UNITED ONLINE INC
EXHIBIT 10.3
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<TYPE>EX-10.3
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<DESCRIPTION>EXHIBIT 10.3
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit 10.3  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki1916_united_online,_inc._2001_employee_stock_purchase_plan"> </A>
<A NAME="toc_ki1916_1"> </A>
<BR></FONT><FONT SIZE=2><B>UNITED ONLINE,&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2><B><I>2001 EMPLOYEE STOCK PURCHASE PLAN    <BR>  </I></B></FONT></P>

<UL>

<P><FONT SIZE=2><B> I.&nbsp;&nbsp;PURPOSE OF THE PLAN  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Employee Stock Purchase Plan is intended to promote the interests of United Online,&nbsp;Inc., 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&nbsp;423
of the Code. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Capitalized
terms herein shall have the meanings assigned to such terms in the attached Appendix. </FONT></P>

<UL>

<P><FONT SIZE=2><B> II.&nbsp;&nbsp;ADMINISTRATION OF THE PLAN  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;423. Decisions of the Plan Administrator shall be final and binding on all parties having an interest
in the Plan. </FONT></P>

<UL>

<P><FONT SIZE=2><B> III.&nbsp;&nbsp;STOCK SUBJECT TO PLAN  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;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 645,376 shares. Such reserve shall consist of the shares transferred from the
NetZero,&nbsp;Inc. 1999 Employee Stock Purchase Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;The
number of shares of Common Stock available for issuance under the Plan shall automatically increase on the first trading day of January&nbsp;each calendar
year during the term of the Plan, beginning with calendar year 2002 by an amount equal to one and one-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 650,000 shares. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;Should
any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other
change affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration, appropriate adjustments shall be made to (i)&nbsp;the maximum number and class of
securities issuable under the Plan, (ii)&nbsp;the maximum number and class of securities purchasable per Participant and in the aggregate on any one Purchase Date, and (iii)&nbsp;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&nbsp;III.B of this Article&nbsp;One and
(v)&nbsp;the number and class of securities and the price per share in effect under each outstanding purchase right in order to prevent the dilution or enlargement of benefits thereunder. </FONT></P>

<UL>

<P><FONT SIZE=2><B> IV.&nbsp;&nbsp;OFFERING PERIODS  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;Shares
of Common Stock shall be offered for purchase under the Plan through a series of successive offering periods until such time as (i)&nbsp;the maximum number
of shares of Common Stock available for issuance under the Plan shall have been purchased or (ii)&nbsp;the Plan shall have been sooner terminated. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;Each
offering period shall be of such duration (not to exceed twenty-four (24)&nbsp;months) as determined by the Plan Administrator prior to the start
date of such offering period. However, the initial offering period shall commence at the Effective Time. The next offering period shall commence on the first business day in May&nbsp;2002, and
subsequent offering periods shall commence as designated </FONT></P>

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<P><FONT SIZE=2>
by the Plan Administrator. Special offering periods may be established with respect to entities that are acquired by the Company (or by a subsidiary of the Company) or under such other circumstances
as it deems appropriate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;Each
offering period shall be comprised of a series of one or more successive Purchase Intervals. Purchase Intervals shall run from the first business day in
November&nbsp;each year to the last business day in April&nbsp;in the following year and from the first business day in May each year to the last business day in October. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;Should
the Fair Market Value per share of Common Stock on any Purchase Date within an 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 that 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 be 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 (24)&nbsp;months, unless a shorter duration is established by the Plan Administrator within five (5)&nbsp;business days following the start date of that offering period. </FONT></P>

<UL>

<P><FONT SIZE=2><B> V.&nbsp;&nbsp;ELIGIBILITY  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;Each
individual who is an Eligible Employee on the start date of an offering period under the Plan may enter that offering period only on such start date. However,
the Eligible Employees who were employees of Juno Online Service,&nbsp;Inc. prior to the Effective Time, may enter the offering period that begins on November&nbsp;1, 2001 on the first business
day in February&nbsp;2002. No Eligible Employee may be entered into more than one offering period. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;The
date an individual enters an offering period shall be designated his or her Entry Date for purposes of that offering period. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;To
participate in the Plan for a particular offering period, the Eligible Employee must 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. </FONT></P>

