Document:

Employment Agreement (Maureen E. O'Connell)

 Exhibit 10.22 
  

			
		 	EMPLOYMENT AGREEMENT (this “Agreement”) dated as of December 1, 2005, between AFFINION GROUP, INC., a Delaware corporation, (the
“Company”) and MAUREEN E. O’CONNELL (“Executive”).

 WHEREAS, the Company is a wholly owned subsidiary of Affinion Group Holdings, Inc., a
Delaware corporation (f/k/a Affinity Acquisition Holdings, Inc., the “Parent”); and 
 WHEREAS, the Company
desires to employ Executive and Executive desires to be employed by the Company. 
 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 hereto agree as follows. 
 Section 1. Employment Period. 
 The initial term of Executive’s employment hereunder shall
be for a period of two (2) years (the “Initial Term”) commencing on January 2, 2006 (the “Effective Date”) and ending on the second anniversary of the Effective Date, unless terminated earlier pursuant to
Section 3 (the “Employment Period”); provided, however, that the Employment Period shall automatically be renewed for successive one (1) year terms upon the Expiration of the Initial Term unless either party gives at least
ninety (90) days’ written notice of its intention not to renew the Employment Period. Upon Executive’s termination of employment with the Company for any reason, she shall immediately resign all positions with the Company or any of
its subsidiaries or affiliates. 
 Section 2. Terms of Employment. 
 (a) Position. During the term of Executive’s employment, Executive shall serve as Executive Vice President and Chief Financial Officer of the
Company and shall be responsible for the operational, general and administrative matters of the Company as directed by the Chief Executive Officer. Executive’s duties shall include formulating Company financial policy and plans, directing
activities associated with the investment of the Company’s assets and funds, and the general management of accounting, tax, insurance, budget, credit and treasury functions. Executive shall perform such additional duties and have the
responsibilities and powers as delegated to her from time to time by the Chief Executive Officer or the Company’s Board of Directors (the “Board”). Executive shall report directly to the Chief Executive Officer and the Board.

 (b) Duties. During the term of Executive’s employment, Executive agrees to devote all of her business time to the business and
affairs of the Company and to use Executive’s reasonable best efforts to perform faithfully, effectively and efficiently her responsibilities and obligations hereunder. Notwithstanding the foregoing, nothing herein shall prohibit Executive from
(i) serving on the board of directors of Beazer Homes USA, Inc., (ii) with the prior written consent of the Chief Executive Officer (which consent shall not be unreasonably withheld), 

 serving on the board of directors of other for-profit companies that do not compete with the Company, (iii) serving
on civic or charitable boards or committees, and (iv) managing personal investments, in each case so long as such activities do not materially interfere with the performance of Executive’s responsibilities hereunder. 
 (c) Compensation. 
 (i) Base
Salary. During the term of Executive’s employment, Executive shall receive an initial annual base salary in an amount equal to $400,000.00, less all applicable withholdings, which shall be paid in accordance with the customary payroll
practices of the Company (as in effect from time to time, the “Annual Base Salary”). The Annual Base Salary shall be subject to annual review and increases, and the Annual Base Salary shall not be reduced without Executive’s
consent, unless the reduction is related to a broader compensation reduction that applies similarly to other senior executives as a group and does not exceed 10% of her Annual Base Salary. 
 (ii) Bonuses. Beginning with fiscal year 2006, during the Employment Period, the Company shall establish a bonus plan for each fiscal year (the
“Plan”) pursuant to which Executive will be eligible to receive an annual bonus (the “Bonus”). The Board or the Compensation Committee of the Board will administer the Plan and establish performance objectives for
each year. In the event that the Company achieves target based on actual performance, Executive shall be entitled to receive a Bonus in an amount equal to 75% of Executive’s Annual Base Salary (“Target Bonus”). Subject to
Section 4, Executive will be entitled to receive the Bonus only upon the Company’s achievement of the specified performance objectives and if Executive is employed on the last day of the applicable fiscal year. The Bonus shall become
payable on or before March 15 following the end of the applicable fiscal year provided that the Board or Compensation Committee finally determines (x) that the Company has achieved the applicable performance objectives and (y) the
amount of the bonus that shall be paid to each executive entitled to receive a bonus for the applicable fiscal year. If the Board or Compensation Committee has not made such final determination by March 15, the Bonus (if any) shall instead be
paid as soon as practicable thereafter (but not later than the last day of the calendar year containing such March 15). Executive will also receive a signing bonus of $400,000 (the “Signing Bonus”) which shall be paid as soon
as practicable following the execution of this Agreement but not later than 30 days after the Effective Date. In the event that Executive terminates her employment without Good Reason or the Company terminates Executive’s employment for Cause
on or before December 31, 2006, then Executive shall be required to repay the Signing Bonus to the Company. 
 (iii) Benefits.
During the term of Executive’s employment hereunder, she shall be entitled to participate in all incentive, savings and retirement plans, practices, policies and programs applicable generally to other senior executives of the Company and shall
be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company to the extent applicable generally to other senior executives of the Company. Notwithstanding
anything in this Section 2(c)(iii) to the contrary, all benefit obligations are subject to guidance issued by the U.S. Department of Treasury under Section 409A of the Code. To the extent required, the Company may modify the benefits
provided under this Section 2(c)(iii) to comply with such guidance. As of the date 
  

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 hereof, the benefit plans in which Executive is entitled to participate pursuant to this Section 2(c)(iii) (but not
necessarily the level of benefits thereunder) are the same as those offered and/or provided to the Chief Executive Officer and other senior executives. To the extent consistent with applicable law and confidentiality obligations, the Chief Executive
Officer shall notify Executive within thirty (30) days if at any time the Company provides additional or different benefit plans to the Chief Executive Officer and/or other senior executives. 
 (iv) Expenses. During the term of Executive’s employment, Executive shall be entitled to receive reimbursement for all reasonable business
expenses incurred by Executive in performance of her duties hereunder provided that Executive provides all necessary documentation in accordance with Company policy. 
 (v) Stock Options. Concurrent with the Effective Date, Parent shall grant Executive a stock option (the “Option Grant”) to purchase Parent’s common stock, par value $0.01, at an exercise
price of $10 per share. The Option Grant will be pursuant to the terms and conditions set forth in the Parent’s 2005 Stock Incentive Plan (the “Stock Incentive Plan”) and will be subject to the terms of the Stock Incentive Plan
and Executive’s option agreement associated with the Option Grant (the “Option Agreement”). The Option Grant will be for options to purchase 280,000 shares of the Parent’s common stock and will be exercisable for a maximum
of ten years subject to the vesting, termination and other terms set forth in the Option Agreement. 
 (vi) Investment. Concurrent
with the Effective Date, Executive shall purchase 25,000 shares of the Parent’s common stock, par value $0.01, at a price of $10 per share. Such investment shall be evidenced by a Subscription Agreement by and between Executive and Parent dated
as of January 2, 2006 (the “Subscription Agreement”). 
 Section 3. Termination of Employment. 

