Document:

Exhibit 10.16

 

LICENSE AGREEMENT

 

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

 

W  I  T
N  E  S  S  E  T  H :

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	
   

  	
   

  	
  The Per Ticket

  
	
  During Operational years

  	
   

  	
  Amount Shall Be

  
	
   

  	
   

  	
   

  
	
  1 through 2

  	
   

  	
  $

  	
  0.06

  
	
  3 through 4

  	
   

  	
  $

  	
  0.07

  
	
  5  through 6

  	
   

  	
  $

  	
  0.08

  
	
  7 through 8

  	
   

  	
  $

  	
  0.09

  
	
  9 through 10

  	
   

  	
  $

  	
  0.10

  
	
  11 through 12

  	
   

  	
  $

  	
  0.11

  
	
  13 through 14

  	
   

  	
  $

  	
  0.12

  
	
  15 through 16

  	
   

  	
  $

  	
  0.13

  
	
  17 through 18

  	
   

  	
  $

  	
  0.14

  
	
  19 through 20

  	
   

  	
  $

  	
  0.15

  

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.                                     Title.

 

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

 

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

 

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

 

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

 

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

 

7.                                       Use of the System
and Mark.

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

9.                                       Breach of Warranty.

 

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

 

6

 

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

 

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

 

10.                                 Restrictive Covenants.

 

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

 

7

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

11.                                 Termination.

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

10

 

12.                               Enhancements
and support; Source Code.

 

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

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

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

 

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

 

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

 

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

 

12

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

	
  If to Ticketmaster, to:

  	
   

  	
  Ticketmaster Corporation

  
	
   

  	
   

  	
  3701 Wilshire Boulevard

  
	
   

  	
   

  	
  7th Floor

  
	
   

  	
   

  	
  Los Angeles, California 90010

  
	
   

  	
   

  	
  Attn: 

  	
  Fredric D. Rosen

  
	
   

  	
   

  	
   

  	
  Ned S. Goldstein

  
	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
  Neal Gerber & Eisenberg

  
	
   

  	
   

  	
  Two North LaSalle Street

  
	
   

  	
   

  	
  Suite 2200

  
	
   

  	
   

  	
  Chicago, Illinois 60602

  
	
   

  	
   

  	
  Attn: 

  	
  Norman J. Gantz, Esq.

  
	
   

  	
   

  	
   

  
	
  If to User, to:

  	
   

  	
  Ticketmaster Group Limited Partnership

  
	
   

  	
   

  	
  c/o Abe Pollin Tickets, Inc. 

  
	
   

  	
   

  	
  One Harry S. Truman Drive

  
	
   

  	
   

  	
  Landover, Maryland 20785

  
	
   

  	
   

  	
  Attn: 

  	
  Abe Pollin

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Arent Fox Kintner Plotkin & Kahn

  
	
   

  	
   

  	
  1050 Connecticut Avenue, N.W.

  
	
   

  	
   

  	
  Washington, D.C. 20036

  
	
   

  	
   

  	
  Attn: 

  	
  David M. Osnos and

  
	
   

  	
   

  	
   

  	
  Daniel F. Van Horn

  

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

	
   

  	
  TICKETMASTER CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TICKETMASTER GROUP LIMITED

  PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:   AP
  TICKETS, INC.,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Authorized
  Signatory

  
	
   

  	
   

  	
   

  
				

 

15

 

AGREED TO AS OF THE DATE

HEREOF FOR PURPOSES OF

SECTION 16

 

GENERAL PARTNER:

 

AP TICKETS,  INC.,

a Maryland corporation

 

 

	
  By:

  	
  /s/ Authorized
  Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LIMITED PARTNER:

  	
   

  
	
   

  	
   

  
	
  CENTER GROUP LIMITED PARTNERSHIP,

  a Maryland limited partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Abe Pollin Sports,  Inc.,

  its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Authorized
  Signatory

  	
   

  
	
   

  	
   

  	
   

  

 

16

 

EXHIBIT I

 

MARKET AREA

 

(a)                            The State of
Maryland.

 

(b)                           Washington, D.C.,
and

 

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

 

 

EXHIBIT II

 

ASSIGNED AGREEMENTS

 

Centre
Group Limited
Partnership (Capital Centre)

Stage
Right Production

Baltimore
Museum of Art

Fast
Lane Presents

The
Washington Savoyards

The
Washington Performing Arts Society

L’ Afrique, Inc. (The
Kilimanjaro Club)

InterArt Project

Centre
Group Limited Partnership (Baltimore Arena)

DAR
Constitution Hall

Washington
Ballet, Inc.

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

Morgan
State University Fine Arts

The
National Aquarium in Baltimore, Inc.

G
Street Express

Centre
Group Limited Partnership (Patriot Center)

Col
Arts Associates, Inc. (Merriweather Post Pavilion)

George
Washington University (Lisner Auditorium, Smith Center)

Lyric
Opera House

Towson
State University

The
American University (Khashoggi Center)

The
Kemper Open Golf Tournament

The
Baltimore Zoo

Blues
Alley

Birchmere Inc.

Cellar
Door Productions

Alden
Theatre (no contract)

The
Bayou (no contract)

Ford’s
Theatre

Hammerjacks

The
Kennedy Center

The
Olney Theatre

Pier
6

TicketPlace
(no contract)

University
of Maryland

Washington
Performing Arts Society

Wild
World

John
Yates Productions (no contract)

Wolf
Trap Barns (no contract)

Wolf Trap Filene Center (no contract)

BACI
Productions

Dimensions
Unlimited

IMP/9:30
Club (no contract)

Meyerhoff
Symphony Hall (no contract)Exhibit 10.17

 

TICKETMASTER

2008 STOCK AND ANNUAL INCENTIVE PLAN

 

SECTION 1.  Purpose; Definition

 

The purpose of this Plan is (a) to give the Company a competitive
advantage in attracting, retaining and motivating officers, employees,
directors and/or consultants and to provide the Company and its Subsidiaries
and Affiliates with a stock and incentive plan providing incentives directly
linked to stockholder value and (b) to assume and govern other awards
pursuant to the adjustment of awards granted under any IAC Long Term Incentive
Plan (as defined in the Employee Matters Agreement) in accordance with the
terms of the Employee Matters Agreement (“Adjusted
Awards”). Certain terms used herein have definitions given to them
in the first place in which they are used. In addition, for purposes of this
Plan, the following terms are defined as set forth below:

 

(a)  “Affiliate”
means a corporation or other entity controlled by, controlling or under common
control with, the Company.

 

(b)  “Applicable Exchange”
means Nasdaq or such other securities exchange as may at the applicable time be
the principal market for the Common Stock.

 

(c)  “Award” means
an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit,
or other stock-based award granted or assumed pursuant to the terms of this
Plan, including Adjusted Awards.

 

(d)  “Award Agreement”
means a written or electronic document or agreement setting forth the terms and
conditions of a specific Award.

 

(e)  “Beneficial Ownership”
shall have the meaning given in Rule 13d-3 promulgated under the Exchange
Act.

 

(f)  “Board” means
the Board of Directors of the Company.

 

(g)  “Bonus Award”
means a bonus award made pursuant to Section 9.

 

(h)  “Cause” means,
unless otherwise provided in an Award Agreement, (i) “Cause” as defined in
any Individual Agreement to which the applicable Participant is a party, or (ii) if
there is no such Individual Agreement or if it does not define Cause:  (A) the willful or gross neglect by a
Participant of his employment duties; (B) the plea of guilty or nolo contendere to, or conviction for, the
commission of a felony offense by a Participant; (C) a material breach by
a Participant of a fiduciary duty owed to the Company or any of its
subsidiaries; (D) a material breach by a Participant of any nondisclosure,
non-solicitation or non-competition obligation owed to the Company or any of
its Affiliates; or (E) before a Change in Control, such other events as
shall be determined by the Committee and set forth in a Participant’s Award Agreement.
Notwithstanding the general rule of Section 2(c), following a Change
in Control, any determination by the Committee as to whether “Cause” exists
shall be subject to de novo
review.

