review in reasonable detail of the transactions and condition of Borrower
during the accounting period covered by the financial statements attached
hereto as Attachment 1 (the “Financial Statements”).  Except as set forth on Attachment 2,
such review did not disclose the existence, during or at the end of the
accounting period covered by the Financial Statements, of any condition or
event which constitutes a Default or Event of Default.  To the best of my knowledge, there exists no
Default or Event of Default, except as set forth on Attachment 2, as of
the date of this Compliance Certificate.

 

4.   Attached hereto as Attachment 2 are the computations
showing compliance with the covenants set forth in Section 7.1 of the
Credit Agreement.

 

5.   Attached hereto as Attachment 3 is a description of any
change in the jurisdiction of organization of any Loan Party and a list of any
material Intellectual Property acquired by any Loan Party since                 
(the date of most recent report delivered to Administrative Agent).

 

IN
WITNESS WHEREOF, I have executed this Compliance Certificate this           
day of                                     ,
20    .

 

	
   

  	
  UNITED ONLINE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Attachment
1

to Compliance Certificate

 

 

[Attach Financial Statements]

 

Attachment
2

to Compliance Certificate

 

 

 

Except as set forth below, to the best of my knowledge no Default or
Event of Default exists.  [If a Default
or Event of Default has occurred, the following describes the nature of the
Default or Event of Default.]

 

 

The information described herein is as of                         ,
        , and pertains to the
period from                         ,
         to                         ,
        .

 

 

I.          Consolidated Fixed Charge
Coverage Ratio (Section 7.1(a))

 

Required:          Permit
the Consolidated Fixed Charge Coverage Ratio as at the last day of any period
of four consecutive quarters of Borrower ending in any period set forth below
to be less than the ratio set forth below opposite such quarter:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated Fixed Charge Coverage Ratio

  
	
  September 30, 2008
  and each quarter thereafter

  	
   

  	
  1.50

  

 

Actual:

 

	
  A.

  	
  Consolidated Net Income
  

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Only to the extent
  deducted in the calculation of Consolidated Net Income

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.         Consolidated Interest Expense

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.         provisions for taxes based on income
  (including provisions to the extent necessary to permit Borrower and the
  Restricted Subsidiaries to discharge their consolidated, combined or other
  group tax liabilities)

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.         total depreciation expense

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.         total amortization expense

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.         costs associated with the
  transactions contemplated by the Merger Agreement (including for the
  avoidance of doubt transaction costs paid by Borrower or a Restricted
  Subsidiary in connection with the financings by Target with respect to the
  Merger Agreement) and hereunder

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.         all extraordinary, unusual or
  non-recurring losses, charges or expenses (minus any extraordinary, unusual
  or non-recurring gains (other than the proceeds of business interruption
  insurance))

  	
   

  	
  $            

  

 

 

7

 

 

	
   

  	
  7.         all other non-cash items, including,
  without limitation, non-cash stock compensation expenses for officers,
  directors, employees and consultants (other than any such non-cash item to
  the extent it represents an accrual of or reserve for cash expenditures in
  any future period)

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.         (A) any non-cash impairment
  charge or asset write-off or write-down, in each case relating to an
  intangible asset, pursuant to Financial Accounting Standards Board Statements
  No. 142 and No. 144, (B) the amortization of intangible assets
  arising pursuant to Financial Accounting Standards Board Statement
  No. 141, (C) the amortization or write-off deferred financing fees
  and (D) the amortization of other intangible assets

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.         restructuring expenses, severance
  costs and integration costs incurred during such period (provided however,
  such expenses and costs shall not exceed $4,000,000 in any trailing four
  quarter period)

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.        interest income (other then interest
  income relating to Swap Agreements)

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.        an amount equal to the amount by which
  payments made pursuant to Section 7.6(c)(ii) of the Credit
  Agreement exceed $10,000,000 in the current fiscal year

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.        The sum of lines 1 through 9 minus
  line 10 minus line 11 

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
  CONSOLIDATED EBITDA
  (line A plus line B.12)

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
  the aggregate amount of
  Consolidated Capital Expenditures for such period (excluding Consolidated
  Capital Expenditures financed other than from internally generated cash)

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
  all cash payments in respect
  of income taxes of Borrower and its Restricted Subsidiaries made during such
  period (net of any cash refund(s) in respect of income taxes actually
  received during such period) therein

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
  Consolidated Fixed
  Charges

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
  Consolidated Fixed
  Charge Coverage Ratio (line C minus line D minus line E) divided by line F)

  	
   

  	
   _______

  

 

Is line G equal to or
greater than the required ratios set forth above?

