Document:

exv10w3

 

EX-10.3
SERVICES AGREEMENT

EXECUTION VERSION

SERVICES AGREEMENT

[Michael Cohl]

     This Services Agreement (this “Agreement”) is entered into this 26th day of May, 2006
(the “Effective Date”) by and among the following parties:

	 	(1)	 	CPI International Touring Inc. (“Touring ROW”), a Barbados IBC
corporation;
	 
	 	(2)	 	CPI Touring (USA), Inc. (“Touring USA”), a Delaware
corporation;
	 
	 	(3)	 	CPI Entertainment Content (2005), Inc. (“Grand 2005”), a
Delaware corporation;
	 
	 	(4)	 	CPI Entertainment Content (2006), Inc. (“Grand 2006”), a
Delaware corporation;
	 
	 	(5)	 	Grand Entertainment (ROW), LLC (“Grand ROW”), a Delaware
limited liability company; and
	 
	 	(6)	 	KSC Consulting (Barbados) Inc. (“KSC”), a Barbados corporation.

Background

     A. Pursuant to the terms of a Stock Purchase Agreement dated as of the date hereof, Live
Nation, Inc. (“LN”), through a wholly-owned subsidiary, has purchased of even date herewith
(the “Acquisition”) an equity interest in Touring ROW, Touring USA, Grand 2005, Grand 2006
and Grand ROW (herein collectively referred to as the “Companies” and individually as a
“Company”). Michael Cohl (“Cohl”) indirectly owns an equity interest in each of
Grand 2005, Grand 2006 and Grand ROW and has therefore benefited from the closing of the
Acquisition.

     B. As a condition precedent to the completion of the Acquisition, the Companies and KSC are
entering into this Agreement for the purpose of (i) setting forth the terms upon which KSC will
provide the services of Cohl to the Companies from and after the completion of the Acquisition and
(ii) establishing certain non-disclosure, non-compete, non-hire and other protective covenants for
the benefit of the Companies and LN (and its affiliates) as more fully set forth herein.

     C. KSC has the legal right and authority to commit Cohl to (i) supply and furnish his services
to the Companies upon the terms described herein and (ii) honor the non-disclosure, non-compete,
non-hire and other protective covenants set forth herein.

     D. Upon the terms and provisions contained herein, (i) KSC commits to provide the services of
Cohl to the Companies, (ii) the Companies agree to engage the services of Cohl to be so supplied by
KSC and (iii) Cohl joins in the execution hereof to indicate his consent to the provisions hereof
and for the other purposes stated herein.

Agreement

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

 

 

	1.	 	TERM OF AGREEMENT.

     (a) Term. Unless earlier terminated in accordance with the provisions of Section 6
hereof, the term of this Agreement starts on the Effective Date and ends on the close of business
on the fifth (5th) anniversary of the Effective Date.

     (b) Definition of “Applicable Period” and “Actual Term”. As used herein, the
following terms shall have the meanings indicated below:

     (i) The phrase “Applicable Period” shall mean the five year period
commencing on the Effective Date and ending on the fifth anniversary of the Effective Date
without regard to whether this Agreement is terminated in accordance with the provisions of
Section 6 hereof prior to the fifth anniversary of the Effective Date; and

     (ii) The phrase “Actual Term” shall mean the period of time from the
Effective Date until the termination of this Agreement in accordance with the provisions of
Section 6 hereof.

	2.	 	TITLE AND DUTIES.

     (a) Title and Reporting. During the Actual Term, Cohl will (i) serve as the most
senior executive of each of the Companies and shall have the title of “Chief Executive Officer” of
each of the Companies and (ii) report to the Board of Directors (or similar governing body) of each
Company (herein collectively called the “Boards” and individually, a “Board”). All
employees of each of the Companies shall report directly to Cohl, unless otherwise directed by
Cohl.

     (b) Duties and Authority. Subject to Section 2(c) hereof, KSC will cause Cohl to
perform job duties for each Company that are usual and customary for the position of Chief
Executive Officer and will perform additional services and duties that any of the Companies may
from time to time designate that are consistent with the usual and customary duties of such
position, including, without limitation, the preparation and presentation of a proposed annual
operating budget to each of the Boards for their approval that will include detailed information
for the fixed costs of the Companies and detailed operating projections for each of the CPI
Business Lines (as that term is defined in Section 17(b) hereof). Cohl will be vested with the
authority and responsibility to direct and manage the day-to-day operations of each of the
Companies, which will include the authority, on behalf of the Companies, to do each and all of the
following:

     (i) seek opportunities for projects in the CPI Business Lines without
restriction or limitation for presentation to the applicable Board for its consideration;

     (ii) promote and execute those global tours of music concerts that meet the
75% Test (as that term is defined in the Securityholders Agreement (the “Securityholders
Agreement”) dated the date hereof, among the Companies, their stockholders or members
and the other parties thereto, as it may be amended, restated or otherwise modified from
time to time), subject to the aggregate limitation on financing available pursuant to the
terms of the Credit Agreement (the “Credit Agreement”), dated as of the date hereof,
among the Companies, as borrowers, SFX Entertainment, Inc., as lender, and LN, as guarantor
of the lender’s obligations, as it may be amended, restated or otherwise modified from time
to time; and

     (iii) pursue the development and execution of any other projects in the CPI
Business Lines that are approved by one of the Boards.

2

 

     (c) Standard of Performance. Although the Companies agree that Cohl will not be
required to devote his full working time and efforts to the business and affairs of the Companies,
it is understood and agreed by KSC that Cohl will be required to provide such time and attention to
the business and affairs of the Companies as may be required to direct and manage the day-to-day
operations of each of the Companies. The provision of any services to be rendered by Cohl pursuant
to and as required by this Agreement shall be allocated as between Barbados and other jurisdictions
in a manner as Cohl and the Companies shall reasonably agree, and the Companies acknowledge and
agree that all of Cohl’s services shall be rendered outside North America.

	3.	 	COMPENSATION

     (a) Service Fee and Bonus Fee. The Companies will pay to KSC during the Actual Term
(which for purposes of this Section 3(a) only shall be deemed to have commenced January 1, 2006)
(i) a service fee of U.S. $1,000,000 per year, payable in equal monthly installments on the last
day of each calendar month and (ii) an annual bonus (the “Bonus Fee”) in the amount of
US$36,000 payable in a single installment on or before the last day of each calendar year (the
service fee set forth in clause (i) above together with the Bonus Fee are referred to herein,
collectively, as the “Service Fee”). The payment of the Service Fee and the Bonus Fee
shall be the joint and several obligation of the Companies, and the Companies will allocate the
responsibility of such payment among themselves as they may mutually agree from time to time based
upon the relative amount of services provided hereunder by Cohl to each Company. The amount of the
Bonus Fee may be increased, from time to time during the Actual Term, upon approval of the Boards
without a formal amendment hereto.

     (b) Benefits Reimbursement. The Companies will reimburse on a monthly basis to KSC
such amounts (the “Benefits Reimbursement Amount”) as are actually incurred by KSC in
providing to Cohl from and after January 1, 2006 an employee benefits package comparable to the
employee benefit package offered to senior executives of LN (“Applicable Benefits
Package”); provided, however, the Benefits Reimbursement Amount shall in no event
exceed the cost then incurred by LN to supply the Applicable Benefits Package to its senior
executives who are U.S. resident employees. The Companies advise that the current Applicable
Benefits Package is set forth on Schedule 3(b) hereto.

     (c) Expenses. The Companies will pay or reimburse to KSC all normal and reasonable
travel and entertainment expenses incurred during the Actual Term by KSC or Cohl in connection with
the provision of Cohl’s services under this Agreement upon submission of proper vouchers in
accordance with the expense reimbursement policy of the Companies, which policy is attached as
Schedule 3(c) hereto.

	4.	 	NONDISCLOSURE OF CONFIDENTIAL INFORMATION.

     During the Actual Term, the Companies and LN (or its affiliates) will provide KSC and Cohl
with access to certain confidential information, trade secrets, and other matters which are of a
confidential or proprietary nature, including but not limited to the customer lists, pricing
information, production and cost data, compensation and fee information, strategic business plans,
budgets, financial statements, and other information that the Companies, their respective
subsidiaries, LN and LN’s affiliates (collectively, the “Company Group”) treat as
confidential or proprietary (collectively the “Confidential Information”). The Company
Group provides and shall provide on an ongoing basis such Confidential Information which is
reasonably necessary or desirable to aid KSC and Cohl in the delivery of the services contemplated
hereunder. KSC understands and acknowledges that such Confidential Information is confidential and
proprietary, and agrees that neither KSC nor Cohl shall disclose such Confidential Information to
anyone outside the Company Group except to the extent that (i) KSC or Cohl deems such disclosure or
use reasonably necessary or appropriate in connection with performing services on behalf of

3

 

the Companies in a manner consistent with the provisions and requirements hereof; (ii) KSC or
Cohl is required by order of a court of competent jurisdiction (by subpoena or similar process) to
disclose or discuss any Confidential Information, provided that in such case, KSC or Cohl, as
applicable, shall promptly inform the Company of such event, shall cooperate with the Companies in
attempting to obtain a protective order or to otherwise restrict such disclosure, and shall only
disclose Confidential Information to the minimum extent necessary to comply with any such court
order; (iii) such Confidential Information becomes generally known to and available for use in the
industries in which the Companies do business, other than as a result of any action or inaction by
KSC or Cohl; or (iv) the Confidential Information is furnished or disclosed to KSC or Cohl by a
third party who came by it rightfully and is under no obligation of confidence to any of the
Company Group. At the end of the Actual Term, KSC shall, and will cause Cohl to, immediately turn
over to the Companies all Confidential Information, including papers, documents, writings,
electronically stored information, other property, and all copies of them. This nondisclosure
covenant is binding on KSC and Cohl, as well as their respective heirs, successors, legal
representatives and assigns, and will survive the termination of this Agreement. KSC agrees that
LN is an express beneficiary of the covenants and restrictions set forth in this Section 4, to the
extent that such covenants and restrictions apply to or protect the Confidential Information of LN
or its affiliates, and that LN may directly enforce such covenants and restrictions in its own name
and for its own account without the prior approval or consent of the Companies.

5. PROTECTIVE COVENANTS. To further preserve the rights of the Companies pursuant to the
nondisclosure covenant set forth in Section 4 above, and for the consideration promised by the
Companies under this Agreement and for the further consideration being received of even date
herewith, directly or indirectly, by Cohl pursuant to the terms of the Acquisition, and as a
necessary and express condition precedent to the closing of the Acquisition, KSC and Cohl commit
and agree with the Companies and with LN as follows:

     (a) Non-Hire Covenant. Subject to the provisions of Section 5(e) hereof, during the
Applicable Period, KSC and Cohl will not, and KSC will not permit Cohl to, directly or indirectly,
(i) hire any employee of the Company Group or any person that was employed by the Company Group
within six months immediately preceding such hiring; (ii) solicit or encourage any employee of the
Company Group to terminate their employment with the Company Group; or (iii) solicit or encourage
any employee of the Company Group or any person that was employed by the Company Group within the
six months immediately preceding such solicitation or encouragement to accept employment with any
business, operation, corporation, partnership, association, agency, or other person or entity with
which Cohl may be associated in any capacity.

     (b) Non-Compete Covenant. Subject to the provisions of Section 5(e) hereof, during
the Applicable Period, KSC and Cohl will not, and KSC will not permit Cohl to, directly or
indirectly, as an owner, director, principal, agent, officer, employee, partner, consultant,
servant, or otherwise, carry on, operate, manage, control, or become involved in any manner with
any business, operation, corporation, partnership, association, agency, or other person or entity
which is in the same business as any of the CPI Business Lines in any location in which the Company
Group operates during the Actual Term, including any area within a 50-mile radius of any such
location. The foregoing shall not prohibit KSC or Cohl from owning up to 5.0% of the outstanding
stock of any publicly held company.

     (c) Protection of Certain Company Group Relationships. Subject to the provisions of
Section 5(e) hereof, during the Applicable Period, KSC and Cohl will not, and KSC will not permit
Cohl to, directly or indirectly, either for their own respective account or for any other business,
operation, corporation, partnership, association, agency, or other person or entity, call upon or
solicit the acquisition of, or otherwise acquire, rights from either U2 or Madonna to promote a
tour of musical events or grant of

4

 

any other rights from either of such artists; provided that the foregoing restriction shall
not apply at any time after Arthur Fogel is no longer an employee of, or consultant to, the Company
Group.

     (d) Reasonableness of Restrictions. KSC and Cohl agree that the restrictions
contained in this Section 5 are reasonable in scope and duration and are necessary to protect the
business interests of the Companies and the Confidential Information. If any provision of this
Section 5 as applied to any party or to any circumstance is adjudged by a court or arbitrator to be
invalid or unenforceable, the same will in no way affect any other circumstance or the validity or
enforceability of this Agreement. If any such provision, or any part thereof, is held to be
unenforceable because of the scope, duration, or geographic area covered thereby, the parties agree
that the court or arbitrator making such determination shall have the power to reduce the scope
and/or duration and/or geographic area of such provision, and/or to delete specific words or
phrases, and in its reduced form, such provision shall then be enforceable and shall be enforced.
KSC and Cohl agree and acknowledge that the breach of any provision in this Section 5 will cause
irreparable damage to the Companies and/or the Company Group, and upon any such breach, the
Companies shall be entitled to injunctive relief, specific performance, or other equitable relief;
provided, however, that this shall in no way limit any other remedies which the Companies may have
(including, without limitation, the right to seek monetary damages).

