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Classmates Media CORP, et al. · S-4 · On 6/27/08

Filed On 6/27/08 4:55pm ET   ·   SEC Files 333-151998, -01, -02, -03, -04, -05, -06, -07, -08, -09, -10, -11, -12, -13   ·   Accession Number 1047469-8-7841

  in   Show  and 
  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

 6/27/08  Classmates Media CORP             S-4                    5:299                                    Merrill Corp/New/- FA
          Classmates Online/Inc
          Juno Online Services Inc
          Mypoints Com Inc
          United Online Inc
          Opobox/Inc
          Juno Internet Services/Inc
          United Online Communications/Inc
          United Online Advertising Network/Inc
          Classmates Yearbooks/Inc
          Classmates International/Inc
          UOL Advertising/Inc
          United Online Web Services/Inc
          Netzero Inc

Registration of Securities Issued in a Business-Combination Transaction   ·   Form S-4
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: S-4         Registration of Securities Issued in a              HTML  1,988K 
                          Business-Combination Transaction                       
 2: EX-23.1     Consent of Experts or Counsel                       HTML      9K 
 3: EX-23.2     Consent of Experts or Counsel                       HTML      9K 
 4: EX-99.2     Miscellaneous Exhibit                               HTML     12K 
 5: EX-99.3     Miscellaneous Exhibit                               HTML     15K 