 

	
   

  	
               No, not in compliance

  	
               Yes, in compliance

  	
   

  

 

 

II.         Consolidated Leverage
Ratio (Section 7.1(b))

 

 

Required:          Consolidated
Leverage Ratio.  Permit the
Consolidated Leverage Ratio as at the last day of any period of four
consecutive quarters of Borrower ending in any period set forth below to exceed
the ratio set forth below opposite such quarter:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated  Leverage Ratio

  
	
   

  	
   

  	
   

  
	
  September 30, 2008
  and each quarter thereafter

  	
   

  	
  1.25

  

 

Actual:

 

	
  A.

  	
  the aggregate (without
  duplication) stated balance sheet amount of all Indebtedness of Borrower and
  the Restricted Subsidiaries (other than Indebtedness in respect of Swap
  Agreements)

  	
   

  	
  $            

  
	
  B.

  	
  Consolidated EBITDA
  (line I(C)) above

  	
   

  	
  $            

  
	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
  Consolidated Leverage
  Ratio (line A divided by line B)

  	
   

  	
   _______

  

 

Is line C equal to or
less than the required ratios set forth above?

 

	
   

  	
               No, not in compliance

  	
               Yes, in compliance

  	
   

  

 

 

III.       Consolidated EBITDA
(Section 7.1(c))

 

Required:          Consolidated EBITDA.  Permit Consolidated EBITDA as at the last day
of any period of four consecutive quarters of Borrower ending in any period set
forth below to be less than the amount set forth below opposite such quarter:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated
  EBITDA

  
	
   

  	
   

  	
   

  
	
  September 30, 2008
  and each quarter thereafter 

  	
   

  	
  $100,000,000 adjusted
  to $50,000,000 upon the Classmates IPO

  

 

Is line I(C) equal
to or greater than the amounts set forth above?

 

	
   

  	
               No, not in compliance

  	
               Yes, in compliance

  	
   

  

 

 

9

 

 

 

Attachment
3

to Compliance Certificate

 

 

EXHIBIT
C

 

FORM OF

CLOSING CERTIFICATE

 

Pursuant
to Section 5.1(f) of the Credit Agreement, dated as of                         
[  ],
2008, among United Online, Inc., as Borrower, the Lenders party thereto,
and Silicon Valley Bank, as Administrative Agent (the “Credit Agreement”),
the undersigned [Secretary] of [Insert Name of Loan Party] (the “Certifying
Loan Party”) hereby certifies as follows:

 

1.         The
Specified Representations in the Loan Documents shall be true, correct and
complete in all material respects (provided that if any such Specified
Representation is qualified as to materiality, such Specified Representation
shall be required to be true and correct) on and as of the date hereof to the
same extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall have been true, correct and
complete in all material respects on and as of such earlier date; provided
that, if a Specified Representation as of an earlier date is qualified as to
materiality, such Specified Representation shall be required to be true and
correct as of such earlier date.

 

2.         I am
the duly elected and qualified [Secretary] of the Certifying Loan Party.

 

3.         The
conditions precedent set forth in Section 5.1 of the Credit Agreement were
satisfied as of the Closing Date, except as to matters which require the
approval or satisfaction of the Administrative Agent or the Lenders.

 

4.         There
are no liquidation or dissolution proceedings pending or, to my knowledge,
threatened against the Certifying Loan Party, nor has any other event occurred
which could materially adversely affect or threaten the continued corporate
existence of the Certifying Loan Party.

