Document:

Exhibit 10.16

 

LICENSE AGREEMENT

 

THIS AGREEMENT is made and entered into as of the 23rd day of May,
1991, by and between Ticketmaster corporation, an Illinois corporation (“Ticketmaster”),
and Ticketmaster Group Limited Partnership, a Maryland limited partnership (“User”).

 

W  I  T
N  E  S  S  E  T  H :

 

WHEREAS, Ticketmaster is the owner of certain software systems,
accounting procedures and know-how which, in the aggregate, comprise a
computerized event ticketing system (the “System”); and

 

WHEREAS, Ticketmaster is the owner of and/or claims ownership rights to
the name, mark and logo “Ticketmaster” (the “Mark”), which Mark is used in
conjunction and identified with the System; and

 

WHEREAS, the System and the  Mark are known within the
computerized ticketing industry and by the public as connoting a  high
level of quality and service; and

 

WHEREAS, User desires to be granted a license by Ticketmaster to use
the System and the Mark in connection with User’s computerized event ticketing
business in the territory described in Exhibit I attached hereto (the “Market
Area”);

 

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

 

1.  License. Ticketmaster
hereby grants to User an exclusive right and license to use the System and
(solely in connection with the System and the provision of computerized
ticketing services) the Mark within the Market Area; subject to the rights
retained by Ticketmaster in accordance with Section 5 hereof.

 

User hereby acknowledges that the System and
the name “Ticketmaster” are highly regarded in the computerized ticketing industry
and by the public, and that Ticketmaster deems it important that all persons
using the System or such name operate in a manner consistent with good business
practice. Accordingly, User agrees to operate its business in a manner that
will not negatively affect the reputation of the System or the Ticketmaster
name, including, without limitation thereby, the prompt settlement of accounts
and the honoring of all bona fide obligations.

 

Ticketmaster further assigns all of its
right, title and interest in and to those certain agreements described on
Exhibit II attached hereto to User, it being agreed and understood that
(i) such agreements are assigned by  Ticketmaster to User as is, and without
any representations and warranties whatsoever, and (ii)

 

 

User
shall indemnify and hold. Ticketmaster and its officers, directors, employees,
agents, representatives, affiliates, shareholders, successors and assigns
harmless from and against any and all losses, claims, damages, liabilities,
costs and expenses (including, without limitation, reasonable attorneys fees)
arising from or related to such agreements and to the performance thereof by
User at any time from and after the date hereof.

 

2.                                     Term. The initial
term of this Agreement and the license granted hereby shall commence on the
date hereof, and shall remain in force, unless terminated earlier in accordance
with the provisions hereof, until the tenth (10th) anniversary of the Operational
Date.  This Agreement may be renewed by
User for two additional five year terms by written notice of renewal delivered by
User to Ticketmaster no less than 90  but no more than 150 days prior to
the expiration of the then current term of this Agreement so long as User is
not in default under this Agreement either at the time such notice is delivered
or at the time the renewal period is scheduled to commence.

 

As used in this Agreement, (A) the term “Operational
Date” shall mean the date upon which the System becomes operational in the
Market Area or any part thereof, and (B) the term “Operational Year” shall
mean the twelve-month period commencing on the Operational Date and ending on
the first anniversary of such date and each twelve month period thereafter.

 

3.                                     Base Payments. User shall
pay to Ticketmaster during each year of the term hereof a minimum annual royalty
in the amount of $125,000 for the right to use the System and the Mark in the Market
Area (the “Base Payment”). The Base Payment shall be payable in advance in
equal quarterly installments commencing on the Operational Date.

 

All Base Payments shall be made by User directly to
Ticketmaster in United States Dollars in the manner designated by Ticketmaster from
time to time during the term of this Agreement, which may include wire transfer
into a Ticketmaster bank account.

 

4.                                     Additional Payments. In addition
to the Base Payments, User shall pay to Ticketmaster with respect to each
Operational Year an additional royalty (the “Additional Payment”) equal to (i) the
Number of Tickets Sold multiplied by the Per Ticket Amount minus (ii) the
aggregate Base Payments actually paid by User to Ticketmaster during that
Operational year. To the extent that in any Operational Year part (i) of
the foregoing calculation does not exceed part (ii) thereof, no Additional
Payment shall be made by User to Ticketmaster for that Operational Year and
Ticketmaster shall not be obligated to return any portion of the Base Payments
paid during such Operational Year or to credit any amount against Additional
Payments payable in any succeeding Operational Year. As used herein “Number of
Tickets Sold” shall mean for any

 

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Operational
Year the number of tickets sold or distributed by User, whether or not by or
through the System or using the Mark, in the Market Area and to which a customer
convenience charge or service charge is or normally is attached, whether at
remote ticket outlets, by telephone, by mail order, at facility box offices, at
User locations or elsewhere (exclusive of complimentary and season tickets and
tickets sold at a facility box office by a party not affiliated with User where
that party assesses a service charge no part of which accrues to the benefit or
is otherwise payable to User or User’s affiliates). Further, as used herein,
the “Per Ticket Amount” shall be the amount set forth below during each of the
indicated Operational Years (including permissible renewal periods):

 

	
   

  	
   

  	
  The Per Ticket

  
	
  During Operational years

  	
   

  	
  Amount Shall Be

  
	
   

  	
   

  	
   

  
	
  1 through 2

  	
   

  	
  $

  	
  0.06

  
	
  3 through 4

  	
   

  	
  $

  	
  0.07

  
	
  5  through 6

  	
   

  	
  $

  	
  0.08

  
	
  7 through 8

  	
   

  	
  $

  	
  0.09

  
	
  9 through 10

  	
   

  	
  $

  	
  0.10

  
	
  11 through 12

  	
   

  	
  $

  	
  0.11

  
	
  13 through 14

  	
   

  	
  $

  	
  0.12

  
	
  15 through 16

  	
   

  	
  $

  	
  0.13

  
	
  17 through 18

  	
   

  	
  $

  	
  0.14

  
	
  19 through 20

  	
   

  	
  $

  	
  0.15

  

 

In
the event that this Agreement is terminated for any reason prior to its
expiration, the period commencing on the day following the end of the prior Operational
Year and ending on the date of termination shall be deemed to be an Operational
Year for purposes of this Agreement.

 

Additional Payments for each Operational Year shall
be calculated and paid by User to Ticketmaster in United States Dollars on a
quarterly basis, within ten (10) days following any quarter during an
Operational Year in which the aggregate per ticket royalty for such year
exceeds the Base Payment for such year and in each quarter thereafter during
any such year. All Additional Payments shall be made by User directly to
Ticketmaster in the manner designated by Ticketmaster from time to time during
the term of this Agreement, which may include wire transfer into a Ticketmaster
bank account.

 

Within ten (10) days after the end of each
quarter of the term hereof, User shall deliver to Ticketmaster a report of all
tickets sold, printed, produced and distributed by User in the Market Area
during such quarter, which report shall contain such information as may be
necessary for Ticketmaster to calculate Additional Payments and such other
information as Ticketmaster may reasonably request. Ticketmaster shall be
entitled upon reasonable notice to

 

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User to access to the books
and records of User during User’s normal business hours and at User’s premises
for purposes of confirming and computing the amounts of Additional Payments
payable hereunder; provided, however, that access to such books and records by
Ticketmaster shall not unduly disrupt normal business operations of User.