     (e) Exceptions to Protective Covenants. Notwithstanding any provision to the
contrary contained in this Section 5, the covenants set forth herein shall be subject to the
following exceptions, limitations and exclusions:

     (i) Notwithstanding Section 6(i) hereof, the covenants, agreements and
obligations set forth in Section 5(a), (b) and (c) above will terminate and no longer apply
after termination of this Agreement (x) by the Companies without Cause pursuant to Section
6(d) hereof, (y) by KSC with Good Reason pursuant to Section 6(e) hereof or (z) in
accordance with Section 6(h) hereof.

     (ii) Throughout the Applicable Period, Cohl will have the right, in his sole
and absolute discretion, to render services to the Rolling Stones (“R/S Services”)
at any time during the Applicable Period for his own account on and subject to the following
terms, conditions and provisions:

     (A) KSC must provide, or cause Cohl to provide, written notice to the
Companies setting forth (x) a reasonably detailed description of the R/S Services
that will be rendered to the Rolling Stones and (y) a detailed summary of all
compensation to be received by Cohl, directly or indirectly, in connection with,
arising out of or relating to such R/S Services;

     (B) Cohl’s business time and effort devoted to R/S Services shall not
materially interfere with his obligations under this Agreement (including his
required time and attention pursuant to Section 2(c) hereof) and, in any event,
shall not exceed eight hours per week on average.

Notwithstanding the foregoing, it is expressly acknowledged and agreed by KSC, for itself
and on behalf of Cohl, that R/S Services shall be limited to the provision of management,
consulting or similar services for a fee only and shall not include any type of arrangement
that would be comparable to, or otherwise constitute, the acquisition of rights from the
Rolling Stones to promote a tour of musical events or otherwise own, pursue or exploit the
grant of any rights from the Rolling Stones.

5

 

     (iii) Throughout the Applicable Period, Cohl will have the right, in his sole
and absolute discretion, to pursue the development, production, presentation, touring or
operation of any project within the CPI Business Lines that satisfies all of the following
terms, provisions and conditions:

     (A) Such project must have been presented to the Companies in a
written proposal (the “Project Proposal”) containing all of the material
business terms and conditions related to such project;

     (B) Cohl must have supplied any additional details and back-up
material and information that may have been reasonably requested by any of the
Companies within fourteen (14) days following delivery of the Project Proposal (all
such additional details and back-up material, along with the Project Proposal, being
herein called the “Project Proposal Supplement”); and

     (C) The Companies must have declined to pursue such project, with the
understanding that each Company shall be deemed to have declined to pursue any
project for which it has not affirmatively made a commitment to Cohl to pursue
within fourteen (14) days after the later of (x) receipt of a written notice from
Cohl that requests such a commitment and (y) delivery to the Companies of the
Project Proposal or, if applicable, the Project Proposal Supplement.

If the terms of any such project should be changed so as to be materially more favorable in
the aggregate to Cohl in advance of his committing (directly or indirectly) to engage in
such project than when it was last presented to the Companies in the Project Proposal or the
Project Proposal Supplement, as applicable, then Cohl must present a revised Project
Proposal to the Companies and provide the Companies another opportunity to commit to pursue
such project for their own account as if such revised Project Proposal was the initial
Project Proposal for such project; provided, that the fourteen day periods
referred to in Sections 5(d)(iii)(B) and 5(d)(iii)(C) hereof shall be deemed five (5)
business day periods in connection therewith.

     (f) LN as Express Beneficiary. KSC agrees that LN is an express beneficiary of the
covenants and restrictions set forth in this Section 5, to the extent that such covenants and
restrictions apply to or protect LN or its affiliates, and that LN may directly enforce such
covenants and restrictions in its own name and for its own account without the prior approval or
consent of the Companies.

	6.	 	TERMINATION. This Agreement shall be terminated only in accordance with and pursuant
to the following provisions:

     (a) Cohl’s Death. This Agreement shall terminate upon the occurrence of Cohl’s
death without any action or notice by any party hereto.

     (b) Cohl’s Disability. The Companies may terminate this Agreement if, as a result
of Cohl’s incapacity due to physical or mental illness, Cohl is unable to perform the services
required to be provided by him under this Agreement for more than 180 days in any 12 month period.

     (c) Termination by the Companies with Cause. The Companies may terminate this
Agreement for Cause by notice to KSC. A termination for Cause must be for one or more of the
following reasons: (i) continued, willful and deliberate non-performance by Cohl of his services
to be provided hereunder (other than by reason of the Cohl’s physical or mental illness,
incapacity or disability) if such non-performance has continued for more than 10 days following
written notice of such

6

 

non-performance; (ii) Cohl’s refusal or failure to follow lawful directives of any one or more of
the Boards if such refusal or failure has continued for more than 10 days following written notice
of such refusal or failure; (iii) a criminal conviction of Cohl that has resulted in, or would
result in if he were retained in his position with the Companies, material injury to the reputation
of the Companies, including, without limitation, conviction of fraud, theft, embezzlement, or a
crime involving moral turpitude; (iv) a breach by KSC or Cohl of any of the covenants set forth in
this Agreement and such breach has continued for more than 10 days following written notice of such
breach; or (v) a material violation by Cohl of any policies of the Companies that apply to the
senior executives of the Company Group if such violation has continued for more than 10 days
following written notice of such violation.

     (d) Termination by the Companies without Cause. The Companies may terminate this
Agreement without Cause upon 30 days written notice to KSC.

     (e) Termination By KSC for Good Reason. KSC may terminate this Agreement with Good
Reason by notice to the Companies. A termination for Good Reason means:

     (i) A termination by KSC for one or more of the following reasons: (A) an
uncured breach of this Agreement by the Companies if such breach has continued for more than
10 days following written notice of such breach; (B) a diminution in the duties, authority,
or responsibilities delegated to Cohl pursuant to this Agreement if such diminution has
continued for more than 10 days following written notice thereof; (C) a requirement that
Cohl provide his services under this Agreement from a location other than the Barbados
(excluding reasonable travel for specific matters related to the business of the Companies)
or (D) an uncured breach of the Credit Agreement by SFX Entertainment, Inc., the lender
thereunder, if such breach has continued for more than 10 days following written notice of
such breach; or

     (ii) A termination by KSC within sixty (60) days after (A) an election by LN
to cause the Companies to be sold or liquidated pursuant to the right set forth in Section
5(c) of Stockholders Agreement or (B) any sale of all or substantially all of the assets of
the Companies or of 50% or more of the Equity Securities (as defined in the Securityholders
Agreement) of the Companies other than (i) a sale or transfer of the Equity Securities to
Permitted Transferees under the Securityholders Agreement and (ii) a sale of Equity
Securities following an election by the CPI Group (as defined in the Securityholders
Agreement) to become the “Selling Group” pursuant to Section 3(c) of the Securityholders
Agreement.

     (f) Termination by KSC without Good Reason. KSC may terminate this Agreement at any
time after the third (3rd) anniversary of the Effective Date by providing at least ninety (90) days
advance written notice to the Companies.

     (g) Termination upon Expiration of the Applicable Period. This Agreement shall
terminate upon expiration of the Applicable Period without any action or notice required by any
party hereto.

     (h) Termination
upon Exercise of “Put Option”. This Agreement shall terminate upon
the exercise of the Put Option under the Stock Purchase Agreement, dated as of the date hereof,
among LN, Cohl and the other parties thereto, as it may be amended, restated or otherwise modified
from time to time.

     (i) Survival of Certain Provisions. Notwithstanding any termination of this
Agreement pursuant to this Section 6 but subject to Section 5(e), the provisions of Sections 4, 5,
7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 of this Agreement will survive such termination.

7

 

	7.	 	COMPENSATION UPON TERMINATION.

     (a) Cohl’s Death. If this Agreement is terminated pursuant to Section 6(a) hereof
by reason of Cohl’s death, the Companies will, within 30 days, pay in a lump sum amount to KSC any
accrued and unpaid Service Fee and Benefits Reimbursement Amount through the date of such
termination.

     (b) Cohl’s Disability. If this Agreement is terminated pursuant to Section 6(b)
hereof by reason of Cohl’s disability, the Companies will, within 30 days, pay in a lump sum amount
to KSC any accrued and unpaid Service Fee and Benefits Reimbursement Amount through the date of
such termination.

     (c) Termination By The Companies For Cause or upon exercise of the Put Option. If
this Agreement is terminated by the Company for Cause pursuant to Section 6(c) hereof or upon
exercise of the Put Option pursuant to Section 6(h) hereof, the Companies will, within 30 days, pay
in a lump sum amount to KSC any accrued and unpaid Service Fee and Benefits Reimbursement Amount
through the date of such termination.

     (d) Termination By The Companies Without Cause. If this Agreement is terminated by
the Companies without Cause pursuant to Section 6(d) hereof, the Companies will, within 30 days,
pay in a lump sum amount to KSC (i) any accrued and unpaid Service Fee and Benefits Reimbursement
Amount through the date of such termination and (ii) an amount equal to the discounted present
value (using the U.S. national prime rate as the discount rate) of the remaining unpaid
installments of the Service Fee and Benefits Reimbursement Amount from the date of such termination
through the remainder of the Applicable Period (assuming that the Benefits Reimbursement Amount
with respect to each remaining year of the Applicable Period shall be equal to that applicable to
the year in which such termination takes place).

     (e) Termination By KSC With Good Reason. If this Agreement is terminated by KSC
with Good Reason pursuant to Section 6(e) hereof, the Companies will, within 30 days, pay in a lump
sum amount to KSC (i) any accrued and unpaid Service Fee and Benefits Reimbursement Amount through
the date of such termination and (ii) an amount equal to the discounted present value (using the
U.S. national prime rate as the discount rate) of the remaining unpaid installments of the Service
Fee and Benefits Reimbursement Amount from the date of such termination through the remainder of
the Applicable Period (assuming that the Benefits Reimbursement Amount with respect to each
remaining year of the Applicable Period shall be equal to that applicable to the year in which such
termination takes place).

     (f) Termination By KSC Without Good Reason. If this Agreement is terminated by KSC
without Good Reason pursuant to Section 6(f) hereof, the Companies will, within 30 days, pay in a
lump sum amount to KSC any accrued and unpaid Service Fee and Benefits Reimbursement Amount through
the date of such termination.

     (g) Termination upon Expiration of the Applicable Period. If this Agreement is
terminated pursuant to Section 6(g) hereof upon expiration of the Applicable Period, the Companies
will, within 30 days, pay in a lump sum amount to KSC any accrued and unpaid Service Fee and
Benefits Reimbursement Amount through the date of such termination.

     (h) Expense Reimbursement Amount. If this Agreement is terminated for any reason,
the Companies will, within 30 days, reimburse in a lump sum amount to KSC any expense amounts to
which it is entitled under Section 3(c) hereof.

8

 

     (i) Effect Of Compliance With Compensation Upon Termination Provisions. Upon
complying with Sections 7(a) through 7(h) above, as applicable, the Companies will have no further
obligations to KSC or Cohl hereunder, except pursuant to (i) the provisions hereof which survive
termination as provided by Section 6(i) hereof and (ii) any formal corporate policy of LN or the
Companies that may be adopted to make a payment to deceased or disabled employees.

	8.	 	PARTIES BENEFITED; ASSIGNMENTS.

     This Agreement shall be binding upon (i) KSC and Cohl, and their respective successors,
assigns, heirs and personal representatives and (ii) the Companies and their respective successors
and assigns. Neither this Agreement nor any rights or obligations hereunder may be assigned by (i)
any Company without the prior written consent of KSC or (ii) KSC or Cohl without the prior written
consent of the Companies.

	9.	 	NOTICES.

Any notice provided for in this Agreement will be in writing and will be deemed to have been given
when delivered by recognized overnight courier service (such as UPS, DHL or FedEx). If to the
Companies, the notice will be sent to Michael Rapino, Live Nation, Inc., 9348 Civic Center Drive,
4th Floor, Beverly Hills, CA 90210 and a copy of the notice will be sent to Michael Rowles, Live
Nation, Inc., 9348 Civic Center Drive, 4th Floor, Beverly Hills, CA 90210. If to KSC or Cohl, the
notice will be sent to 28 Pine Road, Palm Court, Bellville, St. Michael, Barbados and a copy of the
notice will be sent to Torys LLP, 237 Park Avenue, New York, NY 10017, Attn. Richard G.
Willoughby. Such notices may alternatively be sent to such other address as any party may have
furnished to the other in writing in accordance with this Agreement, except that notices of change
of address shall be effective only upon receipt.

	10.	 	GOVERNING LAW.

     This Agreement shall be governed by and construed in accordance with the internal laws of the
State of New York without giving effect to any choice of law or conflict provisions or rule
(whether of the State of New York or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of New York. Each party hereto hereby submits to
the non-exclusive jurisdiction of the state courts located in New York, NY and the federal court
located in the Southern District of New York with respect to all actions contemplated by this
Section 10 and hereby irrevocably agrees that all claims in respect of such action or proceeding
may be heard and determined in such courts. The parties hereto hereby irrevocably waive, to the
fullest extent they may effectively do so, the defense of an inconvenient forum to the maintenance
of such action or proceeding. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER OR
RELATING TO THIS AGREEMENT

	11.	 	LITIGATION AND REGULATORY COOPERATION.

     During and after the Actual Term, KSC will cause Cohl to reasonably cooperate with the
Companies in the defense or prosecution of any claims or actions now in existence or which may be
brought in the future against or on behalf of any one or more of the Companies which relate to
events or occurrences that transpired while Cohl was providing services hereunder. Cohl’s
cooperation in connection with such claims or actions shall include, but not be limited to, being
available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf
of the Companies at mutually convenient times. During and after the Actual Term, Cohl also shall
cooperate reasonably with the Companies in connection with any investigation or review of any
regulatory authority as any such

9

 

investigation or review relates to events or occurrences that transpired while Cohl was
providing services hereunder. The Companies will pay KSC on an hourly basis (to be derived from
amount of the Service Fee) for litigation and regulatory cooperation provided by Cohl that occurs
after the Actual Term, and reimburse KSC for all costs and expenses incurred in connection with
Cohl’s performance under this Section 11, including, but not limited to, reasonable attorneys’ fees
and costs.