 

 

(i)  “Change in Control”
has the meaning set forth in Section 10(c).

 

(j)  “Code” means
the Internal Revenue Code of 1986, as amended from time to time, and any
successor thereto, the Treasury Regulations thereunder and other relevant
interpretive guidance issued by the Internal Revenue Service or the Treasury
Department.  Reference to any specific
section of the Code shall be deemed to include such regulations and guidance,
as well as any successor provision of the Code.

 

(k)  “Commission”
means the Securities and Exchange Commission or any successor agency.

 

(l)  “Committee” has
the meaning set forth in Section 2(a).

 

(m)  “Common Stock”
means common stock, par value $0.01 per share, of the Company.

 

(n)  “Company” means
Ticketmaster, a Delaware corporation, or its successor.

 

(o)  “Disability”
means (i) “Disability” as defined in any Individual Agreement to which the
Participant is a party, or (ii) if there is no such Individual Agreement
or it does not define “Disability,” (A) permanent and total disability as
determined under the Company’s long-term disability plan applicable to the
Participant, or (B) if there is no such plan applicable to the Participant
or the Committee determines otherwise in an applicable Award Agreement, “Disability”
as determined by the Committee. 
Notwithstanding the above, with respect to an Incentive Stock Option,
Disability shall mean Permanent and Total Disability as defined in Section 22(e)(3) of
the Code and, with respect to all Awards, to the extent required by Section 409A
of the Code, “disability” within the meaning of Section 409A of the Code.

 

(p)  “Disaffiliation”
means a Subsidiary’s or Affiliate’s ceasing to be a Subsidiary or Affiliate for
any reason (including, without limitation, as a result of a public offering, or
a spinoff or sale by the Company, of the stock of the Subsidiary or Affiliate)
or a sale of a division of the Company and its Affiliates.

 

(q)  “EBITA” means
for any period, operating profit (loss) plus (i) amortization, including
goodwill impairment, (ii) amortization of non-cash distribution and
marketing expense and non-cash compensation expense, (iii) restructuring
charges, (iv) non-cash write-downs of assets or goodwill, (v) charges
relating to disposal of lines of business, (vi) litigation settlement
amounts and (vii) costs incurred for proposed and completed acquisitions.

 

(r)  “EBITDA” means
for any period, operating profit (loss) plus (i) depreciation and
amortization, including goodwill impairment, (ii) amortization of non-cash
distribution and marketing expense and non-cash compensation expense, (iii) restructuring
charges, (iv) non-cash write-downs of assets or goodwill, (v) charges
relating to disposal of lines of business, (vi) litigation settlement
amounts and (vii) costs incurred for proposed and completed acquisitions.

 

(s)  “Eligible Individuals”
means directors, officers, employees and consultants of the Company or any of
its Subsidiaries or Affiliates, and prospective employees and consultants who
have accepted offers of employment or consultancy from the Company or its
Subsidiaries or Affiliates.

 

2

 

(t)  “Employee Matters
Agreement” means the Employee Matters Agreement by and among IAC,
Ticketmaster, Interval Leisure Group, Inc., HSN, Inc. and Tree.com, Inc.

 

(u)  “Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, and
any successor thereto.

 

(v)  “Fair Market Value”
means, unless otherwise determined by the Committee, the closing price of a
share of Common Stock on the Applicable Exchange on the date of measurement, or
if Shares were not traded on the Applicable Exchange on such measurement date,
then on the next preceding date on which Shares were traded, all as reported by
such source as the Committee may select. If the Common Stock is not listed on a
national securities exchange, Fair Market Value shall be determined by the
Committee in its good faith discretion, taking into account, to the extent
appropriate, the requirements of Section 409A of the Code.

 

(w)  “Free-Standing SAR”
has the meaning set forth in Section 5(b).

 

(x)  “Grant Date”
means (i) the date on which the Committee by resolution selects an
Eligible Individual to receive a grant of an Award and determines the number of
Shares to be subject to such Award or the formula for earning a number of shares
or cash amount, (ii) such later date as the Committee shall provide in
such resolution or (iii) the initial date on which an Adjusted Award was
granted under the IAC Long Term Incentive Plan.

 

(y)  “Group” shall
have the meaning given in Section 13(d)(3) and 14(d)(2) of the
Exchange Act.

 

(z)  “IAC” means IAC/InterActiveCorp, a Delaware
corporation.

 

(aa)  “Incentive Stock Option” means any Option that is designated
in the applicable Award Agreement as an “incentive stock option” within the
meaning of Section 422 of the Code, and that in fact so qualifies.

 

(bb)  “Individual Agreement” means an employment, consulting or
similar agreement between a Participant and the Company or one of its
Subsidiaries or Affiliates.

 

(cc)  “Nasdaq” means the National Association of Securities Dealers
Inc. Automated Quotation System.

 

(dd)  “Nonqualified Option” means any Option that is not an
Incentive Stock Option.

 

(ee)  “Option” means an Award granted under Section 5.

 

(ff)  “Participant” means an Eligible Individual to whom an Award
is or has been granted.

 

(gg)  “Performance Goals” means the performance goals established
by the Committee in connection with the grant of Restricted Stock, Restricted
Stock Units or Bonus Awards or other stock-based awards. In the case of Qualified-Performance
Based Awards, (i) such goals shall be based on the attainment of one or
any combination of the following: specified levels of 

 

3

 

earnings per
share from continuing operations, net profit after tax, EBITDA, EBITA, gross
profit, cash generation, unit volume, market share, sales, asset quality,
earnings per share, operating income, revenues, return on assets, return on
operating assets, return on equity, profits, total stockholder return (measured
in terms of stock price appreciation and/or dividend growth), cost saving
levels, marketing-spending efficiency, core non-interest income, change in
working capital, return on capital, and/or stock price, with respect to the
Company or any Subsidiary, Affiliate, division or department of the Company and
(ii) such Performance Goals shall be set by the Committee within the time
period prescribed by Section 162(m) of the Code and related
regulations. Such Performance Goals also may be based upon the attaining of
specified levels of Company, Subsidiary, Affiliate or divisional performance
under one or more of the measures described above relative to the performance
of other entities, divisions or subsidiaries.

 

(hh)  “Plan” means this Ticketmaster 2008 Stock and Annual
Incentive Plan, as set forth herein and as hereafter amended from time to time.

 

(ii)  “Plan Year”
means the calendar year or, with respect to Bonus Awards, the Company’s fiscal
year if different.

 

(jj)  “Qualified Performance-Based Award” means an Award intended
to qualify for the Section 162(m) Exemption, as provided in Section 11.

 

(kk)  “Restricted Stock” means an Award granted under Section 6.

 

(ll)  “Restricted Stock Units” means an Award granted under Section 7.

 

(mm)  “Resulting Voting Power” shall mean the outstanding combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors (or equivalent governing body, if
applicable) of the entity resulting from a Business Combination (including,
without limitation, an entity which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries).

 

(nn)  “Retirement” means retirement from active employment with the
Company, a Subsidiary or Affiliate at or after the Participant’s attainment of
age 65.

 

(oo)  “Section 162(m) Exemption” means the exemption from
the limitation on deductibility imposed by Section 162(m) of the Code
that is set forth in Section 162(m)(4)(C) of the Code.

 

(pp)  “Separation” has the meaning set forth in the Employee
Matters Agreement.

 

(qq)  “Share” means a share of Common Stock.

 

(rr)  “Stock Appreciation Right” has the meaning set forth in Section 5(b).