 

5.         Attached
hereto as Annex 1 is a true and complete copy of resolutions duly
adopted by the [Board of Directors] [members] of the Certifying Loan Party on                                   ,
20    ; such resolutions have not in any way been
amended, modified, revoked or rescinded, have been in full force and effect
since their adoption to and including the date hereof and are now in full force
and effect.

 

6.         Attached
hereto as Annex 2 is a true and complete copy of the [By-Laws]
[Operating Agreement] of the Certifying Loan Party as in effect on the date
hereof.

 

7.         Attached
hereto as Annex 3 is a true and complete copy of the [Certificate of
Incorporation] [Articles of Formation] of the Certifying Loan Party as in
effect on the date hereof, along with a long-form good-standing certificate for
the Certifying Loan Party from the jurisdiction of its organization.

 

8.         The
following persons are now duly elected and qualified officers of the Certifying
Loan Party holding the offices indicated next to their respective names below,
and the signatures appearing opposite their respective names below are the true
and genuine signatures of such officers, and each of such officers is duly
authorized to execute and deliver on behalf of the Certifying Loan Party each
of the Loan Documents to which it is a party and any certificate or

 

 

2

 

other document to be delivered by the Certifying Loan Party pursuant to
the Loan Documents to which it is a party:

 

	
  Name

  	
  Office

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

IN WITNESS WHEREOF, I have hereunto set my hand as of
the date set forth below.

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title: [Secretary]

  

 

 

I, [                        ],
in my capacity as the [                        ]
of the Certifying Loan Party, do hereby certify in the name and on behalf of
the Certifying Loan Party that [                        ]
is the duly elected and qualified [Secretary] of the Certifying Loan Party and
that the signature appearing above is [her][his] genuine signature.

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  Date:                            ,
  20    

  

 

 

ANNEX 1

 

 

[Resolutions]

 

 

ANNEX 2

 

 

[By-Laws] [Operating Agreement]

 

 

ANNEX 3

 

 

[Certificate of Incorporation] [Articles of Formation] and
[Good-Standing Certificate]

 

 

EXHIBIT D

 

FORM OF

ASSIGNMENT AND ASSUMPTION

 

This Assignment Agreement (the “Assignment
Agreement”) is dated as of the Assignment Effective Date set forth below
and is entered into by and between the Assignor identified in item 1 below (the
“Assignor”) and the Assignee identified in item 2 below (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, restated, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), receipt of a copy of which
is hereby acknowledged by the Assignee. 
The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a
part of this Assignment Agreement as if set forth herein in full.

 

For an agreed
consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Assignment Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement
and any other documents or instruments delivered pursuant thereto to the extent
related to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any
other right of the Assignor (in its capacity as a Lender) against any Person,
whether known or unknown, arising under or in connection with the Credit
Agreement, any other documents or instruments delivered pursuant thereto or the
loan transactions governed thereby or in any way based on or related to any of
the foregoing, including, but not limited to, contract claims, tort claims,
malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned by the Assignor to the Assignee
pursuant to clauses (i) and (ii) above being referred to herein
collectively as the “Assigned Interest”).  Each such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
Agreement, without representation or warranty by the Assignor.

 

	
  1.

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [for Assignee, if
  applicable, indicate [Affiliate][Approved Fund] of [identify
  Lender]]

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Borrower:

  	
  United
  Online, Inc., a Delaware corporation.

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative Agent:

  	
  SILICON VALLEY BANK.

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Credit Agreement:

  	
  Credit Agreement, dated
  as of                         
  [   ], 2008, among United Online, Inc., a Delaware
  corporation, as Borrower, the Lenders party thereto, and SILICON VALLEY BANK,
  as Administrative Agent.

