Document:

exv10w8

 

     EXHIBIT 10.8

CONFIDENTIAL TREATMENT REQUESTED PURSUANT TO RULE 24B-2

Certain portions, indicated by [***], of this exhibit have been omitted
pursuant to a request for confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934. The omitted materials have been filed
separately with Securities and Exchange Commission.

DATED 5 OCTOBER 2000

AS AMENDED BY DEED ON 12 JANUARY 2005

CLEARCHANNEL ENTERTAINMENT UK (THEATRICAL PRODUCTIONS) LIMITED

(formerly DAVID IAN PRODUCTIONS LIMITED)

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DAVID IAN LANE

SERVICE AGREEMENT

 

 

THIS AGREEMENT is made on the 5th day of October 2000 and amended by DEED dated
12 January 2005

BETWEEN:

	 	(1)	 	CLEARCHANNEL ENTERTAINMENT UK (THEATRICAL PRODUCTIONS) LIMITED
(formerly DAVID IAN PRODUCTIONS LIMITED) (Company No: 4018696) a
company registered in England, whose registered office is 1 Cluny
Mews, London SW5 9EG (“the Company”); and
	 
	 	(2)	 	DAVID IAN LANE of 12 Little Plucketts Way, Buckhurst Hill, Essex IG9
5QU (“the Executive”).

WHEREAS the Board of Directors of the Company (“the Board”) has approved the
terms of this Agreement under which the Executive is to be employed

IT IS HEREBY AGREED as follows:

	1.	 	APPOINTMENT
	 
	 	 	The Company shall employ the Executive and the Executive shall serve the
Company as sole CEO of the Clear Channel Entertainment Theatre, UK and
International Division on and subject to the terms and conditions
specified herein (“the Employment”). The Executive may terminate the
Employment by giving to the Company 3 months’ notice in writing in the
event that his direct reporting line changes to any person other than the
CEO or COO of Clear Channel Entertainment (“CCE”) currently Brian Becker
and Miles Wilkin respectively, provided that such notice shall be given
within one month of such change becoming effective. In the event of the
Executive terminating his employment under this Clause 1, the covenants in
clause 17.1 and the Schedule to this Agreement shall be waived by the
Company.
	 
	2.	 	COMMENCEMENT OF EMPLOYMENT
	 
	2.1	 	The Employment will commence on the date of this Agreement (“the
Commencement Date”) and shall continue subject always to the employment
being terminated under Clause 18 below until 31 December 2010 (the Term”),
when it shall expire automatically PROVIDED ALWAYS that either the Company
or the Executive may terminate the employment of the Executive at any time
subject to giving to the other twelve months’ written notice in accordance
with the provisions of Clause 24 of this Agreement, subject always to the
provisions of Clause 5.2.1 and 5.2.2 of this Agreement.
	 
	2.2	 	The Executive’s period of continuous employment began on the date hereof.
	 
	3.	 	DUTIES
	 
	3.1	 	The Executive shall oversee the operation of the CCE European theatrical
business, the CCE European sports business, Donington and the CCE London
head office in Grosvenor Street. Theatrical business includes UK theatres
plus numerous West End, touring and European

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	 	 	productions and also be responsible for all theatrical business throughout
the rest of the world, excluding North America in which capacity subject
to Clause 4.1.4 he shall devote all his time, attention and skill to his
duties hereunder. The Executive shall at all times act in the interests of
the Company and its Associated Companies and hereby agrees that (subject
as hereinafter provided) all existing projects (including but not limited
to all existing tours and productions) shall be developed by him for the
benefit of the Company and its Associated Companies. The Executive shall
faithfully and diligently perform such duties and exercise such powers
consistent therewith as may from time to time be assigned to or vested in
him by the Board or the Company consistent with his appointment hereunder.
The Company and the Executive hereby agree that during the Term all
promotional documentation (including, but not limited to front of house
displays, advertising and marketing materials) for all tours and
productions shall include the wording “David Ian for SFX (Theatre) UK
presents...”. However, the Company reserves the right to review and amend
this obligation at the Company’s discretion, to include specified wording
in promotional documentation on and at any time after the second
anniversary of the Term.
	 