	12.	 	INDEMNIFICATION AND INSURANCE; LEGAL EXPENSES.

     (a) The Companies shall indemnify Cohl and KSC to the fullest extent permitted by law, in
effect at the time of the subject act or omission, and shall advance to Cohl and/or KSC (as the
case may be) reasonable attorneys’ fees and expenses as such fees and expenses are incurred
(subject to an undertaking from Cohl or KSC (as the case may be) to repay such advances if it shall
be finally determined by a judicial decision which is not subject to further appeal that Cohl or
KSC was not entitled to the reimbursement of such fees and expenses), against all costs, charges
and expenses (including reasonable attorney’s fees, whether incurred in an action between a Company
and either Cohl or KSC, Cohl or KSC and a third party or otherwise) incurred or sustained by him or
it in connection with any action, suit or proceeding to which he or it may be made a party by
reason of his or its being or having been a director, officer, employee, agent or consultant of the
Companies or any of its subsidiaries, or his serving or having served any other enterprise as a
director, officer, employee, agent or consultant at the request of any of the Companies (other than
any dispute, claim or controversy arising under or relating to this Agreement).

     (b) Each Company will at all times maintain errors and omissions/ directors’ and officers’
liability insurance in type, scope and amount reasonably satisfactory to Cohl.

13. DISPUTE RESOLUTION. Any dispute, difference or question (“Dispute”) between
KSC and Cohl, on the one hand, and the Companies or LN, on the other hand (“Disputing
Parties”), shall be resolved in accordance with the following dispute resolution procedures:

     (a) Good Faith Negotiations. The Disputing Parties shall endeavor, in good
faith, to resolve the Dispute through negotiations. If the Parties fail to resolve the Dispute
within a reasonable time, each Party shall nominate a senior officer or officers of its management
to meet at any mutually agreed location to resolve the Dispute.

     (b) Mediation. In the event that the negotiations do not result in a
mutually acceptable resolution, either Disputing Party may require that the Dispute shall be
referred to a non-binding mediation in New York, New York. One mediator shall be appointed by the
agreement of the Parties. The mediator shall be suitably qualified Person having no direct or
personal interest in the outcome of the Dispute. Mediation shall be held within thirty (30) days
of referral to mediation. In the event the Disputing Parties are unable to agree on a mediator,
the Parties agree to the appointment of a mediator pursuant to the Commercial Mediation Rules of
the American Arbitration Association.

     (c) Resolution. In the event the Parties are unsuccessful in their
mediation of the Dispute, or if there is any Dispute about the scope of or the compliance by any
party with the provisions of this Section 13, either Disputing Party may require that the Dispute
be settled in accordance with Section 10 hereof.

14. REPRESENTATIONS AND WARRANTIES OF KSC. KSC hereby represents and warrants to the
Companies as follows:

10

 

     (a) KSC is a corporation duly organized, validly existing and in good standing under
the laws of Barbados.

     (b) KSC has the corporate power and authority to enter into this Agreement and to
perform its obligations hereunder.

     (c) The execution, delivery and performance of this Agreement by KSC has been duly
authorized by all requisite corporate action on the part of KSC and its shareholders and directors.

     (d) This Agreement has been duly executed and delivered by KSC and Cohl and
constitutes a legal, valid and binding obligation of KSC and Cohl, enforceable against KSC and Cohl
in accordance with its terms, except as may be limited by a bankruptcy, insolvency or other similar
laws affecting creditors’ rights generally and by general equity principles.

     (e) The execution, delivery and performance of this Agreement by KSC and Cohl and
their consummation of the transactions contemplated by this Agreement will not violate (with or
without the giving of notice or the lapse of time, or both), or require any consent, approval,
filing or notice under any provision of any law, rule or regulation, court order, judgment or
decree applicable to KSC or Cohl.

     (f) The execution, delivery and performance of this Agreement by KSC and Cohl and
their consummation of the transactions contemplated by this Assignment will not conflict with,
result in the breach or termination of any provision of, or constitute a default under any
agreement or instrument to which KSC or Cohl is a party or by which KSC or Cohl or any of their
respective assets or properties is bound or affected.

     (g) KSC has the express contractual right to bind Cohl to the terms and provisions
hereof and to provide the services of Cohl hereunder.

     (h) Cohl is under no contractual or other restriction which is inconsistent with the
execution of this Agreement, the performance of his duties hereunder or the other rights of
Companies hereunder.

     (i) Cohl is under no physical or mental disability that would hinder the performance
of his duties under this Agreement.

15. REPRESENTATIONS AND WARRANTIES OF THE COMPANIES. The Companies hereby represent and
warrant to KSC as follows:

     (a) Each Company is a corporation or limited liability company duly organized,
validly existing and in good standing under the laws of the jurisdiction of its formation.

     (b) The Companies have the corporate or partnership, as applicable, power and
authority to enter into this Agreement and to perform their respective obligations hereunder.

     (c) The execution, delivery and performance of this Agreement by the Companies has
been duly authorized by all requisite corporate or partnership, as applicable, action on the part
of each Company and its respective shareholders, directors or partners.

     (d) This Agreement has been duly executed and delivered by each of the Companies and
constitutes a legal, valid and binding obligation of each Company, enforceable against each Company
in

11

 

accordance with its terms, except as may be limited by a bankruptcy, insolvency or other
similar laws affecting creditors’ rights generally and by general equity principles.

     (e) The execution, delivery and performance of this Agreement by each Company and
its consummation of the transactions contemplated by this Agreement will not violate (with or
without the giving of notice or the lapse of time, or both), or require any consent, approval,
filing or notice under any provision of any law, rule or regulation, court order, judgment or
decree applicable to any of the Companies.

     (f) The execution, delivery and performance of this Agreement by the Companies and
their consummation of the transactions contemplated by this Agreement will not conflict with,
result in the breach or termination of any provision of, or constitute a default under any
agreement or instrument to which any Company is a party or by which any Company or any of its
respective assets or properties is bound or affected.

	16.	 	TAX MATTERS.

     (a) The Companies may, if required in accordance with applicable law, deduct, or
cause to be deducted, from the Service Fee and all other cash amounts payable by the Companies
under the provisions of this Agreement to KSC, all taxes and other charges and deductions which now
or hereafter are required by law to be so deducted. KSC acknowledges that the Company’s
determination regarding its withholding or tax reporting obligations shall not constitute a breach
of this Agreement.

     (b) KSC shall reimburse, indemnify, defend and hold the Companies and its
subsidiaries, affiliates, owners and the affiliates of its owners harmless from and against any and
all damages, losses, deficiencies, liabilities, costs, expenses, fines and penalties which may be
imposed by any governmental authority or agency which results from any Company’s failure to make
tax withholdings from any payments being made hereunder.

	17.	 	INTERPRETATION AND MISCELLANEOUS.

     (a) This Agreement contains the entire agreement of the parties relating to the
subject matter hereof. This Agreement supersedes any prior written or oral agreements or
understandings between the parties relating to the subject matter hereof. No modification or
amendment of this Agreement shall be valid unless in writing and signed by or on behalf of the
parties hereto. The failure of a party to require performance of any provision of this Agreement
shall in no manner affect the right of such party at a later time to enforce any provision of this
Agreement. A waiver of the breach of any term or condition of this Agreement shall not be deemed
to constitute a waiver of any subsequent breach of the same or any other term or condition. This
Agreement is intended to be performed in accordance with, and only to the extent permitted by, all
applicable laws, ordinances, rules and regulations. If any provision of this Agreement, or the
application thereof to any person or circumstance, shall, for any reason and to any extent, be held
invalid or unenforceable, such invalidity and unenforceability shall not affect the remaining
provisions hereof or the application of such provisions to other persons or circumstances, all of
which shall be enforced to the greatest extent permitted by law. The headings in this Agreement
are inserted for convenience of reference only and shall not be a part of or control or affect the
meaning of any provision hereof.

     (b) When used herein, the phrase “CPI Business Lines” shall mean each and
any of the following business lines: (1) promotion of music concert tours; (2) acquisition and
exploitation of intellectual property rights of enduring value that relate to or derive from live
entertainment performances (such as, by way of example, DVD rights, merchandise rights, manuscript
rights and film rights); (3)

12

 

production of live theatrical shows and other live non-music touring content projects; and (4)
acquisition of any real estate assets or the incurrence of other capital expenditure as necessary
to conduct any project within the business lines described in the foregoing clauses.

     (c) Whenever herein the singular number is used, the same shall include the plural
where appropriate, and words of any gender shall include each other gender where appropriate.
Unless otherwise expressly provided, the words “include”, “includes” and
“including” do not limit the preceding words or terms and shall be deemed to be followed by
the words “without limitation”.

18. JOINDER BY COHL. Cohl joins in the execution of this Agreement to confirm the
following agreements and covenants:

     (a) Cohl agrees that should KSC default hereunder, then Cohl will perform all such
defaulted obligations of KSC set forth herein immediately upon demand.

     (b) Cohl confirms and restates the representations and warranties made by KSC in
Section 14 hereof.

     (c) Cohl agrees that he will be bound by and comply with those restrictions,
covenants and other agreement set forth herein that apply to or purport to apply to Cohl,
including, but not limited to, the restrictions and obligations set forth in Section 5 hereof.

[The remainder of this page is intentionally blank.]

13

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	CPI International Touring Inc., a Barbados IBC corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CPI Touring (USA), Inc., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CPI Entertainment Content (2005), Inc., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CPI Entertainment Content (2006), Inc., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Grand
Entertainment (ROW), LLC, a Delaware limited liability company
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	KSC Consulting (Barbados) Inc., a Barbados corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Cohl	 	 
	 

	 	 	 	 	 	 

Michael Cohl joins in the execution of this Agreement solely for the purposes stated in Section 18
hereof.

	 	 	 	 	 
	 

	 	 	 	 
	By:

	 	/s/ Michael Cohl	 	 
	 

	 	 	 	 

[KSC Consulting Agreement]

 

 

SCHEDULE 3(c)

Company Policies –

Travel / Entertainment / Gifts / Charity Contributions

 

Employees who incur reasonable and necessary expenses while carrying out authorized business
assignments will be reimbursed for their out-of-pocket costs in accordance with the following
guidelines. Note that each Live Nation division may provide additional, more stringent guidance on
certain aspects of the policies contained herein. You should familiarize yourself with all
applicable policies before incurring costs with any expectation of being reimbursed by Live Nation.

 

Travel Reservations

Air travel, car rentals and lodging must be booked on-line using Live Nation’s travel agency. The
preferred agency is Expedia. You can book your travel by going to http://corporate.expedia.com.
Please refer to the Expedia Quick Reference Guide for easy instructions on how to book your travel
on line. If you do not have a log on go to: https://www.expediacorporate.com/pub/agent.dll?qscr=gsre

Live Nation has negotiated volume discounts with preferred travel partners, such as Continental,
American, United, Northwest, Delta, etc. Although these agreements are in place, you should
consider choosing lower non-refundable or penalty-type fares when appropriate, though it is
recognized that the nature of business travel sometimes precludes usage of such fares.

If booking car rental only, no air, go to http://avis.com/members/B882700.html to book your car
reservation.

Reservation Changes and Cancellations

If your travel plans are canceled, please notify the agency as soon as possible. All requests for
reservation changes should be directed to the travel office at corptravel@customercare.expedia.com.
Or call or designated Expedia Travel Agents at 1-800-559-4809. Be aware that when you call
Expedia to change or cancel your travel, you will be charged an additional fee, plus any airline
fees that may apply.

Expense Reports

For reimbursement of business expenses, employees are to submit a Live Nation standard Expense
Report within 30 days after the expense was paid using Extensity.

Extensity allows the user to create Expense Reports using a web based software product. A workflow
is built into the software that electronically routes the document for approvals, accounting and
accounts payable review prior to being uploaded to the financial software for payment. Managers
are notified via email when an employee has submitted an Expense Report for review. American
Express Corporate Card users will be able to “import” business charges into an Expense Report.
Once approved, all Amex business charges will be paid directly to Amex by Live Nation every week.
Employees must still submit original paper receipts attached to a summary print out from the
software and route these to Accounts Payable in Houston. The software includes proxy features
that will allow the user to

 

 

designate an assistant to create documents (the owner must login and submit) and to delegate
approval authority when out of the office.

Original receipts (or other supporting documentation if an original receipt is unavailable) should
be submitted to substantiate expenses; expenses greater than $25 will not be reimbursed without
such documentation. For air travel, the e-ticket confirmation or the original receipt and boarding
passes must be submitted with your Expense Report. To facilitate filing and imaging, receipts and
other supporting documentation must be taped to an 8 1/2 x 11-inch piece of paper prior to
submission.

After completing the Expense Report, you must sign it to affirm the authenticity of the expenses
and your compliance with these guidelines.

Air Travel

Live Nation has a designated travel agency Expedia for booking corporate travel on-line. The
Expedia on-line booking tool, must be used for all business related travel, unless otherwise
approved by management.

The approved class of service for airfares for all Live Nation employees (with the exception of
those on the 1st Class List) is coach or economy class. Business class upgrades are allowed on
trips of at least 3 hours continuous airtime. First class travel must be authorized in advance by
Division Head.

Guidelines for Booking Lowest Airfare

Employees are expected to utilize the lowest, most logistically reasonable fare available in
the authorized class of service without unreasonably compromising personal comfort, safety or
schedules, and using direct flights when available. Travelers may not request specific airlines
when making reservations, as lower fares may be available on other airlines. The system will offer
the lowest airfare available that meets the traveler’s schedule criteria.