S-4   ·   Registration of Securities Issued in a Business-Combination Transaction
Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
"Table of Contents
"Questions and Answers About the Merger
"Summary
"Information about the Companies
"The Merger
"Risk Factors
"The FTD Special Meeting
"Recommendation of the FTD Board of Directors
"Opinion of FTD's Financial Advisor
"Ownership of UOL Following the Merger
"Share Ownership of FTD Directors and Executive Officers
"Interests of Directors and Executive Officers of FTD in the Merger
"Listing of UOL Common Stock and Delisting and Deregistration of FTD Common Stock
"Appraisal Rights
"Conditions to Completion of the Merger
"Regulatory Matters
"No Solicitation by FTD
"Termination of the Merger Agreement
"Fees and Expenses
"Material United States Federal Income Tax Consequences of the Merger
"Accounting Treatment
"Comparison of Rights of UOL Stockholders and FTD Stockholders
"Selected Summary Historical Financial Data of Uol
"Selected Summary Historical Financial Data of Ftd
"Selected Unaudited Pro Forma Condensed Combined Financial Statements of Uol
"Comparative Historical and Pro Forma Per Share Data
"Ratio of Earnings to Fixed Charges
"Comparative Per Share Market Price Data
"Cautionary Statement Concerning Forward-Looking Statements
"Uol
"Ftd
"UNOLA Corp
"Date, Time and Place
"Purpose of the FTD Special Meeting
"FTD Record Date; FTD Common Stock Entitled to Vote
"Quorum and Votes Required
"Voting by FTD Directors and Executive Officers
"Voting of Proxies
"Revocability of Proxies and Changes to an FTD Stockholder's Vote
"Solicitation of Proxies
"Attending the FTD Special Meeting
"Item 1. The Merger Proposal
"Item 2. The Adjournment Proposal
"Other Matters to Come Before the FTD Special Meeting
"Background of the Merger
"Recommendation of the FTD Board of Directors; FTD's Reasons for the Merger
"UOL's Reasons for the Merger
"Interests of Executive Officers and Directors of FTD in the Merger
"Listing of UOL Common Stock Issued in the Merger
"No Listing of UOL Notes Issued in the Merger
"Delisting and Deregistration of FTD Common Stock
"Accounting Treatment of the Merger
"Restrictions on Sale of Shares of UOL Common Stock and UOL Notes Received in the Merger
"The Merger Agreement
"Closing and Effective Time of the Merger
"Merger Consideration
"Change in Cash Merger Consideration Upon Receipt of Additional Financing or a Classmates IPO
"Treatment of FTD Stock Options and Restricted Stock
"Assumption of FTD's 2005 Amended and Restated Equity Incentive Award Plan
"Fractional Shares and Notes
"Exchange Procedures
"Distributions, Interest Payments or Other Payments with Respect to Unexchanged Shares
"Lost, Stolen and Destroyed Certificates
"Representations and Warranties of FTD and UOL
"Conduct of Business of FTD Pending Completion of the Merger
"Conduct of Business of UOL Pending Completion of the Merger
"Efforts and Assistance; HSR Act
"Further Action; Financing
"Director and Officer Indemnification and Insurance
"Employee Benefits
"Access to Information; Confidentiality
"Obligation of FTD Board of Directors with Respect to its Recommendation and Holding of a Stockholder Meeting
"Treatment of FTD's 7.75% Senior Subordinated Notes
"Conditions to Obligations to Complete the Merger
"Definition of Material Adverse Effect
"Effect of Termination
"Amendment
"Extension; Waiver
"Governing Law
"The Voting and Support Agreement
"Agreement to Vote and Irrevocable Proxy
"Transfer Restrictions
"Termination
"Description of Senior Secured Credit Facilities
"Overview
"Interest Rate
"Mandatory Prepayments
"Guarantees and Security
"Covenants and Events of Default
"Description of Uol's Capital Stock
"Authorized Capital Stock
"UOL's Common Stock
"UOL's Preferred Stock
"Anti-Takeover Effects of Provisions of the Delaware General Corporation Law, UOL's Amended and Restated Certificate of Incorporation and UOL's Amended and Restated Bylaws
"Stockholders' Rights Agreement
"Transfer Agent and Registrar
"Listing
"Description of Senior Secured Notes Due 2013
"Description of the Notes and the Note Guarantees
"Principal, Maturity and Interest
"Methods of Receiving Payments on the Notes
"Paying Agent and Registrar for the Notes
"Transfer and Exchange
"Note Guarantees
"Security
"Redemption of Notes
"Repurchase at the Option of Holders
"Certain Covenants
"Reports
"Events of Default and Remedies
"No Personal Liability of Directors, Officers, Employees and Stockholders
"Legal Defeasance and Covenant Defeasance
"Amendment, Supplement and Waiver
"Satisfaction and Discharge
"Concerning the Trustee
"Certain Definitions
"Book-Entry, Delivery and Form
"Comparison of Stockholder Rights
"Future Ftd Stockholder Proposals and Nominations
"Legal Matters
"Experts
"Where You Can Find More Information
"Table of Contents 2
"Article I the Merger
"The Closing
"Effective Time
"Effects of the Merger
"Article Ii Certificate of Incorporation and Bylaws of the Surviving Corporation
"Certificate of Incorporation
"Bylaws
"Article Iii Directors and Officers of the Surviving Corporation
"Directors
"Officers
"Article Iv Effect of the Merger on Securities of Merger Sub and the Company
"Effect of the Merger on Merger Sub Stock
"Effect of the Merger on Company Securities
"Exchange of Certificates Representing Shares of Company Common Stock
"Article V Representations and Warranties of the Company
"Existence; Good Standing; Corporate Authority
"Authorization, Validity and Effect of Agreements
"Compliance with Laws
"Capitalization
"Subsidiaries
"No Violation
"Company Reports
"Absence of Certain Changes
"Taxes
"Brokers
"Licenses and Permits
"Environmental Compliance and Disclosure
"Title to Assets
"Labor and Employment Matters
"Intellectual Property
"Material Contracts
"No Undisclosed Liabilities
"Litigation
"Insurance
"Real Estate
"Affiliate Transactions
"Fairness Opinion
"Controls
"Information Supplied
"United Kingdom Data Protection
"Article Vi Representations and Warranties of Purchaser and Merger Sub
"Purchaser Reports
"Financing
"Purchaser-Owned Shares of Company Common Stock
"Interim Operations of Merger Sub
"Title to CMC Shares
"Pledge Agreement
"Article Vii Covenants
"Interim Operations of the Company and Purchaser
"Stockholder Meeting; Proxy Statement
"Publicity
"Further Action
"Insurance; Indemnity
"Employee Benefit Plans
"Options
"Access to Information
"Acquisition Proposals; Board Recommendation
"Transfer Taxes
"Treatment of 7.75% Senior Subordinated Notes
"FIRPTA Certificate
"Stock Exchange Listing
"Section 16 Matters
"Article Viii Conditions
"Conditions to Each Party's Obligation to Effect the Merger
"Conditions to Obligations of the Company
"Conditions to Obligations of Purchaser and Merger Sub
"Article Ix Termination; Amendment; Waiver
"Article X General Provisions
"Nonsurvival of Representations and Warranties
"Notices
"Assignment; Binding Effect
"Entire Agreement
"Waiver of Jury Trial
"Headings
"Interpretation
"Severability
"Enforcement of Agreement
"Counterparts
"Obligation of Purchaser

