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Exhibit 10.14    
    

 
 

CLASSMATES MEDIA CORPORATION    
    
    EMPLOYEE STOCK PURCHASE PLAN    
    

        I.    PURPOSE OF THE PLAN    

        This
Employee Stock Purchase Plan is intended to promote the interests of Classmates Media Corporation, a Delaware corporation, by providing eligible employees with the opportunity to
acquire a proprietary interest in the Corporation through participation in a payroll deduction-based employee stock purchase plan designed to qualify under Section 423 of the Code. 

        Capitalized
terms herein shall have the meanings assigned to such terms in the attached Appendix. 

        II.    ADMINISTRATION OF THE PLAN    

        The
Plan Administrator shall have full authority to interpret and construe any provision of the Plan and to adopt such rules and regulations for administering the Plan as it may deem
necessary in order to comply with the requirements of Code Section 423. Decisions of the Plan Administrator shall be final and binding on all parties having an interest in the Plan. 

        III.    STOCK SUBJECT TO PLAN    

        A.    The
stock purchasable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares of Common Stock purchased on the open market.
The number of shares of Common Stock initially reserved for issuance over the term of the Plan shall be limited to 3,750,000 shares. 

        B.    The
number of shares of Common Stock available for issuance under the Plan shall automatically increase on the first trading day of January each calendar year during the
term of the Plan, beginning with calendar year 2009, by an amount equal to one and a half percent (1.5%) of the total number of shares of Common Stock outstanding on the last trading day in December
of the immediately preceding calendar year, but in no event shall any such annual increase exceed 800,000 shares. 

        C.    Should
any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares,
spin-off transaction or other change affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration, or should the value of the outstanding shares of
Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary dividend or distribution, or should there occur any merger, consolidation or other
reorganization, then equitable adjustments shall be made to (i) the maximum number and class of securities issuable under the Plan, (ii) the maximum number and/or class of securities by
which the share reserve is to increase automatically each calendar year pursuant to the provisions of Section III.B of this Article One, (iii) the maximum number and class of securities
purchasable per Participant on any one Purchase Date, (iv) the maximum number and class of securities purchasable in total by all Participants on any one Purchase Date and (v) the number
and class of securities and the price per share in effect under each outstanding purchase right. The adjustments shall be made in such manner as the Plan Administrator deems appropriate in order to
prevent the dilution or enlargement of benefits thereunder. 

        IV.    OFFERING PERIODS    

        A.    Shares
of Common Stock shall be offered for purchase under the Plan through a series of overlapping offering periods until such time as (i) the maximum number of
shares of Common Stock available for issuance under the Plan shall have been purchased or (ii) the Plan shall have been sooner terminated. 

 

        B.    Unless
otherwise specified by the Plan Administrator, each offering period shall have a duration of twenty-four (24) months. Offering periods shall
commence on the first business day of May and the first business day of November each year, beginning on either May 1, 2008 or November 1, 2008, as determined by the Plan Administrator. 

        C.    Each
offering period shall consist of a series of one or more successive Purchase Intervals. Purchase intervals shall run from the first business day in May each year to
the last business day in October and from the first business day in November each year to the last business day in April in the following year. 

        D.    Should
the Fair Market Value per share of Common Stock on any Purchase Date within a particular offering period be less than the Fair Market Value per share of Common
Stock on the start date of that offering period, then the individuals participating in such offering period shall, immediately after the purchase of shares of Common Stock on their behalf on such
Purchase Date, be transferred from that offering period and automatically enrolled in the next offering period commencing on the next business day following such Purchase Date. The new offering period
shall have a duration of twenty four (24) months unless a shorter duration is established by the Plan Administrator within five (5) days following the start date of that offering period. 

        V.    ELIGIBILITY    

        A.    Each
individual who is an Eligible Employee on the start date of any offering period under the Plan may enter that offering period on such start date. 

        B.    The
date an individual enters an offering period shall be designated his or her Entry Date for purposes of that offering period. 

        C.    An
Eligible Employee must, in order to participate in the Plan for a particular offering period, complete the enrollment forms prescribed by the Plan Administrator
(including a stock purchase agreement and a payroll deduction authorization) and file such forms with the Plan Administrator (or its designate) on or before his or her scheduled Entry Date. 

        VI.    PAYROLL DEDUCTIONS    

        A.    The
payroll deduction authorized by the Participant for purposes of acquiring shares of Common Stock during an offering period may be any multiple of one percent (1%) of
the Cash Earnings paid to the Participant during each Purchase Interval within that offering period, up to a maximum of fifteen
percent (15%). The deduction rate so authorized shall continue in effect throughout the offering period, except to the extent such rate is changed in accordance with the following guidelines: 

          (i)  The
Participant may, at any time during the offering period, reduce his or her rate of payroll deduction to become effective as soon as possible after filing the
appropriate form with the Plan Administrator. The Participant may not, however, effect more than one (1) such reduction per Purchase Interval. 

         (ii)  The
Participant may, prior to the commencement of any new Purchase Interval within the offering period, increase the rate of his or her payroll deduction by filing the
appropriate form with the Plan Administrator. The new rate (which may not exceed the maximum payroll deduction percentage in effect for that offering period) shall become effective on the start date
of the first Purchase Interval following the filing of such form. 

        B.    Payroll
deductions shall begin on the first pay day administratively feasible following the Participant's Entry Date and shall (unless sooner terminated by the
Participant) continue through the pay day ending with or immediately prior to the last day of that offering period. The amounts so collected shall be credited to the Participant's book account under
the Plan, but no interest 

2

 

shall
be paid on the balance from time to time outstanding in such account. The amounts collected from the Participant shall not be required to be held in any segregated account or trust fund and may
be commingled with the general assets of the Corporation and used for general corporate purposes. 

        C.    Payroll
deductions shall automatically cease upon the termination of the Participant's purchase right in accordance with the provisions of the Plan. 

        D.    The
Participant's acquisition of Common Stock under the Plan on any Purchase Date shall neither limit nor require the Participant's acquisition of Common Stock on any
subsequent Purchase Date, whether within the same or a different offering period. 

        E.    The
Corporation shall cease to be a Participating Corporation in the United Online, Inc. 2001 Employee Stock Purchase Plan (the "United Plan") immediately
following the April 2008 or October 2008 purchase date under that plan, as determined by the Plan Administrator, and Eligible Employees will no longer be eligible to participate in the
United Plan following that purchase date, whether or not they elect to participate in this Plan. 

        VII.    PURCHASE RIGHTS    

        A.    Grant of Purchase Rights.    A Participant shall be granted a
separate purchase right for each offering period in which he or she is enrolled. The purchase right shall be granted on the Participant's Entry Date and shall provide the Participant with the right to
purchase shares of Common Stock, in a series of successive installments during that offering period, upon the terms set forth below. The Participant shall execute a stock purchase agreement embodying
such terms and such other provisions (not inconsistent with the Plan) as the Plan Administrator may deem advisable. 

        Under
no circumstances shall purchase rights be granted under the Plan to any Eligible Employee if such individual would, immediately after the grant, own (within the meaning of Code
Section 424(d)) or hold outstanding options or other rights to purchase, stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the
Corporation or any Corporate Affiliate. 