	3.2	 	The Company reserves the right to assign to the Executive duties of a
different nature either additional to or instead of those referred to in
Clause 3.1 above, PROVIDED THAT he will only be assigned duties which he
can reasonably perform and which are reasonably consistent with his status
hereunder and, PROVIDED ALWAYS THAT any material change to the duties will
require the Executive’s prior consent.
	 
	3.3	 	The Executive shall obey the reasonable and lawful orders of the Board,
given by or with the authority of the Board, and shall comply with all the
Company’s rules, regulations, policies and procedures from time to time in
force.
	 
	3.4	 	The Executive may be required in pursuance of his duties to perform
services not only for the Company but also for any Associated Company,
without further remuneration (except as otherwise agreed), and to accept
any such office or position in any Associated Company which is consistent
with his position with the Company, as the Board or the Company may from
time to time reasonably require.
	 
	3.5	 	The Executive acknowledges that during the Employment the Company and/or
Associated Company may be subject to a reorganisation or restructuring
(including but not limited to amalgamation or reconstruction as referred
to in Clause 20 below). In the event of such reorganisation or
restructuring, the Executive agrees to comply with the reasonable requests
of the Board regarding such reorganisation or restructuring PROVIDED THAT
his duties with regard to the day-to-day management of the business
carried on by the Company and/or Associated Company immediately before
such reorganisation or restructuring shall not be diminished.
	 
	3.6	 	The Executive’s basic working hours shall be 40 hours each week (including
weekends), and such additional hours (without further remuneration) as are
necessary for the proper performance of his duties of employment

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	3.7	 	Where appropriate the Executive shall during the Employment and for the
prohibited period after the termination of the Employment comply with all
applicable rules of the New York Stock Exchange or the exchange or
national market system in which Clear Channel Communications, Inc.’s
(“Clear Channel”) common stock (or such stock as the Clear Channel common
stock may be converted into as a result of combinations of shares,
recapitalisation, merger or other such events relating to the common stock
of Clear Channel which may occur at any time and from time to time from
and after the date of this Agreement) is then trading, and the rules and
regulations of the Securities Act of 1933, as amended (the “Securities
Act”) and the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and any Company Policy issued in relation to (i) dealings in shares
debentures or other securities of Clear Channel and any Associated
Companies or (ii) unpublished price sensitive information affecting the
securities of any other company. The Executive shall provide all
information and such additional assistance to Clear Channel, SFX
Entertainment, Inc. or the Company as Clear Channel, SFX Entertainment,
Inc. or the Company may reasonably request to allow it to comply fully
with such rules, regulations and policies. For the purposes of this clause
the “prohibited period” shall be from the date of termination of the
Employment until the later of (i) the next announcement of Clear Channel’s
or any Associated Company’s results pursuant to the Exchange Act or (ii)
such time as when any price sensitive information the Executive has
obtained during the Employment ceases to be price sensitive information,
either through publication or otherwise.
	 
	4	 	EXCLUSIVITY OF SERVICE
	 
	4.1	 	During the period of the Employment the Executive shall devote his full
time and attention to his duties hereunder and shall not (without the
prior written consent of the Board) directly or indirectly either on his
own account or on behalf of any other person, company, business entity or
other organisation:

	 	4.1.1	 	(i) engage in, or (ii) be concerned with, or (iii) provide services
to, (whether as an employee, officer, director, agent, partner,
consultant or otherwise) any other business; or
	 
	 	4.1.2	 	accept any other engagement or public office;

	 	 	PROVIDED THAT,

	 	4.1.3	 	the Executive may hold up to 5% of any securities in a company which
is quoted on any recognised stock exchange; and
	 
	 	4.1.4	 	the Executive shall, subject to the consent of the Board, have the
right to devote a portion of his business time to the Permitted
Activities PROVIDED ALWAYS THAT:

	 	(i)	 	any involvement by the Executive in the Permitted Activities
does not interfere, directly or indirectly, with the
performance of his duties for and on behalf of the Company
and/or any Associated Company as set out in this Agreement or
otherwise; and
	 
	 	(ii)	 	in the event that new tours of those tours specified in Clause
25.7 are proposed, the Company and/or Associated Company shall
have the right of first refusal to produce and manage such
tours PROVIDED THAT it is within the Executive’s power to
grant such a right.