Advance Purchase and Restricted Use Tickets

Reservations should be made as far in advance as possible (14 days in advance is ideal) as
this allows for the greatest potential cost savings (based on advance purchase discounts).

Group and Meeting Travel

Group and meeting fares that result in savings from five to fifty percent are generally
offered by U.S. airlines if at least eight to ten passengers are traveling to the same destination.
When travel requirements or meetings fit this profile, travel arrangements for attendees should be
coordinated through our travel office. The travel office will contact the airlines and obtain the
best rates available based on information provided by the coordinator.

Form of Payment

Airfare reservations must be charged to the Company’s corporate account or an employee’s
company-issued credit card, where applicable.

Ticketless Air Travel

Travelers are encouraged to use “ticketless” air travel when offered by the carrier.
Ticketless air travel saves delivery charges and other costs and eliminates the risk of lost or
stolen tickets.

Schedule 3(c)

Page 2

 

 

Unused Tickets

Unused tickets and portions of unused tickets should be returned to the travel office once it
is determined they will not be used. Portions of unused tickets should be returned as soon as the
employee returns from the applicable trip. Travelers should also notify the travel office of unused
or partially used “ticketless” travel reservations once it is determined they will not be used.

Airline Vouchers

Airline vouchers should be applied to airline travel when feasible. Based on the ticket
value, vs. the value of the voucher, it will be determined if a voucher should be used. The
voucher inventory will be posted regularly in the policies
section of the intranet.
Submit your Expedia itinerary to Jeanine Allen via fax at 1-866-758-5988. Include your name,
business mailing address and business phone number. Jeanine Allen will respond to you within 24
hours with your confirmation for voucher and DHL tracking number. Once you receive the voucher,
book your trip and e-mail Jeanine your flight confirmation.

Ground Transportation

You should select the most cost effective means of transportation when traveling to an
airport; parking will only be reimbursed to the extent it does not exceed the cost of a taxicab,
and vice-versa.

Limousine services are restricted except in the limited instances. Taxis are the preferred mode of
transportation.

Rental cars will be approved only when taxicabs would prove less economical for the stay in each
city. A midsize car is the company standard. Fuel surcharges and/or excessive fuel charges imposed
by rental car companies for not refueling the vehicle should be avoided.

While on Live Nation business, employees do not need to purchase any insurance coverage
offered by rental car companies since such coverage is provided under a separate Live Nation
policy. Please make certain that the Live Nation, Inc. name appears on the rental car agreement
for insurance compliance purposes.

For the convenience of its employees, Live Nation allows personal cars to be used for business
travel if the employee has a valid driver’s license and maintains the lawful minimum in liability
insurance. Transportation costs incurred while using your personal car for business will be
reimbursed at the Live Nation approved mileage rate not to exceed the IRS allowable rate. The
approved mileage rate is currently $0.405 per mile effective January 1, 2005. If approved for
reimbursement, the mileage rate for employees with car allowances or a Company car is $0.07 cents
per business mile. The Expense Report worksheet available on the Intranet will be updated
periodically to reflect changes in the allowable rate. Mileage reimbursement at the reduced car
allowance rate requires manual calculation. If you leave from home to a destination other than your
office on a business day, you will only be reimbursed for any mileage in excess of the mileage you
would have normally driven to the office.

Automobile Accidents

Schedule 3(c)

Page 3

 

 

If you are involved in a car accident while renting an automobile, the first thing to do is to
determine the extent of driver and passenger injuries. If the accident is a fender bender,
emergency medical care might not be necessary. However, when in doubt, call an ambulance.

Next, call the police. The police will advise you whether it’s required to move the crashed
vehicles from moving traffic, and an investigating officer will take statements of the drivers and
passengers involved.

Make sure to exchange insurance information with the other drivers involved. If another driver
gives you an insurance ID card, check its date to make sure coverage is in force. In addition, get
names and phone numbers of witnesses. Although it’s not your job to investigate the accident,
getting witness contact information can make the insurer’s and investigating officer’s jobs easier.

You also should get the investigating officer’s contact information for future reference. The
officer’s report is not available at the accident scene.

Finally, as soon as practical, please immediately contact Live Nation’s Risk Management group and
relay all of the information to them, so that they can file the claim to the appropriate parties.

Lodging

The Company reimburses, upon presentation of supporting receipts, the actual costs (including
taxes) of a single room accommodation when away from home on Company business. Employees should
select lodging that is well established, reasonable in price, typically occupied by business
travelers and conveniently located to work assignment. Employees should use suites, club level
rooms, and other similar high priced lodging only when necessary to meet business needs and only
when approved in advance by the Division Head or SVP of Finance.

Employees should seek opportunities to minimize the cost of lodging. The Company has corporate
rates established at many frequently used hotels.

Cancellation- The ultimate responsibility for canceling hotel reservations rests with the traveler.
When canceling guaranteed reservations, a record should be made of the cancellation number or the
name of the hotel employee taking the cancellation. This procedure helps resolve “no show” billing
disputes.

Phone Charges- Long-distance telephone calls from hotel rooms should be charged to a telephone
credit card or cell phone whenever possible.

Business Meals

Local business meal reimbursements should be limited to client or potential client entertainment
for business purposes. Purchasing casual lunches or dinners for yourself and your co-workers is
not considered a business expense, except for management meetings with employees over meals, during
which time legitimate company business is conducted.

Out-of-Town Meals (Other Than Entertainment)

Live Nation will reimburse you for reasonable meal costs incurred when you travel overnight on
business. When meals are purchased for other employees, these expenses must be

Schedule 3(c)

Page 4

 

 

documented in the Entertainment section on page 2 of the expense report listing the names of all
persons attending.

For your health, well-being and the company bottom line, alcoholic beverages should be purchased in
moderation.

Since meal reimbursements are based on actual costs, no per diems are allowed unless previously
approved.

Personal Property

Please ensure that you safeguard company property, your valuables and other personal items while
traveling. The Company assumes no liability or responsibility for the damage, theft or other loss
of your personal property. The applicability of this policy will be evaluated on an individual and
circumstance basis by the Division CEO and Human Resource department.

International Travel

For US based employees, expenses supported by receipts in a foreign currency must be converted to
U. S. Dollars on the face of the receipt and transcribed accordingly to the Expense Report.

The foreign exchange rate used must also be documented. Descriptions must be provided for any
miscellaneous hotel or other charges for which the English translation is not easily identifiable
or the expense may be subject to disallowance.

VAT and GST taxes included in hotel, airfare or car rental charges must be segregated and
categorized in the “Miscellaneous” section of the expense report to allow for correct account
coding.

Credit Cards

Live Nation has negotiated a corporate credit card program with American Express to obtain credit
cards for employees who travel frequently. If an American Express Card (the “card”) is made
available to you, it must be used whenever reasonably possible to pay for valid business expenses.

You are personally responsible for reconciling your monthly billing statement and paying American
Express promptly for all charges incurred. If you are delinquent in paying your bills to American
Express, your charge privileges will be suspended or the Card will be canceled. (Note that Live
Nation will not reimburse finance charges and late fees.) Live Nation receives monthly reports on
all American Express Corporate Cardmember accounts and will monitor individual spending and payment
activities. Account delinquency or other misuse of Card privileges will subject the employee to
disciplinary action, up to and including dismissal.

You must return the Card to your local Live Nation Corporate Card program administrator upon
termination of employment or whenever specifically requested to do so.

Cash Advances

Schedule 3(c)

Page 5

 

 

Because frequent travelers may pay expenses with the Card, cash advances from Live Nation are
strongly discouraged. If you must obtain a cash advance, you must submit an approved check request
to Accounts Payable at least two weeks before the time cash is needed. All advances over $200, must
be approved by the Division’s Vice President of Finance. The Chief Accounting Officer of Live
Nation must also approve advances in excess of $1000.

Receipts to be reimbursed must support advances. Advances should also be deducted on your next
Expense Report. If your travel is canceled or postponed, the advance must be returned to Accounts
Payable within three (3) business days of the cancellation or postponement.

Other Expenses

Reasonable laundry costs will be reimbursed if your business travel requires you to be away from
home for more than four (4) consecutive days.

Undocumented tips, tolls and taxis are limited to $20 per day. Restaurant tips should not exceed
15% of the cost of the meal.

You should seek the advance approval of your manager before incurring costs if there is any
question about such costs being deemed reasonable and necessary business expenses. Questionable
costs might include gifts, club dues or fees, and spousal travel. Similarly, you should seek
advance approval if there is any question about your authority to purchase goods or services.
Examples of goods and services that you should not purchase without advance approval are computer
hardware and software, computer repair services, and office supplies.

Entertainment and Gifts

Live Nation will reimburse you for certain ordinary and necessary costs incurred to entertain
vendors, clients, customers and other business associates. Such costs will be reimbursed only if
the entertainment has a clear business purpose and either (1) takes place in a clear business
setting or (2) directly precedes, includes or follows a substantial business discussion. In this
regard, you should sufficiently document the business purpose of the entertainment expense on the
Expense Report.

Insufficient documentation can result in these expenses being reclassified as taxable compensation
to the employee or disallowed altogether.

Supervisors are to exercise strict discretion in approving these expenses. The majority of these
costs cannot be deducted for corporate tax purposes under current tax law.

Charity Contributions

All Charitable Contributions, on behalf of or represented as Live Nation, are to be approved by
Division Head prior to providing to said charity.

See Charitable Contribution Request Form on Live Nation Intranet for instructions.

Schedule 3(c)

Page 6exv10w4

 

EX-10.4
CREDIT AGREEMENT

CREDIT AGREEMENT

     THIS
CREDIT AGREEMENT (this “Agreement”) dated the ___ day of May, 2006, confirms the
mutual agreements among CPI INTERNATIONAL TOURING INC., a Barbados corporation, CPI TOURING (USA),
INC., a Delaware corporation, GRAND ENTERTAINMENT (ROW), LLC, a Delaware limited liability company,
CPI ENTERTAINMENT CONTENT (2005), INC., a Delaware corporation (“Grand 2005”), and CPI
ENTERTAINMENT CONTENT (2006), INC., a Delaware corporation (each individually referred to herein as
a “Borrower” and collectively referred to herein as the “Borrowers”), SFX
ENTERTAINMENT, INC., a Delaware corporation (“Lender”), and LIVE NATION, INC., a Delaware
corporation (“Lender Guarantor”), parties with CPI Entertainment Rights Inc., a Barbados
corporation, Concert Productions International Inc., a Barbados IBC corporation, SAMCO Investments
Ltd., a Turks and Caicos company, and certain others (the “CPI Sellers”) to that certain
Stock Purchase Agreement dated of even date herewith (the “Stock Purchase Agreement”), in
connection with the revolving credit facility described in Section 2 below (the “Revolving
Credit Facility”).

     Section 1. Certain Defined Terms. As used herein, the following terms shall have the
following meanings:

     (a) “Applicable Rate” shall mean, for any calendar quarter or portion thereof, the per
annum rate of interest reported by Lender in its Form 10-Q filed with respect to the previous
calendar quarter as its weighted average cost of debt for such quarter; provided if Lender is not
required to file a Form 10-Q, or if any From 10-Q does not set forth the weighted average cost of
debt for Lender, the “Applicable Rate” for any calendar quarter, or any portion thereof, shall be
the per annum rate of interest determined by Lender in the exercise of its reasonable discretion on
or about the first day of each calendar quarter to be the average cost of Lender’s borrowed funds
for the immediately preceding calendar quarter, taking into account among other factors the overall
cost of borrowing under Lender’s then effective senior credit facility, if any. The Applicable
Rate through June 30, 2006 shall be seven and forty-five hundredths percent (7.45%) per annum.

     (b) “Board of Directors” shall include a board of directors, a board of managers or
any similar body.

     (c) “Business Day” shall mean a day other than a Saturday, Sunday, or legal holiday
for commercial banks under the laws of the State of New York.

     (d) Intentionally omitted.

     (e) “Excluded Project” shall mean any discrete activity undertaken by a Borrower or
Subsidiary designated as such in writing to Lender by the Board of Directors of such Borrower or
Subsidiary.

     (f) “GAAP” shall mean United States generally-accepted accounting principles
consistently applied.

     (g) Intentionally omitted.

     (h) “Letters of Credit” shall mean the Streisand Letter of Credit and any Future
Permitted Music Tour Letter of Credit.

 

     (i) “Material Adverse Effect” shall mean a material adverse effect on the business,
operations and properties of the Borrowers and the Subsidiaries, taken as a whole.

     (j) “Material Subsidiary” shall mean Concert Productions International (USA) LLC, a
Delaware limited liability company, CPI Touring (BS-US), LLC, a Delaware limited liability company,
Concerts Productions International (LOTR) Inc., a Canadian corporation, and each other Subsidiary
determined by Lender from time to time in the exercise of its reasonable discretion after
consultation with one or more of the Borrowers, to be material.

     (k) “Maximum Rate” shall mean the maximum non-usurious rate permitted by applicable
law.

     (l) Intentionally omitted.

     (m) “Ordinary Expiration Date” shall mean the earlier to occur of (i) Lender’s
exercise of the Put Option and (ii) the fifth (5th) anniversary of the date hereof.

     (n) “Permitted Dividends” shall mean, for any calendar year, an amount equal to the
consolidated net income of all Borrowers for such calendar year, determined in accordance with GAAP
as if all of the Borrowers were a single accounting entity, except that (A) all Project Revenues
and Project Expenses attributable to Short-Term Projects that ended during such year shall be
included in the determination of net income for such year, regardless of the year in which such
Project Revenues were received or such Project Expenses were incurred, (B) all Project Revenues and
Project Expenses attributable to Short-Term Projects that did not end during such year shall not be
included in the calculation of net income for such year, notwithstanding their receipt or
incurrence during such year, and (C) no revenues or expenses attributable to Excluded Projects
shall be included in the calculation of net income for such year.

