Document:

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                                                                   EXHIBIT 10.26

                              PURCHASE AGREEMENT
                                 IN RESPECT OF
                         LIMITED PARTNERSHIP INTERESTS

          This agreement (the "Agreement") is entered into as of January 5, 2000
by and between Platinum Blues Chicago, L.L.C., an Illinois limited liability
company ("Seller"), and HOB Chicago, Inc., a Delaware corporation ("Buyer").
Capitalized terms used but not otherwise defined herein shall have the meanings
set forth in the Agreement of Limited Partnership of HOB Marina City Partners,
L.P. (the "Partnership") among Seller, Buyer, HOB Marina City, Inc., a Delaware
corporation (the "General Partner"), and Marks Theater Investment, L.L.C., an
Illinois limited liability company ("Marks") (and successor-in-interest to Niki
Development, Corp., an Illinois corporation), dated January 29, 1996, as amended
by the First Amendment to the Agreement of Limited Partnership dated December
20, 1996 and the Second Amendment to Agreement of Limited Partnership dated as
of May 1, 1997 (as amended, the "Partnership Agreement").

                                   RECITALS
                                   --------

          WHEREAS, pursuant to the Partnership Agreement, Seller made a capital
contribution to the Partnership, and the Partnership issued to Seller an
interest as a Limited Partner in the Partnership;

          WHEREAS, Seller desires to sell its entire interest as a Limited
Partner of the Partnership (the "Interests") to Buyer and Buyer wishes to
purchase such Interests pursuant to Section 12.1 of the Partnership Agreement;

          WHEREAS, the transactions contemplated herein have been Approved by
the Limited Partners in accordance with Section 8.2(a) of the Partnership
Agreement, and such approval is attached hereto as Exhibit A; and
                                                   ---------

          WHEREAS, the General Partner will consent to the substitution of Buyer
as a Limited Partner in respect of such Interests;

          NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:
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                                   AGREEMENT
                                   ---------

          1.    Transfer of Percentage Interests. Seller will sell, assign,
                --------------------------------
transfer and deliver to Buyer all of its Interests in consideration of the
payment by the Buyer of the Purchase Price (as defined below), payable in full
on the Closing Date as provided in this Agreement. On the Closing Date, Buyer
will pay to Seller, or to its order, the cash amount of $5,950,037 (the "Cash
Payment") and deliver 802,469 shares of Class D-2 Preferred Stock, $.01 par
value per share of HOB Entertainment, Inc., a Delaware corporation ("HOB
Entertainment"), valued at $1.62 per share (the "HOB Shares"), the Cash Payment
and the HOB Shares representing the full purchase price (the "Purchase Price")
for the Interests calculated in accordance with Section 12.1 of the Partnership
Agreement.

          2.    Closing and Payment.
                -------------------

                2.1     Closing Date. The sale and purchase of the Interests
pursuant to this Agreement shall close (the "Closing") in the offices of Latham
& Watkins at 633 West Fifth Street, Suite 4000, Los Angeles, California on
January 5, 2000, or at such other place, time or date as mutually may be agreed
to by Buyer and Seller (the "Closing Date").

                2.2     Deliveries at Closing. At the Closing, the following
shall occur:

                        2.2.1    Seller and Buyer shall execute and deliver to
each other and to the General Partner an Assignment of Partnership Interests in
the form attached hereto as Exhibit B (the "Assignment of Partnership
                            ---------
Interests"), pursuant to which the Interests to be sold hereunder shall be
transferred to Buyer free and clear of all liens and encumbrances, but subject
to the terms and provisions of the Partnership Agreement;

                        2.2.2     Buyer shall pay to Seller, by wire transfer of
immediately available funds, the Cash Payment;

                        2.2.3     Buyer shall deliver to Seller, and at Seller's
written direction, Craig Duchossois ("Seller's Designee") certificates
evidencing and representing 185,185 HOB Shares, in the case of Seller, and
617,284 shares, in the case of Seller's Designee, and containing thereon
applicable legends conforming to the requirements of federal and state
securities laws;

                        2.2.4     Seller and Seller's Designee shall deliver to
Buyer an executed counterpart to HOB Entertainment's Amended and Restated
Stockholder Agreement whereby each of Seller and Seller's Designee becomes a
party to and bound by the HOB Entertainment's Amended and Restated Stockholder
Agreement;

                        2.2.5     The General Partner shall deliver to Buyer and
Seller its written consent to the substitution of Buyer as a Limited Partner in
respect of the Interests, substantially in a form attached hereto as Exhibit C;
                                                                     ---------

                        2.2.6     HOB Marina City, Inc. and Seller shall execute
and deliver to each other the Agreement of Settlement and Mutual Release;

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                        2.2.7     The General Partner shall deliver to Buyer and
Seller a Third Amendment to the Partnership Agreement, substantially in the form
attached hereto as Exhibit D and in accordance with Section 3.6 of the
                   ---------
Partnership Agreement, reflecting the substitution of Buyer as Limited Partner
in respect of the Interests; and

                        2.2.8     HOB Entertainment, Seller and Craig Duchossois
shall execute and deliver to each other the Lock-Up Agreement with respect to
the HOB Shares.

