Document:

Exhibit 10.1

 

TERMINATION AND SETTLEMENT AGREEMENT

 

This Termination and Settlement Agreement (this “Agreement”)
is made and entered into as of the 23rd day of June, 2005 by and between
Western Sierra Bancorp, a California corporation (“Western”), 4080 Plaza
Goldorado Circle, Cameron Park, California 95682, and Gold Country Financial
Services, Inc., a Nevada corporation (“Gold”), 519 D Street, Marysville,
California 95901, with reference to the following:

 

RECITALS

 

WHEREAS, on November 18, 2004, Western and Gold entered into that
certain Agreement and Plan of Reorganization and Merger, as amended on January 18,
2005 (the “Merger Agreement”) whereby Western would acquire Gold pursuant to a
merger of Gold with and into Western (the “Proposed Transaction”);

 

WHEREAS, there is a dispute between the parties regarding the impact of
certain recent developments;

 

WHEREAS, as a result, on the terms and conditions set forth herein, the
parties wish to terminate the Merger Agreement and to not consummate the
Proposed Transaction; and

 

WHEREAS, the terms and conditions of this Agreement supersede any and
all contrary or inconsistent terms or conditions set forth in the Merger
Agreement;

 

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

 

AGREEMENT

 

1.               Termination
of Merger Agreement.    Pursuant to Section 8.1.1 of the Merger
Agreement, the Merger Agreement is hereby terminated and of no further legal
force or effect.  Furthermore, Western
and Gold agree, except as required by law or the rules of the NASDAQ, not
to issue any public notice, disclosure or press release with respect to this
Agreement or the Merger Agreement without seeking the consent of the other
party, which consent shall not be unreasonably withheld.

 

 

2.               Damages.    In
lieu of any otherwise applicable Liquidated Damages (as that term is defined in
the Merger Agreement, neither party shall be liable to the other for any
damages, costs, claims or other liabilities in connection with the termination
of the Merger Agreement. 

 

3.               Effect of Termination.

 

(a)                    Confidentiality; Business Records and Information.    In
accordance with the provisions of Section 5.1 of the Merger Agreement,
each party shall: (i) continue to hold in strict confidence all documents
and information concerning the other party or the other party’s subsidiaries,
if any, obtained pursuant to the disclosure Schedules of Articles 3 and 4
of the Merger Agreement or pursuant to Section 5.1 of the Merger
Agreement; (ii) not use such documents or information for its own benefit
(except to the extent that such documents or information are a matter of public
record); and (iii) return all such documents, as well as all documents,
work papers and other materials of the other party relating to the Merger, to
the party furnishing the same, without any copies being retained, except that
the foregoing shall not apply to any documents, working papers, material or
information which is a matter of public knowledge. All such documents shall be
redelivered to the other party within ten business days of the date of this
Agreement. 

 

(b)                   Release.    The termination of the Merger Agreement
shall release each party from any liability or damage to the other party
arising out of, in connection with or otherwise relating to, directly or
indirectly, said party’s default or failure in performance of any of its
covenants, agreements, duties or obligations arising under the Merger
Agreement, or any breaches of any representation or warranty contained
therein.  Without limiting the generality
of the foregoing, it is the intention of the parties hereto and their counsel
that this Agreement be effective as a full and final accord, satisfaction and
release as to the matters arising out of, in connection with or otherwise
relating to the Merger Agreement.  In
furtherance of this intention, each party represents and warrants that it has
read and is familiar with California Civil Code Section 1542, which
provides as follows:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

 

 

Each
party, with the advice of counsel, knowingly and voluntarily waives any
protection to which it may be entitled under Section 1542 and further
covenants not to assert any claim in violation of this Agreement.