 

5.                                     Ticketmaster Rights.
Notwithstanding anything to the contrary herein, Ticketmaster is hereby
retaining the right for itself and for its affiliates to sell, by telephone
and/or at outlets, tickets or other evidences of admission or entitlement to
attend or receive transmission of the following events within the Market Area
and User shall have no right, license or interest in or to use the System or
the Mark with respect to said events:

 

(a)                                  Any pay per
view events for cable systems, whether by use of an 800 number or otherwise;
and

 

(b)                                 Special events,
which do not involve any traditional venues or tickets on sale to the general
public;

 

;
provided, however, that User will have the right and license, on a nonexclusive
basis, to use the System and the Mark with respect to pay per view events for
cable systems serving only the Market Area and no other areas outside of the
Market Area.

 

6.                                     Title.

 

(a)                                Title,
beneficial interest and all ownership rights to the System, the Mark and all
related materials furnished by Ticketmaster and licensed under this Agreement
shall remain in Ticketmaster. User hereby acknowledges that the System, the
Mark and all related materials furnished by Ticketmaster hereunder are claimed
by Ticketmaster to be Ticketmaster’s proprietary information and trade secrets,
whether or not any portion thereof is, or may be, validly copyrighted,
patented, trademarked or otherwise protected.

 

(b)                               User’s rights
in and to the System and the Mark furnished by Ticketmaster as a result of this
Agreement may not be assigned, licensed or otherwise transferred voluntarily, by
operation of law or otherwise, without the prior written consent of Ticketmaster.

 

(c)                                Ticketmaster
and/or User may add to, delete from or modify the System and all related
materials furnished by Ticketmaster hereunder in any manner, but no such
changes, however extensive, shall reduce Ticketmaster’s title to the System.
Any improvements made by User shall be and remain the confidential, proprietary
property and information of User except that Ticketmaster shall retain

 

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all proprietary rights in the underlying System as so improved and User
shall not have any right to use the System as so improved without the prior
written consent of Ticketmaster (except pursuant to this Agreement).

 

(d)                                 User
acknowledges and agrees that Ticketmaster has acquired all right, title and
interest in and to all equipment formerly used in connection with the Ticketron
System including, but not limited to, any such equipment or personal computers
used at any facility box offices or outlets in the Market Area, but excluding,
as to the Market Area, (i) the personal computers, printers and CRTs
currently installed and being used in the facility box office at the Capital
Centre in Landover, Maryland, (ii) the printers and CRTs currently
installed and being operated in the facility box offices at Baltimore Arena in
Baltimore, Maryland, and Patriot Center in Fairfax County, Virginia, and (iii) all
“dumb” CRTs formerly being used by Ticketron in the Market Area and attached
cabling (but not including any new CRTs).

 

7.                                       Use of the System
and Mark.

 

(a)                                  The System
(including any changes thereto made by or on behalf of Ticketmaster or User)
and all related materials may be used for, by or on behalf of User only in
connection with any computer equipment which User uses solely for, or solely in
connection with, computerized ticketing at the facility locations and remote
terminal locations within the Market Area. The System may not be utilized in
connection with any additional physical computer facilities (or other
computers), for any other reason or by or for any other person, firm,
corporation or other organization, without the prior written consent of
Ticketmaster.

 

(b)                                 User agrees
that the Mark shall be the sole mark and name utilized by it in connection with
the System and the operation of its ticketing business, and shall not be used
with any other marks or names.

 

(c)                                  The Mark shall
be used by User in accordance with such quality control standards as Ticketmaster
may from time to time prescribe for use by its non-affiliated licensees with
respect to products and services in connection with which the Mark is utilized.
Further, User shall only use the Mark together with such notations as
Ticketmaster may from time to time prescribe for purposes of advising the
public of service mark, trademark and similar protection. User shall cease all
use of the Mark ten (10) days after notice from Ticketmaster that User has
failed to comply with any such standard unless, within such ten (10)-day

 

5

 

period, User corrects such failure to the satisfaction of Ticketmaster.

 

(d)                                 Neither User
nor any of its employees, agents or representatives
shall reproduce, duplicate or otherwise
copy the System or any related materials
furnished by Ticketmaster hereunder or any portion thereof, except for internal use
directly with the System. All such
materials and any copies thereof shall
be returned by User to Ticketmaster immediately following termination or
expiration of this Agreement.

 

8.                                        Warranties. Ticketmaster
warrants to User that it is the owner
of the System end the Mark (or claims ownership rights to the Mark) and has the right to grant this license to User. Ticketmaster further
warrants that the System to be installed
in the Market Area will be substantially the same as, and will be capable of performing (if
used with the same equipment and
subject to limitations based on size and capacity) as, the basic system currently being
operated by Ticketmaster and its licensees
in San Francisco and Philadelphia. The System does not include certain custom enhancements  such as direct line credit card authorization, disaster recovery,
off-line archiving of accounts, nitrun,
remote VAXNET software and the TM fraud program, all of which may be purchased separately. IN THE EVENT OF ANY
BREACH OF THE WARRANTY CONTAINED IN  THE PREVIOUS SENTENCE, TICKETMASTER’S SOLE RESPONSIBILITY SHALL
BE TO USE ITS BEST EFFORTS TO CORRECT
THE SYSTEM SO THAT IT PERFORMS IN ALL MATERIAL RESPECTS IN THE MANNER DESCRIBED ABOVE. THE
WARRANTIES CONTAINED IN THIS PARAGRAPH
8 ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE.

 

User hereby warrants to
Ticketmaster that (i) it is a duly
organized and validly existing limited partnership under the laws of the State of Maryland;
(ii) it has all necessary power
and authority to execute and perform this Agreement in accordance with its terms; (iii) the
execution and performance of this
Agreement by it will not breach, constitute a default under or violate any of User’s governing
instruments or any agreement to which
it is a party or by which its assets may be bound; (iv) this Agreement is enforceable against
User in accordance with its terms; and (v) no
approvals or consents of  any third party (including any government agency) is necessary in
order for User to execute and deliver
this Agreement and to perform hereunder.

 

9.                                       Breach of Warranty.

 

(a)                                  Ticketmaster
shall, at its expense, defend any
action brought against User to the extent such action is based on a claim that the use of the System or the Mark directly infringes any service
mark, trademark, copyright or
patent (“Infringement Action”) and Ticketmaster
shall

 

6

 

pay any and all costs, expenses, damages, recoveries, deficiencies and attorneys’ fees awarded against User in any Infringement
Action; provided that (i) Ticketmaster’s
obligations under this Paragraph 9(a) are conditioned on User’s promptly notifying Ticketmaster of any Infringement Action (and all
claims relating thereto); and (ii) Ticketmaster
shall have sole control of the defense
and all negotiations for compromise of
any Infringement Action. Ticketmaster assumes no liability for the modification of the System, or any part thereof, unless such modification
is made by Ticketmaster.  THE FOREGOING STATES THE SOLE AND
EXCLUSIVE LIABILITY OF TICKETMASTER
AND THE EXCLUSIVE REMEDY OF USER FOR
SERVICE MARK, TRADEMARK, COPYRIGHT OR PATENT INFRINGEMENT.

