Document:

EXHIBIT
10.24

 

FORM
OF OPTION AGREEMENT

 

TransDigm Group Incorporated (the “Company”),
pursuant to its Stock Incentive Plan (the “Plan”), hereby grants to the
Holder Options to purchase the number of shares of Stock set forth below. The
Options are subject to all of the terms and conditions set forth herein as well
as all of the terms and conditions of the Plan, all of which are incorporated
herein in their entirety. Capitalized terms not otherwise defined herein shall
have the same meaning as set forth in the Plan. In the event of a conflict or
inconsistency between the terms and provisions of the Plan and the provisions
of this Agreement, the Plan shall govern and control.

 

	
  Holder:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of
  Grant:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  of Shares of Stock Subject to Options:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercise
  Price per Share of Stock:

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type of
  Option:

  	
   

  	
  o

  	
  Nonqualified
  Stock Option

  
	
   

  	
   

  	
  o

  	
  Incentive
  Stock Option

  
	
   

  	
   

  	
   

  
	
  Vesting
  Schedule:

  	
   

  	
  Subject to the Holder’s continued
  employment or service through the applicable vesting date, the Options shall
  vest as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Applicable Vesting Schedule]

  
	
   

  	
   

  	
   

  
	
  Exercise
  of Options:

  	
   

  	
  Section 5(d)
  of the Plan regarding methods of exercise is incorporated herein by reference
  and made a part hereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Upon
  exercise of Options, the Holder will be required to satisfy applicable
  withholding tax obligations as provided in Section 15 of the Plan.

  
	
   

  	
   

  	
   

  
	
  Termination
  of

  	
   

  	
   

  
	
  Employment
  or Service:

  	
   

  	
  Section 5(g)
  of the Plan regarding treatment of Options upon termination of the Holder’s
  employment or service is incorporated herein by reference and made a part
  hereof.

  
	
   

  	
   

  	
   

  
	
  Additional
  Terms:

  	
   

  	
  Options
  shall be subject to the following additional terms:

  
							

 

 

	
   

  	
   

  	
  •    Options
  shall be exercisable in whole shares of Stock only.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •    Each Option
  shall cease to be exercisable as to any share of Stock when the Holder
  purchases the share of Stock or when the Option otherwise expires.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •    To
  the extent the Options are designated Incentive Stock Options, Section 5(h)
  of the Plan is incorporated herein by reference and made a part hereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •    This
  Option Agreement does not confer upon the Holder any right to continue as an
  employee or service provider of the Company or its Affiliates.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •    This Option
  Agreement shall be construed and interpreted in accordance with the laws of
  the State of Delaware, without regard to the principles of conflicts of law
  thereof.

  

 

THE
UNDERSIGNED HOLDER ACKNOWLEDGES RECEIPT OF THE PLAN, AND, AS AN EXPRESS
CONDITION TO THE GRANT OF OPTIONS UNDER THIS OPTION AGREEMENT, AGREES TO BE
BOUND BY THE TERMS OF BOTH THE OPTION AGREEMENT AND THE PLAN.

 

 

	
  TRANSDIGM
  GROUP INCORPORATED

  	
  HOLDER

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
							

 

2Exhibit 10.23

 

EXECUTION COPY

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”),
dated as of December 14, 2005, and effective as of January 1, 2006 (the “Effective
Date”), is entered into by and between Douglas R. Lebda (“Employee”),  IAC/InterActiveCorp (the “Company”) and
LendingTree, LLC (“LendingTree”) (solely for purposes of Sections 1A, 3A(c),
and 7A of this Agreement and Section 3 of the Standard Terms and Conditions.

 

WHEREAS, Employee is currently serving as
Chief Executive Officer and a member of the Board of Directors of LendingTree;

 

WHEREAS, the Company wishes to promote the
Employee to the position of President and Chief Operating Officer of the
Company, and Employee is willing to commit himself to continue to serve the
Company and its subsidiaries and affiliates, on the terms and conditions herein
provided;

 

WHEREAS, Employee and LendingTree are parties
to an Employment Agreement (the “Prior Agreement”), dated as of May 5, 2003,
which generally became effective as of the effective date (as that term is defined
in the Prior Agreement), which the parties intend will be superseded hereby;

 

WHEREAS, in order to effect the foregoing,
the Company and Employee wish to enter into an employment agreement on the
terms and conditions set forth below;

 

NOW, THEREFORE, in consideration of the
mutual agreements hereinafter set forth, Employee, the Company and LendingTree have
agreed and do hereby agree as follows:

 

1A.          EMPLOYMENT. The
Company agrees to employ Employee as President and Chief Operating Officer of
the Company as of the Effective Date and Employee accepts and agrees to such
employment. Effective as of the Effective Date, Employee shall cease to be an
employee and officer of LendingTree; provided, however, that
Employee shall remain in employment with LendingTree for a specified transition
period following the Effective Date (the duration of which to be mutually
determined by Employee and the Company) if and to the extent necessary to
comply with regulatory requirements applicable to LendingTree. During Employee’s
employment with the Company, Employee shall perform all services and acts
necessary or advisable to fulfill the duties and responsibilities as are
commensurate and consistent with Employee’s position and shall render such
services on the terms set forth herein. During Employee’s employment with the
Company, Employee shall report to the Chief Executive Officer of the Company (hereinafter
referred to as the “Reporting Officer”). Employee shall have such powers and
duties with respect to the Company as may reasonably be assigned to Employee by
the Reporting Officer, to the extent consistent with Employee’s position and
status. Without limiting the foregoing, Employee shall have the following
reporting relationships:  (i) the senior