        B.    Exercise of the Purchase Right.    Each purchase right shall be automatically exercised
in installments on each successive Purchase Date within the offering period, and shares of Common Stock shall accordingly be purchased on behalf of each Participant on each such Purchase Date. The
purchase shall be effected by applying the Participant's payroll deductions for the Purchase Interval ending on such Purchase Date to the purchase of whole shares of Common Stock at the purchase price
in effect for the Participant for that Purchase Date. 

        C.    Purchase Price.    The purchase price per share at which Common Stock will be purchased
on the Participant's behalf on each Purchase Date within the particular offering period in which he or she is enrolled shall be equal to eighty-five percent (85%) of the  lower of (i) the
Fair Market Value per share of Common Stock on the Participant's Entry Date or (ii) the Fair Market Value per share of
Common Stock on that Purchase Date. 

        D.    Number of Purchasable Shares.    The number of shares of Common Stock purchasable by a
Participant on each Purchase Date during the particular offering period in which he or she is enrolled shall be the number of whole shares obtained by dividing the amount collected from the
Participant through payroll deductions during the Purchase Interval ending with that Purchase Date by the purchase price in effect for the Participant for that Purchase Date. However, the maximum
number of shares of Common Stock purchasable per Participant on any one Purchase Date shall not exceed 2,000 shares, subject to periodic adjustments in the event of certain changes in the
Corporation's capitalization. In addition, the maximum number of shares of Common Stock 

3

 

purchasable
in total by all Participants on any one Purchase Date shall not exceed 750,000 shares, subject to periodic adjustments in the event of certain changes in the Corporation's capitalization.
However, the Plan Administrator shall have the discretionary authority, exercisable prior to the start of any offering period under the Plan, to increase or decrease the limitations to be in effect
for the number of shares purchasable per Participant and in total by all Participants on each Purchase Date within that offering period. 

        E.    Excess Payroll Deductions.    Any payroll deductions not applied to the purchase of
shares of Common Stock on any Purchase Date because they are not sufficient to purchase a whole share of Common Stock shall be held for the purchase of Common Stock on the next Purchase Date. However,
any payroll deductions not applied to the purchase of Common Stock by reason of the limitation on the maximum number of shares purchasable per Participant or in total by all Participants on the
Purchase Date shall be promptly refunded. 

        F.    Suspension of Payroll Deductions.    In the event that a Participant is, by reason of
the accrual limitations in Article VIII, precluded from purchasing additional shares of Common Stock on one or more Purchase Dates during the offering period in which he or she is enrolled,
then no further payroll deductions shall be collected from such Participant with respect to those Purchase Dates. The suspension of such deductions shall not terminate the Participant's purchase right
for the offering period in which he or she is enrolled, and payroll deductions shall automatically resume on behalf of such Participant once he or she is again able to purchase shares during that
offering period in compliance with the accrual limitations of Article VIII. 

        G.    Withdrawal from Offering Period.    The following provisions shall govern the
Participant's withdrawal from an offering period: 

          (i)  A
Participant may withdraw from the offering period in which he or she is enrolled at any time prior to the next scheduled Purchase Date by filing the appropriate form
with the Plan Administrator (or its designate), and no further payroll deductions shall be collected from the Participant with respect to that offering period. Any payroll deductions collected during
the Purchase Interval in which such withdrawal occurs shall, at the Participant's election, be immediately refunded or held for the purchase of shares on the next Purchase Date. If no such election is
made at the time of such withdrawal, then
the payroll deductions collected from the Participant during the Purchase Interval in which such withdrawal occurs shall be refunded as soon as possible. 

         (ii)  The
Participant's withdrawal from a particular offering period shall be irrevocable, and the Participant may not subsequently rejoin that offering period at a later
date. In order to resume participation in any subsequent offering period, such individual must re-enroll in the Plan (by making a timely filing of the prescribed enrollment forms) on or
before his or her scheduled Entry Date into that offering period. 

        H.    Termination of Purchase Right.    The following provisions shall govern the termination
of outstanding purchase rights: 

          (i)  Should
the Participant cease to remain an Eligible Employee for any reason (including death, disability or change in status) while his or her purchase right remains
outstanding, then that purchase right shall immediately terminate, and all of the Participant's payroll deductions for the Purchase Interval in which the purchase right so terminates shall be
immediately refunded. 

         (ii)  However,
should the Participant cease to remain in active service by reason of an approved unpaid leave of absence, then the Participant shall have the right,
exercisable up until the last business day of the Purchase Interval in which such leave commences, to (a) withdraw all the payroll deductions collected to date on his or her behalf for that
Purchase 

4

 

Interval
or (b) have such funds held for the purchase of shares on his or her behalf on the next scheduled Purchase Date. In no event, however, shall any further payroll deductions be collected
on the Participant's behalf during such leave. Upon the Participant's return to active service (x) within three (3) months following the commencement of such leave or (y) prior to
the expiration of any longer period for which such Participant has a right to reemployment with the Corporation provided by statute or contract, his or her payroll deductions under the Plan shall
automatically resume at the rate in effect at the time the leave began, unless the Participant withdraws from the Plan prior to his or her return. An individual who returns to active employment
following a leave of absence that exceeds in duration the applicable (x) or (y) time period will be treated as a new Employee for purposes of subsequent participation in the Plan and
must accordingly re-enroll in the Plan (by making a timely filing of the prescribed enrollment forms) on or before his or her scheduled Entry Date into the offering period. 

        I.    Change in Control.    Each outstanding purchase right shall automatically be exercised,
immediately prior to the effective date of any Change in Control, by applying the payroll deductions of each Participant for the Purchase Interval in which such Change in Control occurs to the
purchase of whole shares of Common Stock at a purchase price per share equal to eighty-five percent (85%) of the lower of (i) the Fair Market Value per share of Common Stock on the
Participant's Entry Date into the
offering period in which such individual is enrolled at the time of such Change in Control or (ii) the Fair Market Value per share of Common Stock immediately prior to the effective date of
such Change in Control. However, any applicable limitation on the number of shares of Common Stock purchasable per Participant shall continue to apply to any such purchase, but not the limitation
applicable to the maximum number of shares of Common Stock purchasable in total by all Participants on any one Purchase Date. 

        The
Corporation shall use its best efforts to provide at least ten (10) days' prior written notice of the occurrence of any Change in Control, and Participants shall, following
the receipt of such notice, have the right to terminate their outstanding purchase rights prior to the effective date of the Change in Control. 

        J.    Proration of Purchase Rights.    Should the total number of shares of Common Stock to be
purchased pursuant to outstanding purchase rights on any particular date exceed the number of shares then available for issuance under the Plan, the Plan Administrator shall make a
pro-rata allocation of the available shares on a uniform and nondiscriminatory basis, and the payroll deductions of each Participant, to the extent in excess of the aggregate purchase
price payable for the Common Stock pro-rated to such individual, shall be refunded. 