     (o) “Pre-Expiration Project” shall mean (i) any Future Permitted Music Tour for which
a Borrower has entered into a touring agreement with, or has otherwise legally committed to, the
touring artist prior to the Ordinary Expiration Date or (ii) any other Project that has been
formally approved for development, production and operation by the Board of Directors or Board of
Managers of a Borrower, and for which an Approved Project Budget has been delivered to Lender,
prior to the Ordinary Expiration Date.

     (p) “Project” shall mean any discrete activity, except for Excluded Projects,
undertaken by a Borrower or Subsidiary for a Permitted Purpose.

     (q) “Project Expenses” shall mean, for any period, the amount of all costs and
expenses, whether or not capitalized, that are paid with respect to all Projects during such
period, but in no event will costs of a Project in excess of the Approved Project Budget for such
Project be used in the calculation of the amount of Project Expenses.

     (r) “Project Revenues” shall mean, for any period, the amount of all revenues
generated by all Projects during such period.

     (s) “Short-Term Project” shall mean (i) any Future Permitted Music Tour, regardless of
schedule, (ii) each other Project that is scheduled to be completed within nine (9) months after
its initial public performance or presentation, and (iii) each other project that is scheduled to
be completed longer than nine (9) months after its initial public performance or presentation that
the Board of Directors of the applicable Borrower or Subsidiary and Lender mutually determine to
designate as a Short-Term Project.

2

 

     (t) “Type” shall mean, for purposes of the interest rate payable hereunder with
respect to an Advance and the application of principal payments hereunder, whether such Advance is
an Initial Advance, Working Capital Advance, Music Touring Advance, Ancillary Rights Advance,
Non-Touring Live Project Advance, Permanent Capital Expenditure Advance, Streisand Letter of Credit
Advance, Future Permitted Music Tour Letter of Credit Advance, Permitted Dividend Advance or
Deferred Initial Advance.

     (u) “UCC” shall mean the Uniform Commercial Code as adopted in the State of New York.

     (v) “Working Capital Expenses” shall mean, for any period, the amount of all costs and
expenses of the Borrowers paid during such period that (i) are appropriate to properly operate the
business of the Borrowers, (ii) are not allocated as Project Expenses to any one or more Projects,
and (iii) after the Ordinary Expiration Date, are allocable only to Pre-Expiration Projects, but in
no event will costs and expenses in excess of any Borrower’s operating budget (as approved by its
Board of Directors from time to time prior to the Termination Date) during any year be used in the
calculation of the amount of Working Capital Expenses.

     Section 2. Revolving Credit Facility. Subject to the terms of this Agreement, Lender
agrees to make advances (“Advances”) under the Revolving Credit Facility pursuant to the
following terms and conditions:

     (a) Purpose: Advances may be used by the Borrowers only for the following purposes
(individually referred to herein as a “Permitted Purpose” and collectively referred to
herein as the “Permitted Purposes”):

     (1) payment by the Borrowers to (i) Concert Productions International Inc. of the sum
of $4,813,538.00 in exchange for the purchase by one or more of the Borrowers of the assets
and/or entities described in Sections I.A. and III.A. of Schedule 1 hereto, and in
reimbursement of the funds advanced to or for the benefit of one or more of the Borrowers,
as described in Section VI of Schedule 1 hereto, (ii) SAM Tour (USA) Inc. of the sum of
$915,645.00 in exchange for the purchase by one or more of the Borrowers of the assets
and/or entities described in Section II.A. of Schedule 1 hereto, (iii) TGA Entertainment
Ltd. of the sum of $2,285,126.00 in exchange for the purchase by one or more of the
Borrowers of the assets and/or entities described in Sections II.B. and III.C. of Schedule 1
hereto, (iv) CPI Entertainment Rights, Inc. of the sum of $6,729,276.00 in exchange for the
purchase by one or more of the Borrowers of the assets and/or entities described in Section
III.B. of Schedule 1 hereto, (v) one or more persons the sum of $6,380.00 in repayment of
advances described in Section IV.D. of Schedule 1 hereto, (vi) CPI Canada Management Inc. of
the sum of $2,045,349.00 in reimbursement of services rendered to and/or funds advanced to
or for the benefit of one or more of the Borrowers, as described in Section VII of Schedule
1 hereto, and (vii) Torys LLP, counsel to the Borrowers, of $120,000.000 in payment of
certain legal fees services rendered in connection with the Corporate Restructuring (as
defined in the Stock Purchase Agreement) (Advances for the purposes described in this clause
(1) are referred to herein as the “Initial Advances”);

     (2) payment of Working Capital Expenses (Advances for the purposes described in this
clause (2) are referred to herein as “Working Capital Advances”);

     (3) promotion by a Borrower of Projects that are music concert tours that (A) would
achieve, using reasonable ticket scaling and other reasonable revenues projections, a
financial break-even with tour-wide attendance of 75% or less of the total number of tickets
available for sale during the entirety of the tour or project (with the understanding that
(i) ancillary tour-related

3

 

revenue to be derived from such tour will be included in determining whether or not
break-even will be achieved and (ii) the policies that will be utilized in determining
whether the foregoing test is satisfied will be consistent with the past practices, policies
and assumptions utilized in the analysis of previous tours on which a Borrower and Lender
have collaborated and thereafter on a basis consistent with the practices, policies and
assumptions utilized in the analysis of other Future Permitted Music Tours) or (B) are
otherwise approved by the Board of Directors of the applicable Borrower (“Future
Permitted Music Tours”); provided that the sum of the aggregate amount of outstanding
Music Touring Advances plus the face amount of the Streisand Letter of Credit
(hereinafter defined), if then outstanding, plus the face amount of all outstanding
Future Permitted Music Tour Letters of Credit (hereinafter defined) issued in support of the
promotion of the Borrowers’ music concert tours shall never exceed $200,000,000.00 at any
one time (Advances for the purposes described in this clause (3) are referred to herein as
“Music Touring Advances”);

     (4) acquisition and exploitation by a Borrower of intellectual property rights of
enduring value that relate to or derive from live entertainment performances, such as DVD
rights, merchandise rights and manuscript rights, to the extent such activities have been
approved by the Board of Directors of the applicable Borrower (Advances for the purposes
described in this clause (4) are referred to herein as “Ancillary Rights Advances”);

     (5) production by a Borrower of live theatrical shows and other live projects (other
than music concert tours), to the extent such projects have been approved by the Board of
Directors of the applicable Borrower (Advances for the purposes described in this clause (5)
are referred to herein as “Non-Touring Live Project Advances”);

     (6) acquisition by a Borrower of real estate and other capital expenditures (including
for the purpose of acquiring Subsidiaries) necessary to conduct the business of any of the
Borrowers to the extent such expenditures are approved by the Board of Directors of the
applicable Borrower (Advances for the purposes described in this clause (6) are referred to
herein as “Permanent Capital Expenditure Advances”);

     (7) payments to Lender necessary to reimburse Lender for any reimbursement obligation
it incurs as a result of any draw on the Streisand Letter of Credit (Advances for the
purposes described in this clause (7) are referred to herein as “Streisand Letter of
Credit Advances”);

     (8) reimbursement to Lender for any reimbursement obligation it incurs as a result of
any draw on any Future Permitted Music Tour Letter of Credit (Advances for the purposes
described in this clause (8) are referred to herein as “Future Permitted Music Tour
Letter of Credit Advances”);

     (9) payment of Permitted Dividends (advances for the payment of Permitted Dividends are
referred to herein as “Permitted Dividend Advances”); and

     (10) payment of the amounts set forth in the column titled “Funding required” on
Schedule 2 hereto in connection with the transfer of the Deferred Entertainment Investments
listed on Schedule 2 hereto (Advances for the purposes described in this clause (10) are
referred to herein as the “Deferred Initial Advances”).

The Borrowers may form one or more wholly-owned subsidiaries (individually referred to herein as a
“Subsidiary”, and collectively referred to herein as the “Subsidiaries”). All
Investment Property (as

4

 

defined in the UCC) in any Subsidiary owned or acquired by any Borrower or another Subsidiary shall
be pledged to Lender to secure the obligations of the Borrowers hereunder, pursuant to the Security
Agreement or other documentation reasonably requested by Lender, and the applicable Borrower or
Subsidiary shall take all actions that may be reasonably requested by Lender to perfect Lender’s
security interests in such Investment Property. In addition, if such Subsidiary is a Material
Subsidiary, such Material Subsidiary shall become a party to the Security Agreement, as a debtor,
and take such other action as Lender may reasonably require in order to perfect Lender’s security
interests in the assets of such Material Subsidiary. Upon compliance with the foregoing
provisions, and subject to the other terms and conditions of this Agreement, Advances hereunder may
be utilized by Material Subsidiaries for Projects for Permitted Purposes.

In no event may any Advances be used by any Borrower or any Subsidiary for, or for any purpose
related to, any Excluded Project.

     (b) Advance Procedures:

     (i) The Initial Advances shall be made by Lender upon execution of this
Agreement and satisfaction of the other conditions set forth in Section 8 hereof and
the Deferred Initial Advances shall be made by Lender within three (3) Business Days
after completion of each transfer of a Deferred Entertainment Investment, as
applicable. All Advances pursuant to this Section 2(b)(i) shall be made by wire
transfer to Account Number 751-713-619 maintained by SAM Tour II (USA) Inc. with
HSBC Bank USA, One HSBC Center, Buffalo, New York 14203, Attn.: Bernadice Smoot, ABA
Number 021 001 088.

     (ii) On or about the first day of each calendar quarter, commencing with
respect to the calendar quarter beginning July 1, 2006, the Lender and each Borrower
shall meet to determine the anticipated cash needs for each Borrower during such
calendar quarter and the amount of payments hereunder such Borrower is expected to
make during such calendar quarter. Lender and each Borrower shall determine (A) the
amount of cash or cash equivalents held by such Borrower on the first day of such
calendar quarter, (B) the amount of revenues and other cash expected to be received
by such Borrower during such calendar quarter and (C) the expected cash outlays for
such Borrower during such calendar quarter. Based upon such determinations, Lender
and each Borrower shall agree in writing to the amount, if any, of Advances expected
to be required by such Borrower during such calendar quarter and/or the amount, if
any, of repayments of Advances (and interest thereon) expected to be made by such
Borrower on or prior to the last day of such calendar quarter. If any Borrower
fails to meet with Lender to make such determinations, Lender shall have the right
to make such determinations, based upon the information then available to it, and
such determinations shall be fully binding on the Borrowers as if the Borrowers had
agreed to them specifically. Within three (3) Business Days after such agreement is
reached between Lender and such Borrower, if the decision is that such Borrower
requires an Advance during such calendar quarter, Lender shall make an Advance in
the required amount to such Borrower. If such Approved Project Budget has not
previously been delivered to Lender, prior to an Advance with respect to a Project,
the applicable Borrower shall provide Lender with a copy of the budget for such
Project, approved by the Board of Directors of the applicable Borrower (such budget,
as it may be updated at any time prior to the Termination Date, with the approval of
such Board of Directors, and delivered to Lender, is referred to herein as the
“Approved Project Budget”).

5

 

     (iii) Except as provided in Section 2(b)(iv) below, any Borrower may request
from Lender additional Advances, so long as such Advance is for a Permitted Purpose
and such Borrower is otherwise entitled thereto, by delivering to Lender a Request
for Additional Advance in the form attached as Exhibit “A” hereto, at least three
(3) Business Days prior to the date such Advance is desired. If such Approved
Project Budget has not previously been delivered to Lender, the first Request for
Advance with respect to a Project shall contain a copy of the Approved Project
Budget for such Project.

     (iv) After the Ordinary Expiration Date, Lender shall not be required to make
any Advances hereunder other than Advances with respect to Pre-Expiration Projects.
In no event shall Lender be required to advance pursuant to this Section 2(b)(iv),
with respect to any Pre-Expiration Projects, more than the budgeted amount set forth
in the Approved Project Budget for such Pre-Expiration Project.

     (v) Each Request for Advance shall constitute a representation and warranty by
the Borrowers that all representations and warranties set forth in this Agreement
are true and correct as of the date of such Request for Advance. Streisand Letter
of Credit Advances will be made by Lender to itself, and Future Permitted Music Tour
Letter of Credit Advances will be made to the Issuing Bank of the applicable Future
Permitted Music Tour Letter of Credit, or to Lender if Lender has previously
reimbursed the applicable Issuing Bank for a draw under a Future Permitted Music
Tour Letter of Credit. If, on the date any other Advance is desired, the Borrowers
are in compliance with all material requirements of this Agreement, Lender shall
make such Advance by wire transfer to the appropriate payee (pursuant to wire
transfer instructions included within the applicable Request for Advance), or
deposit the amount of such Advance into an account of the requesting Borrower. Each
Advance made by wire transfer shall bear interest from the date such wire transfer
is made, and each Advance made by delivery into an account of a Borrower shall bear
interest from the date such deposit is made into such account.

     (c) Term: Lender agrees to make Advances hereunder, and to cause Future Permitted
Music Tour Letters of Credit to be issued, subject to the terms and conditions of this Agreement,
from the date hereof through the earlier to occur of (1) Lender’s exercise of the Put Option
(except for Advances described in Section 2(b)(iv) above), (2) the date Lender owns no equity
interest in any of the Borrowers, (3) termination of the Revolving Credit Facility by Lender
pursuant to Section 9 hereof, (4) termination of the Revolving Credit Facility by Lender and
Borrowers in writing and (5) the date that is five (5) years after the date of this Agreement
(except for Advances described in Section 2(b)(iv) above) (the earlier of such dates being referred
to herein as the “Termination Date”).