 

(ss)  “Subsidiary” means any corporation, partnership, joint
venture, limited liability company or other entity during any period in which
at least a 50% voting or profits interest is owned, directly or indirectly, by
the Company or any successor to the Company.

 

4

 

(tt)  “Tandem SAR” has the meaning set forth in Section 5(b).

 

(uu)  “Term” means the maximum period during which an Option or
Stock Appreciation Right may remain outstanding, subject to earlier termination
upon Termination of Employment or otherwise, as specified in the applicable
Award Agreement.

 

(vv)  “Termination of Employment” means the termination of the
applicable Participant’s employment with, or performance of services for, the
Company and any of its Subsidiaries or Affiliates. Unless otherwise determined
by the Committee, if a Participant’s employment with, or membership on a board
of directors of the Company and its Affiliates terminates but such Participant
continues to provide services to the Company and its Affiliates in a
non-employee director capacity or as an employee, as applicable, such change in
status shall not be deemed a Termination of Employment. A Participant employed
by, or performing services for, a Subsidiary or an Affiliate or a division of the
Company and its Affiliates shall be deemed to incur a Termination of Employment
if, as a result of a Disaffiliation, such Subsidiary, Affiliate, or division
ceases to be a Subsidiary, Affiliate or division, as the case may be, and the
Participant does not immediately thereafter become an employee of (or service
provider for), or member of the board of directors of, the Company or another
Subsidiary or Affiliate. Temporary absences from employment because of illness,
vacation or leave of absence and transfers among the Company and its
Subsidiaries and Affiliates shall not be considered Terminations of
Employment.  Notwithstanding the
foregoing, with respect to any Award that constitutes “nonqualified deferred
compensation” within the meaning of Section 409A of the Code, “Termination
of Employment” shall mean a “separation from service” as defined under Section 409A
of the Code.  For the avoidance of doubt,
the Separation shall not constitute a Termination of Employment for purposes of
any Adjusted Award.

 

SECTION 2.  Administration

 

(a)  Committee.  The Plan shall be administered by the
Compensation Committee of the Board or such other committee of the Board as the
Board may from time to time designate (the “Committee”), which shall be
composed of not less than two directors, and shall be appointed by and serve at
the pleasure of the Board. The Committee shall, subject to Section 11,
have plenary authority to grant Awards pursuant to the terms of the Plan to
Eligible Individuals. Among other things, the Committee shall have the
authority, subject to the terms and conditions of the Plan and the Employee
Matters Agreement (including the original terms of the grant of the Adjusted
Award):

 

(i)  to select the Eligible Individuals to whom Awards may from
time to time be granted;

 

(ii)  to determine whether and to what extent Incentive Stock
Options, Nonqualified Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, other stock-based awards, or any combination thereof,
are to be granted hereunder;

 

(iii)  to determine the number of Shares to be covered by each
Award granted hereunder;

 

5

 

(iv)  to determine the terms and conditions of each Award granted
hereunder, based on such factors as the Committee shall determine;

 

(v)  subject to Section 12, to modify, amend or adjust the
terms and conditions of any Award;

 

(vi)  to adopt, alter and repeal such administrative rules,
guidelines and practices governing the Plan as it shall from time to time deem
advisable;

 

(vii)  subject to Section 11, to accelerate the vesting or
lapse of restrictions of any outstanding Award, based in each case on such
considerations as the Committee in its sole discretion determines;

 

(viii)  to interpret the terms and provisions of the Plan and any
Award issued under the Plan (and any agreement relating thereto);

 

(ix)  to establish any “blackout” period that the Committee in its
sole discretion deems necessary or advisable;

 

(x)  to determine whether, to what extent, and under what
circumstances cash, Shares, and other property and other amounts payable with
respect to an Award under this Plan shall be deferred either automatically or
at the election of the Participant;

 

(xi)  to decide all other matters
that must be determined in connection with an Award; and

 

(xii)  to otherwise administer
the Plan.

 

(b)  Procedures.

 

(i)  The Committee may act only by a majority of its members then
in office, except that the Committee may, except to the extent prohibited by
applicable law or the listing standards of the Applicable Exchange and subject
to Section 11, allocate all or any portion of its responsibilities and
powers to any one or more of its members and may delegate all or any part of
its responsibilities and powers to any person or persons selected by it.

 

(ii)  Subject to Section 11(c), any authority granted to the
Committee may also be exercised by the full Board. To the extent that any
permitted action taken by the Board conflicts with action taken by the
Committee, the Board action shall control.

 

(c)  Discretion of Committee.  Subject to Section 1(h), any
determination made by the Committee or by an appropriately delegated officer
pursuant to delegated authority under the provisions of the Plan with respect
to any Award shall be made in the sole discretion of the Committee or such
delegate at the time of the grant of the Award or, unless in contravention of
any express term of the Plan, at any time thereafter. All decisions made by the
Committee or any appropriately delegated officer pursuant to the provisions of
the Plan shall be final and binding on all persons, including the Company,
Participants, and Eligible Individuals.

 

6

 

(d)  Award Agreements.  The terms and conditions of each Award, as
determined by the Committee, shall be set forth in an Award Agreement, which
shall be delivered to the Participant receiving such Award upon, or as promptly
as is reasonably practicable following, the grant of such Award. The
effectiveness of an Award shall not be subject to the Award Agreement’s being
signed by the Company and/or the Participant receiving the Award unless
specifically so provided in the Award Agreement. Award Agreements may be
amended only in accordance with Section 12 hereof.

 

SECTION 3.  Common Stock Subject to Plan

 

(a)  Plan Maximums.  The maximum number of Shares that may be
delivered pursuant to Awards under the Plan shall be the sum of (a) the
number of Shares that may be issuable upon exercise or vesting of the Adjusted
Awards and (b) 5,000,000. The maximum number of Shares that may be granted
pursuant to Options intended to be Incentive Stock Options shall be 3,333,333
Shares.  Shares subject to an Award under
the Plan may be authorized and unissued Shares or may be treasury Shares.

 

(b)  Individual Limits.  No Participant may be granted Awards covering
in excess of 1,466,666 Shares during the term of the Plan; provided that Adjusted Awards shall not be
subject to this limitation.

 

(c)  Rules for Calculating
Shares Delivered.

 

(i)  With respect to Awards other than Adjusted Awards, to the
extent that any Award is forfeited, or any Option and the related Tandem SAR
(if any) or Free-Standing SAR terminates, expires or lapses without being
exercised, or any Award is settled for cash, the Shares subject to such Awards
not delivered as a result thereof shall again be available for Awards under the
Plan.

 

(ii)  With respect to Awards other than Adjusted Awards, if the
exercise price of any Option and/or the tax withholding obligations relating to
any Award are satisfied by delivering Shares to the Company (by either actual
delivery or by attestation), only the number of Shares issued net of the Shares
delivered or attested to shall be deemed delivered for purposes of the limits
set forth in Section 3(a). To the extent any Shares subject to an Award
are withheld to satisfy the exercise price (in the case of an Option) and/or
the tax withholding obligations relating to such Award, such Shares shall not
be deemed to have been delivered for purposes of the limits set forth in Section 3(a).