 

(b)                                 User’s remedy
for any breach of warranty shall be
limited solely to the remedies provided in this Agreement.  All other liability, either in
contract or tort, is expressly disclaimed,
waived and negated. In no event shall Ticketmaster
be liable to User for any consequential
or exemplary damages resulting from a breach of any warranty contained in this Agreement or any implied warranty or any requirement existing
and applicable under the law, which
contrary to the intention of the parties hereto, the law status cannot be or is not disclaimed, waived or negated.

 

10.                                 Restrictive Covenants.

 

(a)                                  User recognizes
and acknowledges that the System and all
related materials furnished to User by Ticketmaster hereunder represent highly confidential, proprietary information of Ticketmaster
and constitutes a valuable, special
and unique asset of and to the business
of Ticketmaster. User covenants and agrees that, during and after the term hereof, no information, source
materials, design specifications, programs, flow charts, listings, magnetic tapes, disks,
punched cards, documentation or other supporting or related materials and information of any nature or
description whatsoever relating to the design
and operation of the System, or any
portion thereof, are made available or disclosed by User, its general partner or any of their principals, officers, directors, employees, agents
or representatives, directly or
indirectly, to any other person, firm or corporation, for any reason or purpose whatsoever or, directly or indirectly, used by User,
its general partner, or any of
their principals, employees, agents or representatives;
provided, however, that user may disclose pertinent portions of the System to those of its employees, agents
or representatives who have a need to have access to such portions of the System in order to enable User to use the

 

7

 

System within the Market Area, and further provided that the foregoing
restrictions shall not apply to information within the public domain.  Ticketmaster shall have the right to bring
legal action to prevent a breach or threatened breach of this confidentiality
agreement and to pursue any other legal or equitable remedies for any such
breach or threatened breach,  and User
shall reimburse Ticketmaster for all costs and expenses, including but not
limited to attorneys’ fees, incurred by Ticketmaster with respect thereto. User
shall notify Ticketmaster of any such breach immediately upon discovery of such
breach.  Additionally, User shall use the
System only in accordance with the terms and conditions hereof; and after the
expiration of the term hereof, or earlier termination of this Agreement, User
shall: (i) cease all use of the System, the Mark and all related materials
furnished hereunder by Ticketmaster, (ii) return to Ticketmaster all
information, source materials, design specifications, programs, flow charts,
listings, magnetic tapes, disks, punched cards, documentation and other
supporting or related materials relating to the System (and copies thereof) ,  (iii) warrant that all such documentation
and materials (and copies thereof) have been returned to Ticketmaster or have
been destroyed, and (iv) warrant that any and all use of the Mark has ceased.

 

(b)                                 During the term  of
this Agreement, neither User, its general partner, nor any of their principal’s
subsidiaries, affiliates, successors or assigns shall, directly or indirectly, as  principal, agent, shareholder, partner,
joint venturer, investor or in any other capacity or by any other means whatsoever, (i) compete
with Ticketmaster or its affiliates within the Market Area in the computerized
ticketing business or (ii) solicit the employment by User, its general
partner, or any of their principals, subsidiaries, affiliates, successors or assigns of any employee of
Ticketmaster or its affiliates.

 

(c)                                  User acknowledges
that the remedy at law for any breach or threatened breach of the agreements
and covenants set forth in this Paragraph 10 will be inadequate, and Ticketmaster
shall be entitled to preliminary and permanent injunctive relief in any court of competent
jurisdiction, without the requirement of posting bond or any other condition
precedent thereto, for any breach or threatened breach of the agreements and
covenants contained in this Paragraph 10. Such remedy shall be in addition to, and
not in limitation of, any other remedy available to Ticketmaster at law, in
equity or otherwise, and may be obtained by Ticketmaster notwithstanding any

 

8

 

assertion by User that Ticketmaster’s claims to proprietary rights in
its confidential information is invalid or unenforceable.

 

(d)                                 Termination or
expiration of this Agreement shall not terminate the continuing confidentiality
obligations imposed upon User, its employees, servants and agents by the terms
of this Paragraph 10.

 

(e)                                  At Ticketmaster’s
request, User shall require each person permitted access to any of the
confidential information to execute a confidentiality agreement in such form and containing such terms as
Ticketmaster shall determine.

 

11.                                 Termination.

 

(a)                                  This Agreement
may be immediately terminated by Ticketmaster if:

 

(i)                                   User shall dissolve
or commence winding up its activities to
effect dissolution, liquidation or termination, or shall make an
assignment for the benefit of creditors, or shall admit, in writing, its
inability to pay its debts as they become due, or shall file a voluntary
petition in bankruptcy, or shall be adjudicated a bankrupt or insolvent or
shall file any petition or answer seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
present or future statute, law or regulation, or shall file any answer
admitting or not contesting the material allegations of a petition filed against
it in any such proceedings, or shall seek, consent to or acquiesce in the
appointment of any trustee, receiver or liquidator of User or of all or any substantial
part of the properties of User;

 

(ii)                                User, its general
partner (or any of their principals, officers, directors, employees, agents or
representatives) shall breach, or threaten to breach, any of the
confidentiality obligations of User or any of them set forth in Paragraph 10
hereof; or

 

(iii)                             User shall fail
to pay when due any amounts owing Ticketmaster under, or to observe or perform
any terms or conditions of, this Agreement (other than Paragraph 10); provided,
that any such failure shall continue for a

 

9

 

period of seven (7) days after Ticketmaster has given written
notice thereof to User.

 

(b)                                 This Agreement
may be immediately terminated by User if Ticketmaster shall dissolve or
commence winding up its activities to effect dissolution, liquidation or termination,
or shall make an assignment for the benefit of creditors, or shall admit, in
writing, its inability to pay its debts as they become due, or shall file a voluntary
petition in bankruptcy, or shall be adjudicated a bankrupt or insolvent or shall
file any petition or answer seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or
future statute, law or regulation, or shall file any answer admitting or not contesting
the material allegations of a petition filed against it in any such
proceedings, or shall seek, consent to acquiesce in the appointment of any trustee,
receiver or liquidator of Ticketmaster or of all or any substantial part of the
properties of Ticketmaster.

 

(c)                                  Upon any such
termination, (i) any past due or currently due payments (including Additional
Payments for the period from the beginning of the then current License Year
through the date of termination) shall become due and payable (or, if
applicable, prepaid Base Payments for the remainder of the current License Year
quarter shall be reimbursed), and (ii) this Agreement and the license
granted hereby shall forthwith be revoked and of no further force or effect
except as stated otherwise herein. Ticketmaster’s and User’s  right to terminate this Agreement shall be
in addition to and without prejudice to any other remedies such party may have,
except as otherwise specifically provided herein.