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	 	4.1.5	 	In addition to the Executive’s role as Producer of “Grease” on a
worldwide basis, the Executive may produce up to three additional
productions outside the terms of this Agreement subject to:

	 	(a)	 	the provisions of Clause 4.1.4 of this Agreement; and
	 
	 	(b)	 	CCE having the right to match the Executive’s investment in
such production on a pound for pound basis up to a maximum of
50%, if it is within the Executive’s power to grant such a
right, and it if is not, up to a maximum of 50% of the
Executive’s own investment.

	4.2	 	Subject to any written regulations or consents issued by the Company which
are applicable to him, neither the Executive nor his Immediate Relatives,
nor any company or business entity in which he or they are interested,
shall be entitled to receive or obtain directly or indirectly any
discount, rebate, commission or other benefit in respect of any business
transacted (whether or not by the Executive) by or on behalf of the
Company or any Associated Company, and if the Executive, his Immediate
Relatives or any company or business entity in which he or they is/are
interested, shall directly or indirectly obtain any such discount, rebate,
commission or other benefit the Executive shall forthwith account to the
Company or the applicable Associated Company for the amount received or
value of the benefit so obtained.
	 
	4.3	 	The Executive confirms that he has disclosed fully to the Company all
circumstances in respect of which there is, or there might be, a conflict
of interest between the company or any Associated Company, and the
Executive or his Immediate Relatives, and the agrees to disclose fully to
the Company any such circumstances which may arise or of which he becomes
aware during the Employment.
	 
	5.	 	REMUNERATION AND BONUS
	 
	5.1	 	The Company shall pay to the Executive a salary of Pound Sterling 350,000
per annum, payable monthly in arrears by equal instalments. This revised
salary shall take retrospective effect from 1 January 2004. The shortfall
of salary accrued from 1 January 2004 shall be paid in a lump sum upon
execution of the deed between Clear Channel Entertainment UK (Theatrical
Productions) Limited (formerly David Ian Productions Limited) and David
Ian Lane dated 12 January 2005 (“the Deed”). The salary shall be increased
thereafter by 3% on 1 January 2006 and on 1 January in each succeeding
year during the continuation of this Agreement.
	 
	5.2.1	 	The Executive shall be paid a retention bonus of Pound Sterling 500,000 on
execution of the Deed (“the Retention Bonus”). If the Executive terminates
the Employment at any time during the Term in accordance with the
provisions of Clause 1 or Clause 2.1 or Clause 5.5 of this Agreement,
other than in circumstances amounting to repudiation or constructive
dismissal, the Executive agrees to repay to the Company, within 21 days of
the effective date of such termination, a pro rata portion of the
Retention Bonus, less taxes and other withholdings paid on the Retention
Bonus by the Executive, based upon any portion of the 6 year period
running from 1 January 2005 through 31 December 2010 which has not been
completed at the time of termination (“Clawback Payment”).

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	5.2.2	 	If the Company terminates the employment of the Executive in accordance
with the provisions of Clause 2.1 of this Agreement for any reason other
than the Executive’s misconduct and/or material breach of contract in
accordance with the provisions of Clause 18 of this Agreement, no Clawback
Payment shall be due to the Company from the Executive.
	 
	5.3	 	The Executive will be entitled to a further bonus in each year during the
continuation of this Agreement calculated in accordance with CCE formula
at Schedule 1 of this Agreement. For the purposes of this bonus
calculation, the figure of Pound Sterling 140,000 shall be used as the
benchmark figure at which the Executive achieves 15% EBITDA growth and the
remainder of the table shall be calculated accordingly
	 
	5.4	 	The Executive shall be entitled to further bonuses in respect of “The
Phantom of the Opera” Las Vegas production (“the Production”) as follows:

	 	(a)	 	Pound Sterling 50,000 on the signature of the Deed;
	 
	 	(b)	 	Pound Sterling 50,000 shall be payable to the Executive subject to
the Production opening on time and on budget which for the purposes
of this Clause shall mean at the time and subject to the final
budget as agreed between the Parties. This bonus shall be paid
within 60 days of the Production opening; and
	 
	 	(c)	 	a further maximum bonus of Pound Sterling 75,000 shall be payable to
the Executive on 31 December 2006 and on 31 December in each
succeeding year during the continuation of this Agreement based on
the Production having run for 50 weeks in the relevant year and pro
rated on a weekly basis for any lesser period. This payment shall be
conditional on the Production generating a “weekly operating
profit”, which for the purposes of this sub clause shall mean that
the Production produces an operating profit above the break even
figure determined from the books and records of CCE. The further
bonus payable under this sub clause (c) shall be reduced by Pound
Sterling 1,500 (being the due proportion of Pound Sterling 75,000
for 50 weeks) for each and any week that the Production produces an
operating profit (or loss) below the break even figure referred to
above.
	 