 

(d)  Adjustment Provision.  In the event of a merger, consolidation,
acquisition of property or shares, stock rights offering, liquidation,
Disaffiliation, or similar event affecting the Company or any of its
Subsidiaries (each, a “Corporate Transaction”), the Committee or the Board may
in its discretion make such substitutions or adjustments as it deems
appropriate and equitable to (i) the aggregate number and kind of Shares
or other securities reserved for issuance and delivery under the Plan, (ii) the
various maximum limitations set forth in Sections 3(a) and 3(b) upon
certain types of Awards and upon the grants to individuals of certain types of
Awards, (iii) the number and kind of Shares or other securities subject to
outstanding Awards; and (iv) the exercise price of outstanding Options and
Stock Appreciation Rights. In the event of a stock 

 

7

 

dividend,
stock split, reverse stock split, separation, spinoff, reorganization,
extraordinary dividend of cash or other property, share combination, or
recapitalization or similar event affecting the capital structure of the
Company (each, a “Share Change”), the Committee or the Board shall make such
substitutions or adjustments as it deems appropriate and equitable to (i) the
aggregate number and kind of Shares or other securities reserved for issuance
and delivery under the Plan, (ii) the various maximum limitations set
forth in Sections 3(a) and 3(b) upon certain types of Awards and upon
the grants to individuals of certain types of Awards, (iii) the number and
kind of Shares or other securities subject to outstanding Awards; and (iv) the
exercise price of outstanding Options and Stock Appreciation Rights. In the
case of Corporate Transactions, such adjustments may include, without
limitation, (1) the cancellation of outstanding Awards in exchange for
payments of cash, property or a combination thereof having an aggregate value
equal to the value of such Awards, as determined by the Committee or the Board
in its sole discretion (it being understood that in the case of a Corporate
Transaction with respect to which stockholders of Common Stock receive
consideration other than publicly traded equity securities of the ultimate
surviving entity, any such determination by the Committee that the value of an
Option or Stock Appreciation Right shall for this purpose be deemed to equal
the excess, if any, of the value of the consideration being paid for each Share
pursuant to such Corporate Transaction over the exercise price of such Option
or Stock Appreciation Right shall conclusively be deemed valid); (2) the
substitution of other property (including, without limitation, cash or other
securities of the Company and securities of entities other than the Company)
for the Shares subject to outstanding Awards; and (3) in connection with
any Disaffiliation, arranging for the assumption of Awards, or replacement of
Awards with new awards based on other property or other securities (including,
without limitation, other securities of the Company and securities of entities
other than the Company), by the affected Subsidiary, Affiliate, or division or
by the entity that controls such Subsidiary, Affiliate, or division following
such Disaffiliation (as well as any corresponding adjustments to Awards that
remain based upon Company securities). The Committee may adjust in its sole
discretion the Performance Goals applicable to any Awards to reflect any Share
Change and any Corporate Transaction and any unusual or non-recurring events
and other extraordinary items, impact of charges for restructurings,
discontinued operations, and the cumulative effects of accounting or tax
changes, each as defined by generally accepted accounting principles or as
identified in the Company’s financial statements, notes to the financial
statements, management’s discussion and analysis or the Company’s other SEC
filings,  provided that in the case of Performance Goals applicable to
any Qualified Performance-Based Awards, such adjustment does not violate Section 162(m) of
the Code.  Any adjustment under this Section 3(d) need
not be the same for all Participants.

 

(e)  Section 409A.  Notwithstanding the foregoing: (i) any
adjustments made pursuant to Section 3(d) to Awards that are
considered “deferred compensation” within the meaning of Section 409A of
the Code shall be made in compliance with the requirements of Section 409A
of the Code; (ii) any adjustments made pursuant to Section 3(d) to
Awards that are not considered “deferred compensation” subject to Section 409A
of the Code shall be made in such a manner as to ensure that after such
adjustment, the Awards either (A) continue not to be subject to Section 409A
of the Code or (B) comply with the requirements of Section 409A of
the Code; and (iii) in any event, neither the Committee nor the Board
shall have the authority to make any adjustments pursuant to Section 3(d) to
the extent the existence of such authority would cause an Award that 

 

8

 

is not
intended to be subject to Section 409A of the Code at the Grant Date to be
subject thereto as of the Grant Date.

 

SECTION 4.  Eligibility

 

Awards may be granted under the Plan to Eligible Individuals and, with
respect to Adjusted Awards, in accordance with the terms of the Employee
Matters Agreement; provided, however, that Incentive Stock Options may
be granted only to employees of the Company and its subsidiaries or parent
corporation (within the meaning of Section 424(f) of the Code) and,
with respect to Adjusted Awards that are intended to qualify as incentive stock
options within the meaning of Section 421 of the Code, in accordance with
the terms of the Employee Matters Agreement.

 

SECTION 5.  Options and Stock Appreciation Rights

 

With respect to Adjusted Awards, the provisions below will be
applicable only to the extent that they are not inconsistent with the Employee
Matters Agreement and the terms of the Adjusted Award assumed under the
Employee Matters Agreement:

 

(a)  Types of Options.  Options may be of two types: Incentive Stock
Options and Nonqualified Options. The Award Agreement for an Option shall
indicate whether the Option is intended to be an Incentive Stock Option or a
Nonqualified Option.

 

(b)  Types and Nature of Stock
Appreciation Rights.  Stock
Appreciation Rights may be “Tandem SARs,” which are granted in conjunction with
an Option, or “Free-Standing SARs,” which are not granted in conjunction with
an Option. Upon the exercise of a Stock Appreciation Right, the Participant
shall be entitled to receive an amount in cash, Shares, or both, in value equal
to the product of (i) the excess of the Fair Market Value of one Share
over the exercise price of the applicable Stock Appreciation Right, multiplied
by (ii) the number of Shares in respect of which the Stock Appreciation
Right has been exercised. The applicable Award Agreement shall specify whether
such payment is to be made in cash or Common Stock or both, or shall reserve to
the Committee or the Participant the right to make that determination prior to
or upon the exercise of the Stock Appreciation Right.

 

(c)  Tandem SARs.  A Tandem SAR may be granted at the Grant Date
of the related Option. A Tandem SAR shall be exercisable only at such time or
times and to the extent that the related Option is exercisable in accordance
with the provisions of this Section 5, and shall have the same exercise
price as the related Option. A Tandem SAR shall terminate or be forfeited upon
the exercise or forfeiture of the related Option, and the related Option shall
terminate or be forfeited upon the exercise or forfeiture of the Tandem SAR.

 

(d)  Exercise Price.  The exercise price per Share subject to an
Option or Free-Standing SAR shall be determined by the Committee and set forth
in the applicable Award Agreement, and shall not be less than the Fair Market
Value of a share of the Common Stock on the applicable Grant Date. In no event
may any Option or Free-Standing SAR granted under this Plan be amended, other
than pursuant to Section 3(d), to decrease the exercise price thereof, be
cancelled in conjunction with the grant of any new Option or Free-Standing SAR
with a lower exercise price or otherwise be subject to any action that would be
treated, for accounting 

 

9

 

purposes, as a
“repricing” of such Option or Free-Standing SAR, unless such amendment,
cancellation, or action is approved by the Company’s stockholders.

 

(e)  Term.  The Term of each Option and each Free-Standing
SAR shall be fixed by the Committee, but shall not exceed ten years from the
Grant Date.

 

(f)  Vesting and Exercisability.  Except as otherwise provided herein, Options
and Free-Standing SARs shall be exercisable at such time or times and subject
to such terms and conditions as shall be determined by the Committee. If the
Committee provides that any Option or Free-Standing SAR will become exercisable
only in installments, the Committee may at any time waive such installment
exercise provisions, in whole or in part, based on such factors as the
Committee may determine. In addition, the Committee may at any time accelerate
the exercisability of any Option or Free-Standing SAR.

 

(g)  Method of Exercise.  Subject to the provisions of this Section 5,
Options and Free-Standing SARs may be exercised, in whole or in part, at any
time during the applicable Term by giving written notice of exercise to the
Company or through the procedures established with the Company’s appointed
third-party Option administrator specifying the number of Shares as to which
the Option or Free-Standing SAR is being exercised; provided, however,
that, unless otherwise permitted by the Committee, any such exercise must be
with respect to a portion of the applicable Option or Free-Standing SAR
relating to no less than the lesser of the number of Shares then subject to
such Option or Free-Standing SAR or 100 Shares. In the case of the exercise of
an Option, such notice shall be accompanied by payment in full of the purchase
price (which shall equal the product of such number of Shares multiplied by the
applicable exercise price) by certified or bank check or such other instrument
as the Company may accept. If approved by the Committee, payment, in full or in
part, may also be made as follows:

 

(i)  Payments may be made in the form of unrestricted Shares (by
delivery of such Shares or by attestation) of the same class as the Common
Stock subject to the Option already owned by the Participant (based on the Fair
Market Value of the Common Stock on the date the Option is exercised); provided, however,
that, in the case of an Incentive Stock Option, the right to make a payment in
the form of already owned Shares of the same class as the Common Stock subject
to the Option may be authorized only at the time the Option is granted.