(a) Death or Disability. Executive’s employment shall terminate automatically upon Executive’s death. If Executive becomes subject to
a Disability during the Term of Employment (pursuant to the definition of Disability set forth below) and the Company elects to terminate Executive’s employment, the Company shall give Executive 14 days’ prior written notice in accordance
with Sections 3(e) and 9(h) of its intention to terminate Executive’s employment. For purposes of this Agreement, “Disability” means (i) Executive’s inability to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment that can be expected (as determined by a physician reasonably selected by the Company and reasonably acceptable to Executive) to result in death or can be expected to last for a continuous
period of not less than 12 months, or (ii) Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months
(as determined by a physician reasonably selected by the Company and reasonably acceptable to Executive), receiving income replacement benefits for a period of not less than three months under an accident or health plan covering employees of the
Company. 
 (b) Cause. Executive’s employment may be terminated at any time by the Company for Cause. For purposes of this
Agreement, “Cause” shall mean Executive’s (i)
  

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 conviction of a felony or a crime of moral turpitude; (ii) conduct that constitutes fraud or embezzlement;
(iii) willful misconduct or willful gross neglect; (iv) continued willful failure to substantially perform her duties as Executive Vice President and Chief Financial Officer; or (v) a material breach by Executive of this Agreement;
provided that in the event of a termination pursuant to clause (iv) or (v), to the extent such failure to perform duties or material breach is subject to cure, the Company shall have notified Executive in writing describing such failure to
perform duties or material breach and Executive shall have failed to cure such failure to perform or breach within 30 days after her receipt of such written notice. 
 (c) Termination Without Cause. The Company may terminate Executive’s employment hereunder without Cause at any time upon 14 days’ prior written notice. 
 (d) Good Reason. Executive’s employment may be terminated at any time by Executive for Good Reason or without Good Reason upon 14 days’
prior written notice, provided, in the case of a termination for Good Reason, that Executive provides such notice within 30 days after the occurrence of the event giving rise to the termination for Good Reason. For purposes of this Agreement,
“Good Reason” means voluntary resignation after any of the following actions taken by the Company or any of its subsidiaries without Executive’s consent: (i) any material failure of the Company to fulfill its obligations
under this Agreement, (ii) a material and adverse change to, or a material reduction of, Executive’s duties and responsibilities to the Company, (iii) a reduction in Executive’s Annual Base Salary and Target Bonus (not including
any diminution related to a broader compensation reduction that is not limited to Executive specifically and that is not more than 10% in the aggregate as set forth in Section 2(c)(i)), (iv) the relocation of Executive’s primary
office to a location more than 35 miles from its current location in Norwalk, Connecticut, or (v) Executive no longer reports solely and directly to the CEO and the Board; provided that in the event of a termination pursuant to clause
(i) or (ii), to the extent such failure, change or reduction is subject to cure, the Company shall have failed to cure such failure, change or reduction within 30 days after its receipt of Executive’s written notice. 
 (e) Notice of Termination. Any termination by the Company for Cause or without Cause, or by Executive for Good Reason or without Good Reason,
shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 9(h). For purposes of this Agreement, a “Notice of Termination” means a written notice that (i) indicates the
specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date. The failure by Executive or the Company to set forth in the Notice of Termination
any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or circumstance in enforcing
Executive’s or the Company’s rights hereunder. 
 (f) Date of Termination. “Date of Termination” means
(i) if Executive’s employment is terminated by the Company for Cause, without Cause or by reason of Disability, or by Executive for Good Reason or without Good Reason, the date of receipt of the Notice of 
  

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 Termination or any later date specified therein pursuant to Section 3(e), as the case may be (in the case of a
termination with or without Good Reason, provided such notice is in accordance with Section 3(d)) and (ii) if Executive’s employment is terminated by reason of death, the date of death. 
 Section 4. Obligations of the Company upon Termination; Repurchase Rights. 
 (a) With Good Reason; Without Cause. If during the Employment Period, the Company shall terminate Executive’s employment without Cause or
Executive shall terminate her employment for Good Reason, then the Company will provide Executive with the following severance payments and/or benefits: 
 (i) On or about the Date of Termination, the Company shall pay to Executive in a lump sum, to the extent not previously paid, (i) the Annual Base Salary through the Date of Termination, and (ii) any Bonus
earned for any fiscal year ended prior to the year in which the Date of Termination occurs, provided that Executive was employed on the last day of such year (“Accrued Obligations”); and 
 (ii) After the Date of Termination, the Company will pay Executive, in regular monthly installments commencing as of the Date of Termination, the
aggregate amount of 18 months of the sum of Executive’s Annual Base Salary and Target Bonus. 
 Thereafter, the Company
shall have no further obligation to Executive or her legal representatives. 
 (b) Death or Disability. If Executive’s employment
shall be terminated by reason of Executive’s death or Disability, then the Company will provide Executive with the following severance payments and/or benefits: The Company shall pay Executive or her legal representatives (A) the Accrued
Obligations; (B) a lump sum equal to 100% of Executive’s Annual Base Salary; and (C) the continuance of death or Disability benefits thereafter in accordance with the terms of such plans then in effect. 
 Thereafter, the Company shall have no further obligation to Executive or her legal representatives. 
 (c) Cause; Other than for Good Reason. 
 (i) If Executive’s employment shall be terminated by the Company for Cause or by Executive without Good Reason, then the Company shall have no further payment obligations to Executive other than for payment of the Accrued Obligations.
Thereafter, the Company shall have no further obligation to Executive. 
 (ii) If Executive’s employment shall be terminated by the
Company for Cause, then the Company or its designee shall have the right, but not the obligation, to repurchase all or any portion of the shares of common stock of Parent held by Executive (including any shares of Parent’s common stock received
upon a distribution from any deferred compensation plan, any restricted shares or any common stock issuable upon exercise of any options held by Executive) in accordance with the provisions of the Management Investor Rights 
  

