Document:

Exhibit 10.3

 

EMPLOYMENT
AGREEMENT

 

                                                This Employment Agreement (this “Agreement”) is entered into as of April 30,
2008 between Becky A. Sheehan (“you”) and Florists’ Transworld
Delivery, Inc., a Michigan corporation (the “Company”).

 

                                                                                                WHEREAS, you and the Company are parties to an
employment agreement dated as of December 3, 2007 (the “Prior Agreement”) and to a related
Confidentiality and Non-Competition Agreement (the “Confidentiality
Agreement”);

 

                                                                                                WHEREAS, United Online, Inc. (“United Online”) and UNOLA Corp., an
indirect wholly-owned subsidiary of United Online (“Merger
Sub”) have entered into an Agreement and Plan of Merger dated April 30,
2008 (the “Merger Agreement”) with FTD
Group, Inc. (“FTD”) whereby Merger Sub will
merge with and into FTD (the “Merger”)
and the shareholders of FTD will receive consideration from United Online;

 

                                                                                                WHEREAS, you acknowledge that you hold an equity
interest in FTD and are a senior executive of the Company;

 

                                                                                                WHEREAS, this Agreement is being entered into in
connection with the transactions contemplated by the Merger Agreement and as a
material inducement to United Online, Merger Sub and FTD entering into the
Merger Agreement and, effective upon the consummation of the Merger, will
wholly-replace and supersede the Prior Agreement in its entirety;

 

                                                                                                WHEREAS, upon the consummation of the Merger,
the Company will continue to employ you, and you will be so employed, subject
to the terms and conditions set forth herein;

 

                                                                                                NOW, THEREFORE, in consideration of the mutual promises
and covenants set forth below and in the Confidentiality Agreement, you, the
Company and United Online hereby agree as follows:

 

1.                                       Term; Position.  The term of this Agreement will
commence upon the consummation of the Merger (the “Effective
Date”) and extend for two years from the Effective Date, unless
this Agreement is earlier terminated as provided herein (which term shall
automatically renew for successive one-year terms thereafter unless the Company
provides written notice of non-renewal to you at least ninety (90) days prior
to the expiration of the then current term) (the “Term”).  For the avoidance of doubt, you will not be
entitled to the benefits pursuant to Section 4 and the payments pursuant
to Section 7 of this Agreement by reason of the Company electing not to
renew the Term.  During the Term, you
will serve as Executive Vice President and Chief 

 

 

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Financial Officer
of the Company and will have such duties and responsibilities consistent with
your position or such other duties and responsibilities as may from time to
time be determined by the Chief Executive Officer or President of the Company
or United Online.  You will report to a
member of senior management of the Company or United Online as may be
designated by the Chief Executive Officer or President of the Company or United
Online.  You
will agree to devote your full-time attention, skill and efforts to the
performance of your duties for the Company.

 

2.                                       Salary and Benefits.

 

                                                (a)                                  You will be paid a salary at an
annualized rate of $400,000.00, payable in bi-weekly or semi-monthly
installments in accordance with the Company’s standard payroll practices,
subject to such increases as may be determined from time to time by the
Company.

 

                                                (b)                                  You will be eligible to participate in
the employee benefit plans, including its 401(k) plan, that are made
generally available to the Company’s senior executives.  You will be entitled to a minimum of four (4) weeks
of paid vacation each year or such greater amount as determined in accordance
with the standard vacation policy in effect for the Company.

 

                                                (c)                                  The Company will promptly reimburse you
for all reasonable and necessary business expenses you incur in connection with
the business of the Company and the performance of your duties hereunder upon
your submission of reasonable and timely documentation of the expenses.

 

3.                                       (a)                                  Annual Bonus.  For each fiscal year of the Company during your period
of employment, you will be eligible to participate in a bonus program with
eligibility for up to 100% of your annualized base salary except as provided
below.  The performance criteria for
purposes of determining your actual bonus for each fiscal year will be
established by the Company.  Your annual
bonus will be increased to include any increases in your annual bonus as
approved by the Company.  Except as
otherwise determined by the Company or as set forth herein, you will be
entitled to a bonus award only if you are employed by and in good standing with
the Company on the date bonus payments are paid for that fiscal year.  Notwithstanding the foregoing, it is
anticipated that, following the Effective Date, the fiscal year of the Company
will be changed so as to end on December 31 instead of June 30, and
that for the fiscal year ending December 31, 2008, any bonus you are
eligible to receive will be prorated.