<UL>

<P><FONT SIZE=2><B> VI.&nbsp;&nbsp;PAYROLL DEDUCTIONS  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;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: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;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)&nbsp;such reduction per Purchase Interval. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;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 fifteen percent (15%) maximum) shall become effective on the start date of the first Purchase Interval
following the filing of such form. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;Payroll
deductions shall begin on the first pay day administratively feasible following the Participant's Entry Date into the offering period 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 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 any corporate purpose. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;Payroll
deductions shall automatically cease upon the termination of the Participant's purchase right in accordance with the provisions of the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;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. </FONT></P>

<UL>

<P><FONT SIZE=2><B> VII.&nbsp;&nbsp;PURCHASE RIGHTS  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Grant of Purchase Right.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;A Participant shall be granted a separate purchase
right for each offering period in which he or she participates. The purchase right shall be granted on the Participant's Entry Date into the offering period and shall provide the Participant with the
right to purchase shares of Common Stock, in a series of successive installments over the remainder of such 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Exercise of the Purchase Right.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;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 (other than Participants
whose payroll deductions have previously been refunded pursuant to the Termination of Purchase Right provisions below) 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Purchase Price.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;The purchase price per share at which Common Stock will be
purchased on the Participant's behalf on each Purchase Date within the offering period shall be equal to eighty-five percent (85%) of the </FONT> <FONT SIZE=2><I>lower</I></FONT><FONT SIZE=2> of (i)&nbsp;the Fair Market Value per share of Common
Stock on the Participant's Entry Date into that offering period or (ii)&nbsp;the Fair
Market Value per share of Common Stock on that Purchase Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;D.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Number of Purchasable Shares.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;The number of shares of Common Stock
purchasable by a Participant on each Purchase Date during the offering period 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 1,250 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 purchasable in total by all Participants on any one Purchase Date shall not </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>
exceed 600,000 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;E.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Excess Payroll Deductions.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;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 the aggregate on the
Purchase Date shall be promptly refunded. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;F.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Suspension of Payroll Deductions.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event that a Participant is, by
reason of the accrual limitations in Article&nbsp;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&nbsp;VIII. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;G.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Termination of Purchase Right.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;The following provisions shall govern the
termination of outstanding purchase rights: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;A
Participant may withdraw from the offering period in which he or she is enrolled by filing the appropriate form with the Plan Administrator (or its designate) at
any time prior to the next scheduled Purchase Date in that offering period, and no further payroll deductions shall be collected from the Participant with respect to the 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 with respect to the Purchase Interval in which such withdrawal occurs shall be refunded as soon
as possible. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The
Participant's withdrawal from the offering period shall be irrevocable, and the Participant may not subsequently rejoin that offering period. 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;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. 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)&nbsp;withdraw all the payroll deductions collected to date on his or her behalf for that Purchase Interval
or (b)&nbsp;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)&nbsp;within ninety (90)&nbsp;days following the commencement of such leave or (y)&nbsp;prior to the
expiration of any longer period for which such Participant's right to reemployment with the Corporation is guaranteed by statute or contract, his or her payroll deductions under the Plan shall
automatically resume at the rate in effect at the </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<UL>

<P><FONT SIZE=2>
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 which exceeds in duration
the applicable (x) or (y)&nbsp;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. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;H.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Change in Control.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;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 </FONT><FONT SIZE=2><I>lower</I></FONT><FONT SIZE=2> of (i)&nbsp;the
Fair Market Value per share of Common Stock on the Participant's Entry Date into the offering period in which such Change in Control occurs or (ii)&nbsp;the Fair Market Value per share of Common
Stock immediately prior to the effective date of such Change in Control. However, the 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Corporation shall use reasonable 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. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;I.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Proration of Purchase Rights.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;J.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Assignability.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;The purchase right shall be exercisable only by the
Participant and shall not be assignable or transferable by the Participant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;K.</FONT><FONT
SIZE=2><B><I>&nbsp;&nbsp;Stockholder Rights.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;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. </FONT></P>

