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Exhibit 10.8    
    

 
  EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of November 21, 2003 by and between
Advanstar, Inc., a Delaware corporation (the "Company"), and Joseph Loggia ("Executive"), with
effectiveness from the Effective Date (as defined below in Section 8). 

        WHEREAS,
the Company currently operates certain trade exposition and publishing businesses; and 

        WHEREAS,
the Company wishes to continue to employ Executive and Executive is prepared to continue to serve in those capacities required by the Company. 

        NOW,
THEREFORE, the parties agree as follows: 

        1.    Position and Authority.    The Company agrees to employ Executive, and Executive accepts such employment and
agrees to serve the Company, Advanstar Communications Inc. ("ACI") and any of their respective Subsidiaries as may from time to time be requested
by the Company, in the capacities indicated, in consideration of the compensation and benefits detailed in Sections 3 and 4 hereof. From the Effective Date through December 31, 2003,
Executive will serve as the President and Chief Operating Officer of the Company, ACI, and any of their respective Subsidiaries as set forth above. In such capacity, Executive will report to the
Chairman and Chief Executive Officer of the Company. From and after January 1, 2004, Executive shall serve as Chief Executive Officer of the Company, ACI and any of their respective
Subsidiaries as may be requested from time to time by the Company. In such capacity, Executive shall report to the Board of Directors as a whole. A
"Subsidiary" shall be any company in which the Company beneficially owns more than 50% of the voting power of such company's outstanding voting
securities. 

        2.    Duties and Privileges.    

        (a)   Executive
shall devote substantially all of his business time (subject to four weeks of vacation, or such greater amount as is authorized by the Board of Directors) to
the affairs of the Company during the employment term, except as may be consented to by the Board of Directors. Executive shall perform such duties and responsibilities attendant to his positions as
described above. All senior management of the Company and ACI (other than, prior to January 1, 2004, the Chief Executive Officer) shall report, directly or indirectly as determined by
Executive, to Executive. Subject to travel requirements from time to time, Executive will report for work to the Company's offices in the greater Los Angeles area. Executive will not be required to
relocate his permanent residence outside of greater Los Angeles, California; provided that, if Executive and the Company agree that Executive will
relocate his permanent residence to the New York City metropolitan area (the "New Location") and perform his duties and responsibilities pursuant to the
terms of this contract at the Company's offices in the New Location, then Executive will not be required to relocate his permanent residence outside the New Location unless Executive and the Company
agree. In connection with the Executive's consideration of a move to and/or the search for a potential new home in the New Location, the Company shall pay for five (5) sets of roundtrip airfare for
the Executive and his family and for other reasonable expenses incurred by the Executive in connection with such travel to the New Location and surrounding areas. 

        (b)   If
Executive agrees to relocate to such New Location: 

        (i)    Executive
shall not purchase a home in the New Location for a home purchase price greater than $3,500,000 without the consent of the Company, which consent shall not be
unreasonably withheld. 

        (ii)   The
Company shall reimburse the Executive for all reasonable and customary expenses associated with his and his family's move from California to the New Location
including, but not limited, the packing, movement and storage of furniture and automobiles and costs associated with 

 

the
procurement of temporary housing for the Executive and his family pending the Executive's purchase of a new home in the New Location. 

        (iii)  The
Company shall reimburse the Executive for all reasonable and customary fees and costs associated with the sale of the Executive's home in California including, but
not limited to, brokerage commissions, escrow or title company fees, and other closing costs. 

        (iv)  The
Company shall reimburse the Executive in an amount not to exceed $25,000 for the acquisition of furnishings, accessories and other household items for his new home
in the New Location. 

        (v)   Should
the Executive decide to move from the New Location and return to California during the "Initial Employment Term," any "Renewal Term" or within one year of the
termination of this Agreement, the Company shall reimburse the Executive for all reasonable and customary fees and costs associated with the sale of the Executive's home in the New Location including
attorneys' fees and other fees and costs similar to those referred to in (ii) above. In addition, if the Executive decides to sell his home in the New Location and reasonably believes the fair market
value of his home is less than his original purchase price, the Executive shall give written notice of his belief to the Company which shall then have seven (7) days within which to agree in
writing to acquire the Executive's home in the New Location for cash at the Executive's original purchase price (the "Purchase Option"). If the Company
fails to exercise and/or consummate the Purchase Option, the Company shall reimburse the Executive for the loss, if any, the Executive suffers on the sale of his home in the New Location in the event
the actual sale price is less than the original purchase price. 

        All
amounts for which the Company is obligated to reimburse the Executive pursuant to this Section 2(b) shall be "grossed up" to an amount such that, the net amount payable to
Executive after taxes will be equal to the amount of the fees, costs, charges or expenses which the Executive actually paid and for which he is being reimbursed. The Executive shall provide reasonable
documentation to the Company to support all of the costs and expenses which the Company is required to reimburse pursuant to this Section 2(b). 

        (c)   From
and after January 1, 2004, for so long as Executive is employed as Chief Executive Officer of the Company hereunder, Executive shall serve as a member of the
Board of Directors of the Company and ACI. 

        3.    Base Compensation and Bonus.    

        (a)    Base Compensation.    From the Effective Date through December 31, 2003, Executive will be paid a base
salary in accordance with the Employment Agreement between Executive and the Company dated as of June 20, 2001 (the "Predecessor Agreement").
Commencing as of January 1, 2004, Executive will be compensated at a base salary rate of $625,000.00 per year (or such higher rate as may be set from time to time by the Board of Directors in
its discretion) during the employment term ("Base Salary"). Base Salary will be paid in installments on the same schedule as the Company's Subsidiaries
generally pay their employees. All compensation and benefits will be subject to reduction by all federal, state, local and other withholdings and similar taxes and payments required by applicable law. 