          3.    Representations and Warranties.
                ------------------------------
                3.1     Of Buyer. Buyer represents and warrants to Seller as
                        --------
follows:

                        3.1.1     Buyer is a corporation duly organized and
validly existing under the laws of the State of Delaware, and has full power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder;

                        3.1.2     HOB Entertainment has taken all actions
necessary to duly authorize the issuance of the HOB Shares which when issued in
accordance with the terms of this Agreement will be validly issued, fully paid
and nonassessable, and free and clear of any liens, claims and encumbrances
except as set forth in the Amended and Restated Stockholders Agreement of HOB
Entertainment, dated as of September 10, 1999;

                        3.1.3     HOB Entertainment has issued shares of its
Class D-2 Preferred Stock in a private offering on September 10, 1999 and
pursuant to a related preemptive rights offering will issue shares of its Class
D-2 Preferred Stock at a purchase price of $1.62 per share. HOB Entertainment
has made no other issuances of its Class D-2 Preferred Stock;

                        3.1.4     The execution, delivery and performance of
this Agreement and the transactions contemplated herein have been duly
authorized by all requisite corporate action and no other acts or other
proceedings on the part of the Buyer or its shareholders are necessary to
authorize this Agreement or the transactions contemplated herein. This Agreement
has been duly and validly executed by Buyer and constitutes a legal, valid and
binding obligation of Buyer, enforceable against it in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law);

                        3.1.5     Neither the execution and delivery of this
Agreement nor the performance by Buyer of its obligations hereunder will result
in (i) a violation of or conflict with its organizational documents; (ii) a
material breach of or default under any contract, agreement, indebtedness,
lease, commitment, license, franchise, permit, authorization, or concession to
which it is a party or by which it is bound; or (iii) a violation of any
statute, law, ordinance, rule, regulation, order, judgment, or decree;

                        3.1.6     Any consent, approval, or authorization of, or
declaration, filing, or registration with, any governmental or regulatory
authority, or any other person or

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entity, required to be made or obtained by Buyer in connection with the
execution, delivery and performance of this Agreement has been made or obtained;

                        3.1.7     Buyer is acquiring the Interests to be
acquired by it hereunder solely for its own account, not as a nominee or agent
for any other person or entity, and not with a view to, or for offer or sale in
connection with, any distribution thereof that would be in violation of the
securities laws of the United States of America or any state thereof, without
prejudice, however, to its right at all times to sell or otherwise dispose of
all or any part of said Interests under the Securities Act of 1933, as amended
(the "Securities Act"), and applicable state securities laws, or under any
exemption from such registration available under the Securities Act and other
applicable state securities laws;

                        3.1.8     Buyer is knowledgeable, sophisticated, and
experienced in business and financial matters such that it is capable of
evaluating the merits and risks of the prospective investment in the Interests
to be acquired by it hereunder, is able to bear the economic risk of an
investment in Interests to be acquired by it hereunder, and is able to afford
the complete loss of such investment;

                        3.1.9     Buyer is an "accredited investor" as defined
in Regulation D under the Securities Act; and

                        3.1.10    Buyer acknowledges that the Partnership
Agreement limits the transferability of the Interests, that transfers may be
made only in compliance with applicable provisions of the Partnership Agreement
and applicable federal and state securities laws, and that there is no market
for the sale or trade of the Interests.

                3.2     Of Seller. Seller represents and warrants to Buyer as
                        ---------
follows:

                        3.2.1     Seller is a limited liability company duly
organized and validly existing under the laws of the State of Illinois, and has
full power and authority to execute and deliver this Agreement and to perform
its obligations hereunder;

                        3.2.2     The execution, delivery and performance of
this Agreement and the transactions contemplated herein have been duly
authorized by all requisite action and no other proceedings on the part of the
Seller are necessary to authorize this Agreement or the transactions
contemplated herein. This Agreement has been duly and validly executed by Seller
and constitutes a legal, valid and binding obligation of Seller, enforceable
against it in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights generally and by general
principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law);

                        3.2.3     Neither the execution and delivery of this
Agreement nor the performance by Seller of its obligations hereunder will result
in (i) a violation of or conflict with its organizational documents; (ii) a
material breach of or default under any contract, agreement, indebtedness,
lease, commitment, license, franchise, permit, authorization, or

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concession to which it is a party or by which it is bound; or (iii) a violation
of any statute, law, ordinance, rule, regulation, order, judgment, or decree;

                        3.2.4     Any consent, approval, or authorization of, or
declaration, filing, or registration with, any governmental or regulatory
authority, or any other person or entity, required to be made or obtained by
Seller in connection with the execution, delivery and performance of this
Agreement has been made or obtained;

                        3.2.5     Seller has valid and legal title to the
Interests and the Interests are not subject to any lien or adverse claim;

                        3.2.6     Each of Seller and Seller's Designee is
acquiring any HOB Shares that may be acquired by it hereunder solely for its own
account, not as a nominee or agent for any other person or entity, and not with
a view to, or for offer or sale in connection with, any distribution thereof
that would be in violation of the securities laws of the United States of
America or any state thereof, without prejudice, however, to its right at all
times to sell or otherwise dispose of all or any part of said HOB Shares under
the Securities Act of 1933, as amended (the "Securities Act"), and applicable
state securities laws, or under any exemption from such registration available
under the Securities Act and other applicable state securities laws;

                        3.2.7     Each of Seller and Seller's Designee is
knowledgeable, sophisticated, and experienced in business and financial matters
such that it is capable of evaluating the merits and risks of the prospective
investment in the HOB Shares to be acquired by it hereunder, is able to bear the
economic risk of an investment in Interests to be acquired by it hereunder, and
is able to afford the complete loss of such investment;

                        3.2.8     Each of Seller and Seller's Designee is an
"accredited investor" as defined in Regulation D under the Securities Act; and

                        3.2.9     Seller acknowledges for itself and on behalf
of Seller's Designee that transfers of the HOB Shares may be made only in
compliance with applicable federal and state securities laws, and that there is
no market for the sale or trade of the HOB Shares.

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<PAGE>

          4.    Indemnification. To the extent Seller, as the transferring
                ---------------
Partner of the Interests is not released from further obligations under the
Partnership Agreement after the Closing (the "Further Obligations"), Buyer
agrees to indemnify and hold harmless Seller and its officers, directors,
employees and agents for any and all liabilities, losses, damages, claims, costs
and expenses, interest, awards, judgments and penalties (including reasonable
attorneys' fees and expenses) actually suffered or incurred by them arising out
of or resulting from any and all Further Obligations. For the avoidance of
doubt, the Further Obligations do not include any obligations of Seller under
the Partnership Agreement prior to the Closing.