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 Agreement dated as of October 17, 2005 (the “Management Investor Rights Agreement”). The Company
(or its designee) shall have the right to record the transfer of the shares of Parent’s common stock in connection with such purchase on its books and records without the consent of Executive. 
 (d) Company Repurchase Right. In the event of Executive’s death or her termination of employment for any reason other than Cause, the Company
(or its designee) may, by written notice following such employment termination, elect to purchase all or any portion of the shares of common stock of Parent held by Executive (including any shares of the Parent’s common stock received upon a
distribution from any deferred compensation plan, any restricted shares or any common stock issuable upon exercise of any options held by Executive) for Fair Market Value (as each such term is defined in the Management Investor Rights Agreement).
The determination date for purposes of determining the Fair Market Value shall be the closing date of the purchase of the applicable shares. The closing date of the sale purchase pursuant to this Section 4(d) shall take place on a date
designated by the Company or its designee, as applicable, in accordance with the provisions of the Management Investor Rights Agreement. 
 (e) Separation Agreement and General Release. The Company’s obligations to make payments under Sections 4(a) and 4(b) are conditioned on Executive’s or her legal representative’s executing a separation agreement and
general release of claims against the Company and its affiliates (and their officers and directors) in a form acceptable to the Company and Executive. 
 Section 5. Restrictive Covenants. 
 Executive shall be subject to the restrictive covenants set
forth in Annex I of the Management Investor Rights Agreement in accordance with its terms; provided, however, that the first sentence of Section 1 of Annex I is hereby deemed modified as it applies to Executive by replacing the phrase
“third anniversary” with “second anniversary.” Executive is an “Executive Management Holder” as such term is used in the Management Investor Rights Agreement. 
 Section 6. Non-Disparagement. 
 (a) During the period commencing on the Effective Date and continuing until the third anniversary of the Date of Termination, neither Executive nor her agents, on the one hand, nor the Company formally, its senior executives, or a member of
the Board, on the other hand, shall directly or indirectly issue or communicate any public statement, or statement likely to become public, that maligns, denigrates or disparages the other (including, in the case of communications by Executive or
her agents, any of the Company’s officers, directors or employees). The foregoing shall not be violated by truthful responses to legal process or governmental inquiry. 
 Section 7. Severance Payments. 
 In addition to the foregoing, and not in any way in limitation of any right or remedy otherwise available to the Company, if Executive violates any provision of Annex I or Section 7 of the Management Investor Rights Agreement or
Section 6 hereof, any severance 
  

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 payments then or thereafter due from the Company to Executive shall be terminated immediately and the Company’s
obligation to pay and Executive’s right to receive such severance payments shall terminate and be of no further force or effect. 
 Section 8. Executive’s Representations, Warranties and Covenants. 
 (a) Executive hereby represents and warrants to
the Company and the Subsidiaries that: 
 (1) Executive has all requisite power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby, and this Agreement has been duly executed by Executive; 
 (2) the execution, delivery and
performance of this Agreement by Executive does not and will not, with or without notice or the passage of time, conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any
judgment, order or decree to which Executive is subject; 
 (3) Executive is not a party to or bound by any employment agreement, consulting
agreement, non-compete agreement, fee for services agreement, confidentiality agreement or similar agreement with any other Person; 
 (4)
upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will be a legal, valid and binding obligation of Executive, enforceable in accordance with its terms; 
 (5) Executive understands that Parent and the Company will rely upon the accuracy and truth of the representations and warranties of Executive set forth
herein and Executive consents to such reliance. 
 (6) as of the date of execution of this Agreement, Executive is not in breach of any of
its terms, including having committed any acts that would form the basis for a Cause termination if such act had occurred after the Effective Date. 
 (b) The Company and the Subsidiaries hereby represent and warrant to Executive that: 
 (1) the Company has all requisite power and
authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, and this Agreement has been duly executed by the Company; 
 (2) the execution, delivery and performance of this Agreement by the Company does not and will not, with or without notice or the passage of time, conflict with, breach, violate or cause a default under any agreement,
contract or instrument to which the Company is a party or any judgment, order or decree to which the Company is subject; 
  

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 (3) upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will
be a legal, valid and binding obligation of the Company, enforceable in accordance with its terms; and 
 (4) the Company understands that
Executive will rely upon the accuracy and truth of the representations and warranties of the Company set forth herein and the Company consents to such reliance. 
 Section 9. General Provisions. 
 (a) Severability. It is the desire and intent of the
parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this
Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable under any present or future law, and if the rights and obligations of any party under this Agreement will not be materially and adversely
affected thereby, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction; furthermore, in
lieu of such invalid or unenforceable provision there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.
Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 
 (b) Entire
Agreement. This Agreement, the Management Investor Rights Agreement (as modified by Section 5 hereof), the Subscription Agreement, the Stock Incentive Plan and Option Agreement embody the complete agreement and understanding among the
parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way
(including, without limitation, any other employment, severance or change-in-control agreement or understanding). 
 (c) Counterparts.
This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. 
 (d) Successors and Assigns. 
 (i) This Agreement is personal to Executive and without the prior
written consent of the Company shall not be assignable by Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.

 (ii) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. The Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of 
  

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 the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets
as aforesaid that assumes and agrees to perform this Agreement by operation of law, or otherwise. 
 (e) Governing Law. THIS AGREEMENT
WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE
THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH
JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY. 
 (f)
Enforcement. 
 (i) Arbitration. Except for the right of Executive or the Company or its Affiliate to obtain injunctive relief
for violation of Sections 5 and 6 of this Agreement or Annex I or Section 7 of the Management Investor Rights Agreement, any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application,
implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in New York (unless the parties agree in
writing to a different location), before a single arbitrator in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association then in effect. In any such arbitration proceeding the parties agree to provide all
discovery deemed necessary by the arbitrator. The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof.
Each party shall bear its or her costs and expenses in any such arbitration and one-half of the arbitrator’s fees and costs; provided, however, that the arbitrator shall have the discretion to award the prevailing party
reimbursement of its or her reasonable attorney’s fees and costs. 
 (ii) Remedies. All remedies hereunder are cumulative, are
in addition to any other remedies provided for by law and may, to the extent permitted by law, be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed to be an election of such remedy or to preclude the
exercise of any other remedy. 
 (iii) Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
  

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 (g) Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the
prior written consent of the Company and Executive and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability
of this Agreement or any provision hereof. 
 (h) Notices. Any notice provided for in this Agreement must be in writing and must be
personally delivered, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or at such other address or to the
attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder and received when delivered personally, five days after deposit in the U.S. mail
and one day after deposit for overnight delivery with a reputable overnight courier service. 
 If to the Company, to: 
 Affinion Group, Inc. 
 c/o Apollo Management V, L.P. 
 9 West 57th Street 
 New York, New York 10019 
 Attention: Marc Becker 
 with a copy (which shall not constitute notice) to: 
 O’Melveny & Myers LLP 
 Times Square Tower 
 7 Times Square 
 New York, NY 10036 
 Attention: Adam Weinstein, Esq. 
 If to Executive, to: 
 Executive’s home address most recently on file with the Company. 
 with a copy (which shall not constitute notice) to: 
 Audra L. Schwartz, Esq. 
 Fellig, Feingold, Edelblum & Schwartz, LLC 
 Two University Plaza, Suite 307

 Hackensack , NJ 07601 
 (i) Survival of Representations, Warranties and Agreements. All representations, warranties and agreements contained herein shall survive the consummation of the transactions contemplated hereby indefinitely. 
  

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 (j) Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience
only and do not constitute a part of this Agreement. All references to a “Section” in this Agreement are to a section of the Agreement unless otherwise noted. 
 (k) Construction. Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the
construction of the general statement to which it relates. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any
party. 
 (l) Code Section 409A. Notwithstanding anything herein or elsewhere to the contrary, to the extent Executive or the
Company notifies the other that this Agreement, the Management Investor Rights Agreement, the Option Agreement or the Stock Incentive Plan may result in Executive being subject to the penalties of Section 409A of the Code, the Company and its
affiliates reserve the right to amend the terms hereof as necessary or desirable to avoid such penalties. 
 (m) Attorney’s Fees.
Promptly following presentation of proper documentation thereof, the Company shall reimburse Executive for all attorneys’ fees reasonably incurred by Executive in the negotiation of this Agreement, the Management Investor Rights Agreement, the
Subscription Agreement and the Option Agreement in an amount not to exceed, in the aggregate, $14,000. 
 [Signature page follows]

  

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

			
	AFFINION GROUP, INC.
		