 

(ii)  To the extent permitted by applicable law, payment may be
made by delivering a properly executed exercise notice to the Company, together
with a copy of irrevocable instructions to a broker to deliver promptly to the
Company the amount of sale or loan proceeds necessary to pay the purchase
price, and, if requested, the amount of any federal, state, local or foreign
withholding taxes. To facilitate the foregoing, the Company may, to the extent
permitted by applicable law, enter into agreements for coordinated procedures
with one or more brokerage firms. To the extent permitted by applicable law,
the Committee may also provide for Company loans to be made for purposes of the
exercise of Options.

 

(iii)  Payment may be made by instructing the Company to withhold
a number of Shares having a Fair Market Value (based on the Fair Market Value
of the Common Stock on the date the applicable Option is exercised) equal to
the product of (A) the exercise price multiplied by (B) the number of
Shares in respect of which the Option shall have been exercised.

 

10

 

(h)  Delivery; Rights of
Stockholders.  No Shares shall
be delivered pursuant to the exercise of an Option until the exercise price
therefor has been fully paid and applicable taxes have been withheld. The
applicable Participant shall have all of the rights of a stockholder of the
Company holding the class or series of Common Stock that is subject to the
Option or Stock Appreciation Right (including, if applicable, the right to vote
the applicable Shares and the right to receive dividends), when the Participant
(i) has given written notice of exercise, (ii) if requested, has
given the representation described in Section 14(a), and (iii) in the
case of an Option, has paid in full for such Shares.

 

(i)  Terminations of Employment.  Subject to Section 10, a Participant’s
Options and Stock Appreciation Rights shall be forfeited upon such Participant’s
Termination of Employment, except as set forth below:

 

(i)  Upon a Participant’s Termination of Employment by reason of
death, any Option or Stock Appreciation Right held by the Participant that was
exercisable immediately before the Termination of Employment may be exercised
at any time until the earlier of (A) the first anniversary of the date of
such death and (B) the expiration of the Term thereof;

 

(ii)  Upon a Participant’s Termination of Employment by reason of
Disability or Retirement, any Option or Stock Appreciation Right held by the
Participant that was exercisable immediately before the Termination of
Employment may be exercised at any time until the earlier of (A) the first
anniversary of such Termination of Employment and (B) the expiration of
the Term thereof;

 

(iii)  Upon a Participant’s Termination of Employment for Cause,
any Option or Stock Appreciation Right held by the Participant shall be
forfeited, effective as of such Termination of Employment;

 

(iv)  Upon a Participant’s Termination of Employment for any
reason other than death, Disability, Retirement or for Cause, any Option or
Stock Appreciation Right held by the Participant that was exercisable
immediately before the Termination of Employment may be exercised at any time
until the earlier of (A) the 90th day following such Termination of
Employment and (B) expiration of the Term thereof; and

 

(v)  Notwithstanding the above provisions of this Section 5(i),
if a Participant dies after such Participant’s Termination of Employment but
while any Option or Stock Appreciation Right remains exercisable as set forth
above, such Option or Stock Appreciation Right may be exercised at any time
until the later of (A) the earlier of (1) the first anniversary of
the date of such death and (2) expiration of the Term thereof and (B) the
last date on which such Option or Stock Appreciation Right would have been
exercisable, absent this Section 5(i)(v).

 

Notwithstanding the foregoing, the Committee shall have the power, in
its discretion, to apply different rules concerning the consequences of a
Termination of Employment; provided,
however, that if such rules are
less favorable to the Participant than those set forth above, such rules are
set forth in the applicable Award Agreement. If an Incentive Stock Option is
exercised after the expiration of the exercise periods that apply for purposes
of Section 422 of the Code, such Option will thereafter be treated as a
Nonqualified Option.

 

11

 

(j)  Nontransferability of Options and Stock Appreciation
Rights.  No Option or
Free-Standing SAR shall be transferable by a Participant other than (i) by
will or by the laws of descent and distribution, or (ii) in the case of a
Nonqualified Option or Free-Standing SAR, pursuant to a qualified domestic relations
order or as otherwise expressly permitted by the Committee including, if so
permitted, pursuant to a transfer to the Participant’s family members or to a
charitable organization, whether directly or indirectly or by means of a trust
or partnership or otherwise. For purposes of this Plan, unless otherwise
determined by the Committee, “family member” shall have the meaning given to
such term in General Instructions A.1(a)(5) to Form S-8 under the
Securities Act of 1933, as amended, and any successor thereto. A Tandem SAR
shall be transferable only with the related Option as permitted by the
preceding sentence. Any Option or Stock Appreciation Right shall be
exercisable, subject to the terms of this Plan, only by the applicable
Participant, the guardian or legal representative of such Participant, or any
person to whom such Option or Stock Appreciation Right is permissibly
transferred pursuant to this Section 5(j), it being understood that the
term “Participant” includes such guardian, legal representative and other
transferee; provided, however, that the term “Termination of
Employment” shall continue to refer to the Termination of Employment of the
original Participant.

 

SECTION 6.  Restricted Stock

 

With respect to Adjusted Awards, the provisions below will be
applicable only to the extent that they are not inconsistent with the Employee
Matters Agreement and the terms of the Adjusted Award assumed under the
Employee Matters Agreement:

 

(a)  Nature of Awards and
Certificates.  Shares of
Restricted Stock are actual Shares issued to a Participant, and shall be
evidenced in such manner as the Committee may deem appropriate, including
book-entry registration or issuance of one or more stock certificates. Any
certificate issued in respect of Shares of Restricted Stock shall be registered
in the name of the applicable Participant and, in the case of Restricted Stock,
shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such Award, substantially in the following form:

 

“The transferability of this certificate and the shares of stock
represented hereby are subject to the terms and conditions (including
forfeiture) of the Ticketmaster 2008 Stock and Annual Incentive Plan and an
Award Agreement. Copies of such Plan and Agreement are on file at the offices
of Ticketmaster, 8800 Sunset Blvd., West Hollywood, CA 90069.”

 

The Committee may require that the certificates evidencing such shares
be held in custody by the Company until the restrictions thereon shall have
lapsed and that, as a condition of any Award of Restricted Stock, the
applicable Participant shall have delivered a stock power, endorsed in blank,
relating to the Common Stock covered by such Award.

 

(b)  Terms and Conditions.  Shares of Restricted Stock shall be subject
to the following terms and conditions:

 

(i)  The Committee shall, prior to or at the time of grant,
condition the vesting or transferability of an Award of Restricted Stock upon
the continued service of the applicable

 

12

 

Participant or
the attainment of Performance Goals, or the attainment of Performance Goals and
the continued service of the applicable Participant. In the event that the
Committee conditions the grant or vesting of an Award of Restricted Stock upon
the attainment of Performance Goals or the attainment of Performance Goals and
the continued service of the applicable Participant, the Committee may, prior
to or at the time of grant, designate such an Award as a Qualified
Performance-Based Award. The conditions for grant, vesting, or transferability
and the other provisions of Restricted Stock Awards (including without
limitation any Performance Goals) need not be the same with respect to each
Participant.