	 	(d)	 	the Executive shall be entitled to one business class return flight
for his wife and his children and full reimbursement for a family
size hotel suite at the Venetian Hotel in Las Vegas for 21 nights,
during the Production period.

	5.5	 	In the event that CCE acquires the whole or part of [***] (“[***]”) or the
[***] (“[***]”) or enters into a significant transaction with [***] on
completion of such transaction (“Completion”), the Executive shall be
entitled to terminate this Agreement within 90 days of such transaction
closing by giving to the Company not less than 2 months’ written notice in
accordance with the provisions of Clause 24 of this Agreement. In the
event of such termination the Clawback Payment shall be due from the
Executive to the Company in accordance with the terms of Clause 5.2.1.
	 
	5.6	 	The remuneration specified in Clause 5.1 and 5.2 above shall be inclusive
of any fees to which the Executive may be entitled as a Director of the
Company or of any Associated Company.

 

			
	***	 	Confidential

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	6.	 	CAR AND TRAVEL BENEFITS
	 
	6.1	 	Until termination of the Employment, the Company shall provide the
Executive with a car allowance for the sole and exclusive use of a motor
car at the rate of Pound Sterling 32,000 per annum payable monthly to
cover all the running expenses of such motor car including maintenance and
repairs but not motor tax, insurance premiums, petrol (including business
and personal) and oil which will be separately paid by the Company subject
to the Executive submitting receipts or other appropriate invoices.
	 
	6.2	 	The Executive shall be entitled, for the purposes of the Employment, to
travel first class by train and plane and to stay in deluxe hotel
accommodation and the Company shall pay or reimburse (as appropriate)
against receipts or other appropriate evidence of costs so incurred by the
Executive (excluding any costs incurred in connection with the Executive’s
private entertainment, such as his use of mini-bar facilities).
	 
	6.3	 	The Company shall provide the Executive with a mobile telephone and shall
pay all reasonable expenses (including rental) In respect thereof.
	 
	7.	 	EXPENSES
	 
	 	 	The Company shall reimburse to the Executive upon production of reasonably
detailed accounts and vouchers or other reasonable evidence of payment by
the Executive all reasonable travel entertainment and other expense
properly incurred and defrayed by him in the course of the Employment,
subject to the Company’s rules, policies and procedures relating to
expenses.
	 
	8.	 	DEDUCTIONS
	 
	 	 	The Company shall be entitled at any time during the Employment, or in any
event on termination, to deduct from the Executive’s remuneration
hereunder any monies due from him to the Company including but not limited
to any outstanding loans, advances, relocation expenses, the cost of
repairing any damage or loss to the Company’s property caused by him (and
of recovering the same), excess holiday, any sums due from him under
Clause 10 below and any other monies owed by him to the Company solely in
his capacity as an employee.
	 
	9.	 	PLACE OF WORK
	 
	 	 	The Executive’s place of work shall be 35-36 Grosvenor Street, London W1X
9SG. In the performance of his duties hereunder, the Executive may be
required to travel both throughout and outside the United Kingdom.
	 
	10.	 	SICKNESS BENEFIT
	 
	10.1	 	The Executive shall be entitled to such sickness benefits as are provided
from time to time under the Company’s sick pay procedure.
	 
	10.2	 	When calculating the Executive’s normal salary, deductions will be made
for any State sickness or other benefits due to the Executive, as well as
normal deductions for tax and National Insurance.

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	10.3	 	The Executive will be paid Statutory Sick Pay (“SSP”) when he is eligible
to receive it under the legislation and regulations from time to time in
force. Where Company sick pay and SSP fall to be paid for the same day(s)
of absence, the Executive will receive the higher of the two sums. Further
details about SSP can be obtained from the HR Department.
	 
	10.4	 	The Company reserves the right to require the Executive to undergo a
medical examination by a doctor or consultant nominated by it, in which
event the Company will bear the cost thereof.
	 