        K.    ESPP Brokerage Account.    The Plan Administrator shall have the discretionary authority
to require that the shares purchased on behalf of each Participant be deposited directly into a brokerage account which the Corporation shall establish for the Participant at a Corporation-designated
brokerage firm. The account will be known as the ESPP Brokerage Account, and any shares deposited in the Participant's ESPP Broker Account must remain in that account until the  earlier of
(i) the date those shares are to be sold or transferred by gift or (ii) the date on which the requisite holding period
necessary to avoid a disqualifying disposition of those shares under the federal tax laws has been satisfied. 

        L.    Assignability.    The purchase right shall be exercisable only by the Participant and
shall not be assignable or transferable by the Participant. 

        M.    Stockholder Rights.    A Participant shall have no stockholder rights with respect to
the shares subject to his or her outstanding purchase right until the shares are purchased on the Participant's behalf in accordance with the provisions of the Plan and the Participant has become a
holder of record of the purchased shares. 

5

 

        VIII.    ACCRUAL LIMITATIONS    

        A.    No
Participant shall be entitled to accrue rights to acquire Common Stock pursuant to any purchase right outstanding under this Plan if and to the extent such accrual,
when aggregated with (i) rights to purchase Common Stock accrued under any other purchase right granted under this Plan and (ii) similar rights accrued under other employee stock
purchase plans (within the meaning of Code Section 423)) of the Corporation or any Corporate Affiliate, would otherwise permit such Participant to purchase more than Twenty-Five
Thousand Dollars ($25,000.00) worth of stock of the Corporation or any Corporate Affiliate (determined on the basis of the Fair Market Value per share on the date or dates such rights are granted) for
each calendar year such rights are at any time outstanding. 

        B.    For
purposes of applying such accrual limitations to the purchase rights granted under the Plan, the following provisions shall be in effect: 

          (i)  The
right to acquire Common Stock under each outstanding purchase right shall accrue in a series of installments on each successive Purchase Date during the offering
period in which such right remains outstanding. 

         (ii)  No
right to acquire Common Stock under any outstanding purchase right shall accrue to the extent the Participant has already accrued in the same calendar year the right
to acquire Common Stock under one or more other purchase rights at a rate equal to Twenty-Five Thousand Dollars ($25,000.00) worth of Common Stock (determined on the basis of the Fair
Market Value per share on the date or dates of grant) for each calendar year such rights were at any time outstanding. 

        C.    If
by reason of such accrual limitations, any purchase right of a Participant does not accrue for a particular Purchase Interval, then the payroll deductions that the
Participant made during that Purchase Interval with respect to such purchase right shall be promptly refunded. 

        D.    In
the event there is any conflict between the provisions of this Article and one or more provisions of the Plan or any instrument issued thereunder, the provisions of
this Article shall be controlling. 

        IX.    EFFECTIVE DATE AND TERM OF THE PLAN    

        A.    The
Plan was adopted by the Board on October 30, 2007 and shall become effective on either May 1, 2008 or November 1, 2008, as determined by the Plan
Administrator, provided no purchase rights granted under the Plan shall be exercised, and no shares of Common Stock shall be issued hereunder, until (i) the Plan shall have been approved by the
stockholders of the Corporation and (ii) the
Corporation shall have complied with all applicable requirements of the 1933 Act (including the registration of the shares of Common Stock issuable under the Plan on a Form S-8
registration statement filed with the Securities and Exchange Commission), all applicable listing requirements of the Stock Exchange on which the Common Stock is listed for trading and all other
applicable requirements established by law or regulation. In the event such stockholder approval is not obtained, or such compliance is not effected, within twelve (12) months after the date on
which the Plan is adopted by the Board, the Plan shall terminate and have no further force or effect, and all sums collected from Participants during the initial offering period hereunder shall be
refunded. 

        B.    Unless
sooner terminated by the Board, the Plan shall terminate upon the earliest of (i) the last business day in October 2017, (ii) the date on
which all shares available for issuance under the Plan shall have been sold pursuant to purchase rights exercised under the Plan or (iii) the date on which all purchase rights are exercised in
connection with a Change in Control. No further purchase rights shall be granted or exercised, and no further payroll deductions shall be collected, under the Plan following such termination. 

6

 

        X.    AMENDMENT OF THE PLAN    

        A.    The
Board may alter, amend, suspend or terminate the Plan at any time to become effective immediately following the close of any Purchase Interval. 

        B.    In
no event may the Board effect any of the following amendments or revisions to the Plan without the approval of the Corporation's stockholders: (i) increase the
number of shares of Common Stock issuable under the Plan, except for permissible adjustments in the event of certain changes in the Corporation's capitalization, (ii) alter the purchase price
formula so as to reduce the purchase price payable for the shares of Common Stock purchasable under the Plan or (iii) modify the eligibility requirements for participation in the Plan. 

        XI.    GENERAL PROVISIONS    

        A.    All
costs and expenses incurred in the administration of the Plan shall be paid by the Corporation; however, each Plan Participant shall bear all costs and expenses
incurred by such individual in the sale or other disposition of any shares purchased under the Plan. 

        B.    Nothing
in the Plan shall confer upon the Participant any right to continue in the employ of the Corporation or any Corporate Affiliate for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Corporate Affiliate employing such person) or of the Participant, which rights are hereby expressly
reserved by each, to terminate such person's employment at any time for any reason, with or without cause. 

        C.    The
provisions of the Plan shall be governed by the laws of the State of California without resort to that State's conflict-of-laws rules. 

7

 
 

Schedule A    
    
    Corporations Participating in
  Employee Stock Purchase Plan
  As of the Effective Time    
    

 
 
 

APPENDIX    
    

        The following definitions shall be in effect under the Plan: 

        A.    Board shall mean the Corporation's Board of Directors. 

        B.    Cash Earnings shall mean (i) the regular base salary paid to a Participant by one or more Participating Companies
during such individual's period of participation in one or more offering periods under the Plan and (ii) any overtime payments, bonuses, commissions, profit-sharing distributions and other
incentive-type payments received during such period. Cash Earnings shall be calculated before deduction of (A) any income or employment tax withholdings or (B) any
contributions made by Participant to any Code Section 401(k) salary deferral plan or Code Section 125 cafeteria benefit program now or hereafter established by the Corporation or any
Corporate Affiliate. Cash Earnings shall not include any contributions made on the Participant's behalf by the Corporation or any Corporate Affiliate to any employee benefit or welfare plan now or
hereafter established (other than Code Section 401(k) or Code Section 125 contributions deducted from such Cash Earnings). 