 

4.               Entire Agreement.    The
making, execution and delivery of this Agreement by the parties hereto have
been induced by no representations, statements, warranties or agreements other
than those expressed herein. This Agreement embodies the entire understanding
of the parties and there are no further or other agreements or understandings,
written or oral, in effect between the parties relating to the subject matter
hereof, unless expressly referred to by reference herein. Furthermore, the
terms and conditions of this Agreement shall supersede any and all contrary or
inconsistent terms or conditions under the Merger Agreement This Agreement
shall be governed by, and construed in accordance with, the laws of the State
of California.

 

5.               Arbitration.    Any
controversy or claim arising out of or relating to this Agreement, or the
breach hereof, shall be settled by arbitration to take place in Sacramento,
California, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, and judgment upon the award rendered by the
arbitrator or arbitrators may be entered in any court having jurisdiction. 

 

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

 

	
  GOLD
  COUNTRY FINANCIAL

  SERVICES, INC.

  	
  WESTERN
  SIERRA BANCORP

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ John A. Marta

  	
   

  	
  /s/ Charles Bacchi 

  	
   

  
	
  By:

  	
  John A.
  Marta

  	
  By:

  	
  Charles
  Bacchi

  
	
  Its:

  	
  Chairman

  	
  Its:

  	
  Chairman

  
	
   

  
	
   

  
	
  /s/ Julie
  Shackleford

  	
   

  	
  /s/ Patrick
  J. Rusnak 

  	
   

  
	
  By:

  	
  Julie Shackleford

  	
  By:

  	
  Patrick J. Rusnak

  
	
  Its:

  	
  Executive
  Vice President/Treasurer

  	
  Its:

  	
  Executive
  Vice President/COO

  
							

 

2Exhibit 10.1

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED
AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is
made and entered into as of April 1, 2005 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 9).

 

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

 

WHEREAS, the
Company and the Executive are parties to that Employment Agreement (the “Predecessor Agreement”) made and entered into as of November 21,
2003;

 

WHEREAS, the
Company and the Executive desire to amend the Predecessor Agreement; 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.  For the term of this Agreement,
the 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 and take his direction
from the Board of Directors.  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 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.

 

(b)           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. The Executive will be paid
a base salary at the rate of $625,000 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, 2005 (determined
using the same formula and approach as is used in determining EBITDA in the
Company’s “Adjusted Business Plan and Annual Budget”, as defined below) and the
EBITDA set for such year in the Company “Adjusted Business Plan and Annual
Budget” as follows:

 

	
  Actual
  EBITDA

  as a Percentage

  of Plan

  	
   

  	
  Bonus

  as a Percentage

  Base Salary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 90%

  	
   

  	
  No bonus

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  100%

  	
   

  	
  100% of Base Salary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  110% or more

  	
   

  	
  150% of Base Salary

  	
   

  

 

If actual
EBITDA as a percentage of the Adjusted Business Plan and Annual Budget falls
between 90% and 100%, the amount of bonus shall be pro rated on a straight-line
basis.  If actual EBITDA as a percentage
of the Adjusted Business Plan and Annual Budget falls between 100% and 110%,
the amount of bonus shall be pro rated on a five to one (5:1) basis such that
each percentage point by which EBITDA exceeds the Adjusted Business Plan and
Annual Budget shall result in a bonus of an additional 5% of the Executive’s
Base Salary.  In no case shall bonus
payable under this Section 3(b) exceed 150% of Base Salary unless
agreed to by the Board of Directors in its absolute discretion.

 

2

 

The “Adjusted Business Plan and Annual Budget” shall be the
Company’s business plan and budget 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 2005 (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.

 

(a)           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 Executive has been granted an option to purchase up to 1.1
million shares of Parent’s Common Stock (the “Options”)
at an exercise price equal to $10.00 per share, of which 461,250 have already
vested.  So long as Executive remains
employed with the Company, the remaining 638,750 Options will vest in
accordance with the following schedule: 212,916 Options will vest on each of December 31,
2005 and December 31, 2006 and the remaining 212,918 Options will vest on December 31,
2007; provided, however, that all such Options
will automatically and immediately vest if (i) the Company terminates this
Agreement without Cause (as defined in Section 8(a)), (ii) Executive
terminates this Agreement for Good Reason (as defined in Section 8(b)) or (iii) a
Change in Control (as defined below) occurs.