<UL>

<P><FONT SIZE=2><B> VIII.&nbsp;&nbsp;ACCRUAL LIMITATIONS  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;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)&nbsp;rights to purchase Common Stock accrued under any other purchase right granted under this Plan and (ii)&nbsp;similar rights accrued under other employee
stock purchase plans (within the meaning of Code Section&nbsp;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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;For
purposes of applying such accrual limitations to the purchase rights granted under the Plan, the following provisions shall be in effect: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;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 on which such right remains outstanding. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;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. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;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 which
the Participant made during that Purchase Interval with respect to such purchase right shall be promptly refunded. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;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&nbsp;shall be controlling. </FONT></P>

<UL>

<P><FONT SIZE=2><B> IX.&nbsp;&nbsp;EFFECTIVE DATE AND TERM OF THE PLAN  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;The
Plan shall become effective at the Effective Time, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> no purchase rights granted under the Plan shall be
exercised, and no shares of Common Stock shall be issued hereunder, until 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&nbsp;S-8 registration statement filed with the Securities and Exchange Commission), all applicable listing requirements of any Stock
Exchange (or the Nasdaq Stock Market, if applicable) on which the Common Stock is listed for trading and all other applicable requirements established by law or regulation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;The
Plan shall serve as the successor to the Predecessor Plans, and no further offering periods under either Predecessor Plan shall commence after the Effective
Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;Unless
terminated by the Board prior to such time, the Plan shall terminate on the last business day in April&nbsp;2011. If the Board terminates the Plan prior to
a regularly scheduled Purchase Date, any outstanding purchase rights shall be automatically exercised, immediately prior to the effective date of such termination, by applying payroll deductions of
each Participant to the purchase of whole shares of Common Stock at a purchase price per share equal to the </FONT><FONT SIZE=2><I>lower</I></FONT><FONT SIZE=2> of: (i)&nbsp;the fair market value
per share of Common Stock on the Participant's Entry Date into the offering period or (ii)&nbsp;the Fair Market Value per share of Common Stock immediately prior to the effective date of the
termination of the Plan. No
further purchase rights shall be granted or exercised, and no further payroll deductions shall be collected, under the Plan following such termination. </FONT></P>

<UL>

<P><FONT SIZE=2><B> X.&nbsp;&nbsp;AMENDMENT OF THE PLAN  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;The
Board may alter, amend or suspend the Plan at any time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;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)&nbsp;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 or (ii)&nbsp;modify the
eligibility requirements for participation in the Plan. </FONT></P>

<UL>

<P><FONT SIZE=2><B> XI&nbsp;&nbsp;GENERAL PROVISIONS  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;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. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;The
provisions of the Plan shall be governed by the laws of the State of Delaware without resort to that State's conflict-of-laws rules. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<BR></FONT><FONT SIZE=2><B>Schedule&nbsp;A    <BR>  </B></FONT></P>

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<BR></FONT><FONT SIZE=2><B>Corporations Participating in<BR>  the United Online,&nbsp;Inc. 2001<BR>  Employee Stock Purchase Plan    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>United
Online,&nbsp;Inc.<BR>
Juno Online Services,&nbsp;Inc.<BR>
NetZero,&nbsp;Inc. </FONT></P>