        C.    Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 

          (i)  a
merger, consolidation or reorganization approved by the Corporation's stockholders, unless (a) securities
representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or
indirectly, by the person or persons who beneficially owned fifty percent (50%) or more of the Corporation's outstanding voting securities immediately prior to such transaction or (b) the
merger, consolidation or reorganization is with or into United Online, Inc. or any entity that directly or indirectly controls, is controlled by or is under common control with, United
Online, Inc.; 

         (ii)  any
stockholder-approved transfer or other disposition of all or substantially all of the Corporation's assets (other than to United Online, Inc. or any entity
that directly or indirectly controls, is controlled by or is under common control with, United Online, Inc.); 

        (iii)  the
closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a "group" within the meaning of
Rule 13d-5(b)(1) of the 1934 Act (other than United Online, Inc, or the Corporation or any other person that, prior to such transaction or series of related transactions, directly
or indirectly controls, is controlled by or is under common control with, United Online, Inc. or the Corporation) becomes directly or indirectly (whether as a result of a single acquisition or
by reason of one or more acquisitions within the twelve (12)-month period ending with the most recent acquisition) the beneficial owner (within the meaning of Rule 13d-3 of the 1934
Act) of (A) securities possessing (or convertible into or exercisable for securities possessing) thirty three and one-third percent (331/3%) or more of the total
combined voting power of all of the Corporation's outstanding securities (as measured in terms of the power to vote with respect to the election of Board members) or (B) securities representing
thirty three and one third percent (331/3%) or more of the aggregate market value of all of the Corporation's outstanding capital stock, measured in each instance immediately after the
consummation of such transaction or series of related transactions and whether such transaction or transactions involve a direct issuance from the Corporation or the acquisition of outstanding
securities held by one or more of the Corporation's existing stockholders, including an indirect acquisition of those securities effected through an acquisition of United Online, Inc., by
merger, consolidation or sale of all or substantially all of its assets or outstanding capital stock at a time when United Online, Inc. is the Parent of the Corporation; or 

        (iv)  a
change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members
ceases, by reason of one or more 

A-1

 

contested
elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been elected
or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such
election or nomination. In no event, however, shall a Change in Control be deemed to occur as a result of a spin-off distribution by United Online, Inc. of all or any portion of the
Corporation's outstanding securities held by United Online, Inc. to its existing stockholders in proportion to their holdings of United Online, Inc. capital stock. 

        D.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        E.    Common Stock shall mean the Corporation's common stock. 

        F.    Corporate Affiliate shall mean any parent or subsidiary corporation of the Corporation (as determined in accordance with
Code Section 424), whether now existing or subsequently established. 

        G.    Corporation shall mean Classmates Media Corporation, a Delaware corporation, and any corporate successor to all or
substantially all of the assets or voting stock of Classmates Media Corporation that shall by appropriate action adopt the Plan. 

        H.    Effective Time shall mean May 1, 2008, the date on which the first offering period under the Plan shall commence.
Any Corporate Affiliate that becomes a Participating Corporation after such Effective Time shall designate a subsequent Effective Time with respect to its employee-Participants. 

        I.    Eligible Employee shall mean any person who is employed by a Participating Corporation on a basis under which he or she is
regularly expected to render more than twenty (20) hours of service per week for more than five (5) months per calendar year for earnings considered wages under Code
Section 3401(a). 

        J.    Entry Date shall mean the date an Eligible Employee first commences participating in the offering period in effect under
the Plan. The earliest Entry Date under the Plan shall be the Effective Time. 

        K.    Fair Market Value per share of Common Stock on any relevant date shall be the closing selling price per share of Common
Stock at the close of regular hours trading (i.e., before after-hours trading begins) on date on question on the Stock Exchange serving as the primary market for the Common Stock, as such price is
reported by the National Association of Securities Dealers (if primarily traded on the Nasdaq Global Select Market) or as officially quoted in the composite tape of transactions on any other Stock
Exchange on which the Common Stock is then primarily traded. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists. 

        L.    1933 Act shall mean the Securities Act of 1933, as amended. 

        M.    Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        N.    Participant shall mean any Eligible Employee of a Participating Corporation who is actively participating in the Plan. 

        O.    Participating Corporation shall mean the Corporation and such Corporate Affiliate or Affiliates as may be authorized from
time to time by the Board to extend the benefits of the Plan to their Eligible Employees. The Participating Corporations in the Plan are listed in attached Schedule A. 

A-2

 

        P.    Plan shall mean the Corporation's Employee Stock Purchase Plan, as set forth in this document. 

        Q.    Plan Administrator shall mean the committee of two (2) or more Board members appointed by the Board to administer
the Plan. 

        R.    Purchase Date shall mean the last business day of each Purchase Interval. 

        S.    Purchase Interval shall mean each successive six (6)-month period within a particular offering period at the end of which
there shall be purchased shares of Common Stock on behalf of each Participant. 

        T.    Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock
Exchange. 

A-3

QuickLinks

Exhibit 10.14

CLASSMATES MEDIA CORPORATION EMPLOYEE STOCK PURCHASE PLAN

Schedule A Corporations Participating in Employee Stock Purchase Plan As of the Effective Time

APPENDIXExhibit
10.15

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”)
is made and entered into effective as of this 22nd day of August, 2007 by and
between Classmates Media Corporation, a Delaware corporation (“Classmates”),
with principal corporate offices at 21301 Burbank Boulevard, Woodland Hills,
California 91367, and Mark R. Goldston, whose business address is 21301 Burbank
Boulevard, Woodland Hills California 91367 (“Mr. Goldston”).

 

RECITALS

 

Classmates has been formed to assume and
continue certain business activities of United Online, Inc. (“Parent”), and
intends to register an initial public offering (“IPO”) of shares to
the public with the Securities and Exchange Commission (“SEC”). The date
the underwriting agreement with respect to the IPO is executed is referred to
herein as the “Effective Date.”

 

Mr. Goldston is willing to become
employed by Classmates upon the terms and conditions hereinafter set forth in
this Agreement and Classmates desires to employ him upon such terms and conditions.

 

NOW THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.                                      EMPLOYMENT

 

1.1           Classmates
hereby agrees to employ Mr. Goldston, and Mr. Goldston hereby accepts
such employment, on the terms and conditions set forth herein, commencing the
Effective Date and continuing for three years (the “Term”), unless terminated
earlier as provided in Section 4 below. Mr. Goldston’s place of employment
shall be the in the greater Los Angeles metropolitan area.

 

2.                                      DUTIES OF
EXECUTIVE

 

2.1           Mr. Goldston
shall serve as the Chief Executive Officer and Chairman of Classmates. In this
capacity, Mr. Goldston shall be responsible for the general management of
Classmates and shall perform such customary, appropriate and reasonable
executive duties as are 

 

 

usually performed by the Chief Executive
Officer and Chairman, including such specific executive duties consistent with
such position as are delegated to him from time to time by the Board of
Directors of Classmates or a committee thereof (the “Board”). Mr. Goldston
shall report directly to Classmates’ Board. Classmates agrees that
Mr. Goldston will also continue to serve as Chief Executive Officer and
Chairman of Parent and will in good faith allocate his time between Classmates
and Parent in accordance with the goals and objectives established by the Board.

 

2.2           Mr. Goldston
agrees to devote his good faith, attention, skill and efforts to the
performance of his duties for Classmates during the Term. This Agreement shall
not preclude Mr. Goldston from writing and promoting books or other
published materials, engaging in civic, charitable or religious activities, or
from serving on boards of directors of companies or organizations that do not
present any conflict with the interests of Classmates or otherwise adversely
affect Mr. Goldston’s performance of the services required under this
Agreement. This Agreement shall not be interpreted to prohibit
Mr. Goldston from making and monitoring personal investments (including
the purchase of interests in professional sports teams) if such activities do
not materially interfere with the services required under this Agreement.