	By:	 	 /s/ Nathaniel J. Lipman

	Name:	 	Nathaniel J. Lipman
	Title:	 	Chief Executive Officer
	
	EXECUTIVE
	
	 /s/ Maureen E. O’Connell

	Name: Maureen E. O’Connell

  

 12Patent License Agreement

 Exhibit 10.23 
  

 PATENT LICENSE AGREEMENT 
 by and among 
 CD INTELLECTUAL PROPERTY HOLDINGS, LLC 
 AND 
 TRILEGIANT LOYALTY SOLUTIONS, INC.

 Dated as of October 17, 2005 
  

					
	ARTICLE I PATENT LICENSES	  	1
	 Section 1.1.
	  	Non-Exclusive License.	  	1
	 Section 1.2.
	  	Exclusive Rights and License.	  	2
	 Section 1.3.
	  	Permitted Sublieensees.	  	2
	 Section 1.4.
	  	Bankruptcy Considerations.	  	2
		
	ARTICLE II ROYALTY	  	3
	 Section 2.1.
	  	Royalty.	  	3
		
	ARTICLE III INTELLECTUAL PROPERTY PROTECTION	  	3
	 Section 3.1.
	  	Patent Prosecution.	  	3
	 Section 3.2.
	  	Enforcement of Other Licensed Patents.	  	4
	 Section 3.3.
	  	Enforcement of Netcentives Patents Under Exclusive Rights.	  	4
		
	ARTICLE IV TERM AND TERMINATION	  	5
	 Section 4.1.
	  	Termination.	  	5
	 Section 4.2.
	  	Survival.	  	5
		
	ARTICLE V DISCLAIMER AND LIMITATION OF LIABILITY	  	5
	 Section 5.1.
	  	DISCLAIMER OF REPRESENTATIONS AND WARRANTIES.	  	5
	 Section 5.2.
	  	Limitation of Consequential Damages.	  	6
		
	ARTICLE VI MISCELLANEOUS	  	6
	 Section 6.1.
	  	Assignment.	  	6
	 Section 6.2.
	  	Relationship of the Parties.	  	6
	 Section 6.3.
	  	Governing Law and Submission to Jurisdiction.	  	7
	 Section 6.4.
	  	Entire Agreement.	  	7
	 Section 6.5.
	  	Notices.	  	7
	 Section 6.6.
	  	Negotiation.	  	8
	 Section 6.7.
	  	Equitable Relief.	  	8
	 Section 6.8.
	  	Severability.	  	9
	 Section 6.9.
	  	Interpretation.	  	9
	 Section 6.10.
	  	Counterparts.	  	9
	 Section 6.11.
	  	Further Cooperation.	  	9
	 Section 6.12.
	  	Amendment and Waiver.	  	10
	 Section 6.13.
	  	Duly Authorized Signatories.	  	10
	 Section 6.14.
	  	Waiver of Trial By Jury.	  	10
	 Section 6.15.
	  	Descriptive Headings.	  	10
	 Section 6.16.
	  	No Third Party Beneficiaries.	  	10
	 Section 6.17.
	  	Litigation Cooperation.	  	10
	 Section 6.18.
	  	Certain Definitions.	  	11

  

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 PATENT LICENSE AGREEMENT (this “Agreement”), dated as of October 17, 2005, and
effective if and as of the Closing (as defined in the Purchase Agreement (as defined below)) Date, by and among CD Intellectual Property Holdings, LLC, a Delaware corporation (“Licensee”), on the one hand, and Trilegiant Loyalty
Solutions, Inc., a Delaware corporation (“TLS’) and Buyer (as defined below) (as guarantor of TLS’s obligations under this Agreement), on the other hand. Each of Licensee and TLS is sometimes referred to herein as a
“Party” and, collectively, as the “Parties.” Capitalized terms used and not otherwise defined herein have the meanings ascribed to them in Section 6.18 hereof. 
 W I T N E S S E T H: 
 WHEREAS, Cendant Corporation, a Delaware corporation (“Seller”), is the indirect owner of all of the membership interests of TLS (“Membership Interests”) immediately prior to the date hereof; and 
 WHEREAS, Buyer desires to purchase, and Seller desires to cause the sale to Affinion Group Holdings, Inc. (“Buyer”) of, the Membership
Interests pursuant to the Purchase Agreement, dated as of July 26, 2005, between Seller and Buyer (the “Purchase Agreement”); and 
 WHEREAS, TLS owns certain Patents; and 
 WHEREAS, in connection with, and as a condition to entering into, the Purchase Agreement,
Seller requires that Licensee be granted the right to continue using, and TLS is willing to license, certain Patents owned by TLS. 
 NOW,
THEREFORE, in consideration of the foregoing and the covenants and agreements set forth herein, the Parties, intending to be legally bound hereby, agree as follows: 
 ARTICLE I 
 PATENT LICENSES 
 Section 1.1. Non-Exclusive License. (a) TLS hereby grants to Licensee a non-exclusive (except as set forth in Section 1.2), fully paid up, royalty-free (except as set forth in Section 2.1 with
respect to the exclusive license under Section 1.2(a)), irrevocable, worldwide, non-sublicensable (except as set forth in Section 1.3) license during the Term to: 
 (i) the Netcentives Patents (x) in the Field and (y) subject to the non-competition provisions of Section 4.16 of the Purchase Agreement,
in the Travel and Real Estate Field, and 
 (ii) the Other Licensed Patents in Licensee’s Business. 
 (b) Licenses granted in Section 1.1 (a) (the “Non-Exclusive License”) include the right to make, use, sell, offer to sell and
import all products and devices, and to 