 

                                                (b)                                  Transaction Bonus.                                     Subject to and upon consummation of the
Merger, you will receive a transaction bonus in the amount of $500,000.00,
which will be paid in a lump sum within ten (10) business days following
the Effective Date.

 

4.                                       Restricted Stock Unit and Other
Equity Awards.

 

                                                (a)                                  Effective on the 15th day of
the second month of the calendar quarter coinciding with or next following the
Effective Date (the “Award Date”),
you will be awarded restricted stock units covering 75,000 shares of the United
Online’s common stock (the “RSU Award”).  The RSU Award will be granted under a stock
plan of United Online (the “Plan”) and
will be subject to the standard terms and conditions set forth in the Plan and
the standard form restricted 

 

 

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stock unit
agreement for employee awards under such Plan. 
Your RSU Award will vest, and the underlying shares will be issued,
according to the following schedule subject to your continued employment with
the Company through such vesting dates: 
twenty-five percent (25%) of the RSU Award will vest on each succeeding
anniversary date of the Award Date.

 

                                                (b)                                  Except as set forth in Section 4(c) of
this Agreement, if your employment is terminated by the Company “without cause”
or by you for “good reason” (as each term is defined below) during the Term,  the vesting and (subject to Section 7(e))
payment of your RSU Award and any other equity awards you hold as of the date
of such termination will be accelerated by the additional number of shares in
which you would have otherwise been vested at the time of such termination had
you completed an additional twelve (12) months of employment with the Company,
calculated as if such RSU Award and any such other equity awards vested on a
monthly basis.  Such vesting acceleration
and (subject to Section 7(e)) payment are subject to your executing and
delivering to the Company, and will occur upon the expiration of all applicable
review and revocation periods applicable to, the Release referred to in Section 7(b) as
statutorily required by law and in no event later than the later of (i) the
15th day of the third month following the end of your taxable year in which
such termination of employment occurs or (ii) the 15th day of the third
month following the end of the Company’s taxable year in which such termination
of employment occurs.  In no event will
the number of shares which vest on such an accelerated basis with respect to
any particular equity grant exceed the number of shares unvested immediately
prior to the date of such termination with respect to such grant.

 

                                                (c)                                  If your employment is terminated by the
Company “without cause” or by you for “good reason” (as each term is defined
below) in connection with, or within twelve (12) months after, a change in
control of United Online (as defined in the applicable stock plan, stock
option agreement or restricted stock unit agreement), the vesting and (subject
to Section 7(e)) payment of your RSU Award and any other equity awards you
hold as of the date of such termination will be accelerated by the additional
number of shares in which you would have otherwise been vested at the time of
such termination had you completed an additional twelve (12) months of
employment with the Company or, if greater, an additional period of
service equal in duration to the actual period of service you completed between
the Effective Date (or, with respect to any such other equity awards you hold
outstanding as of the date of such termination, the date of the commencement of
vesting with respect to such equity awards) and the date of such termination,
in all cases calculated as if such RSU Award and such other equity awards
vested on a monthly basis.  Such vesting
acceleration and (subject to Section 7(e)) payment are subject to your
executing and delivering to the Company, and will occur upon the expiration of
all applicable review and revocation periods applicable to, the Release
referred to in Section 7(b) as statutorily required by law and in no
event later than the later of (i) the 15th day of the third month
following the end of your taxable year in which such termination of employment
occurs or (ii) the 15th day of the third month following the end of the
Company’s taxable year in which such termination of employment occurs.  In no event will the number of shares which
vest on such an accelerated basis with respect to any particular equity grant
exceed the number of shares unvested immediately prior to the date of such
termination with respect to such grant.