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TABLE OF CONTENTS
TABLE OF CONTENTS 2

As filed with the Securities and Exchange Commission on June 27, 2008

Registration No. 333-            



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549


FORM S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933


UNITED ONLINE, INC.
(Exact name of registrant as specified in its charter)

Delaware   7370   77-0575839
(State or other jurisdiction of
incorporation or organization)
  (Primary Standard Industrial
Classification Code Number)
  (I.R.S. Employer
Identification Number)

21301 Burbank Boulevard
Woodland Hills, California 91367
(818) 287-3000
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)


Mark R. Goldston
Chairman, President and Chief Executive Officer
21301 Burbank Boulevard
Woodland Hills, California 91367
(818) 287-3000
(Name, address, including zip code, and telephone number, including area code, of agent for service)


Copies to:

Brian J. McCarthy, Esq.
David C. Eisman, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
300 South Grand Avenue
Los Angeles, California 90071
(213) 687-5000
  Michael J. Soenen
Chairman, President and Chief Executive Officer
FTD Group, Inc.
3113 Woodcreek Drive
Downers Grove, Illinois 60515
(630) 719-7800
  Howard A. Sobel, Esq.
John Giouroukakis, Esq.
Latham & Watkins LLP
885 Third Avenue
New York, New York 10022
(212) 906-1200

           Approximate date of commencement of proposed sale to the public:    As soon as practicable after the effectiveness of this registration statement and the satisfaction or waiver of all other conditions under the merger agreement described herein.

           If the securities being registered on this form are to be offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box. o

           If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

           If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

           Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "larger accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o
(Do not check if a smaller
reporting company)
  Smaller reporting company o

CALCULATION OF REGISTRATION FEE


Title of Each Class of
Securities to be Registered(1)

  Amount to
be Registered

  Proposed Maximum
Offering Price
Per Unit

  Proposed Maximum
Aggregate Offering
Price

  Amount of
Registration Fee


Common Stock, $0.0001 par value per share (together with the associated preferred share purchase rights)(2)   12,919,077(3)   N/A   $134,875,163.88(4)   $5,300.60

13% Senior Secured Notes due 2013   $100,000,000   100%   $100,000,000   $3,930.00

Guarantees related to the 13% Senior Secured Notes due 2013   N/A   N/A   N/A   N/A(5)

  TOTAL       $234,875,163.88   $9,230.60

(1)
This Registration Statement relates to common stock, par value $0.0001 per share, and $100,000,000 aggregate principal amount 13% Senior Secured Notes due 2013, of the registrant issuable to holders of common stock, par value $0.01 ("FTD common stock"), of FTD Group, Inc., a Delaware corporation ("FTD"), in the proposed merger of UNOLA Corp., a Delaware corporation and an indirect wholly owned subsidiary of the registrant, with and into FTD.

(2)
Each share of the registrant's common stock includes a right to purchase one one-thousandth of a share of Series A junior participating preferred stock pursuant to the registrant's rights agreement dated as of November 15, 2001, as amended on April 29, 2003, with Computershare Trust Company, N.A. (successor in interest to U.S. Stock Transfer Corporation) as rights agent.

(3)
Based on the maximum number of shares of the registrant's common stock expected to be issued in connection with the merger, calculated as the product of (a) 31,610,171, the aggregate number of shares of FTD common stock outstanding as of June 25, 2008 plus the aggregate number of shares of FTD common stock issuable pursuant to the exercise of outstanding options as of June 25, 2008 and (b) an exchange ratio of 0.4087 of a share of the registrant's common stock for each such share of FTD common stock.

(4)
Estimated solely for purposes of calculation of the registration fee in accordance with Rules 457(c) and (f) of the Securities Act of 1933, as amended, based upon the product of (a) 12,919,077, the maximum number of shares of the registrant's common stock expected to be issued in the merger (calculated as set forth in note (3) above), and (b) $10.44 the average of the high and low sale prices for shares of UOL common stock as reported on the New York Stock Exchange on June 24, 2008.

(5)
Pursuant to Rule 457(n), no additional fee is being paid in respect of the Guarantees. The Guarantees will not be traded separately.


           The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment that specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.




   
TABLE OF ADDITIONAL REGISTRANTS

Name of Additional Registrant*

  State or Other
Jurisdiction of
Incorporation
or Formation

  Primary Standard
Industrial
Classification
Code Number

  I.R.S. Employer
Identification No.