 practice all methods, as well as to otherwise exploit any and all other rights under the Licensed Patents in any
jurisdiction, in the case of the Netcentives Patents in the Netcentives Field, and in the case of the Other Licensed Patents in connection with Licensee’s Business. Such rights may be exercised through any and all means, now known or hereafter
created or discovered. 
 Section 1.2. Exclusive Rights and License. 
 (a) TLS hereby grants to Licensee an exclusive (even as to TLS, except as set forth in Section 1.2(b)), irrevocable, worldwide, right and license to
sue for all past, present and future infringement of, or otherwise enforce or assert, the Netcentives Patents against Third Parties in the Field (the “Exclusive Rights”). 
 (b) Subject to Section 1.2(a), TLS non-exclusively may license or provide other rights under the Netcentives Patents in the Field only (i) to
and in connection with customers of TLS to whom TLS directly provides loyalty programs (and without further right to sublicense by such customers), and provided further, that such loyalty programs are managed and operated by TLS, (ii) to
outsourcers, applications development and maintenance providers and other contractors (“Contractors”) providing products or services for any of the foregoing in (i), but only for purposes of such persons to provide such products or
services, and (iii) to Subsidiaries of Buyer, including the right for such Subsidiaries to sublicense to (x) customers to whom such Subsidiaries directly provide loyalty programs (and without further right to sublicense by such customers)
and (y) Contractors solely to the extent necessary for such Contractors to provide products or services for any of the foregoing customers related to the loyalty programs provided by such Subsidiaries, and (iv) to Maritz, Inc.
(“Maritz”) in connection with resolving Trilegiant Loyalty Solutions. Inc. vs. Maritz, Inc., United States District Court for the District of Delaware, Civil Action No. 04-360-JJF, or any appeals, rehearings or other
actions between such parties related thereto, provided that such license grant must be limited to and be no greater than TLS’s rights in the Netcentives Patents, which TLS’s rights, for the avoidance of doubt, are subject to Seller’s
rights to the Netcentives Patents as set forth in this Agreement. For the avoidance of doubt, except as set forth in this Section 1.2(b), TLS has no right to grant any licenses under the Netcentives Patents in the Field. 
 Section 1.3. Permitted Sublicensees. Licensee may sublicense under the Netcentives Patents (i) within the Field without restriction,
(ii) within the Travel and Real Estate Field to (1) its Affiliates, and (2) to outsourcers, applications development and maintenance providers and other contractors providing products or services for Licensee or for any of the
foregoing in (1), but only for purposes of providing such products or services. Licensee may sublicense its rights under the Other Licensed Patents to (a) its Affiliates, (b) Persons in which it or any of its Affiliates has a material
investment but not control, and joint venture, co-branding and other bona fide (i.e. where a principal purpose of the business relationship is not the entering into of such sublicense) business partners of such Persons or Licensee; and
(c) outsourcers, applications development and maintenance providers and other contractors providing products or services for Licensee or for any of the foregoing in (a) or (b), but only for purposes of such persons to provide such products
or services. 
 Section 1.4. Bankruptcy Considerations. Notwithstanding any other provision of this Agreement to the contrary, in
the event TLS becomes subject to any bankruptcy or similar 
  

 2 

 proceedings: (i) all of the license rights granted under this Agreement to Licensee, including those set forth in
Sections 1.1, 1.2 and 1.3 shall be deemed fully retained by and vested in Licensee as protected intellectual property rights under Section 365(n) of the United States Bankruptcy Code (and similar laws in other jurisdictions) (“Section
365(n)”); and (ii) Licensee shall have all of the rights afforded to non-debtor licensees under Section 365(n). In the event of commencement of bankruptcy proceedings by or against Licensee, Licensee or its trustee in bankruptcy,
as applicable, shall be entitled to assume the licenses granted under or pursuant to this Agreement and shall be entitled to retain all such rights hereunder. 
 ARTICLE II 
 ROYALTY 
 Section 2.1. Royalty. In consideration for the Exclusive Rights under the Netcentives Patents granted in Section 1.2(a), Seller shall pay to TLS a total royalty in the amount of $11,250,000 in
accordance with the following schedule: $2,250,000 on each of November 15, 2005, and February 15, May 15, August 15, and November 15, 2006. 
 ARTICLE III 
 INTELLECTUAL PROPERTY PROTECTION 
 Section 3.1. Patent Prosecution. 
 (a) TLS shall maintain and prosecute the Licensed Patents at its sole cost and expense. In the event that TLS desires to cease prosecution of, or cease paying maintenance fees for, or otherwise not maintain any Licensed Patent, TLS shall
provide reasonable prior written notice to Licensee of such intention to abandon (which notice shall, in any event, be given no later than forty-five (45) days prior to the next deadline for any action that may be taken with respect to such
Licensed Patent with the applicable patent office), and Licensee shall have the right, but not the obligation, to have assigned to it such Licensed Patent to file and/or maintain such patent or application in its own name or the name of any of its
Affiliates (subject to a non-exclusive license grantback to TLS to practice in TLS’s and its permitted sublicensees’ current businesses as of the date of the assignment however such businesses may evolve (subject to, with respect to any
Netcentives Patents. Licensee’s exclusive rights under Section 1.2(a)). In such event, upon written notice from Licensee to TLS, TLS shall, and hereby does, perpetually and irrevocably assign all right, title and interest throughout the
world in and to such Licensed Patent to Licensee, including the right to sue, counterclaim, and recover for past, present, and future infringement of such Licensed Patent. TLS further agrees to execute all other documents and take all further action
reasonably requested by Licensee for Licensee to secure and perfect its rights therein. 
 (b) Each Party will notify the other within
thirty (30) days of receipt by such Party of material information concerning the request for, or filing or declaration of, any interference, opposition, reexamination or other prosecution-related proceeding relating to the Netcentives Patents
in any jurisdiction. The Parties will thereafter fully consult and reasonably cooperate with each other to determine a course of action with respect to any such prosecution-related 
  

 3 

 proceeding. Decisions on whether to initiate or how to respond to such a proceeding, as applicable, and the course of
action in such proceeding, including settlement and compromise negotiations and terms, will be made by the Party then controlling the prosecution and maintenance of such Patent in accordance with Section 3.1(a), except that TLS shall not accept
any settlements or other compromises in a prosecution-related proceeding (including any interference, opposition or reexamination) involving the Netcentives Patents which narrows the scope of the claims with respect to the Field without the prior
written consent of the Licensee, such consent not to be unreasonably withheld, delayed or conditioned. 
 Section 3.2. Enforcement of
Other Licensed Patents. Without limitation to Sections 3.1 and 3.3, TLS shall have the sole right to (i) initiate, defend, and control, at their own expense, all assertions, actions, suits and proceedings with respect to infringement or
other violation of the Other Licensed Patents, and (ii) defend, and control, at their own expense, all assertions, actions, suits and proceedings by Third Parties that assert the invalidity or unenforceability of any of the Other Licensed
Patents. TLS shall be entitled to keep all proceeds arising from any such assertions, actions, suits and proceedings brought by them and any settlements or compromises thereof. Without limitation to Section 3.1 and 3.3, TLS shall notify and
keep Licensee reasonably informed of any such assertions, actions, suits or proceedings, and any settlements or compromises thereof. 
 Section 3.3. Enforcement of Netcentives Patents Under Exclusive Rights. 
 (a) TLS and Licensee shall promptly notify
each other, and provide to the other all material information in their possession (subject to confidentiality obligations to Third Parties) regarding any actual or suspected infringement or other violation of the Netcentives Patents of which such
Party becomes aware. 
 (b) Licensee shall have the exclusive right, but not the obligation, to initiate, defend, and control, at its own
expense, all assertions, actions, suits and proceedings with respect to infringement or other violation of the Netcentives Patents by Third Parties in the Field. TLS shall have the exclusive right, but not the obligation, to initiate, defend, and
control, at its own expense, all assertions, actions, suits and proceedings with respect to infringement or other violation of the Netcentives Patents that is solely outside of the Exclusive Field. The Parties shall cooperate, each at its own
expense, with respect to defending against any assertions, actions, suits and proceedings by Third Parties that assert the invalidity or unenforceability of any Netcentives Patents. 
 (c) The Parties shall reasonably consult with each other prior to bringing, and during the course of, any assertion, action, suit or proceeding
permitted under this Agreement regarding any Netcentives Patent. Each of the Parties will provide reasonable assistance to the other Party (as controlling Party) in connection with any assertion, action, suit or proceeding relating to the
Netcentives Patents, and if required by law in order for such action, suit or proceeding to be initiated or maintained, will join in the suit or proceeding, at the controlling Party’s expense for reasonable out-of-pocket costs and expenses
except as otherwise set forth herein. Where the non-controlling Party is not required by law to join such suit or proceeding (or where the non-controlling Party desires to participate beyond what is required to join and maintain the suit or
proceeding), the non-controlling Party shall have the right at its 
  