        (b)    Bonus for any Fiscal Year.    Executive shall receive bonus compensation based on the relationship between the
Company's actual earnings before interest, taxes, depreciation and amortization and non-cash compensation expense ("EBITDA") for each fiscal
year starting with the fiscal year ending December 31, 2003 (determined based on the Company's audited financial 

2

 

statements
for such fiscal year) and the EBITDA set for such year in the Company "Adjusted Business Plan" (as defined below) as follows: 

	Actual EBITDA

as a Percentage

of Plan
	 	Bonus

as a Percentage

Base Salary

	Less than 80%	 	No bonus
	

100%	
 	

50% of Base Salary
	

120% or more	
 	

100% of Base Salary

If
actual EBITDA as a percentage of the Adjusted Business Plan falls between 80% and 120%, the amount of bonus shall be pro rated on a straight-line basis. In no case shall bonus payable
under this Section 3(b) exceed 100% of Base Salary unless agreed to by the Board of Directors in its absolute discretion. 

        The
"Adjusted Business Plan" shall be the Company's business plan for the fiscal year in question as approved by the Board of Directors,
appropriately adjusted for acquisitions or dispositions during the year as determined by the Board of Directors. For greater certainty, the business plan for 2003 (off which any adjustments for
acquisitions and dispositions shall be made) shall be the business plan for such year approved by the Board of Directors. 

        Any
bonus payable under this Section 3(b) shall be paid not later than 90 days after the applicable fiscal year end. 

        4.    Benefits.    

        (a)   During
Executive's employment by the Company, Executive will receive the same (or substantially similar) employee benefits to those provided by the Company or its
Subsidiaries to other members of senior management from time to time, including without limitation, medical and dental insurance, disability insurance and life insurance (the latter in an amount of
not less than $2,000,000), provided that regardless of whether or not paid for other members of senior management, the Company shall pay the entire
amount of any premium for life insurance in an amount of $2,000,000 and disability insurance provided by the Company to Executive under this Agreement. 

        (b)   During
and after the employment term the Company agrees that if Executive is made a party, or compelled to testify or otherwise participate in, any action, suit or
proceeding (a "Proceeding"), by reason of the fact that he is or was a director or officer of the Company or any of its Subsidiaries, Executive shall be
indemnified by the Company as provided in Section 145 of the Delaware General Corporation Law or (but not to any lesser extent) as authorized by the Company's certificate of incorporation or
bylaws or resolutions of the company's Board of Directors against all cost, expense, liability, damage and loss reasonably incurred or suffered by Executive in connection therewith, and such
indemnification shall continue as to Executive even if he has ceased to be a director or officer of the Company or Subsidiary for the period of any applicable statute of limitations or, if longer, for
the period in which any such Proceeding which commenced within the period of any such statute of limitations is pending The Company shall advance to Executive all reasonable costs and expenses
incurred by him in connection with a Proceeding within 20 days after receipt by the Company of a written request for such advance. Such request shall include an itemized list of the costs and
expenses and an undertaking by Executive to repay the amount of such advance if it shall ultimately be determined, in a final judgment for which the time to appeal has expired, that, pursuant to
applicable law, he is not entitled to be indemnified against such costs and expenses. 

        (c)   The
Company will reimburse Executive for his reasonable and customary business expenses, including travel, accommodations and meals. 

3

 

        5.    Stock Options.    Subject to the terms, conditions and restrictions of the 2000 Management Incentive Plan of
Advanstar Holdings Corp. ("Parent"), and the option agreement with respect thereto, the Company will grant the Executive an option to purchase up to
600,000 shares of Parent's Common Stock (the "Options"), (in addition to the 500,000 options granted previously) at an exercise price equal to $10.00
per share. So long as Executive remains employed with the Company, such Options will vest in accordance with the following schedule: 180,000 Options will vest on each of the first, second and third
anniversaries of the Options' grant date (which shall be the Effective Date) and the
remaining 60,000 Options will vest on December 31, 2006, provided, however, that all such Options will automatically vest if (i) the
Company terminates this Agreement without Cause (as defined in Section 7(a)), (ii) Executive terminates this Agreement for Good Reason (as defined in Section 7(b)) or
(iii) a Change in Control (as defined below) occurs. 

For
the purposes of this Section 5, a "Change in Control" shall be deemed to have occurred: 

        (i)    if
any "person" (as such term is used in Section 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as amended) other than (A) the DLJ Funds (as
defined in the Shareholders' Agreement dated as of October 11, 2000 among the Company, DLJ Merchant Banking Partners III, L.P. and other DLJ Funds party thereto, the Existing
Shareholders party thereto and the Management Shareholders party thereto, as amended February 21, 2001 (the "Shareholder's Agreement")) and/or
their respective Permitted Transferees (as defined in the Shareholders' Agreement) or (B) any "group" (within the meaning of such Section 13(d)(3)) of which any of the DLJ Funds is
apart, acquires, directly or indirectly, by virtue of the consummation of any purchase, merger or other combination, securities of the Company (or its successor) representing more than 51% of the
combined voting power of the Company's (or its successor's) then outstanding voting securities with respect to matters submitted to a vote of the stockholders generally; or 

        (ii)   upon
a sale or transfer by the Company or any of its Subsidiaries of substantially all of the stock or consolidated assets of the Company and its Subsidiaries to an
entity which is not an affiliate of the Company prior to such sale or transfer. 