 

 

executive of each of the principal businesses of the Company shall
report to Employee, subject to any existing contractual obligations to the
contrary, and (ii) the Company’s corporate executive principally responsible
for human resource affairs of the Company’s businesses shall report to
Employee, provided it is understood that with respect to such affairs that are
of substantial corporate significance (like major compensation programs,
structures and initiatives) or that might otherwise require involvement of the
Company’s Board of Directors or committees thereof, such human resource
executive shall jointly report to another corporate executive, and that with
respect to human resource affairs relating to the Company’s corporate
executives, the human resource executive may report singly to another corporate
executive. Employee agrees to devote all of Employee’s working time, attention
and efforts to the Company and to perform the duties of Employee’s position in
accordance with the Company’s policies as in effect from time to time. Employee’s
principal place of employment shall be the Company’s offices in New York, New
York.

 

2A.          TERM
OF AGREEMENT. The term (“Term”) of this Agreement shall commence on the
Effective Date and shall continue through December 31, 2008, unless sooner
terminated in accordance with the provisions of Section 1 of the Standard
Terms and Conditions attached hereto; provided that Employee and the
Company will enter into good faith negotiations to extend the Term no later
than six months prior to the end of the Term, provided, further,
that Employee has provided written notice to the Company between eight and six
months prior to the end of the Term which sets forth his interest in entering
into such negotiations.

 

3A.          COMPENSATION.

 

(a)           BASE
SALARY. During the Term, the Company shall pay Employee an annual base
salary of $750,000 (the “Base Salary”), payable in equal biweekly installments
or in such other installments as may be in accordance with the Company’s
payroll practice as in effect from time to time. The Base Salary shall be
reviewed by the Company, if requested by Employee in writing, no less
frequently than annually in a manner consistent with similarly situated
executives of the Company and may be increased but not decreased. For all
purposes under this Agreement, the term “Base Salary” shall refer to Base Salary
as in effect from time to time.

 

(b)           DISCRETIONARY
BONUS. During the Term, Employee shall be eligible to receive discretionary
annual bonuses in a manner consistent with similarly situated executives of the
Company.

 

(c)           EQUITY
COMPENSATION.

 

(i)            LendingTree
Restricted Share Grant. The Company acknowledges that LendingTree has granted
to Employee 42.5 restricted common units of LendingTree (the “Shares”), subject
to the terms and conditions of the Amended and Restated Restricted Share Grant and
Shareholders’ Agreement dated July 7, 2003 and as subsequently amended,
attached hereto as Exhibit A (the “Shares Agreement”). Upon the
Effective Date, the Employee’s Shares will be treated as follows:

 

(A)  25% of the Shares will be exchanged on the
Effective Date for 200,000 shares of common stock of the Company (“Company
Common Stock”), which will vest

 

2

 

in equal installments on December 31, 2006,  December 31, 2007 and December 31, 2008 (each,
a “Vesting Date”), based on Employee’s continued employment with
the Company and its subsidiaries and subject to performance conditions (the “First
Performance Conditions”) set by the Company’s compensation committee (subject
to full and immediate vesting in the event of a termination of employment by
the Company without Cause, or a termination of employment by Employee for Good
Reason, and subject to pro rated vesting in the event of Death or Disability
based on the amount of continued service between the date hereof and the end of
the Term). If Employee remains in employment to a Vesting Date but the shares
of Company Common Stock that are otherwise scheduled to vest on that date do
not vest because of a failure to satisfy the First Performance Conditions for
that Vesting Date, those shares of Company Common Stock shall not be forfeited
but shall instead remain unvested, subject to later vesting if and to the
extent waiver of the First Performance Conditions is required pursuant to
Section 3A(c)(i)(C)(3) below. Employee shall have the same rights with respect
to the Exchange Stock as other holders of Company Common Stock; provided
that any dividends that are declared and payable with respect to the Exchange
Shares before such shares have become vested shall not be paid to Employee but
shall instead be converted into additional Exchange Shares (based on the fair
market value of Company Common Stock on the date on which the dividend would otherwise
have been paid) and shall be transferred to Employee subject to the same
vesting conditions as are applicable to the Exchange Shares with respect to
which such dividends were payable. The exchange of such Shares for such shares
of Company Common Stock (such shares, the “Exchange Stock”) is intended to
constitute a “reorganization” within the meaning of Section 368(a)(1)(B) of the
Internal Revenue Code of 1986, as amended (the “Code”) and this Agreement is
intended to constitute a “plan of reorganization” within the meaning of Section
354 of the Code. The Company agrees to comply with the record-keeping and
filing rules of Treasury Regulation section 1.368-3 (and any similar rules of
any relevant state or local taxing jurisdiction) with respect to such exchange.
In addition, the Company agrees that if such exchange shall, in whole or in
part, fail to qualify as a reorganization solely by reason of (i) the treatment
of such exchange by the Company (or its subsidiaries or affiliates), in whole
or in part, as other than a reorganization in Tax returns filed with the
Internal Revenue Service or (ii) the failure by the Company (or its
subsidiaries or affiliates) to comply with U.S. federal filing or reporting
requirements to obtain reorganization treatment for such exchange, the Company
will indemnify and hold harmless the Employee, on an after-tax basis, against
all U.S. federal, state and local income taxes to which Employee may be
subject, with respect to those shares of Company Common Stock so exchanged but
not so qualifying, in consequence of such failure. It is agreed and understood
that if the IRS alleges that the transaction is taxable by virtue of any reason
other than (i) or (ii) in the preceding sentence, the Company shall not be
obligated to contest such determination and shall be entitled to file an
amended return or otherwise settle the issue with the IRS and shall have no
indemnity obligation hereunder. Additionally, at the time of any disposition of
the Exchange Stock by Employee following an indemnification under this section,
Employee will pay to Company any realized tax savings resulting from the
increased basis associated with the alternative tax treatment giving rise to
the indemnification.