 

(b)           For the purposes of
this Agreement, 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 a part, 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, merger 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.

 

(c)           Once vested, the
Options shall remain vested and exercisable, and such Options shall expire on
the earlier of (i) their original expiration date and (ii) the third
anniversary of the date on which the Executive’s employment with the Company
terminated; provided, however, that upon a Change in
Control, the Options may be cancelled in consideration of a cash payment of the
amount of the intrinsic value thereof, if any (i.e. the excess of the fair
market value of the underlying shares over the aggregate exercise price of the
Options).

 

4

 

6.             Change in
Control Bonus.

 

(a)           In the event a Change
in Control occurs during the term of the Executive’s employment or within one
year after the termination of the Executive’s employment if (i) the
Company terminates this Agreement without Cause (as defined in Section 8(a))
or (ii) Executive terminates this Agreement for Good Reason (as defined in
Section 8(b)), the Company shall pay to the Executive a “Change in Control
Bonus” as follows:

 

	
  “Effective
  Purchase Price” Per Share

  	
   

  	
  Change of Control Bonus

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than
  $9.00

  	
   

  	
  No bonus

  	
   

  
	
  $9.00

  	
   

  	
  $2.0 million

  	
   

  
	
  $ 10.00 or
  more

  	
   

  	
  $ 4.0
  million

  	
   

  

 

If the actual “Effective
Purchase Price” per share falls between $9.00 per share and $10.00 per share,
the amount of the Change in Control Bonus shall be pro rated on a straight-line
basis.  In no case shall bonus payable
under this Section 6(a) exceed $4.0 million unless agreed to by the
Board of Directors in its absolute discretion.

 

(b)           For the purpose of this
Section 6, the “Effective Purchase Price” shall mean the net consideration
provided to the Company’s shareholders to effect the Change of Control,
including cash and the fair market value of stock or other securities paid,
after giving effect to all applicable transaction expenses, including, but not
limited to, legal fees, financial advisor fees, payments made to the Company’s
employees and creditors, if applicable.

 

(c)           For the purpose of this
Section 6, the “Effective Purchase Price Per Share (for other than a sale
or transfer of all or substantially all of the 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) shall mean the Effective Purchase Price
divided by the number of shares of the Company’s voting securities acquired in
the transaction on a fully diluted basis taking into account the Company’s
voting securities underlying any options, warrants or other convertible
securities acquired in the transaction (to the extent not rolled over).

 

(d)           For the purpose of this
Section 6, the “Effective Purchase Price” Per Share for a sale or transfer
of all or substantially all of the 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 shall mean the Effective Purchase Price divided by the
total number of shares of the Company’s voting securities outstanding as of the
time the transaction on a fully diluted basis taking into account the Company’s
voting securities underlying any options, warrants or other convertible
securities.

 

5

 

(e)           Any Change in Control
Bonus shall be paid to the Executive no later than 30 days after the close of
the Change in Control transaction.

 

7.             Term.  This Agreement shall have a term equal to the
period from the Effective Date through December 31, 2007 (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, 2007 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 8.  The foregoing notwithstanding, Sections 4(b),
6, 10 and 11, and the letter agreement referred to in Section 10, shall
survive the expiration of this Agreement in accordance with their respective
terms.