        6.    Term.    This Agreement shall have a term equal to the period from the Effective Date through
December 31, 2006 (the "Initial Employment Term"). Thereafter, this Agreement shall automatically be renewed for successive three year terms
(each three year term being referred to as a "Renewal Term"), unless either the Company or Executive notifies the other in writing no later than September 30, 2006 in the case of the Initial
Employment Term or the September 30 immediately preceding the end of any Renewal Term of its or his decision not to renew, which decision may be made for any or no reason, with or without
Cause, provided, however, that this Agreement may be terminated at any time in accordance with Section 7. The foregoing notwithstanding,
Sections 4(b), 9 and 10, and the letter agreement referred to in Section 9, shall survive the expiration of this Agreement in accordance with their respective terms. 

        7.    Termination.    

        (a)   This
Agreement may be terminated by the Company at any time for Cause upon written notice to Executive, which notice shall specify the reason for termination. Such
notice shall be given at any time prior to termination in the case of matters described in clauses (B) or (C), and shall be given not less than 30 days prior to the date of termination,
in the case of matters described in clauses (A), (D) or (E), and in the case of matters described in clauses (A), (D) or (E) shall be rescinded if Executive cures any misconduct,
negligent act, breach or failure giving rise to such notice to the reasonable satisfaction of the Board of Directors, including curing any damage suffered by the Company as a result thereof. As used
herein, "Cause" shall mean (A) willful misconduct or gross negligence by Executive in respect of his material obligations under this Agreement,
(B) conviction of a felony involving moral turpitude, (C) theft of Company property or other disloyal or dishonest conduct 

4

 

of
Executive that materially harms the Company or its business or (in the case of dishonest conduct) undermines the confidence of the Board in Executive, (D) willful breach of this Agreement,
or (E) willful failure to observe Company policies or carry out the lawful directives of the Board of Directors of the Company consistent with the terms of this Agreement. 

        (b)   Executive
may terminate this Agreement for Good Reason by giving thirty days prior written notice to the Company specifying such Good Reason;  provided that the Company has not cured the condition giving rise to
Executive's right to terminate this Agreement pursuant to this Section 7(b)
within 30 days of the Company's receipt of the written notice in accordance with this Section 7(b). "Good Reason" shall exist only if
(i) Executive is removed from or is not reappointed to his position as set forth in Section 1 for the time period in question, except in connection with termination of this Agreement by
the Company for Cause or due to death or Disability (as defined below); (ii) Executive is requested to report to someone other than as set forth in Section 1 for the time period in
question; (iii) Executive is directed by the Board of Directors of the Company or ACI to engage in any unlawful conduct or to contravene applicable regulatory requirements or generally accepted
accounting principles; or (iv) the Company breaches any material obligation of the Company under this Agreement. Executive may terminate this Agreement without Good Reason by giving thirty days
prior written notice to the Company. 

        (c)   Should
Executive terminate this Agreement for Good Reason, or should the Company terminate this Agreement without Cause, then Executive shall be entitled to receive, in
addition to the payments and benefits referred to below, the bonus payable under Section 3(b) hereof with respect to the portion of the year occurring prior to such termination of employment,  provided that any bonus under Section 3(b) for any partial fiscal year shall be determined by multiplying the bonus Executive would have received
had he continued to work for the Company during the entire fiscal year by a fraction, the numerator of which is the number of days in the fiscal year during which Executive was employed by the
Company, and the denominator of which is 365 (such amount the "Pro Rata Bonus Amount"). 

        (d)   This
Agreement shall terminate automatically upon Executive's death. This Agreement may be terminated by the Company upon written notice to Executive, or by Executive
upon written notice to the Company, upon Executive's Disability. For purposes of this Agreement, "Disability" means Executive's suffering of a
disability which shall have prevented him from performing his obligations hereunder for a period of at least 90 consecutive days or 120 non-consecutive days in any 365 day period. In the event
of termination of this Agreement due to Executive's death or Disability, in addition to any salary due to Executive as of the date of death or Disability and remaining unpaid, Executive shall be
entitled to receive, at such time as Executive would otherwise would have received such sum, the Pro Rata Bonus Amount for the portion of the fiscal year in which Executive's death or Disability
occurred during which Executive was employed by the Company. 

        (e)   If
the Company terminates this Agreement with Cause or if Executive terminates this Agreement without Good Reason, or if this Agreement is terminated under
clause (d) above, then Executive shall, from the date of such termination, no longer be entitled to any compensation or any bonus under Sections 3 or 4 (other than, (i) in the
case of termination for Disability, disability benefits as provided pursuant to Section 4; (ii) in the case of termination for death or Disability, any Pro Rata Bonus payable pursuant to
clause (d) above; and (iii) in the case of Executive terminating without Good Reason, as provided in the letter agreement referenced in Section 9). Nothing in this
clause (e) shall affect Executive's rights under Company health and disability plans in which Executive participates to the extent such plans provide for benefits to be paid following the
termination of employment 

        (f)    Termination
of this Agreement shall not discharge any liability (of either the Company or Executive) existing at the date of termination. Further, notwithstanding any
termination of employment 

5

 

or
termination of this Agreement, the provisions of Sections, 4(b), 9 and 10, and the letter agreement referred to in Section 9, shall survive in accordance with their respective terms. 

        (g)   If
Executive terminates this Agreement with Good Reason, or if the Company terminates this Agreement without Cause, Executive shall be entitled to continue to receive,
in the normal course in accordance with the Company's standard payroll practices, the Base Salary for a period of 24 months after such termination;  provided, however, that such amount will be
reduced by any payment owing and paid to Executive under Paragraph 5 of the letter agreement referred
to in Section 9. 

        (h)   If
Executive ceases to be employed by the Company for any reason, Executive will resign from the Board of Directors if requested to do so by the Company. 

        8.    Effective Date.    This Agreement shall take effect as of November 21, 2003 (the
"Effective Date"). 

        9.    Non-Competition and Confidentiality.    Executive shall execute and deliver a letter agreement in
the form of Exhibit A hereto. 