          5.    Seller's Acknowledgment. Seller acknowledges for itself and on
                -----------------------
behalf of Seller's Designee that any decision to pursue an initial public
offering of capital stock of HOB Entertainment shall be made by the Board of
Directors of HOB Entertainment and no assurance has been or can be provided
regarding whether or not such a transaction will be pursued or successfully
completed or the timing thereof.

          6.    Miscellaneous.
                -------------

                6.1     Expenses. All costs and expenses, including fees and
                        --------
disbursements of counsel incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such costs
and expenses; provided, however, the Buyer shall pay or reimburse the
Partnership for all reasonable expenses of the Partnership in connection with
the transaction contemplated hereby.

                6.2     Further Assurances. Each of Seller and Buyer agrees to
                        ------------------
cooperate with one another in executing, delivering and otherwise providing such
additional documents, instruments or items as shall be necessary or appropriate
under and pursuant to the terms of this Agreement to effectuate the sale,
assignment, transfer and delivery, from Seller to Buyer, of the Interests to be
acquired by Buyer hereunder.

                6.3     Counterparts. This Agreement may be executed
                        ------------
simultaneously in two or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

                6.4     No Assignment; No Third-Party Beneficiaries. No party
                        -------------------------------------------
shall be entitled to assign its rights or obligations under this Agreement
without the prior written consent of every other party, which consent may be
withheld in each party's sole discretion. This Agreement has been and is made
solely for the benefit of Seller and Buyer and their respective successors and
assigns, and no other person shall acquire or have any right under or by virtue
of this Agreement.

                6.5     Attorneys' Fees. In the event of any litigation between
                        ---------------
the parties based upon, arising out of, or in any way relating to this
Agreement, the prevailing party shall be entitled to recover all of its costs
and expenses (including without limitation attorneys' fees) from the non-
prevailing party.

                6.6     Entire Agreement; Governing Law. This Agreement
                        -------------------------------
incorporates the entire understanding of the parties and supersedes all previous
agreements should they exist,

                                       6
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and shall be governed by, and construed in accordance with, the laws of the
State of Delaware, without regard to principles of conflicts of law.

                           (Signature Page Follows)

                                       7
<PAGE>

          IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
 each of the parties hereto effective as of the date first written above.

                                                  PLATINUM BLUES CHICAGO, L.L.C.

                                                  By:
                                                     ---------------------------
                                                  Name:
                                                  Title:

                                                  HOB CHICAGO, INC.

                                                  By:
                                                     ---------------------------
                                                  Name:
                                                  Title:<PAGE>

                                                                   EXHIBIT 10.27

                              ADVISORY AGREEMENT
                              ------------------

          This ADVISORY AGREEMENT is made and entered into as of this 31st day
of January 2000 (the "Effective Date"), by and between (a) Wm. Christopher Gorog
("Gorog"); (b) HOB Entertainment, Inc. ("HOB"); (c) Chase Capital Partners,
Chase/HOB 1999 Partners (GC), L.L.C., Chase/HOB 1998 Partners (GC), L.L.C., CB
Capital Investors, LLC, and Chase Venture Capital Associates, L.P. (collectively
"Chase"); (d) First Union Investors, Inc. ("First Union"); and (e) J. H. Whitney
& Co., J. H. Whitney III, L.P., Whitney Strategic Partners III, L.P. and J. H.
Whitney Market Value Fund, L.P. (collectively, "Whitney," and Chase, First Union
and Whitney collectively referred to as the "Investors").

          WHEREAS, Gorog performed certain advisory and consulting services (the
"Services") for the benefit of HOB and the Investors prior to and in connection
with HOB's acquisition of Universal Concerts, Inc. and certain of its affiliates
(the "UCI Acquisition"); and

          WHEREAS, HOB, the Investors and Gorog have agreed to enter into this
Advisory Agreement to compensate Gorog for his provision of the Services.

          NOW, THEREFORE, in consideration of the execution and delivery of this
Agreement and the mutual promises contained herein, and other good and valuable
consideration, the parties agree as follows:

     1.   Compensation.  In consideration of the Services rendered by Gorog:
          ------------
          (a)   On the Effective Date, Gorog shall be paid an amount equal to
$808,937 in respect of the Services and $153,063  in reimbursement of expenses
incurred by Gorog in connection with the UCI Acquisition, of which (i) HOB shall
pay Gorog $288,600, (ii) Chase shall pay Gorog $306,100, (iii) Whitney shall pay
Gorog $306,100, and (iv) First Union shall pay Gorog $61,200.

          (b)   On the Effective Date, Gorog and HOB shall also enter into a
stock option agreement, dated as of the date hereof, in the form annexed hereto
as Exhibit A (the "Stock Option Agreement"), pursuant to which Gorog shall
   ---------
receive options to purchase an aggregate amount of 2,675,000 shares of HOB
Common Stock (the "Stock Options"). The Stock Options are subject solely to the
terms and conditions of the Stock Option Agreement and HOB's 1993 Amended and
Restated Stock Option Plan (the "Plan"). Contemporaneously herewith, Gorog
agrees to become a party to the Amended and Restated Stockholders Agreement,
dated as of September 10, 1999, by and among HOB and the investors listed
therein (as amended from time to time, the "Stockholders Agreement"), and on the
Effective Date, Gorog shall execute a counterpart of the Stockholders Agreement.
Each of the Investors agrees, severally and not jointly, upon any exercise of
the Stock Options by Gorog, to sell to HOB, at the exercise price for such Stock
Options in the Stock Option Agreement and for the same form of consideration
utilized by Gorog, a number of shares of HOB Common Stock equal to the
percentage set forth opposite its name below of the shares of HOB Common Stock
to be received by Gorog upon such exercise:
<PAGE>

                    Investor                            Percentage
                    --------                            ----------
                    Chase                               28.126%
                    Whitney                             28.126%
                    First Union                         17.579%

Each Investor agrees to exercise its right to convert into HOB Common Stock
securities convertible into, or exercisable for, HOB Common Stock to the extent
necessary to comply with its obligations in the preceding sentence.   No failure
by any Investor to discharge its obligations to HOB under this paragraph 1(b)
will relieve or otherwise affect HOB's obligations to Gorog under the Stock
Option Agreement.