 

                                                (d)                                  Upon the termination of your employment
during the Term as a result of death or Disability (as defined below), the
vesting and (subject to Section 7(e)) payment of your 

 

 

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outstanding RSU
Award and any other equity awards you hold as of the date of such termination
will be accelerated by the additional number of shares in which you would have
been vested at the time of such termination if you had completed an additional
twelve (12) months of service, calculated as if such RSU Award and any other
such equity awards vested on a monthly basis; provided however, that in no
event will the number of shares which vest on such an accelerated basis with
respect to any particular equity grant exceed the number of shares unvested
immediately prior to the date of such termination with respect to such
grant.  For purposes of this Agreement, “Disability”
means your inability to engage in any substantial gainful activity necessary to
perform your duties hereunder by reason of any medically determinable physical
or mental impairment which can be expected to result in death or which has
lasted, or can be expected to last, for a continuous period of not less than
twelve (12) months.

 

                                                (e)                                  In the event of any inconsistency between
the terms set forth in this Section 4 and the terms set forth in the
agreement evidencing your RSU Award, the terms set forth in this Agreement will
control. The provisions of this Section 4 and Section 7 will apply to
the RSU Award, and will also apply to future equity awards, except to the
extent specifically stated in the applicable award agreement or in a resolution
of the Board of Directors or committee thereof of United Online.

 

5.                                       Policies; Procedures.  As an employee of the Company, you agree to abide by
all of the policies and procedures in effect for the Company, including
(without limitation) the insider trading policy, the code of ethics and the
employee handbook, as well as the Confidentiality Agreement.

 

6.                                       At Will Employment. 
Notwithstanding anything to the contrary contained herein, your
employment with the Company will be “at will” and will not be for any specified
term, meaning that either you or the Company will be entitled to terminate your
employment at any time and for any reason, with or without cause or advance
notice.  Any contrary representations
that may have been made to you are superseded by the terms set forth in this
Agreement.  This is the full and complete
agreement between you, the Company and United Online on this subject.  Although your job duties, title, compensation
and benefits, as well as the personnel policies and procedures applicable to
the Company, may change from time to time, the “at will” nature of your
employment may only be changed in an express written agreement signed by you
and the Chief Executive Officer of the Company or United Online.

 

7.                                       Separation from Service.

 

                                                (a)                                  Termination by You Without Good
Reason.  If you terminate your employment with the Company for
any reason other than as a result of your death or Disability or your
resignation for “good reason” (as defined below), then all obligations of the
Company as set forth in this Agreement will cease, other than the obligation to
pay you, on your termination date, any earned but unpaid compensation for
services rendered through that date and any accrued but unused vacation days as
of your termination date (collectively, the “Accrued
Obligations”).  Notwithstanding
your Separation from Service pursuant to this Section 7(a), you will
continue to be obligated to comply with the terms of the policies, procedures
and agreements referenced in Section 5 above.

 

 

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                                                (b)                                  Termination by the Company;
Termination by You for Good Reason.  If your employment is terminated by the
Company “without cause” (as defined below) during the Term or you terminate
your employment for “good reason” (as defined below) during the Term, and subject to your execution
(without revoking) and delivery to the Company of a comprehensive agreement
releasing the Company and its officers, directors, employees, stockholders,
subsidiaries, affiliates, representatives and other parties and containing such
other and additional terms as the Company deems satisfactory (“Release”), which becomes effective
after the expiration of any applicable revocation period, the Company will pay
you a separation payment (the “Separation Payment”)
equal to the sum of (i) twelve (12) months of your then current annual
base salary, (ii) your Annual Bonus (as defined below), and (iii) a
prorated portion of your Annual Bonus (as defined below).  In addition, notwithstanding the second to
last sentence of Section 3(a) hereof, if your date of termination
occurs following the end of a fiscal year and prior to the date that you would
have otherwise been entitled to be paid your annual bonus for such fiscal year,
the Company will pay you an amount equal to the annual bonus that you would
have received had you remained employed by and in good standing with the
Company through the date the annual bonus for such fiscal year is paid, which
amount shall be paid at the same time and manner that such payment would have
been paid to you had you remained employed through such date.  Solely for purposes of the first sentence
hereof, “Annual Bonus” shall mean the lesser
of (1) 100% of your then current annual base salary and (2) the most
recent annual bonus paid to you for a full fiscal year. Subject to the
provisions of Section 7(e) and your continued compliance with the
policies, procedures and agreements referenced in Section 5 above, this
Separation Payment will be payable monthly on a pro rata basis over twelve (12)
months with the first such payment commencing upon the expiration of all
applicable review and revocation periods applicable to the Release as
statutorily required by law.