Classmates International, Inc.    Delaware   7370   20-0173707
Classmates Media Corporation   Delaware   7389   26-0657253
Classmates Online, Inc.    Washington   7370   91-1724074
Classmates Yearbooks, Inc.    Delaware   7370   42-1594711
Juno Internet Services, Inc.    Delaware   7370   13-4127465
Juno Online Services, Inc.    Delaware   7370   13-3914547
MyPoints.com, Inc.    Delaware   7370   94-3255692
NetZero, Inc.    Delaware   7370   95-4644384
Opobox, Inc.    Delaware   7370   04-3572710
United Online Advertising Network, Inc.    Delaware   7370   83-0427758
United Online Communications, Inc.    Delaware   7370   83-0427759
United Online Web Services, Inc.    Delaware   7370   20-0922351
UOL Advertising, Inc.    Delaware   7370   95-4841365

*
Address and telephone number of principal executive offices are the same as United Online, Inc. The 13% Senior Secured Notes due 2013 are being issued by United Online, Inc. The additional registrants are guarantors.

The information in this proxy statement/prospectus is not complete and may be changed. UOL may not sell these securities until the registration statement filed with the Securities and Exchange Commission, of which this document is a part, is declared effective. This proxy statement/prospectus is not an offer to sell these securities and neither FTD nor UOL is soliciting an offer to buy these securities in any jurisdiction where the offer, solicitation or sale is not permitted or would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any representation to the contrary is a criminal offense.

Subject to completion, dated June 27, 2008

PROPOSED MERGER—YOUR VOTE IS VERY IMPORTANT

        The board of directors of FTD Group, Inc. has approved a merger, combining FTD and United Online, Inc. (UOL).

        FTD and UOL have entered into an agreement and plan of merger pursuant to which an indirect wholly owned subsidiary of UOL will merge with and into FTD, with FTD thereupon becoming an indirect wholly owned subsidiary of UOL.

        In the proposed merger, FTD stockholders will receive 0.4087 of a share of UOL common stock, $3.31 principal amount of UOL 13% Senior Secured Notes due 2013 and $7.34 in cash for each share of FTD common stock, subject to adjustment as described under "The Merger Agreement—Change in Cash Merger Consideration Upon Receipt of Additional Financing or a Classmates IPO" beginning on page 98 of this proxy statement/prospectus. The exchange ratio for shares of UOL common stock to be received by FTD stockholders is fixed and will not be adjusted to reflect stock price changes prior to the closing. Upon the closing of the merger, FTD's former stockholders will own approximately            % of the then outstanding UOL common stock, based on the number of shares of UOL outstanding on                        , 2008 and of FTD outstanding on                        , 2008. The value of the merger consideration to be received in exchange for each share of FTD common stock will fluctuate with the market price of UOL common stock.

        Based on the closing sale price for UOL common stock on April 29, 2008, the last trading day before public announcement of the merger, the 0.4087 of a share of UOL common stock, $3.31 principal amount of UOL 13% Senior Secured Notes and $7.34 in cash represented approximately $15.08 in value for each share of FTD common stock. Based on the closing sale price for UOL common stock on                        , 2008, the latest practicable trading date before the printing of this proxy statement/prospectus, the 0.4087 of a share of UOL common stock, $3.31 principal amount of UOL 13% Senior Secured Notes and $7.34 in cash represented approximately $            in value for each share of FTD common stock.

        UOL common stock is listed on the NASDAQ Global Select Market under the symbol "UNTD." FTD common stock is listed on the New York Stock Exchange under the symbol "FTD." We urge you to obtain current market quotations for the shares of UOL and FTD.

        Your vote is very important.    The merger cannot be completed unless FTD stockholders holding a majority of the outstanding shares of FTD common stock as of the record date adopt the merger agreement. FTD is holding a special meeting of its stockholders to vote on the proposal to adopt the merger agreement. Information about the FTD special meeting and the proposed merger is contained in this proxy statement/prospectus. UOL has also entered into a voting and support agreement with affiliates of Leonard Green & Partners, L.P., which collectively owned approximately            % of the outstanding shares of FTD common stock as of the record date, pursuant to which such affiliates have agreed, subject to the terms and conditions of the voting and support agreement, to vote the shares of FTD common stock they own as of the record date in favor of the adoption of the merger agreement. Information about the voting and support agreement is also contained in this proxy statement/prospectus. We urge you to read this proxy statement/prospectus carefully. You should also carefully consider the risk factors beginning on page 35 of this proxy statement/prospectus.