 

3

 

(B)  40% of the Shares, which
have vested prior to the Effective Date, will remain unchanged by this
Agreement, and 10% of the Shares will vest in equal installments on August 8,
2006, August 8, 2007 and February 8, 2008, based on Employee’s continued employment
with the Company and its subsidiaries and will continue to be subject to the
terms of the Shares Agreement (including any accelerated vesting provisions).

 

(C)  25% of the Shares (the “Target
Shares”) will vest in equal installments on August 8, 2006, August 8, 2007 and
February 8, 2008, based on Employee’s continued employment with the Company and
its subsidiaries (subject to full and immediate vesting in the event of a
termination of employment by the Company without Cause, or a termination of
employment by Employee for Good Reason, and subject to pro rated vesting in the
event of Death or Disability based on the amount of continued service between
the date hereof and February 8, 2008). Additionally, the following terms shall
apply to the Target Shares:

 

(1)  If Employee remains employed by the Company
past December 31, 2007, the value of his vested Target Shares will be appraised
as of December 31, 2008 (the “Valuation Date”) pursuant to the procedures set
forth in Sections 4.2(a)(ii) and (a)(iv) of the Shares Agreement. In the event
Employee’s employment terminates prior to the Fifth Anniversary Fiscal Year (as
defined in the Shares Agreement), the Valuation Date for the Target Shares shall
be the December 31st of the fiscal year of LendingTree in which such
termination of employment occurs; provided, that if such termination of
employment occurs on or after June 30th in any given fiscal year, the Valuation
Date shall be six months and one day following such termination of employment,
and the payment described in (3) above shall occur on or about 90 days
following such Valuation Date.  The valuation required by this
paragraph shall occur regardless of whether any put has been exercised under
the Shares Agreement, provided that if a put is exercised under the Shares
Agreement, then the appraisal for purposes of the Target Shares shall be the
appraisal associated with the put under the Shares Agreement.

 

(2)  Employee acknowledges that by virtue of his
position in the Company, he may come into possession of information relating to
the value of LendingTree that is not publicly available or otherwise available
to employees of LendingTree, including, without limitation, opinions of other
members of Company management, valuations of LendingTree undertaken for internal
corporate purposes and valuations of other companies for internal corporate
purposes. Employee recognizes that some of this information could be
prejudicial to the Company in the valuation/appraisal process contemplated by
this Agreement and the Shares Agreement, and hereby agrees that he will not
share, directly or indirectly, any such information with the appraiser or any
employees of LendingTree other than, with respect to employees of LendingTree,
as is necessary in connection with the discharge of his duties to the Company.

 

(3)  If Eighty Percent (80%) of the
Vested Value (as defined below) is less than the Company Share Amount (as
defined below), then Employee shall exchange

 

4

 

his vested Target Shares for a number of shares of Company Common Stock
equal to the Company Share Number (as defined below), and the First Performance
Conditions, to the extent unfulfilled, shall be waived. This exchange shall
occur on May 15, 2009 (or on such later date as the Vested Value shall
definitively be determined), unless Employee’s employment terminated prior to
January 1, 2008, in which case it shall occur promptly following the definitive
determination of the value of the Target Shares.

 

The “Vested Value” shall mean the value of the vested Target Shares as
determined pursuant to Section 3A(c)(i)(C)(1) above.

 

The “Company Share Amount” shall mean the Company Share Number (as
defined below) multiplied by the trailing thirty day average closing price of
the Company Common Stock as of the date on which the value of the Target Shares
was definitively determined.

 

The “Company Share
Number” shall mean, (i) 0, if Employee’s employment terminates prior to
December 31, 2006, (ii) 100,000, plus up to an additional 166,667 to the extent
that certain performance conditions established by the Compensation Committee
of the Company (the “Second Performance Conditions”) are satisfied, if Employee’s
employment terminates between December 30, 2006 and December 31, 2007, (iii) 200,000,
plus up to an additional 333,334 to the extent that the Second Performance
Conditions are satisfied, if Employee’s employment terminates between December
30, 2007 and December 31, 2008, (iv) 300,000, plus up to an additional 500,000
to the extent that the Second Performance Conditions are satisfied, if Employee’s
employment terminates on or after December 31, 2008, Employee’s employment does
not terminate prior to the date on which the Company Share Number is determined,
or Employee’s employment terminates at any time under circumstances that gave
rise to acceleration of the Target Shares, and (v) if Employee’s employment
terminates for Death or Disability, the same number as under (iv) directly
above (300,000, plus up to an additional 500,000 to the extent that the Second
Performance Conditions are satisfied), multiplied by a fraction, the numerator
of which is the number of days of continued employment with the Company
following the date hereof and the denominator of which is the total number of
days in the Term.