 

3.                                      COMPENSATION AND
OTHER BENEFITS

 

3.1           Base
Salary. During the Term, Classmates shall pay to Mr. Goldston a Base Salary
per fiscal year equal to One Dollar ($1.00) on the Effective Date and each
annual anniversary of the Effective Date. Classmates may, but has no obligation
to, increase the Base Salary.

 

3.2           Initial
Grant of Stock Options. Classmates hereby agrees to grant to
Mr. Goldston as of the Effective Date options (the “Options”) to purchase
that number of shares which represents, on the Effective Date, 4.2857% of
Classmates’ fully diluted Class A common stock (the “Option Shares”) at an
exercise price equal to the price per share of such Class A common stock
offered to the public on the Effective Date pursuant to the terms and
conditions contained herein. The Options shall vest as provided below. On the
Effective Date, the number of Options and Option Shares shall be computed to
represent 4.2857% of the fully diluted shares of Class A common stock, and the
Options shall be issued, subject to adjustment in the number of covered shares
as provided below. The Options shall be subject to customary adjustments for
stock splits, stock dividends and similar events, shall be exercisable for ten
years from their date of grant, and shall be evidenced by a separate option
agreement or certificate.

 

2

 

For purposes hereof, “fully diluted shares of
Class A common stock” means, at the Effective Date, the total number of
outstanding shares of Classmates’ Class A common stock assuming exercise of all
options (including, the Options), warrants and similar securities exercisable
for Class A common stock  that are
outstanding or issuable pursuant to then existing agreements,  the conversion or exchange of all other
securities of Classmates convertible into or exchangeable for shares of Class A
common stock (including Classmates’ Class B common stock), treating all shares
of Class A common stock covered by restricted stock units and similar
instruments that are outstanding or issuable pursuant to then existing
agreements as outstanding, and assuming the underwriters in the IPO sell all of
the “firm shares” set forth in the IPO underwriting agreement and fully
exercise the over-allotment option given them to purchase additional Class A
common stock within the time provided in the IPO underwriting agreement. In the
event the over-allotment option is not exercised in full by the underwriters
within the time provided in the IPO underwriting agreement, an appropriate
number of Options shall be cancelled and the Option agreement shall be amended,
to achieve the intended percentage. For the avoidance of doubt, fully diluted
shares of Class A common stock do not include any securities held in treasury.

 

3.3           Vesting
of Options.

 

(a)           Release
Date. Subject to the remaining provisions of this Section 3.3, thirty-three
and one-third percent (331/3%) of the Options shall be
vested on each annual anniversary of the Effective Date provided that
Mr. Goldston has remained continuously employed by Classmates and/or
Parent until such date.

 

(b)           Vesting
Upon Termination without Cause or Involuntary Termination. In the event of
termination by Classmates of Mr. Goldston’s employment without “Cause” (as
defined in Section 4.1(a) below) or by 
Involuntary Termination (as defined in Section 4.1(c) below) prior to
the date all Options vest, any previously unvested Options shall be fully
vested in Mr. Goldston as of such termination date. In addition, if Mr.
Goldston is employed by Parent, in the event of termination by Parent of Mr.
Goldston’s employment without “Cause” (as defined in the Employment Agreement
by and between Parent and Mr. Goldston effective April 3, 2007, as may be
amended from time to time (the “UOL Agreement”)) or if Mr. Goldston is Involuntarily
Terminated (as defined in the UOL Agreement) prior to the date all Options vest
and he is not employed by Classmates immediately following such termination,
any previously unvested Options shall be fully vested in Mr. Goldston as
of such termination date.

 

(c)           Termination
Due to Death or Disability. In the event of termination of employment from
Classmates due to Mr. Goldston’s death or Disability (as defined in
Section 4 below) prior to the third anniversary of the Effective Date, all Options
shall be immediately vested in Mr. Goldston or his estate as of the date
of death or Disability. In addition, if Mr. Goldston’s employment with
Classmates is terminated for any reason other than a reason that would give
rise to the acceleration of vesting or cancellation of unvested Options under
this 

 

3

 

Agreement and following such termination he remains
employed by Parent, in the event of a subsequent termination of employment from
Parent due to Mr. Goldston’s death or permanent disability prior to the third
anniversary of the Effective Date, all Options shall be immediately vested in
Mr. Goldston or his estate as of the date of death or permanent disability.

 

(d)           [Intentionally
Omitted]

 

(e)           Resignation
Following a Corporate Transaction. In the event there is a “Corporate
Transaction” as described below and, following such Corporate Transaction, (i)
Mr. Goldston resigns from Classmates under circumstances constituting an
Involuntary Termination (as defined in Section 4.1(c)) or (ii) if Mr. Goldston
is then employed by Parent and Mr. Goldston resigns from Parent such that he is
Involuntarily Terminated (as defined in the UOL Agreement) and he is not
employed by Classmates immediately following such resignation, all Options shall
immediately be vested in Mr. Goldston.

 

(f)            Voluntary
Resignation. If Mr. Goldston resigns his employment with Classmates under
circumstances not deemed under this Agreement to constitute an Involuntary
Termination and he is not employed by Parent immediately following such
resignation, or if Mr. Goldston is employed by Parent and Mr. Goldston resigns
his employment with Parent under circumstances not deemed to constitute him
being Involuntarily Terminated under the UOL Agreement and he is not employed
by Classmates immediately following such resignation, all unvested Options shall
never vest and shall be cancelled.

 

3.4           Eligibility
for Awards and Bonuses. Mr. Goldston shall be eligible to receive, and
Classmates intends to consider him for annual bonuses (“Annual Bonuses”) and
equity awards with respect to Classmates stock (“Equity Awards”). However, the
Board or the Compensation Committee may, but is not obligated to, grant such
Annual Bonuses or Equity Awards. Any such Annual Bonuses may be in
(a) shares of Classmates stock, (b) cash or (c) any combination thereof. For
the avoidance of doubt, Mr. Goldston shall be entitled to participate in all
incentive plans generally available to Classmates’ senior management, including
without limitation any option or stock incentive plan (the “Stock Incentive
Plans”). Classmates agrees that, unless required by applicable law, no
amendment to any Stock Incentive Plan will eliminate the ability of
Mr. Goldston to satisfy income tax withholding obligations by the
surrender of shares or options to Classmates.

 

3.5           Withholding for Taxes. Classmates recognizes that
Mr. Goldston will incur obligations for withholding of income and social
security taxes with respect to any bonus paid in the form of shares of Classmates
stock and any other award based on shares of Classmates stock. To satisfy such
obligations Classmates agrees, at Mr. Goldston’s request, to treat as sold
to Classmates, or to take other appropriate actions  to reduce the number of shares of Classmates
stock delivered to Mr. Goldston, with the result that such number of shares
of 

 

4

 

Classmates stock, multiplied by the
applicable price, is sufficient to satisfy Mr. Goldston’s withholding
obligations, to the extent permitted by applicable law.

 

3.6           Other
Benefits. During the Term, Mr. Goldston shall be entitled to
participate in all group life, health, medical, dental or disability insurance
or other employee, health and welfare benefits made available generally to
other executives of Classmates.