        10.    Arbitration.    Any claim arising out of or relating to this Agreement (including disputes regarding the
presence or absence of "Cause" or "Good Reason" in the event of a termination), or otherwise arising out of or relating to Executive's employment by the Company, will be subject to arbitration in New
York, New York, in accordance with the Federal Arbitration Act and the rules of the American Arbitration Association relating to commercial disputes. The prevailing party in any such arbitration shall
be entitled to recover from the other party its reasonable expenses incurred in connection with such arbitration, including the reasonable fees and expenses of counsel. 

        11.    Severability.    If any provision of this Agreement is determined to be invalid or unenforceable, it shall be
adjusted rather than voided, to achieve the intent of the parties to the extent possible, and the remainder of the Agreement shall be enforced to the maximum extent possible. 

        12.    Entire Agreement.    This Agreement (along with the letter agreement referenced in Section 9 and the
equity award arrangements referred to in Section 5) constitutes the entire agreement between Executive and the Company with respect to the terms and conditions of the employment of Executive by
the Company, and supersedes all prior or concurrent arrangements (including the Predecessor Agreement, except with respect to the grant of stock options, which options shall remain subject to the
terms of such agreement), discussions, agreements or understandings with respect to Executive's employment. 

        13.    Governing Law.    This Agreement shall be governed by the laws of the state of New York without regard to
principles of conflicts of law. 

        14.    Notice.    Any notice, or other written communication to be given pursuant to this Agreement for whatever
reason shall be deemed duly given and received (a) if delivered personally, from the date of delivery, or (b) by certified mail, postage pre-paid, return receipt requested,
three (3) days after the date of mailing, addressed to the above parties as follows: 

If
to the Company: 

Advanstar, Inc.

545 Boylston Street

Boston, MA 02116

Attn: Board of Directors 

6

 

and 

Advanstar, Inc.

545 Boylston Street

Boston, MA 02116

Attn: Eric I. Lisman, Vice President & General Counsel 

with
a copy to each of: 

DLJ
Merchant Banking Partners

11 Madison Avenue

New York, New York 10010

Attn: David M. Wittels 

And 

Davis
Polk & Wardwell

450 Lexington Avenue

New York, New York 10017

Attn: Nancy L. Sanborn 

If
to Executive: 

Joseph
Loggia

[address] 

With
a copy to: 

Latham &
Watkins

633 West Fifth Street, 40th Floor

Los Angeles, California 90071

Attn: Russell F. Sauer, Jr. 

7

 

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

	 	 	ADVANSTAR, INC.
	

 	
 	
By:	

/s/  DAVID WITTELS      
 Name:    David Wittels

Title:    Director
	

 	
 	

 	

/s/  JOSEPH LOGGIA      
 Joseph Loggia

8

  

 
 

Exhibit A    
    

Advanstar, Inc.

545 Boylston Street

Boston, MA 02116  

November 21,
2003 

Joseph
Loggia

5742 Hilltop Road

Hidden Hills, CA 91302 

Dear
Mr. Loggia: 

        You
are to be employed by Advanstar, Inc. (the "Company" and, together with its subsidiaries
"Advanstar") pursuant to an Employment Agreement of even date herewith (the "Employment Agreement"). In
consideration of your employment with the Company as Chief Executive Officer, you and the Company agree as follows: 

        1.    Non-Competition.    You agree that you will not, during the course of your employment with the
Company or for the one year period following the termination of such employment (the "Non-Compete Period"), compete with Advanstar, as
defined in paragraph 4 below. If there is any conflict between the provisions of this letter agreement and the provisions of any other agreement between you and the Company in respect of the
subject matter hereof, the provisions of this agreement shall govern. 

        2.    Confidentiality.    You acknowledge that your association with Advanstar will bring you into close contact with
many confidential affairs of Advanstar, including information about costs, profits, markets, sales, publications, key personnel, pricing policies, operational methods, other business affairs, methods
and other information not readily available to the public, and plans for future development. In recognition of the foregoing, you covenant and agree that you will keep confidential all material
confidential to Advanstar that is not otherwise in the public domain and that you will not intentionally disclose any such information to anyone outside Advanstar or make any use thereof for your own
benefit or for any purpose other than the advancement of the business of Advanstar at any time except with the prior written consent of Advanstar as evidenced by a certified resolution of the Board of
Directors of the Company. For purposes of this Agreement, the following information shall be deemed not to constitute confidential information of Advanstar: 

	(a)
	Any
information developed independently by you not in connection with your employment;

	(b)
	Information
that was received by you from a third-party, which, to your knowledge, is not bound by an agreement of confidentiality with Advanstar; or

	(c)
	Any
information that is in the public domain or generally available to the public. 

        3.    No Solicitation of Employees.    You covenant that, for the duration of the Non-Compete Period, you
will not, and no person, corporation, partnership, or other entity over which you exercise control (whether as an officer, director, sole proprietor, holder, debt or equity securities, consultant,
partner, or otherwise) will, directly or indirectly (a) enter into any written or oral agreement or understanding relating to the services of any person who is then employed by Advanstar or in
the case of any employee other than secretaries, clerks and similar employees fulfilling merely clerical functions, who has been so employed within the preceding six months, or (b) solicit, or
bid against Advanstar in an attempt to be awarded, any trade show or exposition business, or any publishing contract, from any party sponsoring or arranging any trade show or exposition, or publishing
or sponsoring any publication, in either case with which Advanstar then has such a relationship or contract. If there is any conflict between the provisions of this letter agreement and the provisions
of any other agreement 

A-1

 

between
you and the Company in respect of the subject matter hereof, the provisions of this agreement shall govern. 