 

(ii)  Subject to the provisions of the Plan and the applicable
Award Agreement, during the period, if any, set by the Committee, commencing
with the date of such Restricted Stock Award for which such vesting
restrictions apply and until the expiration of such vesting restrictions (the “Restriction
Period”), the Participant shall not be permitted to sell, assign, transfer,
pledge or otherwise encumber Shares of Restricted Stock.

 

(iii)  Except as provided in this Section 6 and in the
applicable Award Agreement, the applicable Participant shall have, with respect
to the Shares of Restricted Stock, all of the rights of a stockholder of the
Company holding the class or series of Common Stock that is the subject of the
Restricted Stock, including, if applicable, the right to vote the Shares and
the right to receive any cash dividends. If so determined by the Committee in
the applicable Award Agreement and subject to Section 14(e), (A) cash
dividends on the class or series of Common Stock that is the subject of the
Restricted Stock Award shall be automatically deferred and reinvested in
additional Restricted Stock, held subject to the vesting of the underlying
Restricted Stock, and (B) subject to any adjustment pursuant to Section 3(d),
dividends payable in Common Stock shall be paid in the form of Restricted Stock
of the same class as the Common Stock with which such dividend was paid, held
subject to the vesting of the underlying Restricted Stock.

 

(iv)  Except as otherwise set forth in the applicable Award
Agreement, upon a Participant’s Termination of Employment for any reason during
the Restriction Period, all Shares of Restricted Stock still subject to
restriction shall be forfeited by such Participant; provided, however,
that subject to Section 11(b), the Committee shall have the discretion to
waive, in whole or in part, any or all remaining restrictions with respect to
any or all of such Participant’s Shares of Restricted Stock.

 

(v)  If and when any applicable Performance Goals are satisfied
and the Restriction Period expires without a prior forfeiture of the Shares of
Restricted Stock for which legended certificates have been issued, unlegended
certificates for such Shares shall be delivered to the Participant upon
surrender of the legended certificates.

 

SECTION 7.  Restricted Stock Units

 

With respect to Adjusted Awards, the provisions below will be
applicable only to the extent that they are not inconsistent with the Employee
Matters Agreement and the terms of the Adjusted Award assumed under the
Employee Matters Agreement:

 

13

 

(a)  Nature of Awards.  Restricted Stock Units are Awards denominated
in Shares that will be settled, subject to the terms and conditions of the
Restricted Stock Units, in an amount in cash, Shares or both, based upon the
Fair Market Value of a specified number of Shares.

 

(b)  Terms and Conditions.  Restricted Stock Units shall be subject to
the following terms and conditions:

 

(i)  The Committee shall, prior to or at the time of grant,
condition the grant, vesting, or transferability of Restricted Stock Units upon
the continued service of the applicable Participant or the attainment of
Performance Goals, or the attainment of Performance Goals and the continued
service of the applicable Participant. In the event that the Committee conditions
the grant or vesting of Restricted Stock Units upon the attainment of
Performance Goals or the attainment of Performance Goals and the continued
service of the applicable Participant, the Committee may, prior to or at the
time of grant, designate such Awards as Qualified Performance-Based Awards. The
conditions for grant, vesting or transferability and the other provisions of
Restricted Stock Units (including without limitation any Performance Goals)
need not be the same with respect to each Participant. An Award of Restricted
Stock Units shall be settled as and when the Restricted Stock Units vest or at
a later time specified by the Committee or in accordance with an election of
the Participant, if the Committee so permits.

 

(ii)  Subject to the provisions of the Plan and the applicable
Award Agreement, during the period, if any, set by the Committee, commencing
with the date of such Restricted Stock Units for which such vesting
restrictions apply and until the expiration of such vesting restrictions (the “Restriction
Period”), the Participant shall not be permitted to sell, assign, transfer,
pledge or otherwise encumber Restricted Stock Units.

 

(iii)  The Award Agreement for Restricted Stock Units shall
specify whether, to what extent and on what terms and conditions the applicable
Participant shall be entitled to receive current or deferred payments of cash,
Common Stock or other property corresponding to the dividends payable on the
Common Stock (subject to Section 14(e) below).

 

(iv)  Except as otherwise set forth in the applicable Award
Agreement, upon a Participant’s Termination of Employment for any reason during
the Restriction Period, all Restricted Stock Units still subject to restriction
shall be forfeited by such Participant; provided,
however, that subject to Section 11(b),
the Committee shall have the discretion to waive, in whole or in part, any or
all remaining restrictions with respect to any or all of such Participant’s
Restricted Stock Units.

 

SECTION 8.  Other Stock-Based Awards

 

Other Awards of Common Stock and other Awards that are valued in whole
or in part by reference to, or are otherwise based upon or settled in, Common
Stock, including (without limitation), unrestricted stock, performance units,
dividend equivalents, and convertible debentures, may be granted under the
Plan.

 

14

 

SECTION 9.  Bonus Awards

 

(a)  Determination of Awards.  The Committee shall determine the total
amount of Bonus Awards for each Plan Year or such shorter performance period as
the Committee may establish in its sole discretion. Prior to the beginning of
the Plan Year or such shorter performance period as the Committee may establish
in its sole discretion (or such later date as may be prescribed by the Internal
Revenue Service under Section 162(m) of the Code), the Committee
shall establish Performance Goals for Bonus Awards for the Plan Year or such
shorter period; provided, that
such Performance Goals may be established at a later date for Participants who
are not “covered employees” (within the meaning of Section 162(m)(3) of
the Code). Bonus amounts payable to any individual Participant with respect to
a Plan Year will be limited to a maximum of $10 million. For performance
periods that are shorter than a Plan Year, such $10 million maximum may be
pro-rated if so determined by the Committee.

 

(b)  Payment of Awards.  Bonus Awards under the Plan shall be paid in
cash or in shares of Common Stock (valued at Fair Market Value as of the date
of payment) as determined by the Committee, as soon as practicable following
the close of the Plan Year or such shorter performance period as the Committee
may establish. It is intended that a Bonus Award will be paid no later than the
fifteenth (15th)
day of the third month following the later of: (i) the end of the
Participant’s taxable year in which the requirements for such Bonus Award have
been satisfied by the Participant or (ii) the end of the Company’s fiscal
year in which the requirements for such Bonus Award have been satisfied by the
Participant.  The Committee may at its
option establish procedures pursuant to which Participants are permitted to
defer the receipt of Bonus Awards payable hereunder. The Bonus Award for any
Plan Year or such shorter performance period to any Participant may be reduced
or eliminated by the Committee in its discretion.

 

SECTION 10.  Change in Control Provisions

 

(a)  Adjusted Awards.  With respect to all Adjusted Awards, subject
to paragraph (e) of this Section 10, unless otherwise provided in the
applicable Award Agreement, notwithstanding any other provision of this Plan to
the contrary, upon a Participant’s Termination of Employment, during the
two-year period following a Change in Control, by the Company other than for
Cause or Disability or by the Participant for Good Reason (as defined below):

 

(i)  any Options outstanding as of such Termination of Employment
which were outstanding as of the date of such Change in Control shall be fully
exercisable and vested and shall remain exercisable until the later of (i) the
last date on which such Option would be exercisable in the absence of this Section 10(a) and
(ii) the earlier of (A) the first anniversary of such Change in
Control and (B) expiration of the Term of such Option;

 

(ii)  the restrictions and deferral limitations applicable to any
Restricted Stock shall lapse, and such Restricted Stock outstanding as of such
Termination of Employment which were outstanding as of the date of such Change
in Control shall become free of all restrictions and become fully vested and
transferable; and

 

(iii)  all Restricted Stock Units outstanding as of such
Termination of Employment which were outstanding as of the date of such Change
in Control shall be considered to be earned and payable in full, and any
restrictions shall lapse and such Restricted Stock Units shall be 

 

15

 

settled as
promptly as is practicable in (subject to Section 3(d)) the form set forth
in the applicable Award Agreement.