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Assigned Interest[s]:

  	
   

  

 

 

2

 

	
   Assignor

  	
   

  	
   

  	
  Assignee

  	
   

  	
   

  	
  Facility 

  Assigned

  1

  	
   

  	
   

  	
  Aggregate 

  Amount of 

  Commitment / 

  Loans for all 

  Lenders2

  	
   

  	
   

  	
  Amount of 

  Commitment / 

  Loans Assigned3

  	
   

  	
   

  	
  Percentage 

  Assigned of 

  Commitment / 

  Loans4

  	
   

  	
   

  	
  CUSIP 

  Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                       

  	
   

  	
   

  	
  $                           

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                       

  	
   

  	
   

  	
  $                           

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                       

  	
   

  	
   

  	
  $                           

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
   

  	
   

  

 

	
  [7.

  	
  Trade Date:

  	
                          ]5

  

 

 

Assignment
Effective Date:                             
      , 20      
[TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE ASSIGNMENT
EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

[Signature pages follow]

 

 

 

1                                           Fill in the
appropriate terminology for the types of facilities under the Credit Agreement
that are being assigned under this Assignment Agreement (e.g. “Term Facility”,
etc.)

 

2                                           Amount to be
adjusted by the counterparties to take into account any payments or prepayments
made between the Trade Date and the Assignment Effective Date.

 

3                                           Amount to be
adjusted by the counterparties to take into account any payments or prepayments
made between the Trade Date and the Assignment Effective Date.

 

4                                           Set forth, to
at least 9 decimals, as a percentage of the applicable Commitment/Loans of all
Lenders thereunder.

 

5                                           To be completed if the
Assignor(s) and the Assignee(s) intend that the minimum assignment
amount is to be determined as of the Trade Date.

 

 

2

 

The terms set forth in
this Assignment Agreement are hereby agreed to:

 

	
   

  	
  ASSIGNOR1

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE2

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

1              Add additional signature blocks as needed.

 

2              Add additional signature blocks as needed.

 

 

2

 

	
  Consented to and
  Accepted:

  	
   

  
	
   

  	
   

  
	
  SILICON VALLEY BANK,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Consented to:]3

  	
   

  
	
   

  	
   

  
	
  [NAME OF RELEVANT
  PARTY]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [NAME OF RELEVANT
  PARTY]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

 

3                                           To be added
only if the consent of the Borrower and/or other paraties is required by the
terms of the Credit Agreement.

 

 

2

 

ANNEX 1

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.  Representations and Warranties.

 

1.1  Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment Agreement and to consummate
the transactions contemplated hereby; and (b) assumes no responsibility
with respect to (i) any statements, warranties or representations made in
or in connection with the Credit Agreement or any other Loan Document, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Loan Documents or any collateral thereunder, (iii) the
financial condition of any Loan Party, any of their respective Subsidiaries or
Affiliates or any other Person obligated in respect of any Loan Document or (iv) the
performance or observance by any Loan Party, any of their respective
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document or any other instrument or document
furnished pursuant hereto or thereto.

 

1.2.  Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment Agreement and to consummate
the transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all the requirements to be an Assignee under Section 10.6(b) of
the Credit Agreement (subject to such consents, if any, as may be required
under Section 10.6(b)(i) of the Credit Agreement), (iii) from
and after the Assignment Effective Date, it shall be bound by the provisions of
the Credit Agreement as a Lender thereunder and, to the extent of the Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it is
sophisticated with respect to decisions to acquire assets of the type
represented by the Assigned Interest and either it, or the person exercising
discretion in making its decision to acquire the Assigned Interest, is
experienced in acquiring assets of such type, (v) it has received a copy
of the Credit Agreement, and has received or has been accorded the opportunity
to receive copies of the most recent financial statements delivered pursuant to
Section 6.1 thereof, as applicable, and such other documents and
information as it deems appropriate to make its own credit analysis and
decision to enter into this Assignment Agreement and to purchase the Assigned
Interest, (vi) it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Assignment Agreement and to purchase the Assigned
Interest, and (vii) if it is a Non-U.S. Lender, attached to the Assignment
Agreement is any documentation required to be delivered by it pursuant to the
terms of the Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on
any Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents and (ii) it
will perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Lender.