 

(4)  If
the Vested Value is greater than the Company Share Amount, then the vested
Target Shares shall be subject to the put/call provisions of the Shares
Agreement.

 

(5)   The Target Shares will no longer be subject
to the “Come Along” and “Take Along” provisions of Sections 4.3 and 4.4 of the
Shares Agreement.

 

5

 

(6)  In the event of a “Transfer Event” (as
defined in Section 4.3 of the Shares Agreement) which results in a sale of 100%
of the common units of LendingTree, the Target Shares shall be purchased by the
Company immediately prior to the Transfer Event at a price equivalent to the
sales price of common units of LendingTree in the Transfer Event, with the
purchase price paid in the form of an unsecured promissory note of the Company,
maturing on December 31, 2008, bearing interest at the applicable federal rate
specified in Section 7872(f)(2) of the Code and providing for a gross-up on a
net after-tax basis (taking into account any deduction allowable for any amount
treated as interest under Section 453A(c)(5) of the Code) solely for any
amounts payable by Employee pursuant to Section 453A(c) Code with respect to
such note (assuming for this purpose that Employee holds no installment obligations
other than such note). In such event, Section 3A(c)(i)(C)(3) shall be applied as
of December 31, 2008 (or as of such earlier date if Employee’s employment is
terminated) with the then face value of such note (and any accrued interest)
constituting the Vested Value for such purposes.

 

(7)  In the event of an event which results in an
adjustment of shares of Company Common Stock subject to existing awards
pursuant to the Company’s 2005 Stock and Annual Incentive Plan, the number of
shares of Company Common Stock deliverable to Employee under this Section 3A(c)(i)
shall be equitably adjusted.

 

(D)  It is intended that if
Employee exchanges Target Shares for Company Common Stock pursuant to section
3A(i)(c)(1)(C) hereof or returns Shares to the Company and receives Company
Common Stock pursuant to section 3A(i)(c)(1)(B) and the Shares Agreement, such
exchange shall be treated by the parties as a “reorganization” within the
meaning of Section 368(a)(1)(B) of the Code except to the extent, if any, that
independent tax advisors selected by the Company and reasonably acceptable to
Employee are unable to issue an opinion to the effect that such treatment should
more likely than not prevail. For further clarification, if such independent
tax advisors are able to issue an opinion that reorganization treatment is more
likely than not to prevail with respect to part but less than all of the shares
of Company Common Stock so exchanged, the exception contained in the preceding
sentence shall apply only with respect to that number of shares of Company
Common Stock with respect to which such independent tax advisors are unable to
opine that reorganization treatment should more likely than not prevail. Notwithstanding
the foregoing, if Target Shares are exchanged for shares of Company Common
Stock pursuant to section 3A(c)(i)(C)(3), the Company shall not be obligated to
treat as a reorganization the issuance of those shares of Company Common Stock with
an aggregate value in excess of the Vested Value. This Agreement (and, with
respect to an exchange described in section 3A(i)(c)(1)(B) and the Shares
Agreement) are intended to constitute a “plan of reorganization” within the
meaning of Section 354 of the Code. Subject to the exceptions contained in this
paragraph, Company agrees to comply with the record-keeping and filing rules of
Treasury Regulation section 1.368-3 (and any similar rules of any relevant
state or local taxing jurisdiction) with respect to each such exchange. In no
event shall the Company be required to satisfy its put/call obligations under
the Shares Agreement with shares of Company Common Stock in order to enable a “plan
of reorganization,” but the Company shall otherwise make good faith efforts to

 

6

 

provide for
reorganization treatment and Employee agrees to reasonably cooperate with such
efforts if requested.

 

(E)  Within ten days following
the date on which the Company’s compensation committee establishes the First
Performance Conditions and the Second Performance Conditions (as described in
Sections 3A(c)(i)(A) and 3A(c)(i)(C)(3) above), the Company shall provide
Employee with a written notice that certifies that such performance conditions
have been established and which describes the specific terms of such
performance conditions.

 

(ii)           Equity Incentives. Following
the Effective Date, Employee shall be evaluated annually for future equity
incentives in a manner consistent with the evaluation provided for similarly
situated executives of the Company after taking into consideration Employee’s
total incentive compensation opportunities.

 

(d)           BENEFITS.
During the Term, Employee shall be eligible to participate in any welfare,
health, life insurance, pension benefit and incentive plans, programs, policies
and practices as may be adopted from time to time by the Company on the same
basis as that provided to similarly situated employees of the Company generally.
Without limiting the generality of the foregoing, Employee shall be eligible
for the following benefits:

 

(i)            Reimbursement
for Business Expenses. During the Term, the Company shall reimburse
Employee for all reasonable and necessary expenses incurred by Employee in
performing Employee’s duties for the Company, on the same basis as similarly
situated employees of the Company generally and in accordance with the Company’s
policies as in effect from time to time.