 

                                                If your employment is terminated by the
Company “without cause” or by you for “good reason” during the Term, the
Company will have no further obligation to you pursuant to this Agreement other
than the Accrued Obligations, the acceleration of vesting provided in Section 4
above and the obligations of the Company pursuant to this Section 7(b).

 

                                                If your employment is terminated by the
Company “with cause” as defined below, the Company will have no further
obligation to you under the terms of this Agreement, other than the Accrued
Obligations.

 

                                                Notwithstanding the termination of your
employment by the Company “with cause” or “without cause,” or by you for “good
reason”, you will continue to be obligated to comply with the terms of the
policies, procedures and agreements referenced in Section 5 above.

 

                                                If any payment or benefit received or to
be received by you (including any payment or benefit received pursuant to this
Agreement or otherwise) would be (in whole or part) subject to the excise tax
imposed by Section 4999 of the Internal Revenue Code (the “Code”), or any successor provision
thereto, or any similar tax imposed by state or local law, or any interest or
penalties with respect to such excise tax (such tax or taxes, together with any
such interest and penalties, are hereafter collectively referred to as the “Excise Tax”), then, the payments and
benefits provided hereunder shall be reduced in the manner selected by you in
accordance with 

 

 

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the requirements
of Section 409A of the Code to the extent necessary to make such payments
and benefits not subject to such Excise Tax, but only if such reduction results
in a higher after-tax payment to you after taking into account the Excise Tax
and any additional taxes you would pay if such payments and benefits were not
reduced.

 

                                                (c)                                  Termination by Death or Disability. 
If your employment is terminated during the Term as a result of your
death or Disability, the Company will be obligated to pay the Accrued
Obligations to you, your estate or beneficiaries (as the case may be).  In the event of a termination of your
employment due to death or Disability, you or your estate or beneficiaries, as
the case may be, will be entitled to the accelerated vesting of your equity
awards as set forth in Section 4(d) above.  The provisions of this Section 7(c) will
not affect or change the rights or benefits to which you are otherwise entitled
under the Company’s employee benefit plans or otherwise.

 

                                                (d)                                  Definitions.

 

                                                For purposes of this Agreement, the
following definitions will be in effect:

 

                                                                                                “good reason”
means:

 

(i)                                     a material reduction in your base salary
without your prior written consent;

 

(ii)                                  a material reduction in your position,
duties or responsibilities, without your prior written consent (for avoidance
of doubt, any diminution or reduction in position, duties or responsibilities
attached to the position that you held immediately prior to the consummation of
the Merger which in any way whatsoever is attributable or relates to the fact
that you (w) are not an executive or officer of a public company or an
ultimate parent company, (x) may no longer report to an executive or
officer of a public company or an ultimate parent company, (y) may no
longer be regarded as an “officer” or “executive officer” under federal or
state securities laws, rules and regulations, and/or (z) may no
longer be regarded as being in charge of a principal business unit, division or
function of, or as performing a policy making function for, a public company or
an ultimate parent company, shall not constitute “good reason”);

 

(iii)                               a material change in your place of employment which is
not within a 50-mile radius of the following address, without your prior
written consent:  3113 Woodcreek Drive,
Downers Grove, IL  60515; or

 

(iv)                              any material un-waived breach by the
Company of the terms of this Agreement;

 

provided, however, that with respect to any of (i) — (iv) above,
you shall not have good reason to terminate your employment unless you provide
written notice to the Company of the existence of the good reason condition
within ninety (90) days of its initial existence and the Company does not cure
such condition within thirty (30) days of receiving such notice.