        Whether or not you plan to attend the FTD special meeting, please submit your proxy as soon as possible to make sure that your shares are represented at the FTD special meeting.

        The board of directors of FTD recommends that FTD stockholders vote FOR the proposal to adopt the merger agreement and FOR the proposal to approve any motion to adjourn or postpone the FTD special meeting to a later date or dates if necessary to solicit additional proxies.

MICHAEL J. SOENEN
Chairman, President and Chief Executive Officer
FTD Group, Inc.

                        , 2008

        Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities to be issued in connection with the merger or determined if this proxy statement/prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

        This proxy statement/prospectus is dated                        , 2008, and is first being mailed to FTD stockholders on or about                        , 2008.


Picture -- FTD LOGO

FTD Group, Inc.
3113 Woodcreek Drive
Downers Grove, Illinois 60515

   
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON                                    , 2008

To the Stockholders of FTD Group, Inc.:

        A special meeting of stockholders of FTD Group, Inc. will be held at our principal executive office, 3113 Woodcreek Drive, Downers Grove, Illinois 60515, on                                    , 2008 at                        , local time, for the following purposes:

        1.     To adopt the Agreement and Plan of Merger, dated as of April 30, 2008, by and among United Online, Inc., UNOLA Corp. and FTD Group, Inc., as the same may be amended from time to time.

        2.     To approve any motion to adjourn or postpone the FTD special meeting to a later date or dates, if necessary, to solicit additional proxies if there are insufficient votes at the time of the FTD special meeting to approve the proposal to adopt the merger agreement.

        3.     To transact such other business as may properly come before the FTD special meeting or any adjournment or postponement thereof.

        The accompanying proxy statement/prospectus further describes the matters to be considered at the FTD special meeting. A copy of the merger agreement has been included as Annex A to this proxy statement/prospectus.

        The FTD board of directors has set                                    , 2008 as the record date for the FTD special meeting. Only holders of record of shares of FTD common stock at the close of business on                                     , 2008 will be entitled to notice of and to vote at the FTD special meeting and any adjournments or postponements thereof. To ensure your representation at the FTD special meeting, please complete and return the enclosed proxy card or submit your proxy by telephone or through the Internet. Please vote promptly whether or not you expect to attend the FTD special meeting. Submitting a proxy now will not prevent you from being able to vote at the FTD special meeting by attending in person and casting a vote.

        The board of directors of FTD recommends that you vote FOR the proposal to adopt the merger agreement and FOR the proposal to approve any motion to adjourn or postpone the FTD special meeting to a later date or dates if necessary to solicit additional proxies.

By Order of the Board of Directors,

JON R. BURNEY
Secretary
FTD Group, Inc.
                                    , 2008

PLEASE VOTE YOUR SHARES PROMPTLY. YOU CAN FIND INSTRUCTIONS FOR VOTING ON THE ENCLOSED PROXY CARD. IF YOU HAVE QUESTIONS ABOUT THE PROPOSALS OR ABOUT VOTING YOUR SHARES, PLEASE CONTACT MACKENZIE PARTNERS, INC. BY TELEPHONE AT (800) 322-2885 (TOLL FREE) OR VIA EMAIL AT PROXY@MACKENZIEPARTNERS.COM.


 

 
TABLE OF CONTENTS

 

 
  Page
QUESTIONS AND ANSWERS ABOUT THE MERGER   1

SUMMARY

 

6
 
Information about the Companies

 

6
  The Merger   7
  Risk Factors   9
  The FTD Special Meeting   9
  Recommendation of the FTD Board of Directors   9
  Opinion of FTD's Financial Advisor   9
  Ownership of UOL Following the Merger   10
  Share Ownership of FTD Directors and Executive Officers   10
  Interests of Directors and Executive Officers of FTD in the Merger   10
  Listing of UOL Common Stock and Delisting and Deregistration of FTD Common Stock   11
  Appraisal Rights   11
  Conditions to Completion of the Merger   11
  Regulatory Matters   12
  No Solicitation by FTD   12
  Termination of the Merger Agreement   13
  Fees and Expenses   14
  Material United States Federal Income Tax Consequences of the Merger   15
  Accounting Treatment   16
  Comparison of Rights of UOL Stockholders and FTD Stockholders   16

SELECTED SUMMARY HISTORICAL FINANCIAL DATA OF UOL

 