 

3.7           Vacation.
Mr. Goldston shall be entitled to five (5) weeks vacation per
year in accordance with Classmates’ vacation policies. Until a Corporate
Transaction, such vacation shall be taken concurrently with vacation as an
officer of Parent.

 

3.8           Business
Expenses. Classmates shall promptly (and in no event more than two and
one-half months after receiving documentation from Mr. Goldston) reimburse
Mr. Goldston for all reasonable and necessary business expenses incurred
by Mr. Goldston in connection with the business of Classmates and the
performance of his duties under this Agreement, subject to Mr. Goldston requesting
such reimbursement and providing Classmates with reasonable documentation
thereof within one year of incurring any expense.

 

3.9           Board
of Directors. Mr. Goldston shall be Chairman of Classmates and also a
member and chairman of the Classmates Board of Directors. Mr. Goldston’s
appointments as Chairman and as a member of the Board will automatically terminate
upon the termination of Mr. Goldston’s employment with Classmates for any
reason.

 

4.                                      TERMINATION

 

4.1           Termination
for Cause; Certain Definitions.

 

(a)           Termination
“for Cause” is defined as follows: 
(1) if Mr. Goldston is convicted of, or enters a plea of nolo contendere to, a felony, including any act of moral
turpitude that adversely impacts Classmates or any of its subsidiaries,
(2) if Mr. Goldston commits an act of actual fraud, embezzlement,
theft or similar dishonesty against Classmates or any of its subsidiaries that
adversely and materially impacts Classmates or any of its subsidiaries,
(3) if Mr. Goldston commits any willful misconduct resulting in
material harm to Classmates or any of its subsidiaries, or (4) if
Mr. Goldston fails, after receipt of detailed written notice and after
receiving a period of at least thirty (30) days following such notice to
cure such failure, to use his reasonable good faith efforts to follow the
reasonable and lawful direction of Classmates’ Board of Directors and to
perform his obligations hereunder.

 

5

 

(b)           Classmates
may terminate this Agreement immediately (except as required by clause
4.1(a)(4) above) for any of the reasons stated in Section 4.1(a) by
giving written notice to Mr. Goldston without prejudice to any other
remedy to which Classmates may be entitled. The notice of termination shall
specify the grounds for termination or shall state that Classmates is
exercising its rights to terminate Mr. Goldston without Cause. If
Mr. Goldston’s employment hereunder is terminated “for Cause” pursuant to
this Section 4.1, Mr. Goldston shall be entitled to receive reimbursement
for any expenses, as set forth in Section 3.8, through the date of termination,
but shall not be entitled to retain any unvested Options, unvested Equity Awards
or any other amount except for amounts earned under any plan but not yet paid
as of the date of termination.

 

(c)           As
used in this Agreement, Mr. Goldston shall be deemed “Involuntarily Terminated”
if: (i) Mr. Goldston resigns following a breach by Classmates of its
obligations hereunder; provided, however, Mr. Goldston shall provide
Classmates with written notice of such breach within ninety days after the
conduct occurs giving rise to it, and Classmates shall have thirty (30)
days following such notice to cure such breach; (ii) Classmates or any
successor to Classmates terminates Mr. Goldston’s employment without Cause
in connection with or following a Corporate Transaction; or (iii) in connection
with or  after a Corporate Transaction
there is both (A) (a) a material decrease in Mr. Goldston’s duties or
responsibilities (it being deemed to be a decrease in duties and/or
responsibilities if Mr. Goldston is not offered and provided the position
of Chairman of the Board of Directors and Chief Executive Officer of Classmates
or its successor as well as the position of Chairman of the Board of Directors
and Chief Executive Officer of the acquiring and ultimate parent entity, if
any, following a Corporate Transaction), (b) a material decrease in compensation
from that provided by Classmates immediately prior to the Corporate
Transaction, (c) a requirement that Mr. Goldston re-locate out of the
greater Los Angeles metropolitan area, or (d) a failure by any successor
to Classmates to confirm in writing that this Agreement remains in full force
and effect and (B) Mr. Goldston terminates his employment with Classmates
within 180 days following any such event. A resignation or termination under
circumstances described above shall be deemed an “Involuntary Termination.”

 

(d)           “Corporate
Transaction” shall mean:  (x) a
change in ownership or control of Classmates effected through the acquisition,
directly or indirectly, of beneficial ownership (within the meaning of Rule
13d-3 of the Securities Exchange Act of 1934) of securities such that Parent
(or a person that directly or indirectly controls, is controlled by, or is
under common control with, Parent) no longer has the voting power to elect a
majority of the Classmates Board of Directors; (y) a merger, consolidation
or reorganization approved by Classmates’ stockholders, unless securities
representing the voting power to elect a majority of the Classmates Board of
Directors are thereafter held by Parent; or (z) any stockholder-approved
transfer or other disposition of a majority of Classmates’ assets. In addition
any of the following transactions shall be deemed a Corporate Transaction with
respect to Classmates: (i) a change in ownership or control of Parent effected
through the acquisition, directly or indirectly, by any person or related group
of persons, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities
Exchange Act of 1934) of securities possessing more than fifty percent (50%) of

 

6

 

the total combined voting power of the Parent’s
outstanding securities; (ii) a change in the composition of the Parent’s Board
over a period of thirty-six (36) consecutive months or less such that a
majority of the Parent’s Board members ceases, by reason of one or more
contested elections for Board membership, to be comprised of individuals who
either (A) have been Parent Board members continuously since the beginning of
such period or (B) have been elected or nominated for election as Parent Board
members during such period by at least a majority of the Parent’s Board members
described in clause (A) who were still in office at the time the Parent Board
approved such election or nomination; (iii) a merger, consolidation or
reorganization approved by the Parent’s stockholders, unless securities
representing more than fifty percent (50%) of the total combined voting power
of the voting securities of the successor corporation are immediately
thereafter beneficially owned, directly or indirectly and in substantially the
same proportion, by the persons who beneficially owned the Parent’s outstanding
voting securities immediately prior to such transaction; or (iv) any
stockholder-approved transfer or other disposition of all or substantially all
of the Parent ‘s assets.

 

(e)           Disability.
“Disability” shall mean that Mr. Goldston, due to physical or mental illness or
injury, is precluded from performing his duties under this Agreement for a
period of 120 days or more, and shall be evidenced by a resolution of the Board
following the recommendation of Mr. Goldston’s physician or an independent
physician selected by the Board (a “Doctor’s Report”). If Mr. Goldston refuses
to submit to an examination by such an independent physician reasonably
requested by the Board, the Board may declare him Disabled without a Doctor’s
Report.

 

4.2           Termination
Without Cause. If Mr. Goldston’s employment is terminated without “Cause”
as defined in Section 4.1(a) or if there is an Involuntary Termination, he
will be eligible for the severance benefits set forth in Section 4.3.