 

(b)  Impact of Event on Awards
other than Adjusted Awards.   Subject to paragraph (e) of this Section 10,
and paragraph (d) of Section 12, unless otherwise provided in any
applicable Award Agreement and except as otherwise provided in paragraph (a) of
this Section 10, in connection with a Change of Control, the Committee may
make such adjustments and/or settlements of outstanding Awards as it deems
appropriate and consistent with the Plan’s purposes, including, without
limitation, the acceleration of vesting of Awards either upon a Change of
Control or upon various terminations of employment following a Change of
Control.  The Committee may provide for
such adjustments as a term of the Award or may make such adjustments following
the granting of the Award.

 

(c)  Definition of Change in
Control.  For purposes of the
Plan, unless otherwise provided in an option agreement or other agreement
relating to an Award, a “Change in Control” shall mean the happening of any of
the following events:

 

(i)  The acquisition by any individual, entity or Group (a “Person”),
other than the Company, of Beneficial Ownership of equity securities of the
Company representing more than 50% of the voting power of the then outstanding
equity securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however,
that any acquisition that would constitute a Change in Control under this
subsection (i) that is also a Business Combination shall be determined
exclusively under subsection (iii) below; or

 

(ii)  Individuals who, as of the Effective Date, constitute the
Board (the “Incumbent Directors”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the Effective Date, whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a
majority of the Incumbent Directors at such time shall become an Incumbent
Director, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board; or

 

(iii)  Consummation of a reorganization, merger, consolidation,
sale or other disposition of all or substantially all of the assets of the
Company, the purchase of assets or stock of another entity, or other similar corporate
transaction (a “Business Combination”), in each case, unless immediately
following such Business Combination, (A) more than 50% of the Resulting
Voting Power shall reside in Outstanding Company Voting Securities retained by
the Company’s stockholders in the Business Combination and/or voting securities
received by such stockholders in the Business Combination on account of
Outstanding Company Voting Securities, and (B) at least a majority of the
members of the board of directors (or equivalent governing body, if applicable)
of the entity resulting from such Business Combination were Incumbent Directors
at the time of the initial agreement, or action of the Board, providing for
such Business Combination; or

 

16

 

(iv)  Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

 

Notwithstanding the foregoing, the Separation shall not constitute a
Change in Control.  For the avoidance of
doubt, with respect to Adjusted Awards, any reference in an Award Agreement or
the applicable IAC Long Term Incentive Plan to a “change in control,” “change
of control” or similar definition shall be deemed to refer to a Change of
Control hereunder.

 

(d)  For purposes of this Section 10, “Good Reason” means (i) “Good
Reason” as defined in any Individual Agreement or Award Agreement to which the
applicable Participant is a party, or (ii) if there is no such Individual
Agreement or if it does not define Good Reason, without the Participant’s prior
written consent: (A) a material reduction in the Participant’s rate of
annual base salary from the rate of annual base salary in effect for such
Participant immediately prior to the Change in Control, (B) a relocation
of the Participant’s principal place of business more than 35 miles from the
city in which such Participant’s principal place of business was located
immediately prior to the Change in Control or (C) a material and
demonstrable adverse change in the nature and scope of the Participant’s duties
from those in effect immediately prior to the Change in Control.  In order to invoke a Termination of
Employment for Good Reason, a Participant shall provide written notice to the
Company of the existence of one or more of the conditions described in clauses (A) through
(C) within 90 days following the Participant’s knowledge of the initial
existence of such condition or conditions, and the Company shall have 30 days
following receipt of such written notice (the “Cure Period”) during which it may
remedy the condition.  In the event that
the Company fails to remedy the condition constituting Good Reason during the
Cure Period, the Participant must terminate employment, if at all, within 90
days following the Cure Period in order for such Termination of Employment to
constitute a Termination of Employment for Good Reason.

 

(e)  Notwithstanding the foregoing, if any Award is subject to Section 409A
of the Code, this Section 10 shall be applicable only to the extent
specifically provided in the Award Agreement and as permitted pursuant to Section 14(k).

 

SECTION 11.  Qualified Performance-Based Awards; Section 16(b)

 

(a)  The provisions of this Plan are intended to ensure that all
Options and Stock Appreciation Rights granted hereunder to any Participant who
is or may be a “covered employee” (within the meaning of Section 162(m)(3) of
the Code) in the tax year in which such Option or Stock Appreciation Right is
expected to be deductible to the Company qualify for the Section 162(m) Exemption,
and all such Awards shall therefore be considered Qualified Performance-Based
Awards and this Plan shall be interpreted and operated consistent with that
intention (including, without limitation, to require that all such Awards be
granted by a committee composed solely of members who satisfy the requirements
for being “outside directors” for purposes of the Section 162(m) Exemption
(“Outside Directors”)). When granting any Award other than an Option or Stock
Appreciation Right, the Committee may designate such Award as a Qualified
Performance-Based Award, based upon a determination that (i) the recipient
is or may be a “covered employee” (within the meaning of Section 162(m)(3) of
the Code) with respect to such Award, and (ii) the Committee wishes such
Award to qualify for the Section 162(m) Exemption, and the terms of
any such Award (and of the grant thereof) shall be 

 

17

 

consistent
with such designation (including, without limitation, that all such Awards be
granted by a committee composed solely of Outside Directors).

 

(b)  Each Qualified Performance-Based Award (other than an Option
or Stock Appreciation Right) shall be earned, vested and payable (as
applicable) only upon the achievement of one or more Performance Goals (as
certified in writing by the Committee, except if compensation is attributable
solely to the increase in the value of the Common Stock), together with the
satisfaction of any other conditions, such as continued employment, as the
Committee may determine to be appropriate, and no Qualified Performance-Based
Award may be amended, nor may the Committee exercise any discretionary
authority it may otherwise have under this Plan with respect to a Qualified
Performance-Based Award under this Plan, in any manner that would cause the
Qualified Performance-Based Award to cease to qualify for the Section 162(m) Exemption;
provided, however, that (i) the Committee may
provide, either in connection with the grant of the applicable Award or by
amendment thereafter, that achievement of such Performance Goals will be waived
upon the death or Disability of the Participant or under any other circumstance
with respect to which the existence of such possible waiver will not cause the
Award to fail to qualify for the Section 162(m) Exemption as of the
Grant Date, and (ii) the provisions of Section 10 shall apply
notwithstanding this Section 11(b).

 

(c)  The full Board shall not be permitted to exercise authority
granted to the Committee to the extent that the grant or exercise of such
authority would cause an Award designated as a Qualified Performance-Based
Award not to qualify for, or to cease to qualify for, the Section 162(m) Exemption.

 

(d)  The provisions of this Plan are intended to ensure that no
transaction under the Plan is subject to (and not exempt from) the short-swing
recovery rules of Section 16(b) of the Exchange Act (“Section 16(b)”).
Accordingly, the composition of the Committee shall be subject to such
limitations as the Board deems appropriate to permit transactions pursuant to
this Plan to be exempt (pursuant to Rule 16b-3 promulgated under the
Exchange Act) from Section 16(b), and no delegation of authority by the
Committee shall be permitted if such delegation would cause any such
transaction to be subject to (and not exempt from) Section 16(b).

 

SECTION 12.  Term, Amendment and Termination

 

(a)  Effectiveness.  The Plan shall be effective as of the date
(the “Effective Date”) it is adopted by the Board, subject to the approval by
the holders of at least a majority of the voting power represented by
outstanding capital stock of the Company that is entitled generally to vote in
the election of directors.

 

(b)  Termination.  The Plan will terminate on the tenth
anniversary of the Effective Date. Awards outstanding as of such date shall not
be affected or impaired by the termination of the Plan.