17

SELECTED SUMMARY HISTORICAL FINANCIAL DATA OF FTD

 

18

SELECTED UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS OF UOL

 

20

COMPARATIVE HISTORICAL AND PRO FORMA PER SHARE DATA

 

30

RATIO OF EARNINGS TO FIXED CHARGES

 

33

COMPARATIVE PER SHARE MARKET PRICE DATA

 

34

RISK FACTORS

 

35

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

 

49

INFORMATION ABOUT THE COMPANIES

 

51
 
UOL

 

51
  FTD   51
  UNOLA Corp.    52

THE FTD SPECIAL MEETING

 

53
 
Date, Time and Place

 

53
  Purpose of the FTD Special Meeting   53
  FTD Record Date; FTD Common Stock Entitled to Vote   53
  Quorum and Votes Required   53
  Voting by FTD Directors and Executive Officers   54
  Voting of Proxies   54

i


 
  Revocability of Proxies and Changes to an FTD Stockholder's Vote   55
  Solicitation of Proxies   55
  Attending the FTD Special Meeting   55
  Item 1.    The Merger Proposal   55
  Item 2.    The Adjournment Proposal   56
  Other Matters to Come Before the FTD Special Meeting   56

THE MERGER

 

57
  Background of the Merger   57
  Recommendation of the FTD Board of Directors; FTD's Reasons for the Merger   70
  Opinion of FTD's Financial Advisor   73
  UOL's Reasons for the Merger   83
  Interests of Executive Officers and Directors of FTD in the Merger   83
  Listing of UOL Common Stock Issued in the Merger   87
  No Listing of UOL Notes Issued in the Merger   88
  Delisting and Deregistration of FTD Common Stock   88
  Material United States Federal Income Tax Consequences of the Merger   88
  Regulatory Matters   92
  Accounting Treatment of the Merger   92
  Appraisal Rights   92
  Restrictions on Sale of Shares of UOL Common Stock and UOL Notes Received in the Merger   96

THE MERGER AGREEMENT

 

97
 
The Merger

 

97
  Closing and Effective Time of the Merger   97
  Merger Consideration   97
  Change in Cash Merger Consideration Upon Receipt of Additional Financing or a Classmates IPO   98
  Treatment of FTD Stock Options and Restricted Stock   99
  Assumption of FTD's 2005 Amended and Restated Equity Incentive Award Plan   100
  Fractional Shares and Notes   100
  Exchange Procedures   100
  Distributions, Interest Payments or Other Payments with Respect to Unexchanged Shares   102
  Lost, Stolen and Destroyed Certificates   102
  Representations and Warranties of FTD and UOL   102
  Conduct of Business of FTD Pending Completion of the Merger   104
  Conduct of Business of UOL Pending Completion of the Merger   107
  Efforts and Assistance; HSR Act   108
  Further Action; Financing   109
  Director and Officer Indemnification and Insurance   111
  Employee Benefits   112
  Access to Information; Confidentiality   113
  No Solicitation by FTD   114
  Obligation of FTD Board of Directors with Respect to its Recommendation and Holding of a Stockholder Meeting   115
  Treatment of FTD's 7.75% Senior Subordinated Notes   117
  Conditions to Obligations to Complete the Merger   118
  Definition of Material Adverse Effect   119
  Termination of the Merger Agreement   121

ii


 
  Effect of Termination   122
  Fees and Expenses   122
  Amendment   124
  Extension; Waiver   124
  Governing Law   124

THE VOTING AND SUPPORT AGREEMENT

 

125
 
Agreement to Vote and Irrevocable Proxy

 

125
  Transfer Restrictions   126
  Termination   126

DESCRIPTION OF SENIOR SECURED CREDIT FACILITIES

 

127
 
Overview

 

127
  Interest Rate   127
  Mandatory Prepayments   127
  Guarantees and Security   127
  Covenants and Events of Default   127

DESCRIPTION OF UOL'S CAPITAL STOCK

 

129
 
Authorized Capital Stock

 

129
  UOL's Common Stock   129
  UOL's Preferred Stock   129
  Anti-Takeover Effects of Provisions of the Delaware General Corporation Law, UOL's Amended and Restated Certificate of Incorporation and UOL's Amended and Restated Bylaws   130
  Stockholders' Rights Agreement   132
  Transfer Agent and Registrar   134
  Listing   134

DESCRIPTION OF SENIOR SECURED NOTES DUE 2013