 

4.3           Severance
Payments and Other Benefits Upon Termination Without Cause or Involuntary
Termination. If Classmates terminates Mr. Goldston’s employment hereunder
without Cause, or if there is an Involuntary Termination, Classmates (or its
successor, as the case may be) shall (i) pay to Mr. Goldston any
accrued but unpaid Base Salary and paid time off under any benefit plan to the
extent required by law through the date of termination, (ii) reimburse Mr.
Goldston for any expenses, as set forth in Section 3.8, through the date of
termination and (iii) to the extent Mr. Goldston has not already received them
and to the extent the underlying shares have vested (including vesting related
to the termination), deliver to Mr. Goldston certificates representing Mr.
Goldston’s ownership of Classmates stock under any restricted share award. Additionally,
subject to Mr. Goldston entering into and not revoking a release of claims
in favor of Classmates and abiding by the non-competition and non-solicitation
provisions set forth in Section 5 below, (A) Classmates (or its successor, as
the case may be) shall pay to Mr. Goldston an amount in cash (the “Release
Amount”) equal to 3 times the sum of Mr. Goldston’s (a) Base Salary and
(b) Annual Bonus, if any, paid in the preceding twelve (12) months and (B) any outstanding
Equity Awards shall become fully vested and exercisable (as applicable). The
Release Amount shall be payable in one lump sum, subject to withholding as 

 

7

 

may be required by law, and such Release
Amount shall be paid upon the expiration of all applicable review and
revocation periods applicable to the release as statutorily required by law.

 

If Mr. Goldston is Involuntarily Terminated
(as defined in Section 4.1(c) above) or is terminated due to death or
Disability, Mr. Goldston’s options to purchase Classmates’ Class A common
stock shall be exercisable by Mr. Goldston, or, upon Mr. Goldston’s death, his
estate, for a one (1) year period following the date of termination (or
until expiration of their term, if earlier). In addition, if Mr. Goldston
is employed by Parent and Mr. Goldston is Involuntarily Terminated (as defined
in the UOL Agreement) or is terminated from Parent due to death or permanent disability
and he is not employed by Classmates immediately following such termination,
Mr. Goldston’s options to purchase Classmates’ Class A common stock shall
be exercisable by Mr. Goldston, or, upon Mr. Goldston’s death, his estate, for
a one (1) year period following the date of termination (or until
expiration of their term, if earlier).

 

5.                                      NON-COMPETITION;
NON-SOLICITATION

 

5.1           For
the twelve (12) month period following the termination of Mr. Goldston’s
employment with Classmates (but in the case of a termination without Cause or
an Involuntary Termination only if Mr. Goldston has received the severance
payments specified in Section 4.3 above) (the “Restricted Period”),
Mr. Goldston shall not directly engage in, or manage or direct persons
engaged in, a Competitive Business Activity (as defined below) anywhere in the
Restricted Territory (as defined below); provided, that the Restricted Period
shall terminate if Classmates terminates operations or if Classmates no longer
engages in any Competitive Business Activity. The term “Competitive Business
Activity” shall mean  a business primarily
involved in online social networking or a business primarily involving online
loyalty rewards programs. The term “Restricted Territory” shall mean each and
every county, city or other political subdivision of the United States in which
Classmates is engaged in business or providing its services. Classmates agrees
that providing services to a company or entity that is involved in a
Competitive Business Activity but which services are unrelated to the
Competitive Business Activity shall not be deemed a violation of this
Agreement.

 

5.2           During
the Restricted Period (but in the case of a termination without Cause or an
Involuntary Termination only if Mr. Goldston has received the severance
payments specified in Section 4.3 above), Mr. Goldston shall not directly
or indirectly solicit or recruit for employment any person or persons who are
employed by Classmates or any of its subsidiaries or affiliates, or who were so
employed at any time within a period of twelve (12) months immediately prior to
the date Mr. Goldston’s employment terminated, or otherwise interfere with
the relationship between any such person and Classmates; nor will
Mr. Goldston assist anyone else in recruiting any such employee to work
for another company or business or discuss with any such person his or her
leaving the employ of Classmates or engaging in a business activity in
competition with Classmates.

 

8

 

6.                                      CERTAIN PAYMENTS

 

(a)           If
any payment or benefits received or to be received by Mr. Goldston in
connection with or contingent on a change in ownership or control, within the
meaning defined in Section 280G of the Internal Revenue Code (the “Code”) (or
any successor provision thereto), whether or not in connection with
Mr. Goldston’s termination of employment, and whether or not pursuant to
this Agreement (such payments or benefits, excluding the Gross-Up Payment, as
hereinafter defined, shall hereinafter be referred to as the “Total Payments”)
will be subject to an excise tax as provided for in Section 4999 of the Code
(the “Excise Tax”), Classmates shall pay to Mr. Goldston an additional
amount no later than the due date for Mr. Goldston’s tax return with
respect to such Excise Tax (the “Gross-Up Payment”) such that the net amount
retained by Mr. Goldston, after deduction of any Excise Tax on the Total
Payments and any federal, state and local income and employment taxes and
Excise Tax upon the Gross-Up Payment, shall be equal to the Total Payments.

 

(b)           For
purposes of determining whether any of the Total Payments will be subject to
the Excise Tax and the amount of such Excise Tax, (i) all of the Total Payments
shall be treated as “parachute payments” (within the meaning of Section
280G(b)(2) of the Code) unless, in the opinion of tax counsel (“Tax Counsel”)
reasonably acceptable to Mr. Goldston and selected by the accounting firm
acting as the “Auditor”, as defined below, such payments or benefits (in whole
or in part) do not constitute parachute payments, including by reason of
Section 280G(b)(4)(A) of the Code, (ii) all “excess parachute payments” within
the meaning of Section 280G(b)(1) of the Code shall be treated as subject to
the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute
payments (in whole or in part) represent reasonable compensation for services
actually rendered (within the meaning of Section 280G(b)(4)(B) of the Code) in
excess of the Base Amount allocable to such reasonable compensation, or are
otherwise not subject to the Excise Tax, and (iii) the value of any noncash
benefits or any deferred payment or benefit shall be determined by the Auditor
in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. For
purposes of determining the amount of the Gross-Up Payment, Mr. Goldston
shall be deemed to pay federal income tax at the highest marginal rate of
federal income taxation in the calendar year in which the Gross-Up Payment is
to be made and state and local income taxes at the highest marginal rate of
taxation in the state and locality of Mr. Goldston’s residence or, if
higher, in the state and locality of Mr. Goldston’s principal place of
employment, on the date of termination (or if there is no date of termination,
then the date on which the Gross-Up Payment is calculated for purposes of this
Section 6), net of the maximum reduction in federal income taxes which could be
obtained from deduction of such state and local taxes.

 

(c)           In
the event that the Excise Tax is finally determined to be less than the amount
taken into account hereunder in calculating the Gross-Up Payment,
Mr. Goldston shall repay to Classmates, at the time that the amount of
such reduction in Excise Tax is finally determined, the portion of the Gross-Up
Payment attributable to such reduction (including that portion of the Gross-Up
Payment attributable to the Excise Tax and federal, state and local 

 

9

 

income and employment taxes imposed on the
Gross-Up Payment being repaid by Mr. Goldston to the extent that such
repayment results in a reduction in Excise Tax and/or a federal, state or local
income or employment tax deduction). In the event that the Excise Tax is
determined to exceed the amount taken into account hereunder in calculating the
Gross-Up Payment (including by reason of any payment the existence or amount of
which cannot be determined at the time of the Gross-Up Payment), Classmates
shall make an additional Gross-Up Payment in respect of such excess (plus any
interest, penalties or additions payable by Mr. Goldston with respect to
such excess) at the time that the amount of such excess is finally determined. Mr. Goldston
and Classmates shall each reasonably cooperate with the other in connection
with any administrative or judicial proceedings concerning the existence or
amount of liability for Excise Tax with respect to the Total Payments.