 

2.  Payments.  [From and after the Assignment Effective
Date, the Administrative Agent shall make all payments in respect of the
Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignor for amounts which have accrued to but excluding the
Assignment Effective Date and to the Assignee for amounts which have accrued
from and after the Assignment Effective Date.] 

 

 

2

 

[From
and after the Assignment Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of
principal, interest, fees and other amounts) to the Assignor for amounts which
have accrued to but excluding the Assignment Effective Date and to the Assignee
for amounts which have accrued from and after the Assignment Effective Date.]  9

 

3.  General Provisions.  This Assignment Agreement shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns.  This Assignment
Agreement may be executed in any number of counterparts, which together shall
constitute one instrument.  Delivery of
an executed counterpart of a signature page of this Assignment Agreement
by telecopy shall be effective as delivery of a manually executed counterpart
of this Assignment Agreement.  This
Assignment Agreement shall be governed by, and construed and interpreted in
accordance with, the laws of the State of California.

 

 

 

9           Administrative
Agent to select first or second alternative.

 

 

2

 

EXHIBIT
E

 

FORM OF EXEMPTION CERTIFICATE

 

Reference
is made to the Credit Agreement, dated as of                         
[  ],
2008, among United Online, Inc., as Borrower, the Lenders party thereto,
and Silicon Valley Bank, as Administrative Agent (as amended, restated, amended
and restated, supplemented, restructured or otherwise modified from time to
time, the “Credit Agreement”). 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit
Agreement.                                              
(the “Non-U.S. Lender”) is providing this certificate pursuant to Section 2.14(d) of
the Credit Agreement.  The Non-U.S.
Lender hereby represents and warrants that:

 

1.         The Non-U.S. Lender is the sole record
and beneficial owner of the Loans in respect of which it is providing this
certificate.

 

2.         The Non-U.S. Lender is not a “bank” for
purposes of Section 881(c)(3)(A) of the Internal Revenue Code of
1986, as amended (the “Code”).  In
this regard, the Non-U.S. Lender further represents and warrants that:

 

(a)        the Non-U.S. Lender is not subject to
regulatory or other legal requirements as a bank in any jurisdiction; and

 

(b)        the Non-U.S. Lender has not been treated
as a bank for purposes of any tax, securities law or other filing or submission
made to any Governmental Authority, any application made to a rating agency or
qualification for any exemption from tax, securities law or other legal
requirements.

 

3.         The Non-U.S. Lender is not a 10-percent
shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of
the Code.

 

4.         The Non-U.S. Lender is not a controlled
foreign corporation receiving interest from a related person within the meaning
of Section 881(c)(3)(C) of the Code.

 

IN
WITNESS WHEREOF, the undersigned has duly executed this certificate.

 

	
   

  	
  [NAME OF NON-U.S. LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Date:                                     ,                  

  

 

 

EXHIBIT
F

 

FORM OF

ADDENDUM

 

The undersigned Lender (i) agrees to all of the
provisions of the Credit Agreement, dated as of                         
[  ],
2008 (the “Credit Agreement”), among United Online, Inc. (the “Borrower”),
the Lenders party thereto, and Silicon Valley Bank, as Administrative Agent,
and (ii) becomes a party thereto, as a Lender, with obligations applicable
to such Lender thereunder, including, without limitation, the obligation to
make extensions of credit to the Borrower in an aggregate principal amount not
to exceed the amount of its Term Commitment as set forth opposite the
undersigned Lender’s name in Schedule 1.1 to the Credit Agreement, as
such amount may be changed from time to time as provided in the Credit
Agreement.  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

 

 

	
   

  	
   

  
	
   

  	
       (Name
  of Lender)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

 

Dated as of                 
[  ],
20_

 

 

EXHIBIT G

FORM OF NOTE

 

THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT
BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT
AGREEMENT REFERRED TO BELOW.  TRANSFERS
OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE RECORDED IN THE
REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF SUCH
CREDIT AGREEMENT.