 

8.             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 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 8(b) within 30 days
of the Company’s receipt of the written notice in accordance with this Section 8(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) a Change in Control occurs; (iii) Executive is directed
by the Board of Directors of the

 

6

 

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, (i) for the year
in which the termination occurs and for the immediately following year, the
greater of (x) the bonus that would be payable under Section 3(b) hereof
as if the Executive remained employed throughout each such fiscal year, or (y)
the bonus the Executive received for fiscal year 2004 and (ii) the Change
in Control Bonus provided by Section 6 should a Change in Control occur
within one year after the Executive’s termination of employment.  Should Executive terminate this Agreement
without Good Reason, 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
but only 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 such 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
(or his estate, as applicable) 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 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; and (ii) in the case of
termination for death or Disability, any Pro Rata Bonus Amount payable pursuant
to clause (d) above.  Nothing in
this clause (e) shall affect Executive’s rights

 

7

 

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 or termination of this Agreement, the provisions of
Sections, 4(b), 6, 10 and 11, and the letter agreement referred to in Section 10,
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(s) will be reduced by
any payment owing and paid to Executive under Paragraph 5 of the letter
agreement referred to in Section 10.

 

(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.

 

9.             Effective
Date. 
This Agreement shall take effect as of January 1, 2005 (the “Effective Date”).

 

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

 

11.           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.

 

12.           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.

 

13.           Entire
Agreement.  This Agreement (along with the letter
agreement referenced in Section 10 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

 

8

 

Company, and supersedes all prior or
concurrent arrangements (including the Predecessor Agreement, discussions,
agreements or understandings with respect to Executive’s employment.

 

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

 

15.           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) if delivered 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.

Damonmill Square, Suite 6A

Concord, MA 01742

Attn:  Board of Directors

 

and          Advanstar, Inc.

Damonmill Square, Suite 6A

Concord, MA 01742

Attn:   Ward Hewins, Vice President & General Counsel

 

with a copy to each of:

 

DLJ Merchant
Banking Partners

466 Lexington Avenue, 17th Floor

New York, New York  10017

Attn:  OhSang Kwon

 

and

 

Davis Polk &
Wardwell

450 Lexington Avenue

New York, New York  10017

Attn:  Nancy L. Sanborn

 

If to
Executive:

 

Joseph Loggia

5742 Hilltop Road

Hidden Hills, California 91302

 

9

 

With a copy
to:

 

Latham &
Watkins

633 West Fifth Street, 40th Floor

Los Angeles, California 90071

Attn: Russell F. Sauer, Jr.

 

10

 

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

 

	
   

  	
    ADVANSTAR, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    By:

  	
   /s/ James Alic

  	
   

  
	
   

  	
   

  	
  Name: James Alic

  
	
   

  	
   

  	
  Title:Director

  
	
   

  	
   

  	
   

  
	
   

  	
    /s/ Joseph Loggia

  	
   

  
	
   

  	
    Joseph Loggia

  
	
   

  	
   

  
	
   

  	
    6/22/05

  	
   

  
	
   

  	
    Date:

  
					

 

 

Attachment A

 

Advanstar, Inc.

Damonmill Square, Suite 6A

Concord, MA 01742

 

April 1, 2005

 

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 the Amended and Restated Employment Agreement of even date herewith
(the “Employment Agreement”).  In consideration of your continued 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
provision of this Letter Agreement and the provisions of any other agreement
between you and Advanstar in respect of the subject matter hereof, the
provisions of this Letter 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 Letter 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;

 

A-1

 

(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 between you and Advanstar in respect of the
subject matter hereof, the provisions of this Letter 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,

 

A-2

 

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 8(a) of
the Employment Agreement) or (ii) due to your death or Disability (as
defined in Section 8(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 m 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 Letter 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 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

 

A-3

 

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/ James Alic

  	
   

  
	
   

  	
   

  	
  Name: James Alic

  
	
   

  	
   

  	
  Title:Director

  
	
   

  	
   

  	
   

  
	
    ACCEPTED AND AGREED:

  
	
   

  
	
   

  
	
    /s/ Joseph Loggia

  	
   

  
	
    Joseph Loggia

  
	
   

  
	
    6/22/05

  	
   

  
	
    Date:

  
					

 

A-4

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