 

(c)  Amendment of Plan.  The Board may amend, alter, or discontinue
the Plan, but no amendment, alteration or discontinuation shall be made which
would materially impair the rights of the Participant with respect to a
previously granted Award without such Participant’s consent, except such an
amendment made to comply with applicable law, including without limitation 

 

18

 

Section 409A
of the Code, stock exchange rules or accounting rules. In addition, no
such amendment shall be made without the approval of the Company’s stockholders
to the extent such approval is required by applicable law or the listing
standards of the Applicable Exchange.

 

(d)  Amendment of Awards.  Subject to Section 5(d), the Committee
may unilaterally amend the terms of any Award theretofore granted, but no such
amendment shall cause a Qualified Performance-Based Award to cease to qualify
for the Section 162(m) Exemption or without the Participant’s consent
materially impair the rights of any Participant with respect to an Award,
except such an amendment made to cause the Plan or Award to comply with
applicable law, stock exchange rules or accounting rules.

 

SECTION 13.  Unfunded Status of Plan

 

It is presently intended that the Plan constitute an “unfunded” plan
for incentive and deferred compensation. The Committee may authorize the
creation of trusts or other arrangements to meet the obligations created under
the Plan to deliver Common Stock or make payments; provided, however,
that unless the Committee otherwise determines, the existence of such trusts or
other arrangements is consistent with the “unfunded” status of the Plan.

 

SECTION 14.  General Provisions

 

(a)  Conditions for Issuance.  The Committee may require each person
purchasing or receiving Shares pursuant to an Award to represent to and agree
with the Company in writing that such person is acquiring the Shares without a
view to the distribution thereof. The certificates for such Shares may include
any legend which the Committee deems appropriate to reflect any restrictions on
transfer. Notwithstanding any other provision of the Plan or agreements made
pursuant thereto, the Company shall not be required to issue or deliver any
certificate or certificates for Shares under the Plan prior to fulfillment of
all of the following conditions: (i) listing or approval for listing upon
notice of issuance, of such Shares on the Applicable Exchange; (ii) any
registration or other qualification of such Shares of the Company under any
state or federal law or regulation, or the maintaining in effect of any such
registration or other qualification which the Committee shall, in its absolute
discretion upon the advice of counsel, deem necessary or advisable; and (iii) obtaining
any other consent, approval, or permit from any state or federal governmental
agency which the Committee shall, in its absolute discretion after receiving
the advice of counsel, determine to be necessary or advisable.

 

(b)  Additional Compensation
Arrangements.  Nothing
contained in the Plan shall prevent the Company or any Subsidiary or Affiliate
from adopting other or additional compensation arrangements for its employees.

 

(c)  No Contract of Employment.  The Plan shall not constitute a contract of
employment, and adoption of the Plan shall not confer upon any employee any
right to continued employment, nor shall it interfere in any way with the right
of the Company or any Subsidiary or Affiliate to terminate the employment of
any employee at any time.

 

(d)  Required Taxes.  No later than the date as of which an amount
first becomes includible in the gross income of a Participant for federal,
state, local or foreign income or employment or other tax purposes with respect
to any Award under the Plan, such Participant 

 

19

 

shall pay to
the Company, or make arrangements satisfactory to the Company regarding the
payment of, any federal, state, local or foreign taxes of any kind required by
law to be withheld with respect to such amount. If determined by the Company,
withholding obligations may be settled with Common Stock, including Common
Stock that is part of the Award that gives rise to the withholding requirement.
The obligations of the Company under the Plan shall be conditional on such
payment or arrangements, and the Company and its Affiliates shall, to the
extent permitted by law, have the right to deduct any such taxes from any
payment otherwise due to such Participant. The Committee may establish such
procedures as it deems appropriate, including making irrevocable elections, for
the settlement of withholding obligations with Common Stock.

 

(e)  Limitation on Dividend
Reinvestment and Dividend Equivalents.  Reinvestment of dividends in additional
Restricted Stock at the time of any dividend payment, and the payment of Shares
with respect to dividends to Participants holding Awards of Restricted Stock
Units, shall only be permissible if sufficient Shares are available under Section 3
for such reinvestment or payment (taking into account then outstanding Awards).
In the event that sufficient Shares are not available for such reinvestment or
payment, such reinvestment or payment shall be made in the form of a grant of
Restricted Stock Units equal in number to the Shares that would have been
obtained by such payment or reinvestment, the terms of which Restricted Stock
Units shall provide for settlement in cash and for dividend equivalent reinvestment
in further Restricted Stock Units on the terms contemplated by this Section 14(e).

 

(f)  Designation of Death
Beneficiary.  The Committee
shall establish such procedures as it deems appropriate for a Participant to
designate a beneficiary to whom any amounts payable in the event of such
Participant’s death are to be paid or by whom any rights of such eligible
Individual, after such Participant’s death, may be exercised.

 

(g)  Subsidiary Employees.  In the case of a grant of an Award to any
employee of a Subsidiary of the Company, the Company may, if the Committee so
directs, issue or transfer the Shares, if any, covered by the Award to the
Subsidiary, for such lawful consideration as the Committee may specify, upon
the condition or understanding that the Subsidiary will transfer the Shares to
the employee in accordance with the terms of the Award specified by the
Committee pursuant to the provisions of the Plan. All Shares underlying Awards
that are forfeited or canceled should revert to the Company.

 

(h)  Governing Law and
Interpretation.  The Plan and
all Awards made and actions taken thereunder shall be governed by and construed
in accordance with the laws of the State of Delaware, without reference to
principles of conflict of laws. The captions of this Plan are not part of the
provisions hereof and shall have no force or effect.

 

(i)  Non-Transferability.  Except as otherwise provided in Section 5(j) or
by the Committee, Awards under the Plan are not transferable except by will or
by laws of descent and distribution.

 

(j)  Foreign Employees and
Foreign Law Considerations. 
The Committee may grant Awards to Eligible Individuals who are foreign
nationals, who are located outside the United States or who are not compensated
from a payroll maintained in the United States, or who are 

 

20

 

otherwise
subject to (or could cause the Company to be subject to) legal or regulatory
provisions of countries or jurisdictions outside the United States, on such
terms and conditions different from those specified in the Plan as may, in the
judgment of the Committee, be necessary or desirable to foster and promote
achievement of the purposes of the Plan, and, in furtherance of such purposes,
the Committee may make such modifications, amendments, procedures, or subplans
as may be necessary or advisable to comply with such legal or regulatory
provisions.

 

(k)  Section 409A of the
Code.  It is the intention of
the Company that no Award shall be “deferred compensation” subject to Section 409A
of the Code, unless and to the extent that the Committee specifically
determines otherwise as provided in the immediately following sentence, and the
Plan and the terms and conditions of all Awards shall be interpreted
accordingly. The terms and conditions governing any Awards that the Committee
determines will be subject to Section 409A of the Code, including any rules for
elective or mandatory deferral of the delivery of cash or Shares pursuant
thereto and any rules regarding treatment of such Awards in the event of a
Change in Control, shall be set forth in the applicable Award Agreement, and
shall comply in all respects with Section 409A of the Code.  Notwithstanding any other provision of the
Plan to the contrary, with respect to any Award that constitutes a “nonqualified
deferred compensation plan” subject to Section 409A of the Code, any
payments (whether in cash, Shares or other property) to be made with respect to
the Award upon the Participant’s Termination of Employment shall be delayed
until the first day of the seventh month following the Participant’s
Termination of Employment if the Participant is a “specified employee” within
the meaning of Section 409A of the Code.

 

(l)  Employee Matters Agreement.  Notwithstanding anything in this Plan to the
contrary, to the extent that the terms of this Plan are inconsistent with the
terms of an Adjusted Award, the terms of the Adjusted Award shall be governed
by the Employee Matters Agreement, the applicable IAC Long-Term Incentive Plan
and the award agreement entered into thereunder.

 

21

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