     (d) Letters of Credit.

     (1) Lender has applied for, or will apply for, and is or will be responsible for
reimbursement upon any draw under, an Irrevocable Letter of Credit in the face amount of
$62,000,000, issued or to be issued for the benefit of BSB Touring, Inc. (the “Streisand
Letter of Credit”).

     (2) Any Borrower may request Lender to cause a financial institution with whom Lender
has a relationship for the issuance of letters of credit (an “Issuing Bank”) to
issue letters of credit (“Future Permitted Music Tour Letters of Credit” which, for
purposes of this definition, will exclude the Streisand Letter of Credit) for the account of
such Borrower, in support of a Future Permitted Music Tour, by delivering to Lender a
Request for Letter of Credit

6

 

in the form attached as Exhibit “B” hereto, at least five (5) Business Days prior to
the requested date of issuance, setting forth the requested purpose, beneficiary and terms
of such Future Permitted Music Tour Letter of Credit and, if not previously delivered to
Lender, the Approved Project Budget for such Future Permitted Music Tour, accompanied by
such other documents and instruments as Lender may reasonably require. Each Request for
Letter of Credit shall constitute a representation and warranty by the Borrowers that all
representations and warranties set forth in this Agreement are true and correct as of the
date of such Request for Letter of Credit. If, on the date such Future Permitted Music Tour
Letter of Credit is requested to be issued, the Borrowers are in compliance with all
material requirements of this Agreement, Lender shall cause an Issuing Bank to issue such
Future Permitted Music Tour Letter of Credit and deliver same to or at the direction of the
requesting Borrower. No Future Permitted Music Tour Letter of Credit may have an expiration
date on or after the date that is 18 months after the date of issuance. All issuances of
Future Permitted Music Tour Letters of Credit shall be subject to the agreement of an
Issuing Bank to issue such Future Permitted Music Tour Letter of Credit (failing which
Lender shall use commercially reasonable efforts to procure such agreement from a different
financial institution). Simultaneous with the Request for Letter of Credit relating to the
issuance of a Future Permitted Music Tour Letter of Credit, (and promptly after request from
Lender with respect to all subsequent out-of-pocket costs and fees incurred by Lender to
maintain such Future Permitted Music Tour Letter of Credit) the requesting Borrower shall
pay to Lender the amount of all costs and fees incurred or to be incurred by Lender in
connection with the issuance and maintenance of such Future Permitted Music Tour Letter of
Credit.

     (3) If Lender is required to reimburse the bank that issued the Streisand Letter of
Credit for any draws made thereunder, Lender shall, and the Borrowers hereby authorize
Lender to, without the necessity of any Borrower submitting a Request for Advance,
immediately make a Streisand Letter of Credit Advance to itself, to reimburse itself for the
reimbursement of such payment under the Streisand Letter of Credit. If any Future Permitted
Music Tour Letter of Credit is presented for payment by the beneficiary thereof, Lender
shall make a Future Permitted Music Tour Letter of Credit Advance, without the necessity of
any Borrower submitting a Request for Advance, to the applicable Issuing Bank, to reimburse
such Issuing Bank for the payment under such Future Permitted Music Tour Letter of Credit,
or to Lender if Lender has previously reimbursed such Issuing Bank for a draw made under
such Future Permitted Music Tour Letter of Credit. Streisand Letter of Credit Advances and
Future Permitted Music Tour Letter of Credit Advances may be made by Lender whether or not
the Borrowers would then be entitled to an Advance pursuant to the terms of this Agreement.

     (4) The obligation of the Borrowers to repay Streisand Letter of Credit Advances upon
the terms and conditions set forth herein shall amend, restate and supersede the
indebtedness and liability of CPI-Touring (BS-US), LLC under that certain $5,000,000
Promissory Note dated as of March 8, 2006, by BSB Touring Inc. (BS-US), LLC, payable to
Lender (the “Streisand Note”). None of the rights, titles, liens, security
interests or equities securing repayment of the Streisand Note are released, but are hereby
carried forward and recognized to be still in force and effect as security for all
obligations and indebtedness of the Borrowers, or any of them, under this Agreement. On or
within a reasonable period of time after the execution of this Agreement, Lender shall
return the Streisand Note to CPI-Touring (BS-US), LLC.

     Section 3. Promise to Pay, Interest Rate and Repayment Terms.

     (a) Promise to Pay. Each Borrower promises to pay to Lender the aggregate unpaid
principal amount of Advances made by Lender to any Borrower pursuant to this Agreement, in lawful
money of the

7

 

United States of America, and to pay interest on such advanced and unpaid principal amounts,
from the date of advance thereof until repaid, at the rate or rates set forth herein.

     (b) Interest Rate.

     (1) Subject to the provisions of this paragraph (1), and paragraphs (2) and (3) of this
Section 3(b), the Borrowers shall pay interest on (A) Music Touring Advances, Streisand
Letter of Credit Advances and Future Permitted Music Tour Letter of Credit Advances at the
Applicable Rate, (B) Working Capital Advances and Ancillary Rights Advances at the
Applicable Rate plus one percent (1%) per annum and (C) Non-Touring Live Project Advances
and Permanent Capital Expenditure Advances, at the Applicable Rate plus two percent (2%) per
annum. The Initial Advances shall be of the Type shown on Schedule 1 hereto and the
Deferred Initial Advances shall be of the Type shown on Schedule 2 hereto. Each subsequent
Advance other than Permitted Dividend Advances shall be of the Type shown on the first
Request for Advance submitted in connection therewith, unless Lender determines that it is
of a different Type. The Borrowers shall pay interest on a Permitted Dividend Advance at
the Applicable Rate plus a percentage between zero percent (0%) and two percent (2%) per
annum, as determined by Lender in its reasonable discretion after consultation with one or
more of the Borrowers, to reflect the Types of the Projects from which the revenues
generating principal payments hereunder during the year prior to the year in which the
Permitted Dividend Advance is made were derived. Any accrued and unpaid interest hereunder
on the first day of each month shall itself accrue interest at the same rate as the Type of
Advance for which such interest has accrued.

     (2) Subject to the provisions of paragraph (3) of this Section 3(b), in the event that,
and for so long as any Event of Default hereunder shall have occurred and be continuing,
then and in any such event, the outstanding principal amount hereunder shall bear interest
at the same rate as the Type of Advance for which interest has been accrued plus two percent
(2%) per annum.

     (3) Notwithstanding anything contained herein to the contrary, in no event shall the
interest rate payable hereunder exceed the Maximum Rate (hereinafter defined).

     (4) All payments made by any Borrower hereunder will be made without setoff,
counterclaim or other defense, free and clear of, and without deduction or withholding for,
any present or future taxes, levies, imposts, duties, fees, assessments or other charges of
whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision
or taxing authority thereof or therein with respect to such payments (but excluding, except
as provided in the second succeeding sentence, any tax, levy, impost, duty, fee, assessment
or other charge imposed on or measured by the net income, net profits or net worth of Lender
and all interest, penalties or similar liabilities with respect to all such taxes, levies,
imposts, duties, fees, assessments or other charges) (all such non-excluded taxes, levies,
imposts, duties, fees, assessments or other charges being referred to collectively as
“Taxes”). If any Taxes are so levied or imposed on Lender, the Borrowers agree to
pay the full amount of such Taxes, and such additional amounts as may be necessary so that
every payment of all amounts due under this Agreement, after withholding or deduction for or
on account of any Taxes, will not be less than the amount provided for herein. If any
amounts are payable in respect of Taxes pursuant to the preceding sentence, the Borrowers
agree to reimburse Lender for all taxes imposed on or measured by the net income, net
profits or any franchise tax based on net income, net profits or net worth, of Lender and
for any withholding of taxes as Lender shall reasonably determine are payable by, or
withheld from, Lender, in respect of such amounts so paid to or on behalf of Lender pursuant
to the preceding sentence and in respect of any amounts paid to or on behalf of

8

 

Lender pursuant to this sentence. The Borrowers agree to indemnify and hold harmless
Lender, and reimburse Lender upon its written request, for the amount of any Taxes so levied
or imposed and paid by Lender.

     (5) If requested by a Borrower, Lender will deliver a copy of its then most recently
filed Form 10-Q to such Borrower, which copy may be an electronic copy. Lender shall not be
required to deliver more than one Form 10-Q per quarter to the Borrowers, and such delivery
may be effected by placing one or more of the Borrowers on a list to receive automated
electronic copies of its Form 10-Q’s and/or other SEC filings.

     (c) Repayment Terms. The following repayment provisions shall be in effect from the
date hereof through the Ordinary Expiration Date:

     (1) If a Borrower so elects, all revenues of such Borrower shall be deposited into an
account over which the Lender shall have control, and all amounts in such account at the end
of each Business Day shall be transferred to Lender and applied as set forth in clause (4)
below as of the next Business Day.

     (2) On or before the last day of each calendar quarter, commencing June 30, 2006, each
Borrower shall pay to Lender, to be applied as set forth in clause (4) below, the amount, if
any, by which the amount agreed by Lender and such Borrower pursuant to Section 2(b)(ii)
hereof to be repaid to Lender hereunder during such quarter exceeds the amount repaid by
such Borrower during such quarter pursuant to clause (1) above and clause (3) below.

     (3) If Ticketmaster (or any other ticketing agency with whom any Borrower has an
arrangement or agreement concerning the sale of tickets to events promoted by such Borrower)
transmits directly to Lender any funds due and owing by such ticketing agency to a Borrower,
such sums shall be applied by Lender, effective as of the Business Day after receipt thereof
by Lender in the manner described in clause (4) below.

     (4) All amounts received by Lender pursuant to this Section 3(c) shall be applied first
to any unpaid fee, expense reimbursement or other amount (other than principal and interest)
due hereunder, then to accrued and unpaid interest hereunder, and then to the unpaid
principal amount of Advances. The Types of Advances to which interest and principal
payments shall be applied will be determined by Lender, in its reasonable discretion after
consultation with one or more of the Borrowers, to reflect the Types of the Projects from
which the revenues generating such principal payments were derived.

     (5) The balance of unpaid principal and accrued and unpaid interest on the Revolving
Credit Facility shall be due and payable on the Termination Date, unless the Termination
Date occurs as a result of the occurrence of an Ordinary Expiration Date, in which event the
provisions of Section 3(d) hereof shall thereafter become applicable to repayment of amounts
outstanding under the Revolving Credit Facility.

     (6) If, on the Termination Date (unless the Termination Date occurs as a result of the
occurrence of an Ordinary Expiration Date, in which event the provisions of this Section
3(c)(6) shall not apply), any Letter of Credit is outstanding, the Borrowers shall, on such
date, deposit into an interest-bearing cash collateral account (the “Cash Collateral
Account”) in the name of Lender, to be maintained by Lender as security for repayment of
the indebtedness hereunder, the aggregate maximum undrawn amount under the outstanding
Letters of Credit. Upon any draw on any Letter of Credit, Lender shall have the right to
withdraw the amount of such draw from such

9

 

account and apply the same against the indebtedness due hereunder. On an approximately
quarterly basis, Lender will determine whether the amount in the Cash Collateral Account
exceeds the then aggregate maximum undrawn amount of all outstanding Letters of Credit. If
such an excess exists, Lender shall release to one or more of the Borrowers the amount of
such excess.

     (d) Repayment Terms After Ordinary Expiration Date. The following repayment
provisions shall be in effect, if at all, after the Ordinary Expiration Date; however, the
following provisions shall never become effective or otherwise apply if the Termination Date does
not arise because of the occurrence of an Ordinary Expiration Date:

     (1) All cash and cash equivalents held by the Borrowers on the Ordinary Expiration Date
shall be immediately paid to Lender to be applied as set forth in clause (5) below. Within
ten (10) Business Days after the occurrence of the Ordinary Expiration Date, Lender and each
Borrower shall meet and make the determinations described in Section 2(b)(ii) hereof with
respect to the period from the date of such meeting through the day before the same day of
the next month. Thereafter, the determinations described in Section 2(b)(ii) hereof shall
be made monthly, on the same day of the month as the initial determination under this
Section 3(d)(1), with all projections, advances and repayment schedules being made for such
month, rather than a calendar quarter. If any Borrower fails to meet with Lender to make
such determinations, Lender shall have the right to make such determinations, based upon the
information then available to it, and such determinations shall be fully binding on the
Borrowers as if the Borrowers had agreed to them specifically. In addition, for purposes of
this Section 3(d)(1), such determinations shall be made taking into account only (i) the
Pre-Expiration Projects (and not any other projects) and (ii) that portion of Working
Capital Expenses allocated to the Pre-Expiration Projects (and not to other projects) using
good accounting practices, consistently applied, for such allocation.

     (2) If a Borrower so elects, all revenues of such Borrower shall be deposited into an
account over which the Lender shall have control, and all amounts in such account at the end
of each Business Day shall be transferred to Lender and applied as set forth in clause (5)
below as of the next Business Day.

     (3) On or before the date that is one month after the day of each meeting described in
clause (1) above, each Borrower shall pay to Lender, to be applied as set forth in clause
(5) below, the amount, if any, by which the amount agreed by Lender and such Borrower
pursuant to clause (1) above to be repaid to Lender hereunder during such month exceeds the
amount repaid by such Borrower during such month pursuant to clause (2) above and clause (4)
below.

     (4) If Ticketmaster (or any other ticketing agency with whom any Borrower has an
arrangement or agreement concerning the sale of tickets to events promoted by such Borrower)
transmits directly to Lender any funds due and owing by such ticketing agency to a Borrower,
such sums shall be applied by Lender, effective as of the Business Day after receipt thereof
by Lender in the manner described in clause (5) below.