          (c)   HOB and the Investors shall seek to resolve or eliminate claims
("E&Y Claims") by Ernst & Young International or its agents, subsidiaries,
predecessors, successors or affiliates, including Kenneth Leventhall ("Ernst &
Young"), against Gorog for services allegedly rendered to Gorog in connection
with the UCI Acquisition, and Gorog shall support their efforts to resolve or
eliminate the E&Y Claims.  Gorog shall pay fifty percent (50%), HOB shall pay
fifteen percent (15%), Chase shall pay fifteen and 91/100 percent (15.91%),
Whitney shall pay fifteen and 91/100 percent (15.91%), and First Union shall pay
three and 18/100 percent (3.18%), of any resolution of any E&Y Claim(s) which
requires the payment of any monies to Ernst & Young.  The terms of any
resolution of any E&Y Claim require the approval of each of Gorog, HOB, Chase,
Whitney and First Union; provided, however, that the parties have pre-approved a
cash settlement of all E&Y Claims for up to one hundred fifty thousand dollars
($150,000), with each of the parties paying the percentage set forth in the
previous sentence of such settlement.

     2.   HOB Board. At each election of directors of HOB, HOB and the Investors
          ---------
will consult each other and will vote their respective shares of HOB's voting
stock in favor of the election of Gorog to the Board of Directors of HOB, so
long as (i) Gorog is the record owner or beneficially owns (or has the right to
acquire) at least 500,000 shares of stock of HOB (as such number may be adjusted
to account for stock splits, reverse stock splits and other recapitalizations);
and (ii) Gorog is not otherwise engaged in a concert promotion business in
competition with HOB. While serving as a director of HOB, Gorog will be entitled
to indemnification rights, and coverage under any directors and officers and/or
any errors and omissions insurance policy, and to other rights and benefits
accorded to directors, to the same extent as the other directors of HOB.
Notwithstanding anything in this Agreement to the contrary, the obligations of
HOB and the Investors set forth in this paragraph 2 shall terminate upon the
completion of a Qualified Public Offering or a Qualified Sale (as such terms are
defined in the Stockholders Agreement).

     3.   Co-Sale.     If at any time prior to a Qualified Public Offering or a
          -------
Qualified Sale (as such terms are defined in the Stockholders Agreement), any of
the Investors party to that certain Co-Sale Agreement dated as of September 10,
1999 by and among such Investors and certain other stockholders of the Company
(the "Co-Sale Agreement") is an Originating Stockholder (as such term is defined
in the Co-Sale Agreement) with respect to a transaction subject to Section 2 of
the Co-Sale

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Agreement, such Investor will afford Gorog the opportunity to participate in
such transaction to the same extent as if Gorog was a Stockholder under the Co-
Sale Agreement; provided, however, that if any party to the Co-Sale Agreement
that is not an Investor under this Agreement elects to participate in such
transaction, the number of shares to be sold by such party shall not be reduced
without such party's consent to be treated as a "Consenting Seller", as set
forth below.  Any such party who does not consent to have its participation
reduced is referred to as a "Non-Consenting Seller"; any such party who consents
to have its participation reduced is referred to as a "Consenting Seller".  If
Gorog elects to participate in such sale, Gorog, any Investor participating in
such sale and any Consenting Seller shall be entitled to sell its Pro-Rata
Portion of the Available Shares.  The term "Pro-Rata Portion" shall mean, with
respect to Gorog, any Investor participating in such sale and any Consenting
Seller, a fraction the numerator of which is the number of Shares (as defined in
the Co-Sale Agreement) held by such person, and the denominator of which is the
aggregate number of Shares held by Gorog, all Investors participating in such
sale and all Consenting Sellers.  The term "Available Shares" shall mean the
total number of Shares to be sold in such transaction less the amount to be sold
by all Non-Consenting Sellers.

     4.   Relationship.
          ------------

          (a)   Gorog's status with respect to HOB and each of the Investors is
and was that of an independent contractor rather than an employee of HOB or any
of the Investors and it is understood and agreed that none of HOB or any of the
Investors will withhold any federal, state or local income, Social Security,
unemployment or other taxes on account of payments to Gorog hereunder, but will
remit the full amount of such payments to Gorog and report them on federal tax
form 1099.  All estimated tax payments and employment tax obligations arising
from payments hereunder are agreed to be those of Gorog.

          (b)   Except as may hereafter be agreed upon in writing, Gorog shall
not have the authority to obligate or commit HOB in any manner whatsoever.