 4 

 election to participate in and join in any assertion, action, suit or proceeding relating to any of the Netcentives
Patents using counsel of its choice at its own cost and expense. The controlling Party shall not have a right to negotiate a settlement or compromise with any Third Parties in connection with any assertion, suit or proceeding contemplated by this
Article III, if and to the extent the other Party’s rights would be materially adversely affected by such settlement or compromise, or if such settlement or compromise would require the payment of any amounts by the other Party or would include
any admission of guilt by the other Party. 
 (d) Neither Party shall have any claim of any kind against the Party controlling the
prosecution, assertion, action, suit or proceeding contemplated under this Article III based on or arising out of the controlling Party’s strategy, tactics and decisions concerning any such prosecution, assertion, action, suit, proceeding,
settlement, or compromise (unless due to gross negligence or willful misconduct of the controlling Party), and each of the Parties hereby perpetually and irrevocably releases the controlling Party from any such claims. 
 ARTICLE IV 
 TERM AND TERMINATION 

Term 
 This Agreement is effective
on and the “Term” shall commence on the Closing Date and the Agreement and Term shall continue in effect (a) with respect to the Other Licensed Patents for the life of such Other Licensed Patents and (b) with respect to the
Netcentives Patents until December 31, 2006 (the “Netcentives Term”). 
 Section 4.1. Termination. The licenses
granted hereunder are irrevocable and may not be terminated prior to the expiration of the Term, except by mutual written agreement of the Parties. Each Party shall be entitled to equitable relief as contemplated by Section 6.7 (Equitable
Relief), and other customary relief, subject to any disclaimers and limitations set forth herein. 
 Section 4.2. Survival.
Section 6.17 and Articles V and VI shall survive any expiration or termination of this Agreement. 
 ARTICLE V 
 DISCLAIMER AND LIMITATION OF LIABILITY 
 Section 5.1. DISCLAIMER OF REPRESENTATIONS AND WARRANTIES. EACH OF THE PARTIES HEREBY SPECIFICALLY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, IN CONNECTION WITH THE
SUBJECT MATTER OF THIS AGREEMENT, INCLUDING REGARDING ANY OF THE PATENTS LICENSED HEREUNDER. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, LICENSEE ACKNOWLEDGES THAT THE LICENSES GRANTED IN THIS AGREEMENT, AND THE PATENTS LICENSED HEREUNDER ARE
PROVIDED “AS IS” AND LICENSEE ASSUMES ALL RISKS IN CONNECTION WITH ITS EXERCISE OF ANY RIGHTS UNDER 
  

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 THE LICENSED PATENTS. NOTHING IN THIS AGREEMENT IS INTENDED TO LIMIT ANY RIGHTS OR REMEDIES OF EITHER PARTY UNDER THE
PURCHASE AGREEMENT OR THE OTHER RELATED AGREEMENTS. 
 Section 5.2. Limitation of Consequential Damages. NO PARTY SHALL UNDER ANY
CIRCUMSTANCES BE LIABLE TO ANY OTHER PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF PROFITS OR REVENUE) RESULTING OR ARISING FROM THIS AGREEMENT. THIS LIMITATION APPLIES REGARDLESS OF WHETHER SUCH
DAMAGES OR OTHER RELIEF ARE SOUGHT BASED ON BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE, STRICT LIABILITY IN TORT, OR ANY OTHER LEGAL OR EQUITABLE THEORY. 
 ARTICLE VI 
 MISCELLANEOUS 
 Section 6.1. Assignment. 
 (a) Licensee may not assign this Agreement or any of its rights,
interests or obligations hereunder without the prior written consent of Buyer; provided, however, that (i) Licensee may assign any or all of the foregoing (1) to one or more of its Affiliates or (2) in connection with a sale, transfer
or other disposition of all or any part of its business or assets; (ii) Licensee may grant sublicenses under any or all of the foregoing (including grants of sublicense and assignment rights that are coextensive with the rights granted to
Licensee hereunder) to any Affiliates of which Licensee or any Affiliate divests itself after the Closing Date; and (iii) Licensee and its Affiliates may retain licenses under any or all of the foregoing (including retention of sublicense and
assignment rights that are coextensive with the rights granted to Licensee hereunder) in connection with any assignment or transfer of this Agreement or any of the rights, interests or obligations hereunder; provided, that in each case, each
assignee or sublicensee, as applicable, agrees in writing to be subject to the terms and conditions of this Agreement. 
 (b) TLS may freely
assign, transfer or grant any of the Licensed patents; provided, that the assignee of such Licensed Patents agrees in writing to be subject to the terms and conditions of this Agreement, including all rights and obligations with respect to
prosecution and enforcement rights of the Netcentives Patents as set forth herein. 
 (c) Any assignment or transfer in violation of the
foregoing in this Section 6.1 shall be void. Subject to the foregoing, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns. 
 Section 6.2. Relationship of the Parties. Nothing in this Agreement shall be deemed to render any Party an agent of any other Party and or
grant any Party any authority to bind any other Party, transact any business in the other Party’s name or on its behalf, or make any promises or representations on behalf of the other Party. Each Party will perform all of its respective
obligations under this Agreement as an independent contractor, and no joint venture, partnership or other relationship shall be created or implied by this Agreement. 
  