 

(d)                                 Immediately
upon any such  termination User shall surrender
to Ticketmaster, and Ticketmaster shall have the right peacefully to take,
possession of the System, and User shall further cease to use the Mark. Ticketmaster
shall thereafter own and hold the System and the Mark free of any claim or
interest of User. Without limiting the generality of the foregoing, User shall immediately
after any such termination legally change its name so that its name shall no longer
include the word “Ticketmaster” or any derivation thereof.  User shall indemnify and hold Ticketmaster
harmless from and against any claim, loss, expense (including reasonable attorneys’
fees) or liability whatsoever resulting from, due to or arising by reason of
any misuse of the System or Mark by User in any manner.

 

10

 

12.                               Enhancements
and support; Source Code.

 

(a)                                 In the event
that the System shall, at any time during the term of this Agreement, fail to
perform in the manner warranted by Ticketmaster in Paragraph 8 hereof,
Ticketmaster shall, at no charge to User, correct the System in the manner
provided in said Paragraph 8.

 

(b)                                In the event
that Ticketmaster shall, at any time during the term of this Agreement, develop
and complete testing of enhancements to the version of software comprising a
part of the System then being used by User, and Ticketmaster shall make such
enhancement available to its non-affiliated licensees on a general basis,
Ticketmaster shall also make such enhancement available to User in
consideration of the payment by User of any and all out-of-pocket expenses
incurred by Ticketmaster (including, without limitation thereby, costs of
materials and personnel) in connection with making such enhancement available
to User, as well as the costs of all necessary new equipment.

 

(c)                                 In the event
that Ticketmaster shall, at any time during the term of this Agreement, offer
to User, and User shall elect to receive, an upgrade to or improved version of
the software used in the System, the implementation of which would require a
conversion of User’s database, User shall pay to Ticketmaster the sum of
$30,000 U.S. therefor, and Ticketmaster shall effect such conversion for and on
behalf of User.

 

(d)                                In the event
that User shall, at any time during the term of this Agreement, request that
Ticketmaster develop custom enhancements to the System to meet certain specific
performance criteria reasonably requested by User, Ticketmaster shall use its
reasonable efforts to cause such custom enhancements to be developed by its
programmers in consideration of the payment by User to Ticketmaster of the
prevailing rate then being charged by Ticketmaster to its other non-affiliated
licensees.

 

(e)                                 In addition to
any other fees payable by it to Ticketmaster pursuant to this Paragraph 12,
User shall be responsible, and shall immediately reimburse Ticketmaster upon
invoice, for any and all expenses (including travel) incurred by Ticketmaster’s
employees, agents and representatives pursuant to or in connection with
Ticketmaster’s performance under Paragraph 12(b), (c) and (d) above.

 

(f)                                   During the term
of this Agreement Ticketmaster shall furnish User with the access code to the
System at least

 

11

 

30 days prior to the date
upon which that access code is to take effect.

 

13.                                 Documentation. Ticketmaster
will supply User with documentation which will enable User, after the initial
training of its personnel, to operate the System.

 

14.                               Equipment. During the
term of this Agreement, User shall have the right to purchase all equipment it
may require from time to time to be used entirely or in material part with the
System from or through Ticketmaster. The cost of any such equipment which is
manufactured by a party other than by Ticketmaster shall be at Ticketmaster’s
cost plus ten percent (10%). The cost of any such equipment manufactured in
whole or in part for or by Ticketmaster shall be at Ticketmaster’s then current
market rate to its non-affiliated licensees for such equipment. The cost of
delivering and installing such equipment shall be borne solely by User.

 

15.                               Indemnification. User shall
indemnify and  hold Ticketmaster, and its
subsidiaries, affiliates, successors, assigns, officers, directors, employees,
representatives and agents, harmless from and against any and all losses, liabilities,
damages, claims, actions, causes of action and expenses (including reasonable
attorneys’ fees) that said indemnified parties may incur or be responsible for
as a result or by virtue of the operation of User, including, without
limitation thereby, User’s use of the System, but excluding those costs,
expenses, damages, recoveries, deficiencies and attorneys fees awarded in any
Infringement Action  pursuant to
Paragraph 10(a) above.

 

16.                               Right of First Refusal. User and, by
their execution of this Agreement in the space provided below, the holders of
all of the general and limited partnership interests of User (the “Partners”),
agree that in the event (i) User receives an offer from a third party to
purchase for cash or other property any or all of the assets of User (including
this Agreement) or (ii) the Partners, or any of them, receive an offer
from a third party to purchase for cash or other property any or all of the general
or limited partnership interests of User, which either User or the Partners
wish to accept, User or the Partners, as applicable, will cause such offer to
be reduced to writing and shall deliver written notice of such offer to
Ticketmaster. Ticketmaster may designate one or more persons to accept the
right of first refusal contained in this Section 16. The notice from User
or the Partners shall also contain an irrevocable offer by them to sell the  covered assets or partnership interests to Ticketmaster or its
designees at a price equal to the price, and upon substantially the same terms
and conditions as the terms and conditions contained in, the offer transmitted
with the notice; provided, however, that if the price is not payable solely in
cash, then User or the Partners, as applicable, shall advise Ticketmaster of
the reasonable value Ticketmaster of such non-cash consideration (which
reasonable value Ticketmaster

 

12

 

may
contest) and Ticketmaster shall be permitted to deliver cash in the amount
thereof in substitution for such non-cash consideration. Ticketmaster or its
designees shall have the right and option, exercisable within 15 days after
delivery of the notice from User or the Partners, to accept such offer as to
all, but not less than all, of the assets or partnership interests affected by
the offer. The closing of the purchase of the assets or partnership interests
covered by the offer by Ticketmaster or its designees shall take place at the
principal office of Ticketmaster (or such other place as may be agreed upon by the
parties) on the fifth business day after the expiration of the 15-day period
following the giving of the notice. At such closing, Ticketmaster or its
designees shall make payment of the purchase price against delivery of the
assets or partnership interests covered by the offer, together with appropriate
instruments of assignment and transfer. If at the end of the 15-day period
following the giving of notice by User or the Partners, neither Ticketmaster nor
its designees have accepted the offer as to all of the assets and partnership
interests covered by the offer, then User and the Partners shall have 20 days
in which to sell the assets or the partnership interests covered by the offer
at a price equal to that contained in the notice and upon terms and conditions
not more favorable to the offeror than were contained in the notice. If, at the
end of such 20-day period, User or the Partners have not completed the sale of
the assets or the partnership interests covered by the offer, then they shall
no longer be permitted to sell such assets or partnership interests pursuant to
this Section 16 without again fully complying with the provisions of this
Section 16. During the term of this Agreement, User shall keep this Agreement
free and clear of any liens, pledges, security interests and encumbrances of
any kind of nature whatsoever, and the Partners shall neither sell, assign,
transfer, give, donate or otherwise dispose of their partnership interests
(except in accordance with the terms of this section 16).

 

17.                                 Assignment. User may not
assign its rights, duties, and/or obligations hereunder, nor may the System, the
Mark or any  materials furnished by Ticketmaster
hereunder be transferred, assigned, sublicensed or otherwise disposed of by
User, without the prior written consent of Ticketmaster; provided, however,
that User may assign this Agreement to an entity controlled by, controlling or
under common control with User solely as part of an internal reorganization of
User and its affiliates so long as such entity becomes a party to and agrees to
be bound by the terms and conditions of this Agreement.