     5.   Gorog Release.  Gorog, on behalf of himself and each of the Gorog
          -------------
Releasees (as hereinafter defined) (collectively, the "Gorog Releasors"), for
good and valuable consideration the receipt and adequacy of which is hereby
acknowledged, unconditionally and forever releases and discharges HOB, House of
Blues Concerts, Inc. (formerly named Universal Concerts, Inc.), Chase, First
Union, Whitney, and their respective partners, officers, directors,
stockholders, representatives, affiliates, subsidiaries, predecessors,
successors, co-investors, controlling persons, agents and employees, past and
present, and any other person or entity acting by, through, or in concert with
them, or any of them (collectively the "HOB/Investor Releasees") of and from all
actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims, rights, obligations, losses, liabilities, costs, expenses,
attorneys' fees, and demands whatsoever, whether known or unknown, contingent or
absolute, suspected or unsuspected, disclosed or undisclosed, asserted or
unasserted, hidden or concealed, matured or unmatured, material or immaterial,
whether individual, class, derivative or representative, whether in law,
admiralty or equity, or of any other type or in any other capacity, against each
of the respective HOB/Investor Releasees,

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which the Gorog Releasors or any of them ever had, now have or hereafter can,
shall or may have, for, upon, or by reason of any matter, cause or thing
whatsoever from the beginning of the world to the Effective Date in any way
arising out of, based upon or related to the UCI Acquisition or any other plans,
discussions or proposals by or among any of the parties hereto with respect to a
possible transaction involving Universal Concerts, Inc., except for any claim
arising out of, based upon or related to this Agreement or the Stock Option
Agreement. The Gorog Releasors, and each of them, intend that this release (and
the covenant not to sue set forth in paragraph 6 of this Agreement) shall be
effective as a full and final accord and satisfaction, and as a bar to all
actions, causes of action, claims, obligations, costs, expenses, attorneys'
fees, damages, losses, liabilities and demands of or against any HOB/Investor
Releasee of any nature, character or kind, known or unknown, suspected or
unsuspected, in any way arising out of, based upon or related to the UCI
Acquisition or any other plans, discussions or proposals by or among any of the
parties hereto with respect to a possible transaction involving Universal
Concerts, Inc., except for any claim pursuant to, arising out of, or for breach
of, this Agreement or the Stock Option Agreement. The Gorog Releasors, and each
of them, represent and warrant that he/she/it/they have not assigned or
transferred any interest in any claim released by this paragraph 5
(collectively, "Released Gorog Claims"), and, further, that any Gorog Releasor
who breaches the foregoing representation and warranty shall indemnify and hold
harmless any and all HOB/Investor Releasees, and each of them, of, from and
against all liabilities, claims, demands, damages, costs, expenses, and
attorneys' fees incurred by such HOB/Investor Releasee as a result of any person
asserting any such assignment or transfer in violation of this paragraph's
representation and warranty. It is the intention of the parties to this
Agreement, and each of them, that this indemnity does not require payment as a
condition precedent to recovery. The Gorog Releasors, and each of them,
acknowledge that they are familiar with Section 1542 of the California Civil
Code, 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.

The Gorog Releasors, and each of them, expressly waive and relinquish any and
all rights and benefits which they may have under, or which may be conferred on
them by, the provisions of Section 1542 of the California Civil Code, as well as
under any other state or federal statute or common law principle of similar
effect, to the fullest extent that they may lawfully waive such rights or
benefits pertaining to the released matters.  The Gorog Releasors, and each of
them, intend that this release shall be and will remain in effect as a full and
complete release notwithstanding the discovery or existence of any additional or
different claims or facts arising out of the released matters.

     6.   Gorog's Covenant Not To Sue.  Gorog, on behalf of himself and each of
          ---------------------------
the Gorog Releasees (as hereinafter defined), covenants and agrees that he and
they will never initiate any suit or action at law or otherwise against any of
the HOB/Investor Releasees, or institute, prosecute, induce, encourage, assist,
participate in or in any way aid any other person or entity to institute or
prosecute any litigation, claim, demand, action or cause of action against any
of the HOB/Investor Releasees, for any relief, including without limitation,
damages, costs, expenses or compensation for

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<PAGE>

or on account of any damage, loss or injury either to person or property, or
both, or for breach of any agreement, obligation or duty, whether developed or
undeveloped, resulting or to result, known or unknown, which any of the Gorog
Releasors ever had, now has, or which they or their successors or assigns
hereafter can, shall or may have for or by reason of any matter, cause or thing
whatsoever from the beginning of the world to the Effective Date in any way
arising out of, based upon or related to the UCI Acquisition or any other plans,
discussions or proposals by or among any of the parties hereto with respect to a
possible transaction involving Universal Concerts, Inc., excepting only claims
pursuant to, arising out of, or for breach or enforcement of this Agreement or
the Stock Option Agreement. The Gorog Releasees, and each of them, acknowledge
and agree that if he/she/it/they hereafter commence any suit arising out of,
based upon, or relating to any Released Gorog Claim, the Gorog Releasee who
violates the provision of this paragraph 6 shall pay to such HOB/Investor
Releasee, in addition to any other damages caused thereby, all attorneys' fees
and costs incurred by such HOB/Investor Releasee, and each of them, in defending
or otherwise responding to such suit or claim.

     7.   HOB And The Investors' Release.  HOB and the Investors on behalf of
          ------------------------------
themselves and each of the HOB/Investor Releasees (collectively, the
"HOB/Investor Releasors"), for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, unconditionally and forever release
and discharge Gorog and each of his heirs, successors, representatives,
executors, administrators, affiliates, predecessors, agents and assigns, past
and present and any person or entity acting by, through, or in concert with them
or any of them (collectively, including Gorog, the "Gorog Releasees"), from all
actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims, rights, obligations, losses, liabilities, costs, expenses,
attorneys' fees, and demands whatsoever, whether known or unknown, contingent or
absolute, suspected or unsuspected, disclosed or undisclosed, asserted or
unasserted, hidden or concealed, matured or unmatured, material or immaterial,
whether individual, class, derivative or representative, whether in law,
admiralty or equity, or of any other type or in any other capacity, against each
of the Gorog Releasees or any of them, which the HOB/Investor Releasors ever
had, now have or hereafter can, shall or may have, for, upon, or by reason of
any matter, cause or thing whatsoever from the beginning of the world to the
Effective Date in any way arising out of, based upon or related to the UCI
Acquisition, or any other plans, discussions or proposals by or among any of the
parties hereto with respect to a possible transaction involving Universal
Concerts, Inc., except for any claim arising out of, based upon or related to
this Agreement or the Stock Option Agreement.  The HOB/Investor Releasors, and
each of them, intend that this release (and the covenant not to sue set forth in
paragraph 8 of this Agreement) shall be effective as a full and final accord and
satisfaction, and as a bar to all actions, causes of action, claims,
obligations, costs, expenses, attorneys' fees, damages, losses, liabilities and
demands of or against any Gorog Releasee of any nature, character or kind, known
or unknown, suspected or unsuspected, in any way arising out of, based upon or
related to the UCI Acquisition or any other plans, discussions or proposals by
or among any of the parties hereto with respect to a possible transaction
involving Universal Concerts, Inc., except for any claim pursuant to, arising
out of, or for breach of, this Agreement or the Stock Option Agreement.  The
HOB/Investor Releasors, and each of them, represent and warrant that
he/she/it/they have not assigned or transferred any interest in any claim
released by this paragraph