 6 

 Section 6.3. Governing Law and Submission to Jurisdiction. This Agreement shall be governed
by, enforced under and construed in accordance with the laws of the State of New York, without giving effect (to the fullest extent provided by law) to any choice or conflict of law provision or rule thereof which might result in the application of
the laws of any other jurisdiction. Subject to Section 6.7, each of the Parties hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the State of New York and of the United States of America
in each case located in the County of New York for any litigation arising out of or relating to this Agreement (and agrees not to commence any litigation relating thereto except in such courts) and further agrees that service of any process,
summons, notice or document by U.S. registered mail to its respective address set forth in Section 6.5 (or to such other address for notice that such Party has given the other Parties written notice of in accordance with Section 6.5) shall
be effective service of process for any litigation brought against it in any such court. Each Party hereby irrevocably and unconditionally waives any objection to the laying of venue of any litigation arising out of this Agreement in the courts of
the State of New York or of the United States of America in each case located in the County of New York and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such litigation brought in
any such court has been brought in an inconvenient forum. 
 Section 6.4. Entire Agreement. This Agreement, including Exhibits A,
B and C to this Agreement, as such Exhibits may be amended from time to time, constitutes the entire agreement among the Parties relating to the Licensed Patents, and there are no further agreements or understandings, written or oral, among the
Parties with respect thereto. 
 Section 6.5. Notices. All notices, requests, claims, consents, demands and other communications
under this Agreement shall be in writing and shall be deemed given if delivered personally, by facsimile (that is confirmed) or sent by overnight courier (providing proof of delivery) to the Parties at the following addresses (or at such other
address for a Party as shall be specified by like notice): 
 If to Licensee: 
 CD Intellectual Property Holdings, LLC 
 1
Sylvan Way 
 Parsippany, NJ 07054 
 Facsimile: 973.496.4624 
 Attention: Andrew Hollander, Senior Counsel 
  

 7 

 With a copy to: 
 Cendant Corporation 
 9 West 57th Street 
 New York, New York 10021 
 Facsimile:
(212) 413-1922 
 Attn: Eric J. Bock, 
          Executive Vice President Law and Corporate Secretary 
 If to TLS: 
 Trilegiant Loyalty Solutions, Inc. 
 7814 Carousel Lane 
 Richmond, VA 23294 
 Facsimile: 804-217-6420 
 Attention: Legal
Department 
 With a copy to: 
 Affinion Group Holdings, Inc. 
 100 Connecticut Avenue 
 Norwalk, Connecticut 06850 
 Facsimile:
203-956-1206 
 Attention: Todd Siegel 
 All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m., New York City time, and such day is a Business Day in the place of receipt.
Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt. 
 Section 6.6. Negotiation. In the event of any dispute, controversy or claim arising out of or relating to this Agreement or the breach, termination or validity thereof, or the transactions contemplated
hereby (a “Dispute”), upon the written notice of any Party hereto, the Parties shall attempt in good faith to negotiate a resolution of the Dispute for a period of 20 days after the receipt of such notice. 
 Section 6.7. Equitable Relief. The Parties hereby expressly recognize and acknowledge that irreparable damage would result, no adequate
remedy at law would exist and damages would be difficult to determine in the event that any provision of this Agreement is not performed in accordance with its specific terms or otherwise breached. Therefore, in addition to, and not in limitation
of, any other remedy available to any Party, an aggrieved Party under this Agreement shall be entitled to immediate injunctive relief, without the necessity of proving the inadequacy of money damages as a remedy or the necessity of posting a bond or
other security. Such remedies, and any and all other remedies provided for in this Agreement, shall be cumulative in nature and not exclusive and shall be in addition to any other remedies whatsoever which any Party may otherwise have. 

 

 8 

 Section 6.8. Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby are not affected in any manner materially adverse to a Party. Upon such determination that any term or other provisions are invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions be consummated as originally contemplated to the fullest extent possible. 
 Section 6.9. Interpretation. 
 (a) When a reference is made in this Agreement to an Article, Section or Exhibit, such reference shall be to an Article or Section of, or an Exhibit to, this Agreement unless otherwise indicated. Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”. The words “hereof’, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other
document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and
neuter genders of such term. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.

 (b) The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this
Agreement. 
 Section 6.10. Counterparts. This Agreement may be executed in any number of counterparts, each of which when
executed, shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument binding upon all of the Parties hereto notwithstanding the fact that all Parties are not signatory to the original or the same
counterpart. For purposes of this Agreement, facsimile signatures shall be deemed originals, and the Parties agree to exchange original signatures as promptly as possible. 
 Section 6.11. Further Cooperation. Each Party agrees to cooperate with the others, at any other Party’s request, to execute any and all
documents or instruments, or to obtain any consents, in order to assign, transfer, perfect, record, maintain, enforce or otherwise carry out the intent of the terms of this Agreement. 
  

 9 

 Section 6.12. Amendment and Waiver. This Agreement (including the Exhibits hereto) may not be
amended or modified except by a writing signed by an authorized signatory of each Party. No waiver by any Party or any breach or default hereunder shall be deemed to be a waiver of any preceding or subsequent breach or default. 
 Section 6.13. Duly Authorized Signatories. Each Party represents and warrants that its signatory whose signature appears below has been and
is on the date of this Agreement duly authorized by all necessary corporate or other appropriate action to execute this Agreement. 
 Section 6.14. Waiver of Trial By Jury. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, ARISING OUT OF OR IN CONNECTION WITH
THIS AGREEMENT OR ANY MATTER ARISING HEREUNDER. 
 Section 6.15. Descriptive Headings. The descriptive headings of the several
articles and sections of this Agreement are inserted for reference only and shall not limit or otherwise affect the meaning hereof. 
 Section 6.16. No Third Party Beneficiaries. Nothing in this Agreement shall convey any rights upon any Person or entity, which is not a Party or a permitted assignee of a Party to this Agreement. For the avoidance of doubt,
“Affiliate” includes, with respect to any Person, any other Person that becomes an Affiliate of such Person after the Closing Date. 
 Section 6.17. Litigation Cooperation. The parties recognize that certain documents and other materials and evidence, including witness testimony, with potential relevance to pending or future litigation may be or will be in the
possession, custody, or control of TLS. The parties further desire to maintain any privileges that apply to communications between them, and their common interests with regard to pending and future litigation, and to avoid any suggestions of waiver
of the confidentiality of privileged communications, memoranda, and documents. Therefore, during pending or future litigation, TLS shall cooperate fully with Seller through any and all reasonable means. Such cooperation shall include, but not be
limited to, providing documentation, witness testimony, mental impressions, fact investigation, timely compliance with litigation deadlines, and attorney files to the extent they bear on any claims or defenses, or are otherwise beneficial to Seller,
in pending or future litigation. In addition, to the extent Seller asserts the patents covered by this Agreement in pending or future litigation during the term of the license grant applicable to the patents so asserted, TLS shall provide Seller
with the ability to do so without the issue of legal standing being an impediment to Seller enforcing its rights, and TLS shall cooperate with Seller to effectuate any settlement agreement entered into regarding pending or future litigation, and
such cooperation may include, but not be limited to, granting a license to the patents covered by this Agreement. TLS shall cause the buyer in connection with the sale of TLS and such buyer’s Affiliates and any successors to any of the above in
this paragraph to comply with TLS’s obligations under this Agreement. 
  