 

18.                                 Binding Effect. This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective, successors and assigns.

 

19.                                 Entire Agreement; Amendment. This
Agreement constitutes the entire agreement between the parties hereto relative
to the

 

13

 

subject matter hereof, and supersedes any and all prior agreements,
written or oral, between the parties relating to such subject matter. No
modifications or amendments of any of the terms hereof shall be valid or
binding unless made in writing and signed by Ticketmaster and User.

 

20.                                Waiver. No waiver of
any breach of any provision of this Agreement shall constitute a waiver of any
prior, concurrent or subsequent breach of the same or any other provision
hereof, and no waiver shall be effective unless made in writing.

 

21.                                Attorneys’ Fees. In case of
any action or proceeding to compel compliance with, or for a breach of, the
provisions of this Agreement, the prevailing party shall be entitled to recover  from  the other
party all costs of such action or proceeding including, but not limited to,
reasonable attorneys’ fees.

 

22.                                 Notices. All notices which
are required or  permitted hereunder shall be
sufficient if given in writing and delivered personally, by telecopy or by
registered or certified mail, postage prepaid, addressed to the party receiving
such notice at the following address or at such other address as may be
requested in writing by either party pursuant to this Paragraph 22:

 

	
  If to Ticketmaster, to:

  	
   

  	
  Ticketmaster Corporation

  
	
   

  	
   

  	
  3701 Wilshire Boulevard

  
	
   

  	
   

  	
  7th Floor

  
	
   

  	
   

  	
  Los Angeles, California 90010

  
	
   

  	
   

  	
  Attn: 

  	
  Fredric D. Rosen

  
	
   

  	
   

  	
   

  	
  Ned S. Goldstein

  
	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
  Neal Gerber & Eisenberg

  
	
   

  	
   

  	
  Two North LaSalle Street

  
	
   

  	
   

  	
  Suite 2200

  
	
   

  	
   

  	
  Chicago, Illinois 60602

  
	
   

  	
   

  	
  Attn: 

  	
  Norman J. Gantz, Esq.

  
	
   

  	
   

  	
   

  
	
  If to User, to:

  	
   

  	
  Ticketmaster Group Limited Partnership

  
	
   

  	
   

  	
  c/o Abe Pollin Tickets, Inc. 

  
	
   

  	
   

  	
  One Harry S. Truman Drive

  
	
   

  	
   

  	
  Landover, Maryland 20785

  
	
   

  	
   

  	
  Attn: 

  	
  Abe Pollin

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Arent Fox Kintner Plotkin & Kahn

  
	
   

  	
   

  	
  1050 Connecticut Avenue, N.W.

  
	
   

  	
   

  	
  Washington, D.C. 20036

  
	
   

  	
   

  	
  Attn: 

  	
  David M. Osnos and

  
	
   

  	
   

  	
   

  	
  Daniel F. Van Horn

  

 

23.                                 Severability. If any provision
of this Agreement shall be held invalid or unenforceable by any court of
competent

 

14

 

jurisdiction, the
remaining provisions of this Agreement shall remain in full force and effect.  Further, should any provision of this Agreement
be deemed unenforceable by virtue of its scope, such provision shall be deemed
limited to the extent necessary to render the same enforceable.

 

24.                                 Law to Govern. The validity construction and
enforceability of this Agreement shall be governed in all respects by the laws
of the State of Illinois, without regard to its conflict of laws rules. Any
legal proceeding or other action taken or to be taken by any of the parties hereto
relative to this Agreement or the transactions contemplated hereby, or to
enforce or interpret the terms and conditions of this Agreement, shall be
instituted in a state or Federal court located in Cook County, Illinois.  The parties hereto hereby irrevocably consent to the jurisdiction of any such court
and irrevocably waive, to the fullest extent that they may effectively do so,
the defense of an inconvenient forum to the maintenance of such proceeding or
action.  The parties hereto agree that a
final judgment, from which no further appeal may be taken or from which no
further petition for review may be filed, in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgement
or in any other manner provided by law.

 

25.                                 Headings. The headings of paragraphs in this Agreement have
been inserted for the convenience of reference only and shall in no way
restrict or otherwise modify the terms of this Agreement.

 

26.                                 Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be an original, but each
of which together shall constitute one and the same document.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

 

	
   

  	
  TICKETMASTER CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TICKETMASTER GROUP LIMITED

  PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:   AP
  TICKETS, INC.,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Authorized
  Signatory

  
	
   

  	
   

  	
   

  
				

 

15

 

AGREED TO AS OF THE DATE

HEREOF FOR PURPOSES OF

SECTION 16

 

GENERAL PARTNER:

 

AP TICKETS,  INC.,

a Maryland corporation

 

 

	
  By:

  	
  /s/ Authorized
  Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LIMITED PARTNER:

  	
   

  
	
   

  	
   

  
	
  CENTER GROUP LIMITED PARTNERSHIP,

  a Maryland limited partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Abe Pollin Sports,  Inc.,

  its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Authorized
  Signatory

  	
   

  
	
   

  	
   

  	
   

  

 

16

 

EXHIBIT I

 

MARKET AREA

 

(a)                            The State of
Maryland.

 

(b)                           Washington, D.C.,
and

 

(c)                            The independent
cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park,  and the Counties of Arlington, Loudoun, Fairfax and Prince
William, in the Commonwealth of Virginia.

 

 

EXHIBIT II

 

ASSIGNED AGREEMENTS

 

Centre
Group Limited
Partnership (Capital Centre)

Stage
Right Production

Baltimore
Museum of Art

Fast
Lane Presents

The
Washington Savoyards

The
Washington Performing Arts Society

L’ Afrique, Inc. (The
Kilimanjaro Club)

InterArt Project

Centre
Group Limited Partnership (Baltimore Arena)

DAR
Constitution Hall

Washington
Ballet, Inc.

D.C.
Armory Board (R.F.K.
Stadium and D.C. Armory)

Morgan
State University Fine Arts

The
National Aquarium in Baltimore, Inc.

G
Street Express

Centre
Group Limited Partnership (Patriot Center)

Col
Arts Associates, Inc. (Merriweather Post Pavilion)

George
Washington University (Lisner Auditorium, Smith Center)

Lyric
Opera House

Towson
State University

The
American University (Khashoggi Center)

The
Kemper Open Golf Tournament

The
Baltimore Zoo

Blues
Alley

Birchmere Inc.

Cellar
Door Productions

Alden
Theatre (no contract)

The
Bayou (no contract)

Ford’s
Theatre

Hammerjacks

The
Kennedy Center

The
Olney Theatre

Pier
6

TicketPlace
(no contract)

University
of Maryland

Washington
Performing Arts Society

Wild
World

John
Yates Productions (no contract)

Wolf
Trap Barns (no contract)

Wolf Trap Filene Center (no contract)

BACI
Productions

Dimensions
Unlimited

IMP/9:30
Club (no contract)

Meyerhoff
Symphony Hall (no contract)Exhibit 10.18

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (“Agreement”) is entered into by and between Brian Regan (“Employee”)
and Ticketmaster L.L.C., a Virginia limited liability company (the “Company”),
as of May 19, 2008 and shall be effective as of June 9, 2008 (the “Effective
Date”).