                                       5
<PAGE>

7 (collectively, "Released HOB/Investor Claims"), and, further, that any
HOB/Investor Releasor who breaches the foregoing representation and warranty
shall indemnify and hold harmless any and all Gorog Releasees, and each of them,
of, from and against all liabilities, claims, demands, damages, costs, expenses,
and attorneys' fees incurred by such Gorog Releasee as a result of any person
asserting any such assignment or transfer in violation of this paragraph's
representation and warranty. It is the intention of the parties to this
Agreement, and each of them, that this indemnity does not require payment as a
condition precedent to recovery.  The HOB/Investor Releasors, and each of them,
acknowledge that they are familiar with Section 1542 of the California Civil
Code, 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.

The HOB/Investor Releasors, and each of them, expressly waive and relinquish any
and all rights and benefits which they may have under, or which may be conferred
on them by, the provisions of Section 1542 of the California Civil Code, as well
as under any other state or federal statute or common law principle of similar
effect, to the fullest extent that they may lawfully waive such rights or
benefits pertaining to the released matters.  The HOB/Investor Releasors, and
each of them, intend that this release shall be and will remain in effect as a
full and complete release notwithstanding the discovery or existence of any
additional or different claims or facts arising out of the released matters.

     8.   HOB And The Investors' Covenant Not To Sue. HOB and the Investors each
          ------------------------------------------
covenant and agree on behalf of itself and each of its respective HOB/Investor
Releasees that it and they will never initiate any suit or action at law or
otherwise against any of the Gorog Releasees, or institute, prosecute, induce,
encourage, assist, participate in or in any way aid any other person or entity
to institute or prosecute any litigation, claim, demand, action or cause of
action against any of the Releasees, for any relief, including without
limitation, damages, costs, expenses or compensation for or on account of any
damage, loss or injury either to person or property, or both, or for breach of
any agreement, obligation or duty, whether developed or undeveloped, resulting
or to result, known or unknown, which any of the HOB/Investor Releasors ever
had, now has, or which hereafter can, shall or may have for or by reason of any
matter, cause or thing whatsoever from the beginning of the world to the
Effective Date in any way arising out of, based upon or related to the UCI
Acquisition or any other plans, discussions or proposals by or among any of the
parties hereto with respect to a possible transaction involving Universal
Concerts, Inc., excepting only claims pursuant to, arising out of, or for breach
or enforcement of this Agreement or the Stock Option Agreement. The HOB/Investor
Releasees, and each of them, acknowledge and agree that if he/she/it/they
hereafter commence any suit arising out of, based upon, or relating to any
Released HOB/Investor Claim, the HOB/Investor Releasee who violates the
provision of this paragraph 8 shall pay to such Gorog Releasee, in addition to
any other damages caused thereby, all attorneys' fees and costs incurred by such
Gorog Releasee, and each of them, in defending or otherwise responding to such
suit or claim.

                                       6
<PAGE>

     9.   Regulatory and Filing Obligations.  Each party hereto shall separately
          ---------------------------------
undertake all actions necessary or appropriate to satisfy any regulatory or
filing obligations such party may have resulting from the execution of this
Agreement or the performance of any obligations hereunder. Further, each party
holds harmless and indemnifies the other from and against any liabilities
arising from such party's own failure to properly take such action or actions.

     10.  Confidentiality.
          ---------------

          (a)   Except as may be required by law or as may be specifically
authorized by HOB in writing or in connection with the enforcement of this
Agreement, Gorog shall not directly or indirectly in any way utilize or disclose
any information relating to HOB or its business which he has acquired or
acquires or has been given access to, unless Gorog shall have demonstrated that
such information was, at the time of such utilization or disclosure and not as a
result of any action by Gorog or by any other party in breach of such party's
obligations to HOB, in the public domain.

          (b)   The parties to this Agreement agree that the terms of this
Agreement shall be held strictly confidential and shall not be divulged to any
non-party to this Agreement, except counsel and accountants and other financial
advisors for the parties hereto. Notwithstanding the foregoing sentence, the
parties hereto may divulge the existence and terms of this Agreement if required
to do so to comply with any legal or regulatory requirements, including any
court order in connection with a judicial proceeding, or if required to do so in
connection with an administrative proceeding (including an audit by the Internal
Revenue Service) or in connection with the filing of tax returns, or in
connection with the enforcement of this Agreement.

     11.  Assignment.  Gorog may not assign any of his rights or delegate any of
          ----------
his duties or obligations under this Agreement.  The rights and obligations of
each of HOB and the Investors under this Agreement shall inure to the benefit of
and shall be binding upon the successors and assigns of each of them.  Each of
HOB and each Investor may not assign its rights or obligations under this
Agreement except to an entity that succeeds to all or substantially all of such
entity's assets.