        4.    Certain Definitions.    For purposes of this Letter Agreement, competition with Advanstar shall include carrying
on any business that is competitive with the business of Advanstar, in the United States or in any other country in which Advanstar conducts business as of the termination of your employment. For
purposes of this Letter Agreement, (a) the business of Advanstar will be deemed to include (without limitation) the organization of trade shows, expositions, conferences, educational events and
consumer events of the type and with respect to the industries held by Advanstar as of the termination of your employment or identified by Advanstar in internal strategic initiative plans which have
been reviewed but not yet implemented (it being understood that industry shall be analogized to the categories of the category system of the Standard Rate Data Service) and the publication (including
electronic publication) of trade journals, other magazines, custom projects, and web-based products or services aimed at the particular businesses, industries or professions (as defined by
category according to the category system of the Standard Rate Data Service) at which Advanstar's operations are aimed or identified by Advanstar in internal strategic initiative plans which have been
reviewed but not yet implemented, and (b) each of the following activities (without limitation) will be deemed to constitute to carrying on business: to engage in, work with, have interest in,
advise, lend money to, guarantee the debts or obligations of, or permit one's name or any part thereof to be used in connection with, an enterprise or endeavor either individually, in partnership, or
in conjunction with any person, firm, association, company, or corporation, whether as principal, agent, shareholder, employee, director, consultant, or in any other capacity or manner whatsoever.
Nothing in this Letter Agreement shall prohibit you from being a passive owner of not more than 2% of the outstanding stock of any class or a corporation which is publicly traded, so long as you have
no active participation in the management or business of such corporation. 

        5.    Consideration.    As consideration for the continued fulfillment of your covenants under this Letter Agreement,
you shall be entitled to continue during the Non-Compete Period to receive (in the normal course in accordance with the Company's standard payroll practices) your base salary as provided
in Section 3(a) of the Employment Agreement; provided that (a) no such payments shall be due to you or made by the Company if your
employment was terminated (i) by the Company for Cause (as defined in Section 7(a) of the Employment Agreement) or (ii) due to your death or Disability (as defined in
Section 7(d) of the Employment Agreement); and (b) your entitlement to receive such payments and the Company's obligation to make such payments shall cease upon your failure to comply
with any of your covenants under this Letter Agreement; provided that in the case of clause (b) the Company shall give you written notice
describing such failure not less than ten business days prior to the proposed date of cessation of payments, and such notice shall be rescinded (and the payments shall not cease) if you reasonably
cure such failure prior to the conclusion of the notice period. The termination of the payment obligation pursuant to clause (a) or (b) of the foregoing sentence shall not release you from your
covenants under this Letter Agreement. 

        6.    Severability.    The scope and effect of the terms and provisions contained in this Letter Agreement (including
the noncompetition covenant contained in Section 1) will be as broad in time (but not beyond the time periods specified herein), geography and all other respects as is permitted by applicable
law. If arbitrators, a court, or another body of competent jurisdiction determine that any term or provision of this Agreement is excessive in scope, then if possible such term or provision will be
adjusted (rather than voided) in accordance with the purpose stated in the preceding sentence and with applicable law, but in such a manner as to minimize the change in the provision. If such term or
provision cannot be so adjusted, then it will be struck. All other terms and provisions of this Letter Agreement will be deemed valid and enforceable to the full extent possible. The provisions of
Section 5(b) shall continue to remain applicable (based on compliance with the terms of this Letter 

A-2

 

Agreement)
regardless of whether any such terms are adjusted or struck in regard to legal enforceability. 

        7.    Remedies.    If any of the covenants or agreements in Sections 1, 2 or 3 are violated or threatened to be
violated, you agree and acknowledge that such violation or threatened violation will cause irreparable injury to Advanstar, and that the remedy at law of Advanstar for any such violation or threatened
violation will be inadequate and that Advanstar will be entitled to obtain any injunction prohibiting a continuance or occurrence of such violations or threatened violations in addition to (not in
limitation of) any other rights or remedies available at law or in equity. Your services hereunder are of a special, unique, unusual, extraordinary character which gives them peculiar value, the loss
of which cannot be reasonably or adequately computed in damages. 

        The
provisions of this Letter Agreement will be binding upon and inure to the benefit of our respective heirs, executives, administrators, successors and assigns. This Letter Agreement
will be governed by and construed in accordance with the laws of the state of New York without regard to principles of conflicts of law, as applied to employees with a principal place of employment
with the state of New York. 

	 	 	Very truly yours,
	

 	
 	

ADVANSTAR, INC.
	

 	
 	

By:	

/s/  DAVID WITTELS      
 Name:    David Wittels

Title:    Director
	

ACCEPTED AND AGREED:	
 	

 	

 
	

/s/  JOSEPH LOGGIA      
 Joseph Loggia	
 	

 	

 

A-3

QuickLinks

Exhibit 10.8

EMPLOYMENT AGREEMENT

Exhibit A<Page>

                                                                   EXHIBIT 10.12

                               BACKSTOP AGREEMENT

          THIS BACKSTOP AGREEMENT (the "AGREEMENT") is made as of December 15,
2003 by and between Liberte Investors Inc., a Delaware corporation (the
"COMPANY") and Hunter's Glen/Ford, Ltd., a Texas limited partnership ("HUNTER'S
GLEN"). Except as otherwise indicated herein, capitalized terms used herein are
defined in SECTION 8 hereof.