 

                                                “with cause”
means your commission of any one or more of the following acts:

 

(i)                                     willfully damaging of the property,
business, business relationships, reputation or goodwill of the Company or its
affiliates;

 

(ii)                                  commission of a felony or a misdemeanor
involving moral turpitude;

 

 

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(iii)                               theft, dishonesty, fraud or embezzlement;

 

(iv)                              willfully violating any rules or
regulations of any governmental or regulatory body that is or is reasonably
expected to be injurious to the Company or its affiliates;

 

(v)                                 the use of alcohol, narcotics or other
controlled substances to the extent that it prevents you from efficiently
performing services for the Company or its affiliates;

 

(vi)                              willfully injuring any other employee of
the Company or its affiliates;

 

(vii)                           willfully injuring any person in the
course of performance of services for the Company or its affiliates;

 

(viii)                        disclosing to a competitor or other
unauthorized persons confidential or proprietary information or secrets of the
Company or its affiliates;

 

(ix)                                solicitation of business on behalf of a
competitor or a potential competitor of the Company or its affiliates;

 

(x)                                   harassment of any other employee of the
Company or its affiliates or the commission of any act which otherwise creates
an offensive work environment for other employees of the Company or its
affiliates;

 

(xi)                                failure for any reason within five (5) days
after receipt by you of written notice thereof from the Company, to correct,
cease or otherwise alter any insubordination, failure to comply with
instructions, inattention to or neglect of the duties to be performed by you or
other act or omission to act that in the opinion of the Company or United
Online does or may adversely affect the business or operations of the Company
or its affiliates;

 

(xii)                             breach of any material term of this
Agreement; or

 

(xiii)                          any other act or omission that is
determined to constitute “cause” in the good faith discretion of the Board of
Directors of the Company or United Online.

 

                                                “without cause”
means any reason not within the scope of the definition of the term “with
cause.”

 

                                                (e)                                  Code Section 409A. 
Notwithstanding anything contained herein to the contrary, you shall not
be considered to have terminated employment with the Company for purposes of
this Agreement and no payments shall be due to you under Section 7 of this
Agreement unless you would be considered to have incurred a “separation from
service” from the Company within the meaning of Section 409A of the
Code.  For purposes of this Agreement,
each amount to be paid or benefit to be provided shall be construed as a
separate identified payment for purposes of Section 409A of the Code, and
any payments described in Section 3 that are due within the “short term
deferral period” as defined in Section 409A of the Code shall not be
treated as deferred compensation unless applicable law requires otherwise.  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 your termination of employment with the
Company will be made to you prior to the earlier of (i) the expiration of
the six (6)-month period measured from the date of your “separation from
service” (as such term is defined in Treasury Regulations issued under Code Section 409A)
or (ii) the date of your death, if you are 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) 

 

 

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deferral period,
all payments and benefits deferred pursuant to this Section 7(e) (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 you 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.  In addition, to the extent required in order
to avoid accelerated taxation and/or tax penalties under Section 409A of
the Code, if you terminate employment after November 1st
pursuant to Section 7(b) of this Agreement, amounts that would
otherwise be payable and benefits that would otherwise be provided pursuant to
this Agreement prior to December 31st of the year in which the termination
of employment occurs shall, subject to the previous sentence of this Section,
instead be paid on the first business day following January 1st of the
year following your termination of employment.

 

8.                                       Withholding Taxes. 
All forms of compensation payable pursuant to the terms this Agreement,
whether payable in cash, shares of the Company’s common stock or other
property, are subject to reduction to reflect the applicable withholding and
payroll taxes.

 

9.                                       Entire Agreement. 
This Agreement, together with the Confidentiality Agreement, any
handbooks, policies and procedures in effect from time to time and the
applicable stock plans and any stock option agreements, restricted stock unit
agreements or other agreement evidencing the equity awards made to you from
time to time during your period of employment (including, without limitation,
the RSU Award), contains all of the terms of your employment with the Company
and supersede any prior understandings or agreements relating to the subject
matter hereof, whether oral or written, between or among you, United Online and
the Company, including, without limitation, the Prior Agreement; provided,
however, that in the event the Merger is not consummated, the Prior Agreement
shall remain in full force and effect. 
Nothing herein shall affect any written indemnification agreement
between you and the Company or any of its affiliates in effect on the date
hereof.  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 intent
of the parties.  To the extent any
provision cannot be construed to be enforceable, such provision will be deemed
to be eliminated from this Agreement and of no force or effect, and the
remainder of this Agreement will otherwise remain in full force and effect and
be construed as if such portion had not been included in this Agreement. This
Agreement is not assignable by you.  This
Agreement may be assigned by the Company to its affiliates or to successors in
interest to the Company or its lines of business.