 

	
  $                     

  	
  Santa
  Clara, California

  
	
   

  	
                             , 20   

  

 

FOR
VALUE RECEIVED, the undersigned, United Online, Inc., a Delaware
corporation (the “Borrower”), hereby unconditionally promises to pay to
Silicon Valley Bank (the “Lender”) or its registered assigns at the Funding
Office specified in the Credit Agreement (as hereinafter defined) in Dollars
and in immediately available funds, the principal amount of (a)                         
DOLLARS ($                      ),
or, if less, (b) the unpaid principal amount of the Loan made by the
Lender pursuant to the Credit Agreement. 
The principal amount shall be paid in the amounts and on the dates
specified in Section 2.3 of the Credit Agreement.  The Borrower further agrees to pay interest
in like money at such office on the unpaid principal amount hereof from time to
time outstanding at the rates and on the dates specified in the Credit
Agreement.

 

The
holder of this Note is authorized to indorse on the schedules annexed hereto
and made a part hereof or on a continuation thereof which shall be attached
hereto and made a part hereof the date, Type and amount of the Loan and the
date and amount of each payment or prepayment of principal with respect
thereto, each conversion of all or a portion thereof to another Type, each
continuation of all or a portion thereof as the same Type and, in the case of
Eurodollar Loans, the length of each Interest Period with respect thereto.  Each such indorsement shall constitute prima
facie evidence of the accuracy of the information indorsed.  The failure to make any such indorsement or
any error in any such indorsement shall not affect the obligations of the
Borrower in respect of the Loan.

 

This
Note (a) is one of the Notes referred to in the Credit Agreement, dated as
of                         
[  ], 2008, among the Borrower, the
Lenders party thereto, and Silicon Valley Bank, as Administrative Agent (as
amended, restated, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), (b) is subject to the
provisions of the Credit Agreement and (c) is subject to optional and
mandatory prepayment in whole or in part as provided in the Credit
Agreement.  This Note is secured and
guaranteed as provided in the Loan Documents. 
Reference is hereby made to the Loan Documents for a description of the
properties and assets in which a security interest has been granted, the nature
and extent of the security and the guarantees, the terms and conditions upon
which the security interests and each guarantee were granted and the rights of
the holder of this Note in respect thereof.

 

Upon
the occurrence and during the continuance of any one or more of the Events of
Default, all principal and all accrued interest then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable, all
as provided in the Credit Agreement.

 

All
parties now and hereafter liable with respect to this Note, whether maker,
principal, surety, guarantor, indorser or otherwise, hereby waive presentment,
demand, protest and all other notices of any kind.

 

 

Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR
IN THE CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT
TO AND IN ACCORDANCE WITH THE REGISTRATION AND OTHER PROVISIONS OF SECTION 10.6
OF THE CREDIT AGREEMENT.

 

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA.

 

IN WITNESS WHEREOF, the Borrower has caused this
Note to be executed and delivered by its duly authorized officer as of the day
and year and at the place set forth above.

 

 

	
   

  	
  UNITED
  ONLINE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  

 

 

 

Schedule
A to Note

 

LOANS, CONVERSIONS AND REPAYMENTS OF ABR
LOANS

	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   
	
   Date

   	
   Amount of ABR Loans

   	
   Amount

   Converted to

   ABR Loans

   	
   Amount of Principal of

   ABR Loans Repaid

   	
   Amount of ABR

   Loans Converted to

   Eurodollar Loans

   	
   Unpaid Principal 

   Balance

   of ABR Loans

   	
   Notation Made

   By

   
	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

Schedule
B to Note

 

LOANS, CONTINUATIONS, CONVERSIONS AND
REPAYMENTS OF EURODOLLAR LOANS

 

	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   
	
   Date

   	
   Amount of 

   Eurodollar

   Loans

   	
   Amount 

   Converted to

   Eurodollar Loans

   	
   Interest Period and

   Eurodollar Rate 

   with

   Respect Thereto

   	
   Amount of 

   Principal of

   Eurodollar Loans 

   Repaid

   	
   Amount of 

   Eurodollar

   Loans Converted to

   ABR Loans

   	
   Unpaid Principal

   Balance of 

   Eurodollar

   Loans

   	
   Notation

   Made By

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