 

WHEREAS, the
Company desires to establish its right to the services of Employee, in the
capacity described below, on the terms and conditions hereinafter set forth,
and Employee is willing to accept such employment on such terms and conditions.

 

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

 

1A.          EMPLOYMENT.  The Company agrees to employ Employee as EVP,
Chief Financial Officer and Employee accepts and agrees to such
employment.  During Employee’s employment
with the Company, Employee shall do and perform all services and acts necessary
or advisable to fulfill the duties and responsibilities as are commensurate and
consistent with Employee’s position and shall render such services on the terms
set forth herein.  Employee shall render
such other services for the Company and corporations controlled by, under
common control with or controlling, directly or indirectly, the Company, and to
successor entities and assignees of the Company (each, a “Company Affiliate”)
as the Company may from time to time reasonably request and as shall be
consistent with the duties Employee is to perform form the Company and with
Employee’s experience.  During Employee’s
employment with the Company, Employee shall report directly to the President
and CEO, currently Sean Moriarty, or such other person as from time to time may
be designated by the Company (hereinafter referred to as the “Reporting Officer”)
and shall maintain current or a comparable title at the discretion of the
Company.  Employee shall have such powers
and duties with respect to the Company as may reasonably be assigned to
Employee by the Reporting Officer, to the extent consistent with Employee’s
position and status.  Employee agrees to
devote all of Employee’s working time, attention and efforts to the Company and
to perform the duties of Employee’s position in accordance with the Company’s
policies as in effect from time to time.

 

2A.          TERM OF AGREEMENT.  The term (“Term”) of this Agreement shall
commence on the Effective Date and shall continue until for a period of three (3) years,
unless sooner terminated in accordance with the provisions of Section 1 of
the Standard Terms and Conditions attached hereto. For the avoidance of doubt,
the parties’ post-termination obligations including but not limited to the
confidentiality, covenant not to compete, consulting, non-solicitation of
employees, and non-solicitation of clients provisions in the Agreement shall
survive the Term of Employee’s employment hereunder.

 

3A.          COMPENSATION.

 

(a)           BASE SALARY.  During the Term, the Company shall pay
Employee an annual base salary of $375,000 (the “Base Salary”), payable in
equal biweekly installments or in accordance with the Company’s payroll
practice as in effect from time to time. 
For all purposes under this Agreement, the term “Base Salary” shall
refer to Base Salary as in effect from time to time.

 

(b)           SIGNING BONUS.  The Company shall pay Employee a signing
bonus in the amount of $175,000, payable the first pay-period following
Employee’s start date.  Such signing
bonus is subject to forfeiture in the event Employee resigns without Good
Reason or is terminated for cause prior to the first anniversary of Employee’s
start date.

 

(c)           DISCRETIONARY BONUS.  During the Term, Employee shall be eligible
to receive discretionary annual bonuses. 
Employee shall receive a minimum annual bonus in 2009 of $175,000,
provided Employee is employed at such time that bonuses for similarly situated
employees are paid.

 

1

 

(d)           RESTRICTED STOCK
UNITS. Employee will receive under IAC’s Stock & Annual Incentive
Plan an award of restricted stock units (the “Restricted Stock Units”)
representing shares of common stock of IAC/InterActiveCorp in the amount of
20,000 units, subject to the approval of the Compensation/Benefits Committee of
the Board of Directors of IAC/InterActiveCorp. The award will be governed by a
Restricted Stock Unit agreement.

 

(e)           STOCK OPTIONS. Employee
will receive under IAC’s Stock & Annual Incentive Plan an award of
stock options (the “Stock Options”) representing shares of common stock of
IAC/InterActiveCorp in the amount of 150,000 options, subject to the approval
of the Compensation/Benefits Committee of the Board of Directors of
IAC/InterActiveCorp. The award will be governed by a Stock Options agreement.

 

(f)            BENEFITS.  From the Effective Date through the date of
termination of Employee’s employment with the Company for any reason, Employee
shall be entitled to participate in any welfare, health and life insurance and
pension benefit and incentive programs as may be adopted from time to time by
the Company.  Without limiting the
generality of the foregoing, Employee shall be entitled to the following
benefits:

 

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

 

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

 

(iii)          Relocation Expenses.  Except as otherwise prohibited by applicable
law or regulations, the Company shall provide relocation assistance to Employee
per the IAC / Ticketmaster Relocation Policy.

 

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

 

	
  If to the Company:

  	
   

  	
  Ticketmaster L.L.C.

  
	
   

  	
   

  	
  8800 Sunset Boulevard

  
	
   

  	
   

  	
  West Hollywood, CA
  90069

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  InterActiveCorp.

  
	
   

  	
   

  	
  555 West 18th Street

  
	
   

  	
   

  	
  New York, New York
  10011

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
   

  
	
  If to Employee:

  	
   

  	
  6910 Fairway Pl SE

  
	
   

  	
   

  	
  Snoqualmie, WA 98065

  

 

 

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

 

2

 

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

 

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

 

IN WITNESS
WHEREOF, the Company has caused this Agreement to be executed and delivered by
its duly authorized officer and Employee has executed and delivered this Agreement
as of May 21, 2008

 

 

TICKETMASTER
L.L.C.

8800 Sunset
Boulevard

West Hollywood,
CA  90069

 

 

	
  By:

  	
  /s/ Beverly Carmichael

  	
   

  	
  By: 

  	
  /s/ Brian Regan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Beverly Carmichael

  	
   

  	
  Name:

  	
  Brian Regan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  SVP, Human
  Resources & Chief People Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

STANDARD TERMS AND
CONDITIONS

 

1.             TERMINATION OF
EMPLOYEE’S EMPLOYMENT.

 

(a)           DEATH.  In the event Employee’s employment hereunder
is terminated by reason of Employee’s death, the Company shall pay Employee’s
designated beneficiary or beneficiaries, within 30 days of Employee’s death in
a lump sum in cash, Employee’s Base Salary through the end of the month in
which death occurs and any Accrued Obligations (as defined in paragraph 1(f) below).

 

(b)           DISABILITY.  If, as a result of Employee’s incapacity due
to physical or mental illness (“Disability”), Employee shall have been absent
from the full-time performance of Employee’s duties with the Company for a
period of four consecutive months and, within 30 days after written notice is
provided to Employee by the Company (in accordance with Section 4A above),
Employee shall not have returned to the full-time performance of Employee’s
duties, Employee’s employment under this Agreement may be terminated by the
Company for Disability.  During any
period prior to such termination during which Employee is absent from the
full-time performance of Employee’s duties with the Company due to Disability,
the Company shall continue to pay Employee’s Base Salary at the rate in effect
at the commencement of such period of Disability, offset by any amounts payable
to Employee under any disability insurance plan or policy provided by the
Company.  Upon termination of Employee’s
employment due to Disability, the Company shall pay Employee within 30 days of
such termination (i) Employee’s Base Salary through the end of the month
in which termination occurs in a lump sum in cash, offset by any amounts
payable to Employee under any disability insurance plan or policy provided by
the Company; and (ii) any Accrued Obligations (as defined in paragraph 1(f) below).