 

10.                                 Amendment and Governing Law. 
This Agreement may not be amended or modified except by an express written
agreement signed by you and the Chief Executive Officer of the Company or
United Online.  The validity,
interpretation, enforceability, and performance of this Agreement and the
resolution of any disputes will be governed by and construed and enforced in
accordance with the internal laws of the State of Illinois, without giving
effect to the conflicts of laws principles thereof. You and the Company consent
to jurisdiction and venue in any federal or state court of competent
jurisdiction located in the City of Chicago.

 

 

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11.                                 Surviving Provisions. 
Following any termination of this Agreement, Sections 5, 6, 7(e), 8, 9,
10 and 11 will survive, and, if your employment with the Company continues
thereafter, your employment with the Company will continue to be “at will”.

 

                                                IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date stated in the opening paragraph.

 

	
   

  	
   

  	
  /S/ BECKY A.
  SHEEHAN

  	
   

  
	
   

  	
   

  	
  Becky
  A. Sheehan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLORISTS’
  TRANSWORLD DELIVERY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /S/ MICHAEL J.
  SOENEN

  	
   

  
	
   

  	
   

  	
   

  	
  Michael J.
  Soenen

  
	
   

  	
   

  	
   

  	
  Chairman, Chief
  Executive Officer and President

  
						

 

 

9Exhibit 10.4

 

April 30,
2008

 

Mr. Michael
J. Soenen

55 East Erie

Unit #4902

Chicago, IL  60611

 

Dear
Michael:

 

                This is to memorialize the
agreement that has been reached regarding your employment following the
consummation of the transactions contemplated by the Agreement and Plan of
Merger dated April 30, 2008 (the “Merger Agreement”), by and among United
Online, Inc. (“United Online”), UNOLA Corp., an indirect wholly-owned
subsidiary of United Online (“Merger Sub”), and FTD Group, Inc.
(individually and together with its subsidiaries, “FTD”), whereby Merger Sub
will merge with and into FTD (the “Merger”). 
This agreement is conditioned upon, and shall be effective upon, the
consummation of the Merger (the “Effective Date”).  In the event the Merger is not consummated,
this agreement shall be of no force or effect.

 

1.                                       Position; Term.  You currently serve as Chief Executive
Officer and President of FTD and Florists’ Transworld Delivery Inc.  Following the Merger, FTD will continue to
employ you, and you hereby agree to be employed, on a full-time basis, from and
after the Effective Date until December 31, 2008, or such earlier
termination date as may be designated by FTD or United Online upon ten (10) days’
written notice to you or pay in lieu thereof (the “Termination Date,” with the
period from the Effective Date until the Termination Date herein referred to as
the “Term”).  During the Term, you will
have such duties and responsibilities consistent with your position or such
other duties and responsibilities as may be determined from time to time by the
Chief Executive Officer of United Online, and you hereby agree to discharge
such duties and responsibilities faithfully and to the best of your ability.

 

2.                                       Salary and
Benefits; Bonus.  During the
Term, you will be paid at your current annualized base salary rate of
$750,000.00, payable in regular installments in accordance with FTD’s standard
payroll practices.  You will continue to
be eligible to participate in the employee benefit plans that are made generally
available to FTD’s senior executives.  In
addition, you will receive a bonus equal to 100% of the base salary earned by
you from FTD during the Term, payable within ten (10) days following the
Term, in lieu of any MIP Bonus that may otherwise be payable to you under the
Management Incentive Plan.

 

 

 

3.                                       Consultancy.  FTD shall have the option at the conclusion
of the Term, upon at least 10 days’ prior written notice to you in accordance
with Section 8 below, to continue to engage you as a consultant on a
monthly basis until March 15, 2009 at a consulting fee of up to $50,000.00
per month for up to twenty (20) hours per week of consulting services, or at a
prorated fee for such lesser number of hours per week, if any, as may be agreed
in advance by you and FTD (which such consulting fee, if any, shall be paid to
you in accordance with FTD policies but in no event later than March 15,
2009).  Such consulting fee will be
prorated for any partial month of consultation. 
FTD shall reimburse you for actual and reasonable business expenses
incurred in performing such consulting services in accordance with FTD
policies.  You hereby agree to provide your
consulting services on such basis, if so requested by FTD.