 10 

 Section 6.18. Certain Definitions. For purposes of this Agreement: 
 (a) “Affiliate” of any Person means affiliates, companies in which such Person has a material investment but not control, and joint
venture, cobranding and other business partners. For the avoidance of doubt, “Affiliate” includes, with respect to any Person, any other Person that becomes an Affiliate of such Person after the Closing Date. 
 (b) “Agreement” has the meaning set forth in the preamble to this Agreement: 
 (c) “Airlines in Negotiation” means those airlines with which, as of the Closing Date, Licensee or any of its Affiliates (excluding,
for avoidance of doubt, TLS and its Subsidiaries) is engaged in any license or settlement discussions that include the Netcentives Patents. Such airlines are set forth in Exhibit C. 
 (d) “Business Day” or “business day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in New York City are authorized or obligated by law or executive order to close. 
 (e) “Buyer”
has the meaning set forth in the recitals. 
 (f) “Closing Date” has the meaning set forth in the recitals. 
 (g) “Dispute” has the meaning set forth in Section 6.6. 
 (h) “Exclusive Rights” has the meaning set forth in Section 1.2. 
 (i) “Field” means: 
 (i) the marketing, sale and/or distribution of any travel products and services, including airline tickets, hotel rooms, car rentals, cruises and vacation packages, directly to consumers, corporate travelers or corporate travel managers
over the Internet, as an agent or other intermediary for any of such products or services; in connection with the foregoing, (1) “agent or other intermediary” includes businesses currently referred to in the travel industry as
“Online Travel Agencies” (“OTAs”) and metasearch services as they relate to travel products and services, and (2) “Internet” means the Internet and any other online or other electronic
marketing, sale and/or distribution channel (other than person-to-person voice telephony), now known or hereafter created or used (including any and all wireless channels); and 
 (ii) use in connection with, or for the benefit of, any of the businesses of the Airlines in Negotiation and any Affiliates thereof,
howsoever such businesses may evolve. 
 (j) “GAAP” means generally accepted accounting principles in the United States, as
in effect from time to time. 
  

 11 

 (k) “Governmental Entity” means any United States federal or state government, or any
foreign government, or any agency, bureau, board, commission, court, department, tribunal or instrumentality thereof. 
 (l)
“Licensed Patents” means the Netcentives Patents and the Other Licensed Patents. 
 (m) “Licensee’s
Business” means Licensee’s and its permitted sublicensees’ businesses, howsoever such businesses may change or evolve (including through organic growth, through mergers and acquisitions, or otherwise). 
 (n) “Membership Interest” has the meaning set forth in the recitals. 
 (o) “Netcentives Field” means the Field and the Travel and Real Estate Field, collectively. 
 (p) “Netcentives Patents” means the Patents set forth in Exhibit B. 
 (q) “Non-Exclusive License” has the meaning set forth in Section 1.1. 
 (r) “Other Licensed Patents” means all Patents owned by TLS as of immediately following the Closing, other than the Netcentives
Patents, including the Patents set forth in Exhibit A. 
 (s) “Party” or “Parties” has the meaning
set forth in the preamble to this Agreement. 
 (t) “Patent” means all U.S. and foreign patents and patent applications,
including divisions, continuations, continuations-in-part, reissues, reexaminations, and any extensions thereof. 
 (u)
“Person” means an association, a corporation, an individual, a partnership, a limited liability company, a trust, or any other entity or organization, including a Governmental Entity. 
 (v) “Purchase Agreement” has the meaning set forth in the recitals. 
 (w) “Seller” has the meaning set forth in the recitals. 
 (x) “Shares” has the meaning set forth in the recitals. 
 (y)
“Subsidiary” of any Person means, on any date, any Person (i) the accounts of which would be consolidated with and into those of the applicable Person in such Person’s consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date or (ii) of which securities or other ownership interests representing more than fifty percent of the equity or more than fifty percent of the ordinary voting power or, in the case
of a partnership, more than fifty percent of the general partnership interests or more than fifty percent of the profits or losses of which are, as of such date, owned, 
  

 12 

 controlled or held by the applicable Person or one or more subsidiaries of such Person. For avoidance of doubt,
“Subsidiary” does not include, with respect to a Person, any other Person that controls or is under common control with, such person. 
 (z) “Third Party” means Persons other than a Party or Affiliate thereof in the case of Licensee, or Subsidiary thereof in the case of TLS. 
 (aa) “Term” has the meaning set forth in Section 4.1. 
 (bb) “TLS” has the
meaning set forth in the preamble to this Agreement. 
 (cc) “Travel and Real Estate Field” means the travel and real
estate fields other than to the extent within the Field. 
 [Signature Page Follows] 
  

 13 

 IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on its behalf on the day
and year first above written. 
  

			
	 CD INTELLECTUAL PROPERTY
 HOLDINGS,
LLC

		
	By:	 	 /s/ Thomas D. Christopoul

	Name:	 	Thomas D. Christopoul
	Title:	 	 Senior Executive Vice President
 Co-Chairman and Chief
Executive Officer, Cendant Marketing Services Division

	
	TRILEGIANT LOYALTY SOLUTIONS, INC.
		
	By:	 	 /s/ Nathaniel J. Lipman

	Name:	 	Nathaniel J. Lipman
	Title:	 	President & Chief Executive Officer
	
	AFFINION GROUP HOLDINGS, INC.
		
	By:	 	 /s/ Nathaniel J. Lipman

	Name:	 	Nathaniel J. Lipman
	Title:	 	President & Chief Executive Officer

 Exhibit A 
 Other Licensed Patents 
  

			
	 Country and Type
	  	Patent No./
Patent Application No.
	 Australia Patent
	  	770,512
	 Australia Patent
	  	758,404
	 U.S. Patent Application
	  	10,420,901
	 U.S. Patent Application
	  	101,349,951
	 U.S. Patent Application
	  	101143,866
	 U.S. Patent Application
	  	10/127,492
	 U.S. Provisional Patent Application
	  	60/641,439
	 Canada Patent Application
	  	2,297,787
	 Canada Patent Application
	  	2,240,424
	 Canada Patent Application
	  	2,381,368
	 PCT Application
	  	US03/012435
	 EP Application
	  	96 944 791.1
	 EP Application
	  	00959 220.5
	 Israel Application
	  	137357
	 Mexico Application
	  	6780
	 Singapore Application
	  	74514

 For avoidance of doubt, any and all U.S. and foreign Patents in the same family (including

 parent, sibling, progeny and counterpart and equivalent Patents) as the Patents set forth above are 
 also included in “Other Licensed Patents”. 

 Exhibit B 
 Netcentives Patents 
  

				
	 Country and Type
	  	Patent No./
Patent Application No.	 
	 U.S. Patent
	  	5,774,870	 
	 U.S. Patent
	  	6,009,412	 
	 U.S. Patent
	  	6,578,012	 
	 U.S. Patent Application
	  	09/854,721	 
	 U.S. Patent Application
	  	09/668,965	 
	 U.S. Patent A location
	  	09/167,315	 
	 U.S. Patent A location
	  	09/637,422	 
	 U.S. Patent Application
	  	09/637,387	 
	 U.S. Patent Application
	  	09/932,588	 
	 U.S. Patent Application
	  	09/717,972	1

 For avoidance of doubt, “Netcentives Patents” includes the Patents set forth above and
any and 
 all U.S. and foreign Patents in the same family (including parent, sibling, progeny and 
 counterpart and equivalent Patents) as the Patents set forth above. 
  

	1	This Patent is abandoned, but may have progeny and/or corresponding patents still alive. 

 Exhibit C 
 Airlines in Negotiation 
 Southwest Airlines 
 Delta Airlines 
 United Airlines

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