	10.5	 	Whilst, during the Employment, the Executive is absent from work on
grounds of sickness or other medical incapacity:

	 	10.5.1	 	he will continue to be covered by the relevant life assurance,
private medical insurance and permanent health insurance scheme(s);
	 
	 	10.5.2	 	his entitlement to the use of the Company Car, the payment of the
Company’s pension contributions, participation in any incentive or
bonus scheme, and accrual of holiday entitlement shall cease on the
expiry of the relevant period of Company sick pay entitlement
referred to in Clause 10.1 above.

	10.6	 	Any outstanding or prospective entitlement to any sickness benefit,
including but not limited to Company sick pay, private medical insurance
or long-term disability benefits, shall not prevent the Company from
exercising its right to terminate the Employment in accordance with
Clauses 2 or 18 hereof.
	 
	11.	 	HOLIDAYS
	 
	11.1	 	The Executive shall be entitled to receive his normal remuneration for all
Bank and Public holidays normally observed in England and a further 25
working day’s holiday in each holiday year (the period from January to
December), such days to be taken at times which do not conflict with the
business interests of the Company.
	 
	11.2	 	In the holiday years in which the Employment commences or terminates the
entitlement shall accrue on a pro rata basis for each complete month of
service
	 
	11.3	 	The Company reserves the right, at its sole discretion, to require the
Executive to take all or part of any outstanding holiday during any notice
period or to make a payment in lieu thereof
	 
	11.4	 	Holiday entitlement for one holiday year cannot be taken in subsequent
holiday years. Failure to take holiday entitlement in the appropriate
holiday year will lead to forfeiture of any accrued holiday not taken
without any right to payment in lieu thereof.
	 
	12.	 	PENSION AND OTHER BENEFITS
	 
	12.1	 	In addition to the base salary payable under Clause 5.1 above, during the
Executive’s Employment under this Agreement the Company shall make monthly
contributions on the Executive’s behalf, subject to the Inland Revenue
limits, into such personal pension plan as the Executive shall direct of
an amount equal to ten per cent (10%) of his base salary for the time
being payable under Clause 5.1.

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	 	 	There is no contracting-out certificate in force for the Employment in
relation to the State Earnings Related Pension Scheme.
	 
	12.2	 	The Executive shall be eligible to participate in Apollo Leisure UK
Limited’s private medical insurance scheme for the benefit of himself, his
wife and minor children, permanent health insurance scheme and life
assurance scheme, subject to the terms and conditions of such schemes from
time to time in force. Details of such scheme(s) can be obtained from the
HR Department. The Company reserves the right to terminate or substitute
other scheme(s) for such scheme(s) or amend the scale or level of benefits
of such scheme(s). If any scheme provider (including but not limited to
any insurance company) refuses for any reason (whether based on its own
interpretation of the terms of the insurance policy or otherwise) to
provide any benefits to the Executive, the Company shall not be liable to
provide any such benefits itself or any compensation in lieu thereof.
	 
	12.3	 	Any actual or prospective loss of entitlement to private medical and
	 
	 	 	permanent health insurance benefits or any other sickness benefit shall
not limit or prevent the Company from exercising its right to terminate
the Employment in accordance with Clauses 2 or 18 hereof.
	 
	13.	 	REASONABLENESS OF RESTRICTIONS
	 
	 	 	The Executive recognises that, whilst performing his duties for the
Company, he will have access to and come into contact with trade secrets
and confidential information belonging to the Company or to Associated
Companies and will obtain personal knowledge of and influence over its or
their customers and/or employees. The Executive therefore agrees that the
restrictions contained or referred to in Clauses 14 and 17 and the
Schedule are reasonable and necessary to protect the legitimate business
interests of the Company and its Associated Companies both during and
after the termination of the Employment.
	 
	14.	 	CONFIDENTIAL INFORMATION
	 
	14.1	 	The Executive shall neither during the Employment (except in the proper
performance of his duties) nor at any time (without limit) after the
termination thereof, directly or indirectly:

	 	14.1.1	 	use for his own purposes or those of any other person, company,
business entity or other organisation whatsoever; or
	 
	 	14.1.2	 	disclose to any person, company, business entity or other
organisation whatsoever;

	 	 	any trade secrets or confidential information relating or belonging to the
Company or its Associated Companies including but not limited to any such
information relating to customers, customer lists or requirements, price
lists or pricing structures, sales and marketing information, business
plans or dealings, employees or officers, source codes and computer
systems, software, services and financial information, any document marked
‘Confidential’ (or with a similar expression), or any information which
the Executive has been told is confidential or which he might reasonably
expect the Company would regard as confidential, or any information which
has been given to the Company or Associated Company in confidence by
customers, suppliers or other persons.