          WHEREAS, the Company is currently conducting a rights offering (the
"RIGHTS OFFERING") to allow its stockholders (as of a certain record date) the
right to purchase an additional 0.61 shares of its common stock, par value $0.01
per share (the "COMMON STOCK"), per share that each stockholder of the Company
owns as of the record date established for the Rights Offering (each a "RIGHT,"
and collectively, the "RIGHTS"), at a price of $4.00 per share (the
"SUBSCRIPTION PRICE"); and

          WHEREAS, Hunter's Glen has agreed to participate in the Rights
Offering by exercising its pro rata share of the Rights and, in connection with
the Rights Offering, has committed to subscribe for and exercise any Rights that
remain unsold in the Rights Offering (the "BACKSTOP AMOUNT") at the Subscription
Price (it being understood that other stockholders will not be offered the right
to purchase any Rights that go unsubscribed in the Rights Offering).

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

          Section 1. PARTICIPATION IN THE RIGHTS OFFERING; BACKSTOP.>>

          (a)   PARTICIPATION IN THE RIGHTS OFFERING. Pursuant to the terms and
subject to the conditions of this Agreement, Hunter's Glen hereby agrees to
exercise prior to the expiration of the Rights Offering its pro rata share of
the Rights, based on the total number of Rights to which Hunter's Glen is
entitled in the Rights Offering and the total number of Rights being offered in
the Rights Offering (its "PRO RATA SHARE") in accordance with the procedures set
forth in the Company's Registration Statement on Form S-1 initially filed with
the Commission on December __, 2003 (as amended, the "REGISTRATION STATEMENT")
under the heading "The Rights Offering---Method of Exercising Rights," and to
pay the aggregate Subscription Price for its Pro Rata Share of the Rights
granted to it in the Rights Offering.

          (b)   BACKSTOP. Pursuant to the terms and subject to the conditions of
this Agreement, the Company hereby offers Hunter's Glen the right to subscribe
for and exercise, in connection with the Rights Offering, at the Subscription
Price the Backstop Amount. As soon as reasonably practicable following the
expiration date of the Rights Offering as set forth in the Registration
Statement (the "EXPIRATION DATE"), the Company and the subscription agent for
the Rights Offering shall determine the Backstop Amount and provide notice
thereof to Hunter's Glen. At the Closing, Hunter's Glen hereby agrees to
subscribe for and exercise, at the Subscription Price, the Backstop Amount (it
being understood that other stockholders will not be offered the right to
purchase any Rights that go unsubscribed in the Rights Offering).

<Page>

          Section 2.   THE CLOSING.   Hunter's Glen's subscription for the
Backstop Amount hereunder shall take place as soon as reasonably practicable
following the Expiration Date at a place mutually agreeable to the Company and
Hunter's Glen (the "CLOSING"). At the Closing, the Company shall deliver to
Hunter's Glen the certificates evidencing the shares of Common Stock subscribed
for pursuant to SECTION 1, and Hunter's Glen shall deliver to the Company a
cashier's check or wire transfer of immediately available funds to a bank
account designated by the Company in the amount equal to the Subscription Price
multiplied by the number of Rights included in the Backstop Amount.

          Section 3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY. As a
material inducement to Hunter's Glen to enter into this Agreement and subscribe
for the Rights, the Company hereby represents and warrants that:

          (a)   ORGANIZATION AND CORPORATE POWER. The Company is a corporation
duly organized, validly existing and in good standing under the laws of Delaware
and is qualified to do business in every jurisdiction in which its ownership of
property or conduct of business requires it to qualify. The Company has all
requisite corporate power and authority and all material licenses, permits and
authorizations necessary to own and operate its properties, to carry on its
business as now conducted and presently proposed to be conducted and to carry
out the transactions contemplated by this Agreement (including without
limitation, the Rights Offering).

          (b)   CAPITAL STOCK. As of the Closing and immediately thereafter, the
authorized capital stock of the Company shall consist of (a) 10,000,000 shares
of preferred stock, none of which shares shall be issued and outstanding and (b)
75,000,000 shares of Common Stock, of which approximately 46,339,430 shares
shall be issued and outstanding (subject to adjustment following the exercise of
any stock options granted under the LBI Stock Option Plan, of which 2,833,678
options are outstanding as of the date hereof). As of the Closing, all of the
issued and outstanding shares of capital stock of the Company have been duly and
validly authorized and issued, were issued in compliance with federal and state
securities laws, are fully paid and non-assessable and are listed on the New
York Stock Exchange.

          (c)   AUTHORIZATION; NO BREACH. The execution, delivery and
performance of this Agreement and any other agreement contemplated hereby to
which the Company is a party have been duly authorized by the Company. The
execution, delivery and performance of this Agreement by the Company and the
consummation of the transactions contemplated hereby will not conflict with or
result in a breach or violation of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company is a party or by
which the Company is bound or to which any of the property or assets of the
Company is subject, nor will such actions result in any violation of the
provisions of the charter or by-laws of the Company or any statute or any order,
rule or regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its properties or assets; and except for
the registration of the Rights under the Securities Act and such consents,
approvals, authorizations, registrations or qualifications as may be required
under the Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT") and
applicable state securities laws in connection with the Rights Offering, no
consent, approval, authorization or order of, or filing or registration with,
any such court or governmental agency or body is required for the execution,
delivery and performance of this Agreement by the Company and the consummation
of the transactions contemplated hereby.

                                      - 2 -
<Page>

          (d)   BROKER'S FEES. There is no investment banker, broker, finder or
other intermediary or advisor that has been retained by or is authorized to act
on behalf of the Company or any of its Affiliates who might be entitled to any
fee, commission or reimbursement of expenses from Hunter's Glen as a result of
consummation of the transactions contemplated hereby (including, without
limitation, the Rights Offering).