     (5) All amounts received by Lender pursuant to this Section 3(d) shall be applied first
to any unpaid fee, expense reimbursement or other amount (other than principal and interest)
due hereunder, then to accrued and unpaid interest hereunder, then to the unpaid principal
amount of Advances and then, if any Letter of Credit is still outstanding, to the Cash
Collateral Account, in an amount up to the then aggregate maximum undrawn amount of all
outstanding Letters of Credit. The Types of Advances to which interest and principal
payments shall be applied will be determined by Lender, in its reasonable discretion after
consultation with one or more of the

10

 

Borrowers, to reflect the Types of Projects from which the revenues generating such
interest and principal payments were derived. On an approximately quarterly basis, Lender
will determine whether the amount in the Cash Collateral Account exceeds the then maximum
undrawn amount of all outstanding Letters of Credit. If such an excess exists, Lender shall
deliver to one of the Borrowers the amount of such excess. If, upon the expiration and
return to Lender of any Letter of Credit, the amount in the Cash Collateral Account exceeds
the maximum undrawn amount of all outstanding Letters of Credit, then Lender shall release
the amount of such excess from the Cash Collateral Account to the Borrower on whose account
such expired Letter of Credit was issued.

     (e) Payments Received on Non-Business Days. Any payments hereunder received or deemed
received by Lender on a day that is not a Business Day shall be deemed received by Lender for all
purposes on the next Business Day.

     (f) Voluntary Prepayments. The Borrowers may prepay at any time, without premium or
penalty, all or any portion of the outstanding principal of the Revolving Credit Facility, so long
as Lender is given at least one (1) Business Day advance written notice of such prepayment, and all
accrued and unpaid interest with respect to such prepaid principal is simultaneously prepaid.

     Section 4. Representation and Warranties. Each Borrower represents and warrants to
Lender that, as of the date hereof and as of the date of each advance under the Revolving Credit
Facility:

     (a) Organization, Authority, Etc. Each Borrower is a corporation or limited liability
company, duly organized, legally existing and in good standing under the laws of the jurisdiction
set forth in the first paragraph of this Agreement, and is qualified as a foreign corporation or
limited liability company in all jurisdictions where such qualification is necessary and the
failure to be so qualified could reasonably be expected to have a Material Adverse Effect. Each
Borrower and Subsidiary is authorized to execute this Agreement, the Security Agreement to which it
is a party, and all the other Loan Documents (hereinafter defined), and those documents or
instruments, when executed and delivered will be valid and binding obligations of such Borrower or
Subsidiary, enforceable in accordance with their terms and do not violate the provisions of the
corporate charter, bylaws, certificate of formation or operating agreement of such Borrower or
Subsidiary or any contract, agreement, law or regulation to which such Borrower or Subsidiary is
subject.

     (b) Investments, Liabilities and Litigation. No Borrower or Subsidiary has made any
investments, guarantees or advances or incurred any liabilities except for investments in,
guarantees of, or advances to other entities in the ordinary course of business and liabilities
incurred in the ordinary course of business. No Borrower or Subsidiary has any litigation and
there is no legal or administrative proceeding, investigation or other action pending or threatened
against or affecting such Borrower or Subsidiary which, in any case, involves the possibility of
any judgment or liability not fully covered by insurance, and that could reasonably be expected to
have a Material Adverse Effect.

     (c) Tax Returns. Each Borrower and Subsidiary has timely filed all tax returns
required to be filed by it and has paid all taxes or assessments related to said returns.

     (d) No Default. No Borrower or Subsidiary is, or after giving effect to any requested
advance under the Revolving Credit Facility will be, in default in any respect under this
Agreement, any other Loan Document, or any other contract, agreement, or instrument to which any
Borrower or Subsidiary is a party or by which any Borrower or Subsidiary may be bound, and the
Borrowers are in compliance with all applicable laws and regulations, the default or non-compliance
with which could reasonably be expected to have a Material Adverse Effect..

11

 

     (e) No Untrue Statements. Neither this Agreement nor any other information furnished
by any Borrower or Subsidiary to Lender pursuant to this Agreement or any of the other Loan
Document contains any untrue statement of a fact or omits a fact necessary to make the statements
not misleading.

     Section 5. Reporting Requirements. The Borrowers will deliver the following reports
to Lender:

     (a) Monthly Reports: Within five (5) Business Days of either (i) the last day of each
month or (ii) if such Borrower has arranged for the preparation of such report by a third party,
the date of receipt of the applicable report prepared by such third party for such month, (1) a
report of the revenues, earnings and profits from Long-Term Projects of Borrower for such month,
(2) a report as of the last day of such month of the revenue, earnings and profit status of
Short-Term Projects of Borrower as of the last day of such month and (3) after the occurrence of
the Ordinary Expiration Date as a result of the exercise by Lender of the Put Option, in addition
to the reports described in clauses (1) and (2) above, all other reports which Lender had received
with respect to periods prior to the Ordinary Expiration Date.

     (b) Annual Reports: Simultaneously with delivery of the monthly report described in
Section 5(a) hereof with respect to each December, a certificate signed the chief financial
officer(s) of the Borrowers stating whether the Borrowers have kept and performed all covenants set
forth in this Agreement and the other Loan Documents and, if any Borrower has not, specifying the
default and corrective action, if any;

     (c) Notice of Default: Within five (5) days after any Borrower has knowledge of the
occurrence of a default under this Agreement, notice of such default together with the Borrowers’
plans to correct such default;

     (d) Notice of Litigation: Promptly, but in any event within fifteen (15) days after
receipt of service thereof, notice of any litigation against any Borrower in which the claimed
liability of such Borrower is greater than $100,000.00 (or alleging unspecified damages) if such
claim is not fully covered by insurance; and

     (e) Other Information: Such other information as Lender may reasonably request from
time to time.

     Section 6. Affirmative Covenants.

     (a) Compliance and Performance. Each Borrower will comply with all statutes and
governmental regulations and will pay all taxes, assessments, governmental charges, claims for
labor and the like. Each Borrower will maintain its corporate existence and will remain in good
standing in all jurisdictions in which it is required to be qualified and will maintain its
properties in good and workable condition at all times. Each Borrower will perform all obligations
under this Agreement, and under all indentures, agreements, and contracts by which such Borrower is
bound. Each Borrower will maintain with financially sound and reputable insurers reasonably
acceptable to Lender, insurance with respect to its properties and business against such
liabilities, casualties, risks and contingencies as is customary for its business naming Lender as
loss payee with respect to any insurance covering collateral securing the loans hereunder, and
will, upon Lender’s request, provide Lender an accurate and complete Evidence of Property Insurance
(on form ACORD 27). Upon Lender’s reasonable prior written request, each Borrower will provide
Lender and/or Lender’s representatives access to such Borrower’s books, records and properties at
such times during ordinary business hours as Lender may request.

12

 

     (b) Reimbursement; Indemnity. Each Borrower will reimburse Lender for all its
reasonable out-of-pocket costs and expenses in connection with the enforcement of this Agreement or
any other Loan Document. Each Borrower agrees to indemnify and hold Lender harmless from any
reasonable out-of-pocket costs or expenses incurred by Lender as a result of the provisions of
federal, state and local environmental laws and ordinances, including without limitation the
Comprehensive Environmental Response, Compensation and Liability Act, as such laws and ordinances
may relate to any Borrower or any property or operations of any Borrower.

     (c) Security.

     (i) The indebtedness and other obligations of the Borrowers hereunder shall be
secured by a first and prior security interest in, inter alia, (1)
all Accounts (as defined in the Security Agreement) of the Borrowers and Material
Subsidiaries now existing or hereafter to come into existence, (2) all Inventory (as
defined in the UCC) of the Borrowers and Material Subsidiaries now owned or
hereafter acquired, (3) all Equipment (as defined in the UCC), whether affixed to
real property or otherwise, of the Borrowers and Material Subsidiaries now owned or
hereafter acquired, (4) all Instruments, Chattel Paper, Documents and General
Intangibles (as such terms are defined in the UCC) of the Borrowers and Material
Subsidiaries now owned or hereafter acquired, (5) all Investment Property (as
defined in the Security Agreement) of the Borrowers and Material Subsidiaries now
owned or hereafter acquired, (6) all Deposit Accounts (as defined in the UCC) of the
Borrowers and Material Subsidiaries now owned or hereafter acquired, and (7) all
proceeds of the foregoing, all pursuant to a Security Agreement (the “Security
Agreement”) to be executed by each Borrower and each Material Subsidiary in
favor of Lender, and substantially in the form attached hereto as Exhibit “C”.

     (ii) Lender agrees that, with respect to each Excluded Project, if required by
a third party lender financing such Excluded Project, Lender will release its
security interest in assets of the Applicable Borrower or Material Subsidiary
comprising such Excluded Project prior to or simultaneous with the execution of
appropriate loan documents as such third party lender may reasonably require.

     Section 7. Distributions. Except as otherwise provided in this Section 7, none of the
Borrowers will declare or pay any dividends or distributions. If the Put Option has expired
without having been exercised by the Lender, then the Borrowers may thereafter declare and pay
dividends or distributions with respect to any calendar year in an amount that does not exceed the
sum of (a) the amount of the Permitted Dividends for such year plus (b) the amount of dividends or
distributions with respect to Excluded Projects permitted to be made for such year by loan
documents evidencing indebtedness for such Excluded Projects. The Permitted Dividends for any year
may be funded and paid at any time within 120 days after the end of such calendar year, whether or
not an Event of Default has occurred and is continuing, in order to permit the Borrowers sufficient
time to review the financial performance of the Borrowers for such calendar year and determine the
amount of the Permitted Dividends for such year.

     Section 8. Closing. The initial advance under the Revolving Credit Facility shall be
subject to the receipt by Lender of the following documents, instruments and certificates (the
“Loan Documents”), each of which shall be reasonably satisfactory in form and substance to
Lender and its counsel:

     (a) a copy of this Agreement executed by the Borrowers;

13

 

     (b) the Security Agreement executed by each Borrower and each Material Subsidiary;

     (c) a certificate of the Secretary of each Borrower and each Material Subsidiary, certifying
as to the Articles of Incorporation and Bylaws or Certificates of Formation and operating
agreement, as applicable, of such Borrower or Material Subsidiary, resolutions of the Board of
Directors of such Borrower or Material Subsidiary, and the signatures of authorized officers of
such Borrower or Material Subsidiary;

     (d) a Certificate of Existence issued by the jurisdiction of incorporation or organization
with respect to each Borrower and Material Subsidiary; and

     (e) such other documents and instruments as may be reasonably requested by Lender or its
counsel.

     Section 9. Default and Remedies. It shall constitute an “Event of Default”
hereunder if (a) any Borrower fails to make when due any payment on the indebtedness hereunder, (b)
any Borrower fails to perform any of its other agreements contained herein, (c) any Borrower or
Subsidiary defaults under the terms or provisions of any other Loan Document or any other
agreement, instrument or document executed in connection with or as security for the Revolving
Credit Facility, (d) any CPI Seller defaults under the Stock Purchase Agreement, (e) any
representation or warranty of any Borrower proves to have been untrue in any material respect when
made, (f) any petition in bankruptcy is filed by any Borrower or any Material Subsidiary, or any
order granting relief under any bankruptcy or receivership law is filed with respect to any
Borrower or any Material Subsidiary, (g) any Borrower or any Material Subsidiary permits a monetary
judgment against it that could reasonably be expected to have a Material Adverse Effect to remain
undischarged for a period in excess of thirty (30) days or (h) any Borrower or any Material
Subsidiary dissolves. Upon the occurrence of an Event of Default specified in clause (f) above,
immediately, and upon the occurrence of any other Event of Default hereunder at the option of
Lender, without notice to any Borrower or any other person, the obligation of Lender to make any
Advances (or deemed Advances) under the Revolving Credit Facility other than Permitted Dividend
Advances with respect to Permitted Dividends for the prior calendar year that have not been
previously made shall be terminated, all indebtedness of the Borrowers, and each of them, to Lender
shall be immediately due and payable and Lender may take any other actions as may be permitted by
this Agreement, any other Loan Document or any other document or instrument evidencing or securing
the Revolving Credit Facility. Each Borrower expressly waives presentment, demand, protest, notice
of protest, or other notice of dishonor of any kind including, without limitation, notice of intent
to accelerate the maturity of the indebtedness hereunder and notice of acceleration of the maturity
of the indebtedness hereunder.

     Section 10. Governing Law, Jurisdiction and Jury Waiver.

     (a) Governing Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE DEEMED TO BE
CONTRACTS MADE UNDER AND SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

     (b) Jurisdiction/Jury Waiver. Each party hereby submits to the non-exclusive
jurisdiction of the state courts located in New York, NY and the federal court located in the
Southern District of New York with respect to all actions brought under this Agreement or any other
Loan Document, and hereby irrevocably agrees that all claims in respect of such action or
proceeding may be heard and determined in such courts. The parties hereby irrevocably waive, to
the fullest extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY RIGHT TO TRIAL

14

 

BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT.

     Section 11. Miscellaneous.

     (a) Joint and Several Liability. All obligations of the Borrowers under this
Agreement and the other Loan Documents shall be the joint and several obligations of each of the
Borrowers.

     (b) Notices. All notices shall be in writing and shall be sufficient in all respects
if delivered or sent by telecopy or registered or certified mail to the telecopy number of address
set forth on the signature page of this Agreement. Any party may, by proper written notice
hereunder to the other parties, change its telecopy number or address to which notices shall
thereafter be sent.

     (c) Successors and Assigns. All covenants and agreements herein contained by or on
behalf of each Borrower shall bind its successors and assigns and shall inure to the benefit of
Lender and its successors and assigns.

     (d) Renewals and Extensions. All provisions of this Agreement shall apply with equal
force and effect to each and all renewals and extensions, in whole or in part, of this Agreement or
the Revolving Credit Facility.