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	14.2	 	The Executive shall not at any time during the continuance of his
employment with the Company make any notes or memoranda relating to any
matter within the scope of the Company’s business’ dealings or affairs
otherwise than for the benefit of the Company or any Associated Company.
	 
	14.3	 	The obligations contained in Clause 14.1 shall cease to apply to any
information or knowledge which may subsequently come into the public
domain after the termination of the Employment other than by way of
unauthorised disclosure or which is required to be disclosed by a
competent regulatory, taxation or enforcement authority.
	 
	14.4	 	The Executive shall not make or communicate any statement (whether written
or oral) to any representative of the press, television, radio, or other
media and shall not write any article for the press or otherwise for
publication on any matter connected with or relating to the business of
any company, including but not limited to the business of the Company or
any Associated Company, without obtaining the prior written approval of
the Board PROVIDED ALWAYS that this Clause 14.4 shall not operate so as to
prevent the Executive making or communicating reasonable statements on
matters connected with the business of the SFX Theatre (UK) division.
	 
	15.	 	COPYRIGHT, INVENTIONS AND PATENTS
	 
	15.1	 	All records, documents, papers (including copies and summaries thereof)
and other copyright protected works made or acquired by the Executive in
the course of the Employment shall, together with all the worldwide
copyright and design rights in all such works, be and at all times remain
the absolute property of the Company.
	 
	15.2	 	The Executive hereby irrevocably and unconditionally waives all rights
granted by Chapter IV of Part I of the Copyright, Designs and Patents Act
1988 that vest in him (whether before, on or after the date hereof) in
connection with his authorship of any copyright works in the course of his
employment with the Company, wherever in the world enforceable, including
without limitation the right to be identified as the author of any such
works and the right not to have any such works subjected to derogatory
treatment.
	 
	15.3	 	The Executive and the Company acknowledge the provisions of Sections 39 to
42 of the Patents Act 1977 (“the Act”) relating to the ownership of
employees’ inventions and the compensation of employees for certain
inventions respectively. If the Executive makes any inventions that do not
belong to the Company under the Act, he agrees that he will forthwith
license or assign (as determined by the Company) to the Company his rights
in relation to such inventions and will deliver to the Company all
documents and other materials relating to them. The Company will pay to
the Executive such compensation for the licence or assignment as the
Company will determine in its absolute discretion, subject to Section 40
of the Act.
	 
	16.	 	DATA PROTECTION
	 
	16.1	 	The Data Protection Act 1998 (the “Act”) sets out principles that should
be followed when processing personal data. One of the ways in which the
Company can take steps to comply with some of these principles is to ask
the Executive to consent to the processing of his employment-

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	 	 	related personal data. This is not the only way that the Company can
comply with the principles contained in the Act. Please contact the HR
Department for a copy of the Company’s Data Protection Policy.
	 
	16.2	 	The Company will hold computer records and personnel files relating to the
Executive. These will include his references, bank details, performance
appraisals, holiday and sickness records, salary reviews and remuneration
details and other employment related records, (which may, where necessary,
include sensitive data relating to the Executive’s health, and data held
for ethnic monitoring purposes). The Company requires such personal data
for personnel administration and management purposes and to comply with
its obligations regarding the keeping of employee/worker records. The
Executive’s right of access to this data is as prescribed by law. Please
contact the HR Department for details of these rights.
	 
	16.3	 	The Executive hereby expressly agrees that the Company may process
personal data relating to him for personnel administration and management
purposes and may, when necessary for those purposes, make such data
available to its advisers, to parties providing products and/or services
to the Company (such as IT systems suppliers, pension, benefits and
payroll administrators), to regulatory authorities (including the Inland
Revenue), and as required by law. Further, the Executive hereby expressly
agrees that the Company may transfer such data to and from its Associated
Companies including any Associated Companies located outside the European
Economic Area and including but not limited to those Associated Companies
located in the United States of America.
	 
	16.4	 	The Executive may revoke his express consent for the Company to process
personal data relating to his employment relationship with the Company by
writing to the HR Department.
	 