     12.  Arbitration.  ANY DISPUTE OR CONTROVERSY ARISING OUT OF, RELATING TO,
          -----------
OR CONCERNING ANY INTERPRETATION, CONSTRUCTION, PERFORMANCE OR BREACH OF THIS
AGREEMENT, SHALL BE SETTLED BY ARBITRATION TO BE HELD IN LOS ANGELES COUNTY,
CALIFORNIA, IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION RULES THEN IN EFFECT
OF THE AMERICAN ARBITRATION ASSOCIATION AS MODIFIED HEREIN.  THE PARTY OR
PARTIES SEEKING ARBITRATION SHALL COLLECTIVELY SUBMIT WITH ITS OR THEIR DEMAND
THE NAME, ADDRESS AND TELEPHONE NUMBER OF ONE ARBITRATOR. THE OPPOSING PARTY OR
PARTIES SHALL COLLECTIVELY SUBMIT WITH ITS OR THEIR RESPONSE THE NAME, ADDRESS
AND TELEPHONE NUMBER OF ONE ARBITRATOR.  THE TWO SELECTED ARBITRATORS SHALL THEN
CONFER PROMPTLY WITH ONE ANOTHER IN ORDER TO NAME A THIRD DIS-INTERESTED NEUTRAL
ARBITRATOR.  IF THE TWO SELECTED ARBITRATORS ARE UNABLE TO AGREE UPON THE
SELECTION OF THE THIRD NEUTRAL ARBITRATOR WITHIN THIRTY DAYS THEN

                                                                          Page 7
<PAGE>

THE AAA SHALL BE AUTHORIZED TO SELECT A NEUTRAL ARBITRATOR.  THE ARBITRATORS MAY
GRANT INJUNCTIONS OR OTHER RELIEF IN SUCH DISPUTE OR CONTROVERSY.  EXCEPT AS
REQUIRED BY LAW OR TO ENTER OR ENFORCE A DECISION OF THE ARBITRATORS, THE
ARBITRATION SHALL BE MAINTAINED AS STRICTLY CONFIDENTIAL BY ALL PARTIES, THE
ARBITRATORS AND THE AAA. DISCOVERY SHALL BE PERMITTED TO THE EXTENT PERMISSIBLE
IN CIVIL ACTIONS.  THE DECISION OF THE ARBITRATORS SHALL BE FINAL, CONCLUSIVE
AND BINDING ON THE PARTIES TO THE ARBITRATION.  JUDGMENT MAY BE ENTERED ON THE
ARBITRATORS' DECISION IN ANY COURT HAVING JURISDICTION. THE ARBITRATORS SHALL
HAVE THE AUTHORITY TO INCLUDE, AS AN ITEM OF DAMAGES, THE COSTS OF ARBITRATION,
INCLUDING LEGAL FEES AND EXPENSES, INCURRED BY THE PREVAILING PARTY.

     13.  Notices.  Notices or process required to be given hereunder shall be
          -------
sent by certified mail (return receipt requested) and also by first class mail
and shall be deemed given or received 3 days after mailing thereof, to:

     If to Gorog:

               Wm. Christopher Gorog
               4211 Toluca Road
               Toluca Lake, CA 91602

               with a copy by mail or fax to:

               O'Melveny & Myers LLP
               1999 Avenue of the Stars, Suite 700
               Los Angeles, CA 90067-6035
               Fax No.: (310) 246-6779
               Attention: Richard R. Ross

     If to HOB:

               HOB Entertainment, Inc.
               6255 Sunset Blvd., 16th  Floor
               Hollywood, California 90028
               Fax No.: (323) 769-4780
               Attention: Daniel L. Fishkin

               With a copy by mail or fax to:

                                       8
<PAGE>

               Latham & Watkins
               633 W. Fifth Street, Suite 4000
               Los Angeles, California 90071
               Fax No.: 213-891-8763
               Attention: John Jameson, Esq.

     If to Chase:

               Chase Venture Capital Associates, L.P.
               108 South Frontage Road, West
               Suite 307
               Vail, Colorado 81657
               Fax No.: 970-476-7900
               Attention: David L. Ferguson

     If to First Union:

               First Union Investors, Inc.
               One First Union Center, 5th Floor
               301 South College Street
               Charlotte, NC 28288-0732
               Fax No.:
               Attn: Mr. James C. Cook

               with a copy by mail or fax to:

               Kennedy Covington Lobdell & Hickman, LLP
               Bank of America Corp. Ctr.
               Suite 4200
               100 North Tryon Street
               Charlotte, NC 28202-4006
               Fax No.: 704-331-7598
               Attention: Henry W. Flint, Esq.

 If to Whitney:

               c/o J. H. Whitney & Co.
               177 Broad Street, 15th Floor
               Stamford, CT. 06901
               Fax No.: (203) 973-1422
               Attn: Mr. Peter M. Castleman
                     Mr. Daniel J. O'Brien
                     David A. Scherl, Esq.
                     Kevin Curley, Esq.

                                       9
<PAGE>

               with a copy by mail or fax to:

               Morrison Cohen Singer & Weinstein LLP
               750 Lexington Avenue
               New York, New York 10022
               Fax No. (212) 735-8708
               Attn: Donald H. Chase, Esq.
                     Andrew M. Arsiotis, Esq.

     14.  Miscellaneous Provisions.
          ------------------------

          (a)   Governing Law.  This Agreement shall be governed, construed,
                -------------
interpreted, and enforced in accordance with the substantive law of the State of
California applied to agreements entered into and performed entirely within such
State.

          (b)   Entire Agreement.  This Agreement is the complete and exclusive
                ----------------
statement of the entire agreement and understanding between all the undersigned
parties with respect to the subject matter hereof.  No representations, oral or
otherwise, express or implied, other than those specifically set forth in this
Agreement (including the annexed exhibit) have been made by any party to the
other party regarding the subject matter of this agreement.

          (c)   Titles and Captions.  Paragraph titles or captions contained
                -------------------
herein are inserted only as a matter of convenience and for reference and in no
way define, limit, extend or describe the scope of the Agreement or the intent
of any provision.