 

4.                                       Transaction
Bonus; Non-Compete.  Subject to
and upon consummation of the Merger, you will receive a transaction bonus (the “Transaction
Bonus”) in the amount of $3,000,000, which will be paid in a lump sum within
ten (10) business days following the Effective Date.  In consideration of such Transaction Bonus,
you have agreed to enter into a Confidentiality and Non-Competition Agreement
with Florists’ Transworld Delivery Inc., dated as of April 30, 2008, the
terms and conditions of which are hereby incorporated by this reference and an
executed copy of which is appended hereto as Exhibit A.

 

5.                                       Withholding and
Payroll Taxes.  All forms
of compensation payable pursuant to the terms of this agreement are subject to
applicable withholding and payroll taxes.

 

6.                                       At-Will
Employment.  You
acknowledge that nothing in this agreement creates a contract for employment
for any specific duration and that your employment shall be terminable “at-will,”
meaning that either FTD or you can terminate the relationship at any time, with
or without reason or advance notice.

 

7.                                       Property.  You will be entitled to keep in your
possession indefinitely any computer, cell phone, pager, “Blackberry” or other
PDA provided by FTD during the course of your employment and consultancy,
provided that, following the termination of your services to FTD, you have
returned to the FTD any and all property of FTD and its affiliates in your
possession and have erased and destroyed all files, records, documents,
computer disks, computer files, contact lists, and all other company
information from such computer, cell phone, pager, “Blackberry” or other PDA
after first confirming that FTD has a copy of such company information.

 

8.                                       Notices. Any notice
required or permitted to be given under this agreement shall be in writing and
shall be deemed to have been sufficiently given if delivered in person, by fax,

 

 

2

 

if deposited in the U.S. mails, postage prepaid, for mailing by
registered or certified mail or if sent by reputable overnight courier.

 

If
to FTD, such notice shall be sent to:

 

Mr. Mark
R. Goldston

c/o United Online, Inc.

21301 Burbank Boulevard

Woodland Hills, CA   91367

 

If to you, such notice shall be sent to:

 

Mr. Michael J. Soenen

55 East Erie

Unit #4902

Chicago, IL  60611

 

Either
party may change its address for notice purposes by giving the other party
notice of such change in accordance with this Section.

 

9.                                       Miscellaneous.  This letter agreement supersedes any previous
agreement or offer between you and FTD or
United Online relating to the subject matter hereof, whether written or
oral; provided that, this letter agreement is not intended, and shall not be
construed, to affect your rights under the Merger Agreement, including but not
limited to your right to indemnification and directors’ and officers’
insurance coverage as set forth therein.  You understand and agree
that this letter agreement represents the entire agreement and understanding
between the parties and, except as expressly stated in this letter agreement,
supersedes any prior agreement, understanding or negotiations respecting such
subject.  No change to or modification of
this letter agreement shall be valid or binding unless it is in writing and
signed by you and the Chief Executive Officer of United Online.  You acknowledge and agree
that you will be subject to and are required at all times to abide by all of
the applicable personnel policies and procedures of FTD and United Online, as amended from time to time.  This letter agreement is not
assignable by you.  This letter agreement
may be assigned by FTD to its affiliates or successors with the written consent
of the Chief Executive Officer of United Online.  This agreement shall inure to the benefit of
and be binding upon the heirs, representatives, successors and permitted
assigns of each of the parties to it.

 

 

3

 

                Please acknowledge your
acceptance of the terms described in this letter by signing below and return
the signed original to me at your earliest convenience.  A copy of this letter
agreement is enclosed for your retention.

 

	
   

  	
  Sincerely
  yours,

  
	
   

  	
   

  
	
   

  	
  Florists’
  Transworld Delivery, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /S/
  BECKY A. SHEEHAN

  	
   

  
	
   

  	
   

  	
  Becky
  A. Sheehan

  
	
   

  	
   

  	
  Executive
  Vice President and Chief Financial Officer

  

 

Acknowledged
and agreed:

 

	
  /S/
  MICHAEL J. SOENEN

  	
   

  	
   

  
	
  Michael
  J. Soenen

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  April 30,
  2008

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

Acknowledged:

 

	
  /S/
  MARK R. GOLDSTON

  	
   

  	
   

  
	
  Mark
  R. Goldston

  Chairman, President and Chief Executive Officer, United Online Inc.

  

 

 

4

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