 

(ii)           Vacation.
During the Term, Employee shall be eligible for paid vacation in accordance
with the plans, policies, programs and practices of the Company applicable to
similarly situated employees of the Company generally.

 

4A.          NOTICES.
All notices and other communications under this Agreement shall be in writing
and shall be given by first-class mail, certified or registered with return
receipt requested or hand delivery acknowledged in writing by the recipient
personally, and shall be deemed to have been duly given three days after
mailing or immediately upon duly acknowledged hand delivery, as applicable, to
the respective persons named below:

 

If to the Company:              IAC/InterActiveCorp

152 West 57th
Street

New York,
NY  10019

 

Attention:  General Counsel

 

7

 

With a copy to:                                                           Wachtell,
Lipton, Rosen & Katz

51 West 52nd
Street

New York, New
York 10019

 

Attention:  Michael S. Katzke, Esq.

 

If to
LendingTree:                                              LendingTree,
LLC

11115 Rushmore
Drive

Charlotte,
NC  28277

 

Attention:  General Counsel

 

If to
Employee:                                                              At
the most recent address on file at the Company.

 

Either party may change such party’s address for notices by notice duly
given pursuant hereto.

 

5A.          GOVERNING
LAW; JURISDICTION. This Agreement and the legal relations thus created
between the parties hereto shall be governed by and construed under and in
accordance with the laws of the State of Delaware without
reference to the principles of conflicts of laws. Any and all disputes between
the parties which may arise pursuant to this Agreement will be heard and
determined solely before an appropriate federal court in the State of New York,
or, if not maintainable therein, then in an appropriate New York state court. The
parties acknowledge that such courts have jurisdiction to interpret and enforce
the provisions of this Agreement, and the parties consent to, and waive any and
all objections that they may have as to, personal jurisdiction and/or venue in
such courts.

 

6A.          COUNTERPARTS.
This Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument. Employee expressly understands and acknowledges that the
Standard Terms and Conditions attached hereto are incorporated herein by
reference, deemed a part of this Agreement and are binding and enforceable
provisions of this Agreement. References to “this Agreement” or the use of the
term “hereof” shall refer to this Agreement and the Standard Terms and
Conditions attached hereto, taken as a whole.

 

7A.          WAIVER
OF PRIOR AGREEMENTS. This Agreement constitutes the entire agreement
between the parties, and Employee acknowledges that he has waived, effective as
of the Effective Date, any and all rights under prior agreements and
understandings (whether written or oral) between Employee and LendingTree and the
Company with respect to the subject matter of this Agreement (other than the
Shares Agreement, as modified by this Agreement), including, without
limitation, the Prior Agreement. Employee acknowledges and agrees that neither
the Company nor anyone acting on its behalf has made, and is not making, and in
executing this Agreement, the Employee has not relied upon, any
representations, promises or inducements except to the extent the same is
expressly set forth in this Agreement.

 

8

 

IN WITNESS WHEREOF, the Company has caused
this Agreement to be executed and delivered by its duly authorized officer and
Employee has executed and delivered this Agreement as of the date set forth
above.

 

	
   

  	
  IAC/INTERACTIVECORP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authorized
  Representative

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LENDINGTREE,
  LLC.

  
	
   

  	
  (Solely for
  purposes of Sections 1A, 3A(c) and 7A)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authorized
  Representative

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ DOUGLAS
  R. LEBDA

  	
   

  
	
   

  	
  DOUGLAS R.
  LEBDA

  

 

 

STANDARD TERMS AND CONDITIONS

 

1.             TERMINATION
OF EMPLOYEE’S EMPLOYMENT.

 

(a)           DEATH.
Upon termination of Employee’s employment prior to the expiration of the Term
by reason of Employee’s death, the Company shall pay Employee’s designated
beneficiary or beneficiaries, within 30 days of Employee’s death in a lump sum
in cash, (i) Employee’s Base Salary from the date of Employee’s death through
the end of the month in which Employee’s death occurs and (ii) any Accrued
Obligations (as defined in paragraph 1(f) below).

 

(b)           DISABILITY.
Upon termination of Employee’s employment prior to expiration of the Term by
reason of Employee’s Disability, the Company shall pay Employee, within 30 days
of such termination in a lump sum in cash, (i) Employee’s Base Salary from the
date of Employee’s termination of employment due to Disability through the end
of the month in which such termination occurs, offset by any amounts payable to
Employee under any disability insurance plan or policy provided by the Company
and (ii) any Accrued Obligations (as defined in paragraph 1(f) below). “Disability”
shall mean a condition, resulting from bodily injury or disease, that renders,
and for a six consecutive month period has rendered, Employee unable to perform
substantially the duties pertaining to his employment with the Company. A
return to work of less than 14 consecutive days will not be considered an
interruption in Employee’s six consecutive months of disability. Disability
will be determined by the Company on the basis of medical evidence satisfactory
to the Company.