 

(c)           TERMINATION FOR
CAUSE.  The Company may terminate
Employee’s employment under this Agreement for Cause at any time prior to the
expiration of the Term.   As used herein,
“Cause” shall mean:   (i) the plea
of guilty or nolo contendere to, or conviction for, the commission of a felony
offense by Employee; provided, however, that after indictment,
the Company may suspend Employee from the rendition of services, but without
limiting or modifying in any other way the Company’s obligations under this
Agreement; (ii) a material breach by Employee of a fiduciary duty owed to
the Company; (iii) a material breach by Employee of any of the covenants
made by Employee in Section 2 hereof; (iv) the willful or gross
neglect by Employee of the material duties required by this Agreement; (v) unsatisfactory
performance of Employee’s duties or responsibilities as determined by the
Company’s Board of Directors; provided that
the Company has given Employee written notice specifying the unsatisfactory
performance of his duties and responsibilities, which remains uncorrected by
the Employee after the lapse of 30 days following the receipt of the written
notice (vi) a material breach by the Employee of his duty not to engage in
any transaction that represents, directly or indirectly, self-dealing with the
Company or any Company Affiliates which has not been approved by a majority of
the disinterested directors of the Company’s Board of Directors, if such
material breach remains uncured after the lapse of 30 days following the date
that the Company has given the Employee written notice thereof; (vii) any
act of misappropriation, embezzlement, intentional fraud or similar contact
involving the Company or any Company Affiliates; (viii) intentional
infliction of any damage of a material nature to any property of the Company or
any Company Affiliates; (ix) a violation of any Company policy pertaining
to ethics, wrongdoing or conflicts of interest; and (x) the repeated
non-prescription abuse of any controlled substance which, in any case described
in this clause, the Company’s Board of Directors reasonably determines renders
the Employee unfit to serve in his capacity as an officer or employee of the
Company or any Company Affiliates.  In
the event of Employee’s termination for Cause, this Agreement shall terminate
without further obligation by the Company, except for the payment of any
Accrued Obligations (as defined in paragraph 1(f) below).

 

(d)           TERMINATION BY THE
EMPLOYEE FOR GOOD REASON.  The
Employee may terminate this Agreement at any time prior to the expiration of
the Term for Good Reason, which 

 

4

 

is defined as any
of the following: (i) failure of the Company to comply with a material
item in the agreement; (ii) a substantial or unusual increase in the
Employee’s duties and responsibilities without an offer of additional
reasonable compensation as determined by the Company; (iii) a substantial
or unusual decrease in the Employee’s duties, responsibilities and/or compensation.  Prior to the Employee’s termination of this
Agreement for Good Reason, the Employee must provide the Company with thirty
(30) days advance written notice in which the Company may attempt to resolve
the issue.

 

(e)           TERMINATION BY THE
COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE.  If Employee’s employment is terminated by the
Company for any reason other than Employee’s death or Disability or for Cause,
then (i) the Company shall pay Employee the Base Salary through the end of
the Term over the course of the then remaining Term; and (ii) the Company
shall pay Employee within 30 days of the date of such termination in a lump sum
in cash any Accrued Obligations (as defined in paragraph 1(f) below).  The payment to Employee of the severance
benefits described in this Section 1(d) shall be subject to Employee’s
execution and non-revocation of a general release of the Company and its
affiliates in a form substantially similar to that used for similarly situated
executives of the Company and its affiliates.

 

(f)            MITIGATION; OFFSET.  In the event of termination of Employee’s
employment prior to the end of the Term, Employee shall use reasonable best
efforts to seek other employment and to take other reasonable actions to
mitigate the amounts payable under Section 1 hereof.  If Employee obtains other employment during
the Term, the amount of any payment or benefit provided for under Section 1
hereof which has been paid to Employee shall be refunded to the Company by
Employee in an amount equal to any compensation earned by Employee as a result
of employment with or services provided to another employer after the date of
Employee’s termination of employment and prior to the otherwise applicable
expiration of the Term, and all future amounts payable by the Company to
Employee during the remainder of the Term shall be offset by the amount earned
by Employee from another employer.  Any
non-cash compensation (including unvested equity) received from a subsequent
employer will not be considered as compensation to be offset against amounts
paid or to be paid to Employee in the event of termination without cause.  For purposes of this Section 1(e),
Employee shall have an obligation to inform the Company regarding Employee’s
employment status following termination and during the period encompassing the
Term.

 

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

 

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

 

(a)           CONFIDENTIALITY.  Employee acknowledges that while employed by
the Company Employee will occupy a position of trust and confidence.  Employee shall not, except as may be required
to perform Employee’s duties hereunder or as required by applicable law,
without limitation in time or until such information shall have become public
other than by Employee’s unauthorized disclosure, disclose to others or use,
whether directly or indirectly, any Confidential Information regarding the
Company or any of its subsidiaries or affiliates.  “Confidential Information” shall mean
information about the Company or any of its subsidiaries or affiliates, and
their clients and customers that is not disclosed by the Company or any of its
subsidiaries or affiliates for financial reporting purposes and that was
learned by Employee in the course of employment by the Company or any of its
subsidiaries or affiliates, including (without limitation) any proprietary
knowledge, trade secrets, data, formulae, information and client and customer 

 

5

 

lists and all
papers, resumes, and records (including computer records) of the documents
containing such Confidential Information. 
Employee acknowledges that such Confidential Information is specialized,
unique in nature and of great value to the Company and its subsidiaries or
affiliates, and that such information gives the Company and its subsidiaries or
affiliates a competitive advantage. 
Employee agrees to deliver or return to the Company, at the Company’s
request at any time or upon termination or expiration of Employee’s employment
or as soon thereafter as possible, all documents, computer tapes and disks,
records, lists, data, drawings, prints, notes and written information (and all
copies thereof) furnished by the Company and its subsidiaries or affiliates or
prepared by Employee in the course of Employee’s employment by the Company and
its subsidiaries or affiliates.  As used
in this Agreement, “subsidiaries” and  “affiliates”
shall mean any company controlled by, controlling or under common control with
the Company.

 

(b)           POST-SEPARATION COOPERATION.  During the one year period commencing immediately
upon the termination of Employee’s employment for any reason (other than
termination resulting from Employee’s death), Employee shall be available for
consultation with the Company and its subsidiaries and affiliates concerning
their general operations and the industries in which they engage in business,
as may be reasonably required without jeopardizing Employee’s then full-time,
non-Ticketmaster Business employment opportunities; provided, however, that
Employee shall not be obligated to devote more than 24 hours during such one
year period to the performance of such duties. 
The Company agrees to reimburse Employee for all reasonable and
necessary business expenses incurred by Employee in the performance of such
consultation in accordance with the Company’s reimbursement policy, including,
without limitation, the submission of supporting evidence as reasonably
required by the Company.