          Section 4.   REPRESENTATIONS AND WARRANTIES OF HUNTER'S GLEN. As a
material inducement to the Company to enter into this Agreement, Hunter's Glen
hereby represents and warrants that:

          (a)   ORGANIZATION AND CORPORATE POWER. Hunter's Glen is a limited
partnership duly organized, validly existing and in good standing under the laws
of Texas and is qualified to do business in every jurisdiction in which its
ownership of property or conduct of business requires it to qualify. Hunter's
Glen has all requisite corporate power and authority and all material licenses,
permits and authorizations necessary to own and operate its properties, to carry
on its business as now conducted and presently proposed to be conducted and to
carry out the transactions contemplated by this Agreement (including without
limitation, subscription for the Rights in the Rights Offering).

          (b)   AUTHORIZATION; NO BREACH. The execution of this Agreement by
Hunter's Glen and the consummation by Hunter's Glen of the transactions
contemplated hereby will not conflict with or result in a breach or violation of
any of the terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which Hunter's Glen is a party or by which Hunter's Glen is bound or to which
any of its property or assets is subject, nor will such actions result in any
violation of the provisions of any statute or any order, rule or regulation of
any court or governmental agency or body having jurisdiction over Hunter's Glen
or its property or assets in each case in a manner that would adversely impact
Hunter's Glen's ability to subscribe for the Rights hereunder; and, except for
the registration of the Rights under the Securities Act and such consents,
approvals, authorizations, registrations or qualifications as may be required
under the Exchange Act and applicable state securities laws in connection with
the Rights Offering, no consent, approval, authorization or order of, or filing
or registration with, any such court or governmental agency or body is required
for the execution, delivery and performance of this Agreement by Hunter's Glen
and the consummation by Hunter's Glen of the transactions contemplated hereby in
each case in a manner that would adversely impact Hunter's Glen's ability to
subscribe for the Rights and perform its obligations hereunder.

          (c)   INVESTMENT REPRESENTATIONS. Hunter's Glen hereby represents that
it is acquiring the Rights purchased hereunder or acquired pursuant hereto for
its own account with the present intention of holding such securities for
purposes of investment, and that it has no intention of selling such securities
in a public distribution in violation of the federal securities laws or any
applicable state securities laws. In addition, Hunter's Glen hereby represents
that it is sophisticated in financial matters and is able to evaluate the risks
and benefits of the investment in the Rights.

          (d)   BROKER'S FEES. There is no investment banker, broker, finder or
other intermediary or advisor that has been retained by or is authorized to act
on behalf of Hunter's Glen who might be entitled to any fee, commission or
reimbursement of expenses from either the

                                      - 3 -
<Page>

Company or any of its Affiliates as a result of consummation of the transactions
contemplated hereby, (including, without limitation, the Rights Offering).

          (e)   SHARES OF COMMON STOCK BENEFICIALLY OWNED. As of the date
hereof, Hunter's Glen is the beneficial owner of 8,002,439 shares of Common
Stock.

          Section 5.   CONDITIONS TO OBLIGATIONS OF EACH PARTY TO EFFECT THE
CLOSING. The respective obligations of each party to consummate the transactions
contemplated hereby are subject to the satisfaction on or prior to the Closing
Date of each of the following conditions:

          (a)   All consents by third parties (government or otherwise) that are
required for the consummation of the transactions contemplated hereby
(including, without limitation, the consummation of the Rights Offering) have
been obtained on terms mutually agreeable to each party.

          (b)   The Registration Statement shall have been timely filed with the
Commission and declared effective; no stop order suspending the effectiveness of
the Registration Statement or any part thereof shall have been issued and no
proceeding for that purpose shall have been initiated or threatened by the
Commission; and any request of the Commission for inclusion of additional
information in the Registration Statement or otherwise shall have been complied
with.

          (c)   No action, suit or proceeding shall be pending or threatened
before any court or quasi-judicial or administrative agency of any jurisdiction
or before any arbitrator wherein an unfavorable judgment, decree, injunction,
order or ruling would prevent the performance of this agreement or any of the
transactions contemplated hereby (including, without limitation, the Rights
Offering), declare unlawful the transactions contemplated by this Agreement
(including, without limitation, the Rights Offering) or cause such transactions
to be rescinded.

          (d)   The Rights Offer shall have been consummated in conformity with
the requirements and conditions set forth in the Registration Statement.

          (e)   The shares of Common Stock underlying the Rights shall have been
authorized for listing on the New York Stock Exchange.

          Section 6.   CONDITIONS TO OBLIGATIONS OF THE COMPANY TO EFFECT THE
CLOSING. Subject to SECTION 5 above, the obligations of the Company to
consummate the transactions contemplated hereby are subject to each of the
representations and warranties of Hunter's Glen contained in this Agreement
being true and correct in all material respects as of the date hereof and at and
as of the Closing Date as if made at and as of such time, except that, to the
extent such representations and warranties address matters only as of a
particular date, such representations and warranties shall, to such extent, be
true and correct at and as of such particular date as if made at and as of such
particular date.

          Section 7.   CONDITIONS TO OBLIGATIONS OF HUNTER'S GLEN TO EFFECT THE
CLOSING. Subject to SECTION 5 above, the obligations of Hunter's Glen to
consummate the transactions contemplated hereby and to purchase the Backstop
Amount are subject to each of the representations and warranties of the Company
contained in this Agreement being true and

                                      - 4 -
<Page>

correct in all material respects as of the date hereof and at and as of the
Closing Date as if made at and as of such time, except that, to the extent such
representations and warranties address matters only as of a particular date,
such representations and warranties shall, to such extent, be true and correct
at and as of such particular date as if made at and as of such particular date.

          Section 8.   DEFINITIONS. For the purposes of this Agreement, the
following terms have the meanings set forth below:

          "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by or under direct or indirect
common control with such Person. For purposes of this definition, "control" when
used with respect to any specified Person means the power to direct or cause the
direction of the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by Contract or otherwise,
and the terms "controlling" and "controlled" have meanings correlative of the
foregoing.