 

(c)           TERMINATION
FOR CAUSE; RESIGNATION BY EMPLOYEE WITHOUT GOOD REASON. The Company may
terminate Employee’s employment under this Agreement with or without Cause at
any time. Upon termination of Employee’s employment prior to expiration of the
Term by the Company for Cause or upon Employee’s resignation without Good
Reason, this Agreement shall terminate without further obligation by the
Company, except for the payment of any Accrued Obligations (as defined in
paragraph 1(f) below). As used herein, “Cause” shall mean: (i) the plea of
guilty or nolo  contendere to, or conviction for, a felony offense
or other crime involving moral turpitude by Employee; provided, however,
that after indictment, the Company may suspend Employee from the rendition of
services, but without limiting or modifying in any other way the Company’s
obligations to Employee under this Agreement; provided, further,
that Employee’s employment shall be immediately reinstated if the indictment is
dismissed or otherwise dropped and there is not otherwise grounds to terminate
Employee’s employment for Cause; (ii) a material breach by Employee of a
fiduciary duty owed to the Company; (iii) a material breach by Employee of
any of the covenants made by Employee in Section 2 hereof; or (iv) the
willful or gross neglect by Employee of the material duties required by this
Agreement. Before a cessation of Employee’s employment shall be deemed to be a termination of Employee’s employment for Cause, (A) the Company shall provide
written notice to Employee that
identifies the conduct described in clauses (ii), (iii) or (iv) above, as
applicable, and (B) in the event that the event or condition is curable, Employee shall have failed to remedy such event or condition
within 30 days after Employee shall have
received the written notice from the Company described above. As used herein, “Good
Reason” shall mean the occurrence of any
of the following without Employee’s written consent, (i) a material adverse
change in

 

 

Employee’s title, duties, operational
authorities or reporting responsibilities from
those in effect immediately following the Effective Date, excluding for this
purpose any such change that is an isolated and inadvertent action not taken in
bad faith and that is remedied by the Company promptly after receipt of notice
thereof given by the Employee or that is authorized pursuant to this Agreement
or that relate to new businesses not operated by the Company as of the date of
this Agreement, (ii) a material reduction in Employee’s annual base salary, or
(iii) a relocation of Employee’s principal place of business more than 25 miles
from the New York, New York metropolitan area.

 

(d)           TERMINATION
BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE; RESIGNATION BY
EMPLOYEE FOR GOOD REASON. Upon termination of Employee’s employment prior
to expiration of the Term (i) by the Company without Cause (other than for
death or Disability) or (ii) upon Employee’s resignation for Good Reason,
subject to Employee’s execution and non-revocation of a general release of the
Company and its affiliates substantially in the form attached hereto as Exhibit
B and Employee’s compliance with Sections 2(a) through 2(e), (A) the
Company shall pay Employee the Base Salary through the remainder of the Term;
and (B) the Company shall pay Employee within 30 days of the date of such
termination in a lump sum in cash any Accrued Obligations (as defined in
paragraph 1(f) below).

 

(e)           MITIGATION;
OFFSET. In the event of termination of Employee’s employment prior to the
end of the Term, in no event shall Employee be obligated to seek other
employment or take any other action by way of mitigation of severance benefits
or other compensation or benefits. If Employee obtains other employment during
the Term, the amount of any severance payments to be made to Employee under
Section 1(d) hereof after the date such employment is secured shall be offset
by the amount of compensation earned by Executive from such employment through
the end of the Term. For purposes of this Section 1(e), Employee shall have an
obligation to inform the Company promptly regarding Employee’s employment
status following termination and during the period encompassing the Term.

 

(f)            ACCRUED
OBLIGATIONS. As used in this Agreement, “Accrued Obligations” shall mean
the sum of (i) any portion of Employee’s accrued but unpaid Base Salary through
the date of death or termination of employment for any reason, as the case may
be; and (ii) any compensation previously earned but deferred by Employee
(together with any interest or earnings thereon) that has not yet been paid.

 

2.             CONFIDENTIAL
INFORMATION; NON-COMPETE; NON-SOLICITATION; AND PROPRIETARY RIGHTS.

 

(a)           CONFIDENTIALITY.
Employee acknowledges that while employed by the Company Employee will occupy a
position of trust and confidence. Employee shall not, except as may be required
to perform Employee’s duties hereunder or as required by applicable law,
disclose to others or use, whether directly or indirectly, any Confidential
Information. “Confidential Information” shall mean information about the
Company or any of its subsidiaries or affiliates, and their clients and
customers that is not disclosed by the Company or any of its subsidiaries or
affiliates for financial reporting purposes and that was learned by Employee in
the course of

 

2

 

employment with the Company or any of its
subsidiaries or affiliates, including without limitation any proprietary
knowledge, trade secrets, data, formulae, information and client and customer
lists and all papers, resumes, and records (including computer records) of the
documents containing such Confidential Information. Employee acknowledges that
such Confidential Information is specialized, unique in nature and of great
value to the Company and its subsidiaries or affiliates, and that such
information gives the Company and its subsidiaries or affiliates a competitive
advantage. Employee agrees to deliver or return to the Company, at the Company’s
request at any time or upon termination or expiration of Employee’s employment
or as soon thereafter as possible, all documents, computer tapes and disks,
records, lists, data, drawings, prints, notes and written information (and all
copies thereof) furnished by the Company and its subsidiaries or affiliates or
prepared by Employee in the course of Employee’s employment by the Company and
its subsidiaries or affiliates. As used in this Agreement, “affiliates” shall
mean any company controlled by, controlling or under common control with the
Company.