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<BR></FONT><FONT SIZE=2><B><I>APPENDIX    <BR>  </I></B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The following definitions shall be in effect under the Plan: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Board </I></B></FONT><FONT SIZE=2>shall mean the Corporation's Board of Directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Cash Earnings </I></B></FONT><FONT SIZE=2>shall mean (i)&nbsp;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)&nbsp;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)&nbsp;any income or employment tax withholdings or (B)&nbsp;any
contributions made by the Participant to any Code Section&nbsp;401(k) salary deferral plan or Code Section&nbsp;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&nbsp;401(k) or Code Section&nbsp;125 contributions deducted from such Cash Earnings). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Change in Control </I></B></FONT><FONT SIZE=2>shall mean a change in ownership of the Corporation pursuant to any of the following transactions: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;a
merger, consolidation or reorganization approved by the Corporation's stockholders, </FONT><FONT SIZE=2><I>unless</I></FONT><FONT SIZE=2> 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 Corporation's outstanding voting securities immediately prior to such transaction, or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;any
stockholder-approved transfer or other disposition of all or substantially all of the Corporation's assets, or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the
acquisition, directly or indirectly, by a person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is
controlled by or is under common control with the Corporation) of beneficial ownership (within the meaning of Rule&nbsp;13d-3 of the 1934 Act) of securities possessing more than fifty
percent (50%) of the total combined voting power of the
Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's stockholders. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Code </I></B></FONT><FONT SIZE=2>shall mean the Internal Revenue Code of 1986, as amended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Common Stock </I></B></FONT><FONT SIZE=2>shall mean the Corporation's common stock. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Corporate Affiliate </I></B></FONT><FONT SIZE=2>shall mean any parent or subsidiary corporation of the Corporation (as determined in accordance
with Code Section&nbsp;424), whether now existing or subsequently established. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Corporation </I></B></FONT><FONT SIZE=2>shall mean United Online,&nbsp;Inc., a Delaware corporation, and any corporate successor to all or
substantially all of the assets or voting stock of United Online,&nbsp;Inc., which shall assume the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Effective Time </I></B></FONT><FONT SIZE=2>shall mean November&nbsp;1, 2001. Any Corporate Affiliate that becomes a Participating Corporation
after such Effective Time shall designate a subsequent Effective Time with respect to its employee-Participants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Eligible Employee </I></B></FONT><FONT SIZE=2>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)&nbsp;hours of service per week for more than five (5)&nbsp;months per calendar year for earnings that are considered wages under Code
Section&nbsp;3401&nbsp;(a). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>A&#150;1</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;</FONT><FONT SIZE=2><B><I>Entry Date </I></B></FONT><FONT SIZE=2>shall mean the date an Eligible Employee first commences participation in the offering period in effect
under the Plan. The earliest Entry Date under the Plan shall be the Effective Time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Fair Market Value </I></B></FONT><FONT SIZE=2>per share of Common Stock on any relevant date shall be determined in accordance with the
following provisions: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;If
the Common Stock is at the time traded on the Nasdaq Stock Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq Stock Market. 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on
such exchange. 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. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;L.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>1933 Act </I></B></FONT><FONT SIZE=2>shall mean the Securities Act of 1933, as amended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;M.&nbsp;</FONT><FONT
SIZE=2><B><I>Participant </I></B></FONT><FONT SIZE=2>shall mean any Eligible Employee of a Participating Corporation who is actively participating in the
Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;N.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Participating Corporation </I></B></FONT><FONT SIZE=2>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&nbsp;A. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;O.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Plan </I></B></FONT><FONT SIZE=2>shall mean United Online,&nbsp;Inc. 2001 Employee Stock Purchase Plan, as set forth in this document. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;P.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Plan Administrator </I></B></FONT><FONT SIZE=2>shall mean the committee of two (2) or more Board members appointed by the Board to administer
the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Q.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Predecessor Plans </I></B></FONT><FONT SIZE=2>shall mean the Juno Online Services,&nbsp;Inc. 1999 Employee Stock Purchase Plan and the
NetZero,&nbsp;Inc. 1999 Employee Stock Purchase Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;R.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Purchase Date </I></B></FONT><FONT SIZE=2>shall mean the last business day of each Purchase Interval. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;S.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Purchase Interval </I></B></FONT><FONT SIZE=2>shall mean each successive six (6)-month period within the offering period at the end of which
there shall be purchased shares of Common Stock on behalf of each Participant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;T.&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>Stock Exchange </I></B></FONT><FONT SIZE=2>shall mean either the American Stock Exchange or the New York Stock Exchange. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>A&#150;2</FONT></P>

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<BR>
<P><br><A NAME="01WLA1918_4">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ki1916_1">UNITED ONLINE, INC. 2001 EMPLOYEE STOCK PURCHASE PLAN</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ki1916_2">Schedule A</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ki1916_3">Corporations Participating in the United Online, Inc. 2001 Employee Stock Purchase Plan</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_kj1916_1">APPENDIX</A></FONT><BR>
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