          "COMMISSION" means the Securities and Exchange Commission or any
governmental body or agency succeeding to the functions thereof.

          "LBI STOCK OPTION PLAN" means the Liberte Investors Inc. 2002 Long
Term Incentive Plan.

          "PERSON" means an individual, a partnership, a corporation, a limited
liability company, association, a joint stock company, a trust, a joint venture,
an unincorporated organization and a governmental entity or any department,
agency or political subdivision thereof.

          "SECURITIES ACT" means the Securities Act of 1933, as amended, or any
similar federal law then in force.

          Section 9.   TERMINATION. This Agreement may be terminated at any time
prior to the Closing, by either party as follows:

          (a)   by mutual written consent of the Company and Hunter's Glen;

          (b)   by either the Company or Hunter's Glen if any governmental
entity shall institute any suit or action challenging the validity or legality
of, or seeking to restrain the consummation of, the transactions contemplated by
this Agreement (including, without limitation, the issuance of Rights pursuant
to the Rights Offering);

          (c)   by the Company, in the event Hunter's Glen has breached any
representation, warranty, or covenant contained in this Agreement, in any
material respect, provided that the Company has notified Hunter's Glen of the
breach, and the breach has continued without cure for a period of 15 days after
the notice of such breach or for such longer period so long as such breach is
curable by Hunter's Glen through the exercise of its reasonable efforts, and
Hunter's Glen continues to exercise such reasonable efforts;

          (d)   by Hunter's Glen, in the event that the Company has breached any
representation, warranty, or covenant contained in this Agreement, in any
material respect,

                                      - 5 -
<Page>

provided that Hunter's Glen has notified the Company of the breach, and the
breach has continued without cure for a period of 15 days after the notice of
such breach or for such longer period so long as such breach is curable by the
Company through the exercise of its reasonable efforts, and the Company
continues to exercise such reasonable efforts; and

          (e)   by either the Company or Hunter's Glen if the Agreement and Plan
of Merger, dated as of the date hereof, by and among the Company, USAH Merger
Sub, Inc., a Delaware corporation and direct wholly-owned subsidiary of the
Company, USAuto Holdings, Inc., a Delaware corporation ("USAUTO"), and the
stockholders of USAuto is terminated pursuant to Section 10.1 thereof.

          Section 10.  INDEMNIFICATION. The Company shall indemnify Hunter's
Glen and hold it harmless, from and against and pay on behalf of or reimburse
Hunter's Glen in respect of any claims, losses or expenses which Hunter's Glen
may suffer, sustain, or become subject to, as a result of or relating to or
arising out of any breach of any representation, warranty, covenant or agreement
made by the Company contained in this Agreement. The provisions of this SECTION
10 shall be in addition to, rather than in lieu of, and shall not affect any
rights or remedies Hunter's Glen may have pursuant to law, contract or
otherwise.

          Section 11.  MISCELLANEOUS.

          (a)   SUCCESSORS AND ASSIGNS. All covenants and agreements in this
Agreement by or on behalf of any of the parties hereto will bind and inure to
the benefit of the respective successors and assigns of the parties hereto
whether so expressed or not; provided that neither this Agreement nor any of the
rights, interests, or obligations hereunder may be assigned by any party without
the prior written consent of the other party, except that, Hunter's Glen may
assign, in whole or in part, its rights and obligations pursuant to this
Agreement to one or more of its Affiliates, provided that Hunter's Glen (i) will
nonetheless remain liable for all of its obligations hereunder and (ii) shall
give timely notice of any such assignment to the Company.

          (b)   SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations
and warranties contained herein or made in writing by any party in connection
herewith shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby.

          (c)   SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

          (d)   CONSTRUCTION. Whenever the context requires, each term stated in
either the singular or the plural shall include the singular and the plural, and
pronouns stated in either the masculine, the feminine or the neuter gender shall
include the masculine, feminine and neuter. All references to Sections and
Paragraphs refer to sections and paragraphs of this

                                      - 6 -
<Page>

Agreement. The use of the word "including" in this Agreement shall be by way of
example rather than limitation.

          (e)   AMENDMENT AND WAIVER. The provisions of this Agreement may be
amended and waived only with the prior written consent of each of the parties
hereto.

          (f)   COUNTERPARTS; FACSIMILE SIGNATURE. This Agreement may be
executed simultaneously in two or more counterparts, any one of which need not
contain the signatures of more than one party, but all such counterparts taken
together shall constitute one and the same Agreement. This Agreement may be
executed by facsimile signature.

          (g)   GOVERNING LAW. This Agreement will be governed in all respects
by the laws of the State of Delaware, without regard to the principles of
conflicts of law of such state.

          (h)   NOTICES. All notices, demands or other communications to be
given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given when delivered personally
to the recipient, sent to the recipient by reputable express courier service
(charges prepaid) or mailed to the recipient by certified or registered mail,
return receipt requested and postage prepaid.

                               *   *   *   *   *

                                      - 7 -
<Page>

          IN WITNESS WHEREOF, the parties hereto have executed this Backstop
Agreement on the date first written above.

                                     LIBERTE INVESTORS INC.

                                     By:   /s/ Donald J. Edwards
                                           -------------------------------------
                                     Its:  President and Chief Executive Officer

                                     HUNTER'S GLEN/FORD, LTD.

                                     By:   Ford Diamond Corporation,
                                           general partner

                                           By:   /s/ Gerald J. Ford
                                                 -------------------------------
                                           Its:  President

                                     By:   /s/ Gerald J. Ford
                                           -------------------------------------
                                           Its: General Partner

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