 

(b)           NON-COMPETITION.
During the Term and for a period of 24 months beyond Employee’s date of
termination of employment for any reason following the date hereof (the “Restricted
Period”), Employee shall not, without the prior written consent of the Company,
directly or indirectly, engage in or become associated with a Competitive
Activity. For purposes of this Section 2(b): 
(i) a “Competitive Activity” means any business or other endeavor, in
any state of the United States or a comparable jurisdiction in Canada or any
other country, involving products or services that are the same or similar to
the type of products or services that the Reporting Businesses are engaged in
providing as of the date hereof or at any time during the Term, (ii) Employee
shall be considered to have become “associated with a Competitive Activity” if
Employee becomes directly or indirectly involved as an owner, principal,
employee, officer, director, independent contractor, representative,
stockholder, financial backer, agent, partner, member, advisor, lender, or in
any other individual or representative capacity with any individual,
partnership, corporation or other organization that is engaged in a Competitive
Activity and (iii) the “Reporting Businesses” shall mean each of the businesses
of the Company that have reported either directly or indirectly  to Employee during the Term. Notwithstanding
the foregoing, (i) Employee may make and retain investments during the
Restricted Period, for investment purposes only, in less than one percent (1%)
of the outstanding capital stock of any publicly-traded corporation engaged in
a Competitive Activity if the stock of such corporation is either listed on a
national stock exchange or on the NASDAQ National Market System if Employee is
not otherwise affiliated with such corporation and (ii) Employee may become employed
by a partnership, corporation or other organization that is engaged in a
Competitive Activity so long as Employee has no direct or indirect
responsibilities or involvement in the Competitive Activity.

 

(c)           NON-SOLICITATION
OF EMPLOYEES. During the Restricted Period, Employee shall not, without the
prior written consent of the Company, directly or indirectly, hire or recruit
or solicit the employment or services of (whether as an employee, officer,
director, agent, consultant or independent contractor), any employee, officer,
director, agent, consultant or independent contractor of the Company or any of
its subsidiaries or affiliates (except for such employment or hiring by the
Company or any of its subsidiaries or affiliates); provided, however,
that this Section 2(c) shall not apply to any hiring which results solely from a
general solicitation of

 

3

 

employment that was not directed to employees
of the Company or any of its subsidiaries or affiliates.

 

(d)           NON-SOLICITATION
OF BUSINESS PARTNERS. During the Restricted Period, Employee shall not,
without the prior written consent of the Company, directly or indirectly,
solicit, attempt to do business with, or do business with any business partners
or business affiliates of the Company or any of its subsidiaries or those
affiliates of the Company that are engaged in a Competitive Activity, or
encourage (regardless of who initiates the contact) any such business partners
or business affiliates to use the services of any competitor of the Company,
its subsidiaries or affiliates.

 

(e)           PROPRIETARY
RIGHTS; ASSIGNMENT. All Employee Developments shall be made for hire by
Employee for the Company or any of its subsidiaries or affiliates. “Employee
Developments” means any idea, discovery, invention, design, method, technique,
improvement, enhancement, development, computer program, machine, algorithm or
other work or authorship that (i) relates to the business or operations of the
Company or any of its subsidiaries or affiliates, or (ii) results from or is
suggested by any undertaking assigned to the Employee or work performed by the
Employee for or on behalf of the Company or any of its subsidiaries or
affiliates, whether created alone or with others, during or after working hours.
All Confidential Information and all Employee Developments shall remain the
sole property of the Company or any of its subsidiaries or affiliates. The
Employee shall acquire no proprietary interest in any Confidential Information
or Employee Developments developed or acquired during the Term. To the extent
the Employee may, by operation of law or otherwise, acquire any right, title or
interest in or to any Confidential Information or Employee Development, the
Employee hereby assigns to the Company all such proprietary rights. The
Employee shall, both during and after the Term, upon the Company’s request,
promptly execute and deliver to the Company all such assignments, certificates
and instruments, and shall promptly perform such other acts, as the Company may
from time to time in its discretion deem necessary or desirable to evidence,
establish, maintain, perfect, enforce or defend the Company’s rights in
Confidential Information and Employee Developments.

 

(f)            COMPLIANCE
WITH POLICIES AND PROCEDURES. During the Term, Employee shall adhere to the
policies and standards of professionalism set forth in the Company’s policies
and procedures as they may exist from time to time.

 

(g)           REMEDIES
FOR BREACH. Employee expressly agrees and understands that Employee will
notify the Company in writing of any alleged breach of this Agreement by the
Company, and the Company will have 30 days from receipt of Employee’s notice to
cure any such breach.

 

Employee expressly agrees and understands
that the remedy at law for any breach by Employee of this Section 2 will be
inadequate and that damages flowing from such breach are not usually
susceptible to being measured in monetary terms. Accordingly, it is
acknowledged that upon Employee’s violation of any provision of this Section 2,
in addition to any remedy that the Company may have at law, the Company shall
be entitled to obtain from any court of competent jurisdiction immediate
injunctive relief and obtain a temporary order restraining any threatened or
further breach as well as an equitable accounting of all profits or benefits
arising

 

4

 

out of such violation. Nothing in this Section 2 shall be deemed to
limit the Company’s remedies at law or in equity for any breach by Employee of
any of the provisions of this Section 2, which may be pursued by or available
to the Company.