          (d)   Further Assurances.  Each of the parties shall take such other
                ------------------
actions and execute such other documents as may be reasonably necessary to
effectuate this Agreement and the undertakings made herein.

          (e)   Acknowledgment of Receipt of Consideration.  Each party
                ------------------------------------------
acknowledges receipt of legally sufficient consideration for this Agreement.

          (f)   Parties. This Agreement shall be binding upon, and shall inure
                -------
to the benefit of, the parties hereto and their respective heirs, estates,
successors and assigns.

          (g)   Non-Waiver of Breach.  The waiver by any party of any breach of
                --------------------
this Agreement shall not be deemed or construed as a waiver of any other breach,
whether prior, subsequent, or contemporaneous, of this Agreement.

          (h)   Amendments.  This Agreement shall not be suspended, waived,
                ----------
terminated, amended or modified in any manner except in a writing signed by all
parties to be bound.

          (i)   Counterparts.  This Agreement may be executed simultaneously in
                ------------
one or more counterparts, each of which shall be deemed an original, but all of
which together shall

                                       10
<PAGE>

constitute one and the same instrument.  Telefacsimile transmissions of any
executed original Agreement or document and/or retransmission of any executed
telefacsimile transmission shall be deemed to be the same as the delivery of an
executed original.

          (j)   Drafter.  For purposes of construing this Agreement, each of the
                -------
parties hereto shall be deemed the drafter of this Agreement.

          (k)   No Acknowledgment Of Liability.  Neither the execution and
                ------------------------------
delivery of this Agreement nor any actions taken by any party pursuant to this
Agreement shall be deemed to constitute any acknowledgment of wrongdoing or
liability on the part of any party to this Agreement.

          (l)   Legal Counsel.  The parties hereto have each been represented by
                -------------
legal counsel in connection with this Agreement.

          (m)   Representations and Warranties.  Each of HOB and the Investors
                ------------------------------
hereby severally, but not jointly, represents and warrants as to itself to Gorog
as follows:

                (i)     Organization, Existence and Power. Such entity (1) is
                        ---------------------------------
duly organized, validly existing and in good standing under the laws of the
applicable state of organization, and (2) has the power and authority to
execute, deliver and perform its obligations under this Agreement, and as to
HOB, the Stock Option Agreement.

                (ii)    Authorization; No Contravention. The execution, delivery
                        -------------------------------
and performance of this Agreement by such entity (and as to HOB, the Stock
Option Agreement): (1) has been duly authorized by all necessary action; (2) do
not and will not contravene the terms of any applicable governing documents of
such entity or any applicable laws; (3) do not and will not conflict with,
contravene, result in any violation or breach of or default under (with or
without the giving of notice or the lapse of time or both) any agreement,
undertaking, contract, indenture, mortgage, deed of trust or other instrument or
arrangement to which the entity is bound.

                (iii)   Binding Effect; Enforceability. This Agreement (and as
                        ------------------------------
to HOB, the Stock Option Agreement) has been duly executed and delivered by such
entity and constitutes the legal, valid and binding obligation of such entity
enforceable against it in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors' rights generally and by general
principles of equity relating to enforceability.

                                       11
<PAGE>

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

                                         WM. CHRISTOPHER GOROG

                                     /s/ Wm. Christopher Gorog
                                     -------------------------------------

                                     HOB ENTERTAINMENT, INC.

                                     By:       /s/ Gregory A. Trojan
                                         ---------------------------------

                                         Name:     Gregory A. Trojan
                                              ----------------------------
                                         Title:

                                     CHASE CAPITAL PARTNERS

                                     By:
                                        -----------------------------------

                                         Name:
                                         Title:

                                     CHASE/HOB 1999 PARTNERS (GC), L.L.C.

                                     By: CB Capital Investors, L.P.
                                         Its Managing Member

                                     By: CB Capital Investors, Inc.
                                         Its Managing Partner

                                     By:
                                        ------------------------------------

                                          Name:
                                          Title:

                                       12
<PAGE>

                                     CHASE/HOB 1998 PARTNERS (GC), L.L.C.

                                     By: Chase Venture Capital Associates, L.P.
                                         Its Managing Member

                                     By: Chase Capital Partners
                                         Its General Partner

                                     By:
                                        ------------------------------------

                                         Name:
                                         Title:

                                     CB CAPITAL INVESTORS, LLC

                                     By: Chase Capital Partners
                                         Its Manager

                                     By:
                                        ------------------------------------

                                         Name:
                                         Title:

                                     CHASE VENTURE CAPITAL ASSOCIATES, L.P.

                                     By: Chase Capital Partners, General Partner
                                         Its General Partner

                                     By:
                                        -----------------------------------
                                         Name:
                                         Title:

                                       13
<PAGE>

                                     FIRST UNION INVESTORS, INC.

                                     By:
                                        --------------------------------------
                                         Name:
                                         Title:

                                     J. H. WHITNEY & CO.

                                     By: Whitney General Partner, L.L.C.,
                                         Its General Partner

                                     By:
                                        ------------------------------
                                         Name:
                                         A Managing Member

                                     J. H. WHITNEY III, L.P.

                                     By: J. H. Whitney Equity Partners III, LLC,
                                         Its General Partner

                                     By:
                                        -----------------------------------

                                         Name:
                                         A Managing Member

                                     WHITNEY STRATEGIC PARTNERS III, L.P.

                                     By: J. H. Whitney Equity Partners III, LLC,
                                         Its General Partner

                                     By:
                                        --------------------------------

                                         Name:
                                         A Managing Member

                                       14
<PAGE>

                                     J. H. WHITNEY MARKET VALUE FUND, L.P.

                                     By: Whitney Market Value GP, Ltd.
                                         Its General Partner

                                     By:
                                        --------------------------------
                                         Name:
                                         A Managing Member

                                       15

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