 

(c)           NON-SOLICITATION OF
EMPLOYEES.  Employee recognizes that
he will possess confidential information about other employees of the Company
and its subsidiaries or affiliates relating to their education, experience,
skills, abilities, compensation and benefits, and inter-personal relationships
with suppliers to and customers of the Company and its subsidiaries or
affiliates.  Employee recognizes that the
information he will possess about these other employees is not generally known,
is of substantial value to the Company and its subsidiaries or affiliates in
developing their respective businesses and in securing and retaining customers,
and will be acquired by Employee because of Employee’s business position with
the Company.  Employee agrees that,
during Employee’s employment and during the period commencing immediately upon
the termination of Employee’s employment for any reason and ending on the later
of (i) the end of the Term and (ii) the second anniversary of the
date of termination of Employee’s employment (the “Non-Solicit Period”),
Employee will not, directly or indirectly, solicit or recruit any employee of
the Company or any of its subsidiaries or affiliates for the purpose of being
employed by Employee or by any business, individual, partnership, firm,
corporation or other entity on whose behalf Employee is acting as an agent,
representative or employee and that Employee will not convey any such
confidential information or trade secrets about other employees of the Company
or any of its subsidiaries or affiliates to any other person except within the
scope of Employee’s duties hereunder. The mere fact that Employee is an
employee of a company, business, partnership, firm, corporation or other entity
soliciting employees of the Company, without the Employee’s involvement in the
solicitation, will not cause Employee to violate this provision.

 

(d)           NON-COMPETITION.  During Employee’s employment and during the
Non-Solicit Period, Employee shall not, without the prior written consent of
the Company, directly or indirectly engage in or assist any activity which is
the same as, similar to or competitive with the Ticketmaster Businesses (other
than on behalf of the Company or any of its subsidiaries or affiliates)
including, without limitation, whether such engagement or assistance is an
officer, director, proprietor, employee, partner, investor (other than as a
holder of less than 5% of the outstanding capital stock of a publicly traded
corporation), guarantor, consultant, advisor, agent, sales representative or
other participant, anywhere in the world that the Company or any of its
subsidiaries or affiliates has been engaged, including, without limitation, the
United States, Canada, Mexico, England, 

 

6

 

Ireland, Scotland,
Europe, Australia and China.  Nothing
herein shall limit Employee’s ability to own interests in or manage entities
which sell tickets as an incidental part of their primary business (e.g. cable
networks, on-line computer services, sports teams, arenas, hotels, cruise
lines, theatrical and movie productions and the like) and which do not hold
themselves out generally as competitors of the Company or any of its
subsidiaries or affiliates.  The “Ticketmaster
Businesses” are defined as (A) the principal businesses of the Company as
of the date hereof, namely (i) the computerized sale and/or resale of
tickets for sporting, theatrical, live theatrical, live events, musical or any
other events on behalf of various venues and promoters through distribution
channels currently being utilized by the Company or any of its subsidiaries or
affiliates, (ii) the provision of fan club and marketing services to
artists, and (iii) the promotion of live events, and (B) the
principal businesses of the Company at the time that the Employee ceases to be
a Company employee.  The determination of
the principal businesses of the Company at the time the Employee ceases to be a
Company employee will be made with reference to the definition of the principal
businesses as of the date hereof in terms of the relative importance of the
businesses to the Company at that time compared to its other activities.

 

(e)           NON-SOLICITATION OF
CUSTOMERS.  During Employee’s
employment and during the Non-Solicit Period, Employee shall not solicit any
Customers of the Company or any of its subsidiaries or affiliates or encourage
(regardless of who initiates the contact) any such Customers to use the
facilities or services of any competitor of the Company or any of its
subsidiaries or affiliates.  “Customer”
shall mean any person who engages the Company or any of its subsidiaries or
affiliates to sell, on its behalf as agent, tickets to the public.

 

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

 

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

 

(h)           REMEDIES FOR BREACH.  Employee expressly agrees and understands
that Employee will notify the Company in writing of any alleged breach of this
Agreement by the Company, and the Company will have 30 days from receipt of
Employee’s notice to cure any such breach. 
Employee expressly agrees and understands that the remedy at law for any
breach by Employee of this Section 2 will be inadequate and that damages
flowing from such breach are not usually susceptible to being measured in
monetary terms.  Accordingly, it is
acknowledged that upon Employee’s violation of any provision of this Section 2
the Company shall be entitled to obtain from any court of competent
jurisdiction immediate injunctive relief and obtain a temporary order 

 

7

 

restraining any
threatened or further breach as well as an equitable accounting of all profits
or benefits arising out of such violation. 
Nothing in this Section 2 shall be deemed to limit the Company’s
remedies at law or in equity for any breach by Employee of any of the
provisions of this Section 2, which may be pursued by or available to the
Company.

 

(i)            SURVIVAL OF
PROVISIONS.  The obligations
contained in this Section 2 shall, to the extent provided in this Section 2,
survive the termination or expiration of Employee’s employment with the Company
and, as applicable, shall be fully enforceable thereafter in accordance with
the terms of this Agreement.  If it is
determined by a court of competent jurisdiction in any state that any
restriction in this Section 2 is excessive in duration or scope or is
unreasonable or unenforceable under the laws of that state, it is the intention
of the parties that such restriction may be modified or amended by the court to
render it enforceable to the maximum extent permitted by the law of that state.

 

3.             TERMINATION OF
PRIOR AGREEMENTS.  This Agreement
constitutes the entire agreement between the parties and terminates and supersedes
any and all prior agreements and understandings (whether written or oral)
between the parties with respect to the subject matter of this Agreement.  Employee acknowledges and agrees that neither
the Company nor anyone acting on its behalf has made, and is not making, and in
executing this Agreement, the Employee has not relied upon, any
representations, promises or inducements except to the extent the same is
expressly set forth in this Agreement. 
Employee hereby represents and warrants that by entering into this
Agreement, Employee will not rescind or otherwise breach an employment
agreement with Employee’s current employer prior to the natural expiration date
of such agreement.

 

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

 

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

 

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

 

7.             WAIVER;
MODIFICATION.  Failure to insist upon
strict compliance with any of the terms, covenants, or conditions hereof shall
not be deemed a waiver of such term, covenant, or condition, nor shall any
waiver or relinquishment of, or failure to insist upon strict compliance with,
any right or power hereunder at any one or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.  This Agreement shall not be modified in any
respect except by a writing executed by each party hereto.  Notwithstanding anything to the contrary
herein, neither the assignment of Employee to a different Reporting Officer due
to a reorganization or an internal restructuring of the Company or its
affiliated companies nor a change in the title of the Reporting Officer shall
constitute a modification or a breach of this Agreement.

 

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

 

8

 

Agreement shall modify
the stricken terms as narrowly as possible to give as much effect as possible
to the intentions of the parties under this Agreement.

 

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

 

9

 

ACKNOWLEDGED AND AGREED:

 

	
  Dated as of:

  	
  May 21, 2008

  	
   

  	
   

  

 

 

TICKETMASTER
L.L.C.

8800 Sunset
Boulevard

West Hollywood,
CA  90069

 

 

	
  By:

  	
  /s/ Beverly Carmichael

  	
   

  	
  /s/ Brian Regan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Beverly Carmichael

  	
   

  	
  Brian Regan

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  SVP, Human
  Resources & Chief People Officer

  	
   

  	
   

  
					

 

10

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