     (e) Accounting and Financial Terms. All accounting terms not expressly defined shall
be defined in accordance with GAAP. All determinations under this Agreement shall be made in
accordance with GAAP, except where expressly provided to the contrary. All references to a
preceding period shall mean the period ending as of the end of the month, quarter or fiscal year
for which the applicable report is delivered. All references to a period immediately following
shall mean the period beginning on the first day of the month, quarter or fiscal year following the
end of the period for which the applicable report is delivered.

     (f) No Waiver; Remedies Cumulative. No course of dealing on the part of Lender or its
officers or employees, or any failure or delay by Lender with respect to exercising any right,
power, or privilege of Lender under this Agreement or any other Loan Document shall operate as a
waiver thereof. The rights and remedies of Lender under this Agreement and the other Loan
Documents shall be cumulative and the exercise or partial exercise of any such right or remedy
shall not preclude the exercise of any other right or remedy.

     (g) Invalid Provisions. In the event any one or more of the provisions contained in
this Agreement or any of the other Loan Documents shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect any other provision of this Agreement or the other Loan Documents. Furthermore, in lieu of
such invalid, illegal or unenforceable provision, there shall automatically be added a provision as
similar in terms to such invalid, illegal or unenforceable provision as may be possible and as may
be valid, legal and enforceable.

     (h) Usury Savings Clause. Nothing contained in this Agreement or in any of the other
Loan Documents shall be construed to obligate any Borrower, under any circumstances whatsoever, to
pay interest in excess of the Maximum Rate. In the event that any sums received from any Borrower
are at any time under applicable law deemed to be in excess of the maximum non-usurious amount
Lender could collect under applicable law, the effective rate of interest on the loans hereunder
shall be reduced to and be the Maximum Rate and each Borrower and all sureties, endorsers and
guarantors shall accept as their sole remedy under such circumstances either the return of any sums
of interest which may have been collected and which produced a rate of interest in excess of the
Maximum Rate or the application of those

15

 

sums as a credit against the unpaid principal amount of the loan, whichever remedy may be
elected by Lender.

     (i) Headings. The captions, headings and arrangements used in this Agreement are for
convenience only and do not in any way affect, limit, amplify or modify the terms and provisions
hereof.

     (j) Interpretation. Whenever appropriate in the context, terms used herein in the
singular also include the plural and vice versa. Unless otherwise expressly provided, whenever the
words “including”, “includes”, or “include” shall be used, such words shall be understood to mean
“including, without limitation”, “includes, without limitation”, or “include, without limitation”.

     (k) Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall constitute an original, but all of which, when taken together, shall constitute but
one agreement.

     Section 12. Entire Agreement. THIS WRITTEN LOAN AGREEMENT, TOGETHER WITH THE OTHER
LOAN DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     Section 13. Compliance with Anti-Terrorism Laws. If Lender is subject to the
provisions of the USA Patriot Act (Title III of Pub.: 107-56 (signed into law October 26, 2001))
(the “Patriot Act”), Lender hereby notifies each Borrower that, pursuant to the Patriot
Act, Lender is required to obtain, verify, and record information that identifies each Borrower,
which information includes the name of each Borrower and other information that will allow Lender
to identify each Borrower in accordance with the Patriot Act, and each Borrower agrees to provide
such information from time to time to Lender.

     Section 14. Cross-References. The following terms are defined in the place indicated
below:

	 	 	 
	Defined Term	 	Section Reference
	Advances

	 	Section 2
	Agreement

	 	Opening Paragraph
	Ancillary Rights Advances

	 	Section 2(a)(4)
	Applicable Rate

	 	Section 1(a)
	Approved Project Budget

	 	Section 2(b)(ii)
	Board of Directors

	 	Section 1(b)
	Borrower(s)

	 	Opening Paragraph
	Business Day

	 	Section 1(c)
	Cash Collateral Account

	 	Section 3(c)(4)
	CPI Sellers

	 	Opening Paragraph
	Deferred Initial Advances

	 	Section 2(a)(10)
	Deferred Entertainment Investment

	 	As defined in the Stock Purchase Agreement
	Excluded Projects

	 	Section 1(e)
	Future Permitted Music Tour Letter of Credit Advances

	 	Section 2(a)(8)
	Future Permitted Music Tour Letters of Credit

	 	Section 2(d)(2)
	Future Permitted Music Tours

	 	Section 2(a)(3)

16

 

	 	 	 
	Defined Term	 	Section Reference
	GAAP

	 	Section 1(f)
	Initial Advances

	 	Section 2(a)(1)
	Issuing Bank

	 	Section 2(d)(2)
	Lender

	 	Opening Paragraph
	Letters of Credit

	 	Section 1(h)
	Loan Documents

	 	Section 8
	Material Adverse Effect

	 	Section 1(i)
	Material Subsidiary

	 	Section 1(k)
	Maximum Rate

	 	Section 1(g)
	Music Touring Advances

	 	Section 2(a)(3)
	Non-Touring Live Project Advances

	 	Section 2(a)(5)
	Ordinary Expiration Date

	 	Section 1(m)
	Patriot Act

	 	Section 13
	Permanent Capital Expenditure Advances

	 	Section 2(a)(6)
	Permitted Dividends

	 	Section 1(n)
	Permitted Dividend Advances

	 	Section 2(a)(9)
	Permitted Purpose(s)

	 	Section 2(a)
	Pre-Expiration Project

	 	Section 1(o)
	Project

	 	Section 1(p)
	Project Expenses

	 	Section 1(q)
	Project Revenues

	 	Section 1(r)
	Put Option

	 	As defined in the Stock Purchase Agreement
	Revolving Credit Facility

	 	Opening Paragraph
	Security Agreements

	 	Section 6(c)
	Short-Term Project

	 	Section 1(s)
	Stock Purchase Agreement

	 	Opening Paragraph
	Streisand Letter of Credit

	 	Section 2(d)(1)
	Streisand Letter of Credit Advances

	 	Section 2(a)(7)
	Streisand Note

	 	Section 2(d)(4)
	Subsidiary/Subsidiaries

	 	Section 2
	Taxes

	 	Section 3(b)(4)
	Termination Date

	 	Section 2(c)
	Type

	 	Section 1(t)
	UCC

	 	Section 1(u)
	Working Capital Advances

	 	Section 2(a)(2)
	Working Capital Expenses

	 	Section 1(v)

[The remainder of this page is intentionally blank.]

17

 

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

	 	 	 	 	 	 	 
	 	 	CPI INTERNATIONAL TOURING INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	John H. Perkins
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:	 	 
	 	 	10 Alcorn Avenue, Suite 304	 	 
	 	 	Toronto, Ontario, Canada MV4 3A9	 	 
	 	 	Telecopy No.: (212) 682-0200	 	 
	 
	 	 	 	 	 	 
	 	 	CPI TOURING (USA), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	John H. Perkins
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:	 	 
	 	 	10 Alcorn Avenue, Suite 304	 	 
	 	 	Toronto, Ontario, Canada MV4 3A9	 	 
	 	 	Telecopy No.: (212) 682-0200	 	 
	 
	 	 	 	 	 	 
	 	 	GRAND ENTERTAINMENT (ROW), LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John H. Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:	 	 
	 	 	10 Alcorn Avenue, Suite 304	 	 
	 	 	Toronto, Ontario, Canada MV4 3A9	 	 
	 	 	Telecopy No.: (212) 682-0200	 	 
	 
	 	 	 	 	 	 
	 	 	CPI ENTERTAINMENT CONTENT (2005), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	John H. Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:	 	 
	 	 	10 Alcorn Avenue, Suite 304	 	 
	 	 	Toronto, Ontario, Canada MV4 3A9	 	 
	 	 	Telecopy No.: (212) 682-0200	 	 

 

 

	 	 	 	 	 	 	 
	 	 	CPI ENTERTAINMENT CONTENT (2006), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	John H. Perkins	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:	 	 
	 	 	10 Alcorn Avenue, Suite 304	 	 
	 	 	Toronto, Ontario, Canada MV4 3A9	 	 
	 	 	Telecopy No.: (212) 682-0200	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SFX ENTERTAINMENT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alan B. Ridgeway	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:	 	 
	 	 	9348 Civic Center Dr., 4th Floor	 	 
	 	 	Beverly Hills, California 90210	 	 
	 	 	Attention: General Counsel	 	 
	 	 	Telecopy No.: (310) 867-7158	 	 

 

 

     By its execution hereof, the Lender Guarantor hereby unconditionally and irrevocably
guarantees and becomes surety for, (i) the full and prompt performance by Lender of its obligation
to make Advances to the Borrowers under this Agreement and (ii) all other obligations and
liabilities owing to the Borrowers by the Lender under this Agreement, now existing or hereafter
incurred under, arising out of, or in connection with, this Agreement.

	 	 	 	 	 	 
	 	 	LIVE NATION, INC.	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Alan B. Ridgeway
 

	 
	 
	 	 	 	 	 
	 	 	Address for notices:	 
	 	 	9348 Civic Center Dr., 4th Floor	 
	 	 	Beverly Hills, California 90210	 
	 	 	Attention: General Counsel	 
	 	 	Telecopy No.: (310)
867-7158	 

 

 

SCHEDULE 1

 

 

SCHEDULE 2

 

 

EXHIBIT “A”

Form of Request for Additional Advance

	 	 	 	 	 
	SFX Entertainment, Inc.

	 	Date :	 	 
	 

	 	 	 	 
	9348 Civic Center Dr., 4th Floor
	 	 	 	 
	Beverly Hills, California 90210
	 	 	 	 
	 
	 	 	 	 
	Attention: Chief Financial Officer
	 	 	 	 

	1.	 	Pursuant to that certain Credit Agreement (the “Credit Agreement”) dated May ___, 2006 among
CPI International Touring Inc., CPI Touring (USA), Inc., Grand Entertainment (ROW), LLC, CPI
Entertainment Content (2005), Inc., CPI Entertainment Content (2006), Inc. (collectively, the
“Borrowers” and individually a “Borrower”), SFX Entertainment, Inc. (“Lender”) and Live
Nation, Inc., the undersigned Borrower hereby requests that an Advance be made on
                    , 20___, in the amount of $                     for the purpose of
                                        .

	2.	 	The Type of the requested Advance is                     .

	 	3.	 	The Advance requested hereby will be made by:
	 
	      	 (a)	 	Wire transfer to:

	 	 	 	 	 	 	 
	 

	 	Account #	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	ABA #	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Bank Name:	 	 	 	 
	 

	 	 	 	 	 	 

	      	 (b)	 	Deposit into the undersigned Borrower’s account number                      with                     .

	4.	 	The undersigned Borrower hereby represents and warrants to Lender, for itself and on behalf
of the other Borrowers, that:

	 	(a)	 	The Borrowers have complied with all duties and obligations required to date to
be carried out and performed by them pursuant to the terms of the Credit Agreement;
	 
	 	(b)	 	No event of default, or event, which with the giving of notice, the passage of
time, or both, would constitute an event of default, under the Credit Agreement has
occurred and is continuing; and
	 
	 	(c)	 	All sums advanced by Lender on account of this draw will be used solely for the
purpose set forth above and no other reason.

	5.	 	The undersigned Borrower certifies that the statements made in this Request for Advance and
any documents submitted herewith are true and that the undersigned Borrower has duly caused
this Request for Loan Advance to be duly signed on its behalf.

EXHIBIT “A”

Page 1 of 2

 

 

	6.	 	Capitalized terms used but not defined in this Request for Advance have the respective
meanings and definitions set forth in the Credit Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

EXHIBIT “A”

Page 2 of 2

 

 

EXHIBIT “B”

Form of Request for Letter of Credit

	 	 	 	 	 
	SFX Entertainment, Inc.

	 	Date :	 	 
	 

	 	 	 	 
	9348 Civic Center Dr., 4th Floor
	 	 	 	 
	Beverly Hills, California 90210
	 	 	 	 
	 
	 	 	 	 
	Attention: Chief Financial Officer
	 	 	 	 

	1.	 	Pursuant to that certain Credit Agreement (the “Credit Agreement”) dated May ___, 2006 among
CPI International Touring Inc., CPI Touring (USA), Inc., Grand Entertainment (ROW), LLC, CPI
Entertainment Content (2005), Inc., CPI Entertainment Content (2006), Inc. (collectively, the
“Borrowers” and individually a “Borrower”), SFX Entertainment, Inc. (“Lender”) and Live
Nation, Inc., the undersigned Borrower hereby requests that an Advance be made on
                    , 20___, in the amount of $                     for the purpose of
                                        .
	 
	2.	 	The purpose of the requested Future Permitted Music Tour Letter of Credit is                     .
	 
	3.	 	The Future Permitted Music Tour Letter of Credit requested hereby should be delivered to:

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	4.	 	The undersigned Borrower hereby represents and warrants to Lender, for itself and on behalf
of the other Borrowers, that:

	 	(a)	 	The Borrowers have complied with all duties and obligations required to date to
be carried out and performed by them pursuant to the terms of the Credit Agreement; and
	 
	 	(b)	 	No event of default, or event, which with the giving of notice, the passage of
time, or both, would constitute an event of default, under the Credit Agreement has
occurred and is continuing.

	5.	 	The undersigned Borrower certifies that the statements made in this Request for Letter of
Credit and any documents submitted herewith are true and that the undersigned Borrower has
duly caused this Request for Letter of Credit to be duly signed on its behalf.

	6.	 	Capitalized terms used but not defined in this Request for Letter of Credit have the
respective meanings and definitions set forth in the Credit Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

EXHIBIT “B”

Page 1 of 1

 

 

EXHIBIT “C”

Security Agreement

[TO BE ATTACHED]

EXHIBIT “C”

Page 1 of 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]