 

(h)           SURVIVAL
OF PROVISIONS. The obligations contained in this Section 2 shall, to the
extent provided in this Section 2, survive the termination or expiration of
Employee’s employment with the Company and, as applicable, shall be fully
enforceable thereafter in accordance with the terms of this Agreement. If it is
determined by a court of competent jurisdiction in any state that any
restriction in this Section 2 is excessive in duration or scope or is unreasonable
or unenforceable under the laws of that state, it is the intention of the
parties that such restriction may be modified or amended by the court to render
it enforceable to the maximum extent permitted by the law of that state. If any
of the covenants of this Section 2 are determined to be wholly or partially
unenforceable in any jurisdiction, such determination shall not be a bar to or
in any way diminish the rights of the Company or its affiliates, as applicable,
to enforce any such covenant in any other jurisdiction.

 

3.             WAIVER
OF PRIOR AGREEMENTS. This Agreement constitutes the entire agreement
between the parties, and Employee acknowledges that he has waived, effective as
of the Effective Date, any and all rights under prior agreements and
understandings (whether written or oral) between Employee and LendingTree or the
Company with respect to the subject matter of this Agreement (other than the
Shares Agreement, as modified by this Agreement), including, without
limitation, the Prior Agreement. Employee acknowledges and agrees that neither
the Company nor anyone acting on its behalf has made, and is not making, and in
executing this Agreement, the Employee has not relied upon, any
representations, promises or inducements except to the extent the same is
expressly set forth in this Agreement.

 

4.             ASSIGNMENT;
SUCCESSORS. This Agreement is personal in its nature and none of the
parties hereto shall, without the consent of the others, assign or transfer
this Agreement or any rights or obligations hereunder; provided, that in
the event of a merger, consolidation, transfer, reorganization, or sale of all,
substantially all or a substantial portion of the assets of the Company with or
to any other individual or entity, this Agreement shall, subject to the
provisions hereof, be binding upon and inure to the benefit of such successor
and such successor shall discharge and perform all the promises, covenants,
duties, and obligations of the Company hereunder, and all references herein to
the “Company” shall refer to such successor.

 

5.             WITHHOLDING.
The Company shall make such deductions and withhold such amounts from each
payment and benefit made or provided to Employee hereunder, as may be required
from time to time by applicable law, governmental regulation or order.

 

6.             HEADING
REFERENCES. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement
for any other purpose. References to “this Agreement” or the use of the term “hereof”
shall refer to these Standard Terms and Conditions and the Employment Agreement
attached hereto, taken as a whole.

 

5

 

7.             WAIVER;
MODIFICATION. Failure to insist upon strict compliance with any of the
terms, covenants, or conditions hereof shall not be deemed a waiver of such
term, covenant, or condition, nor shall any waiver or relinquishment of, or
failure to insist upon strict compliance with, any right or power hereunder at
any one or more times be deemed a waiver or relinquishment of such right or
power at any other time or times. This Agreement shall not be modified in any
respect except by a writing executed by each party hereto.

 

8.             SEVERABILITY.
In the event that a court of competent jurisdiction determines that any portion
of this Agreement is in violation of any law or public policy, only the
portions of this Agreement that violate such law or public policy shall be stricken.
All portions of this Agreement that do not violate any statute or public policy
shall continue in full force and effect. Further, any court order striking any
portion of this Agreement shall modify the stricken terms as narrowly as
possible to give as much effect as possible to the intentions of the parties
under this Agreement.

 

9.             INDEMNIFICATION.
The Company shall indemnify and hold Employee harmless for acts and omissions
in Employee’s capacity as an officer, director or employee of the Company to
the maximum extent permitted under applicable law; provided, however,
that neither the Company, nor any of its subsidiaries or affiliates shall
indemnify Employee for any losses incurred by Employee as a result of acts that
would constitute Cause under Section 1(c) of this Agreement.

 

10.           SECTION
409A OF THE CODE. The benefits provided under this Agreement shall comply
with Section 409A of the Code and the regulations thereunder. To the extent so
required in order to comply with Section 409A of the Code, (i) amounts and
benefits to be paid or provided under this Agreement shall be paid or provided
to Employee in a single lump sum on the first business day after the date that
is six months following the date of termination of Employee’s employment or
shall begin six months and one day following the date of termination, and (ii) the
Company and Employee agree to amend or modify this Agreement and any agreements
relating hereto (including any award agreement with respect to equity
compensation described in Section 3A(c)) as may be necessary to comply with
Section 409A of the Code.

 

6

 

	
  ACKNOWLEDGED
  AND AGREED:

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  
	
   

  	
  IAC/INTERACTIVECORP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authorized
  Representative

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LENDINGTREE,
  LLC

  
	
   

  	
  (Solely for
  purposes of Section 3)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authorized
  Representative

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ DOUGLAS
  R. LEBDA

  	
   

  
	
   

  	
  DOUGLAS R.
  LEBDA

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