 

(d)           All
determinations under this Section 6 shall be made by a nationally recognized
accounting firm selected by Mr. Goldston (the “Auditor”), and Classmates
shall pay all costs and expenses of the Auditor. Classmates shall cooperate in
good faith in making such determinations and in providing the necessary
information for this purpose.

 

7.                                      INDEMNIFICATION

 

Classmates will indemnify Mr. Goldston
(and his legal representative or other successors) to the fullest extent
permitted (including a payment of expenses in advance of final disposition of a
proceeding) by applicable law, as in effect at the time of the subject act or
omission, or by the Certificate of Incorporation and By-Laws of Classmates, as
in effect at such time or on the Effective Date, or by the terms of any
indemnification agreement between Classmates and Mr. Goldston, whichever
affords or afforded greatest protection to Mr. Goldston, and
Mr. Goldston shall be entitled to the protection of any insurance policies
Classmates may elect to maintain generally for the benefit of its directors and
officers (and to the extent Classmates maintains such an insurance policy or
policies, Mr. Goldston shall be covered by such policy or policies, in
accordance with its or their terms to the maximum extent of the coverage
available for any Classmates officer or director), against all costs, charges
and expenses whatsoever incurred or sustained by him or his legal
representatives (including but not limited to any judgment entered by a court
of law) at the time such costs, charges and expenses are incurred or sustained,
in connection with any action, suit or proceeding to which Mr. Goldston
(or his legal representatives or other successors) may be made a party by
reason of his having accepted employment with Classmates or by reason of his
being or having been a director, officer or employee of Classmates, or any
subsidiary of Classmates, or his serving or having served any other enterprise
as a director, officer or employee at the request of Classmates. Mr. Goldston’s
rights under this Section 7 shall continue without time limit for so long as he
may be subject to any such liability, whether or not the Employment Term may
have ended, and the execution of a release of claims as required under this
Agreement shall in no way diminish or eliminate the right to indemnification
and protection under applicable insurance policies of Classmates as described
in this Section 7.

 

10

 

8.                                      ASSIGNMENT

 

Neither Classmates nor Mr. Goldston may
assign this Agreement or any rights or obligations hereunder. This Agreement
will be binding upon Classmates and its successors and assigns. In the event of
a Corporate Transaction, Classmates shall cause this Agreement to be assumed by
Classmates’ successor as well as any acquiring or ultimate parent entity, if
any, following any Corporate Transaction.

 

9.                                      MISCELLANEOUS

 

9.1           This
Agreement supersedes any and all other agreements, either oral or in writing,
between the parties hereto with respect to the employment of Mr. Goldston
by Classmates and constitutes the entire agreement between Classmates and
Mr. Goldston with respect to its subject matter. For the avoidance of
doubt, any agreement between Mr. Goldston and Parent shall not be modified,
amended or superseded by this Agreement.

 

9.2           This
Agreement may not be amended, supplemented, modified or extended, except by
written agreement which expressly refers to this Agreement, which is signed by
of the parties hereto and which is authorized by Classmates’ Board.

 

9.3           This
Agreement is made in and shall be governed by the laws of California, without
giving effect to its conflicts-of-law principles.

 

9.4           If
any provision of this Agreement is held by an arbitrator or a court of
competent jurisdiction to conflict with any federal, state or local law, or to
be otherwise invalid or unenforceable, such provision shall be construed in a
manner so as to maximize its enforceability while giving the greatest effect as
possible to the parties’ intent. To the extent any provision cannot be
construed to be enforceable, such provision shall be deemed to be eliminated
from this Agreement and of no force or effect and the remainder of this
Agreement shall otherwise remain in full force and effect and be construed as
if such portion had not been included in this Agreement.

 

9.5           Mr. Goldston
represents and warrants to Classmates that there is no restriction or
limitation, by reason of any agreement or otherwise, upon Mr. Goldston’s
right or ability to enter into this Agreement and fulfill his obligations under
this Agreement. The parties acknowledge that the Parent has consented to this
Agreement.

 

9.6           All
notices and other communications required or permitted hereunder shall be in
writing and shall be mailed by first-class mail, postage prepaid, registered or
certified, 

 

11

 

or delivered either by hand, by messenger or
by overnight courier service, and addressed to the receiving party at the
respective address set forth in the heading of this Agreement, or at such other
address as such party shall have furnished to the other party in accordance
with this Section 9.6 prior to the giving of such notice or other
communication.

 

9.7           It
is intended that this Agreement shall comply with the provisions of section
409A of the Code and the Treasury Regulations relating thereto so as not to
subject Mr. Goldston to the payment of additional taxes and interest under
section 409A of the Code. In furtherance of this intent, this Agreement shall be
interpreted, operated, and administered in a manner consistent with these
intentions, and to the extent that any regulations or other guidance issued
under section 409A of the Code would result in Mr. Goldston being subject
to payment of additional income taxes or interest under section 409A of the
Code, Mr. Goldston and Classmates agree to amend this Agreement in order
to avoid the application of such taxes or interest under section 409A of the
Code. Notwithstanding any provision to the contrary in this agreement, no
payment or distribution under this agreement which constitutes an item of
deferred compensation under Section 409A of the Code and becomes payable by
reason of Mr. Goldston’s termination of employment with Classmates will be made
to Mr. Goldston prior to the earlier of (i) the expiration of the six (6)-month
period measured from the date of Mr. Goldston’s “separation from service” (as
such term is defined in Treasury Regulations issued under Code Section 409A) or
(ii) the date of Mr. Goldston’s death, if he is deemed at the time of such
separation from service to be a “key employee” within the meaning of that term
under Code Section 416(i) and such delayed commencement is otherwise required
in order to avoid a prohibited distribution under Code Section 409A(a)(2). Upon
the expiration of the applicable Code Section 409A(a)(2) deferral period, all
payments and benefits deferred pursuant to this Section 9.7 (whether they would
have otherwise been payable in a single sum or in installments in the absence
of such deferral) shall be paid or reimbursed to Mr. Goldston in a lump sum,
and any remaining payments due under this Agreement will be paid in accordance
with the normal payment dates specified for them herein.

 

(Signature
Page Follows)

 

12

 

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

 

 

	
   

  	
  CLASSMATES
  MEDIA CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  Berglass

  	
   

  
	
   

  	
  Name: Robert
  Berglass

  
	
   

  	
  Title: Lead
  Independent Director, 

  
	
   

  	
  Compensation
  Committee Chair

  
	
   

  	
  of United
  Online, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederic
  A. Randall, Jr.

  	
   

  
	
   

  	
  Name:
  Frederic A. Randall, Jr.

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MARK R.
  GOLDSTON

  
	
   

  	
   

  
	
   

  	
  /s/ Mark R.
  Goldston

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