	17.	 	POST-TERMINATION OBLIGATIONS
	 
	17.1	 	The Executive agrees that he will observe the post-termination obligations
set out in Schedule 2 hereto.
	 
	17.2	 	The Executive agrees that in the event of receiving from any person,
company, business entity or other organisation an offer of employment
either during the continuance of this Agreement or during the continuance
in force of any of the restrictions set out in the Schedule annexed
hereto, he will forthwith provide to such person, company, business entity
or other organisation making such an offer of employment a full and
accurate copy of Clauses 14 and 17 hereof, and the Schedule annexed
hereto.
	 
	18.	 	TERMINATION
	 
	18.1	 	Notwithstanding Clause 2 above, the Company may terminate the Employment
with immediate effect if the Executive shall at any time:

	 	18.1.1	 	die; or
	 
	 	18.1.2	 	be guilty of dishonesty, or be guilty of gross misconduct, or gross
incompetence or wilful neglect of duty, or commit any other serious
breach of this Agreement; or

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	 	18.1.3	 	act in any manner (whether in the course of his duties or
otherwise) which is likely to bring him, the Company or any
Associated Company into disrepute or prejudice the interests of
the Company or any Associated Company.
	 
	 	18.1.4	 	become bankrupt, apply for or have made against him a receiving
order under Section 286 Insolvency Act 1986, or have any order
made against him to reach a voluntary arrangement as defined by
Section 253 of that Act; or
	 
	 	18.1.5	 	be or become of unsound mind; or
	 
	 	18.1.6	 	for an aggregate period of six months or more in any period of 12
consecutive months (or any other period proscribed by any
applicable law) be incapable of performing his duties hereunder by
reason of ill health or other incapacity (whether accidental or
otherwise); or
	 
	 	18.1.7	 	be addicted to or abuse in any way an illegal drug or substance;
or
	 
	 	18.1.8	 	make any material or recurring disparaging oral or written
statements regarding the Company or any Associated Company and,
without limitation, officers, shareholders or the management team
of the Company or any Associated Company; or
	 
	 	18.1.9	 	after having received a written warning from the Company relating
to the unsatisfactory conduct or poor performance of his duties,
continue the conduct or performance complained of in the written
warning; or
	 
	 	18.1.10	 	be convicted of an indictable offence other than a minor road
traffic offence; or
	 
	 	18.1.11	 	be or become prohibited by law from being a director, or
	 
	 	18.1.12	 	directly or indirectly advise or participate or act in concert
(within the meaning of the City Code on Take-Overs and Mergers)
with any person who makes or is considering making any offer for
the issued share capital of the Company; or
	 
	 	18.1.13	 	make or be found to have made a material fraudulent
misrepresentation in, or have otherwise materially breached the
Share Sale Agreement of even date herewith, made between by and
among SFX UK Holdings and the Executive relating to the sale and
purchase of the entire issued share capital of the Company (the
“Share Sale Agreement”).

	 	 	Any delay by the Company in exercising such right to termination shall
not constitute a waiver thereof.
	 
	18.2	 	If the Executive’s Employment terminates pursuant to Clauses 18.1.1,
18.1.5 or 18.1.6 above, the Executive, his estate, legal representatives
or nominee(s) shall be entitled to receive in full satisfaction of all
obligations due to the Executive under this Agreement, all accrued but
unpaid base salary, any accrued but unpaid bonus in respect of the bonus
year ended prior to the Termination Date and a pro rata bonus payment for
the bonus year in which the Termination Date

-12-

 

	 	 	occurs upon payment of which the Company shall have no further obligations
or liabilities to the Executive hereunder.
	 
	18.3	 	If the Executive’s Employment terminates pursuant to Clauses 18.1.2
 - 18.1.4 or 18.1.7 - 18.1.13 above, the Executive shall be entitled to
receive in full satisfaction of all obligations, due to the Executive
under this Agreement, all accrued but unpaid base salary, any accrued but
unpaid bonus in respect of the bonus year ended prior to the Termination
Date and a pro rata bonus payment for the bonus year in which the
Termination Date occurs.
	 
	18.4	 	On termination of the Employment, the Executive shall forthwith return to
the Company in accordance with its instructions all equipment,
correspondence, records, specifications, software, models, notes, reports
and other documents and any copies thereof and any other property
belonging to the Company or its Associated Companies (including but not
limited to the Company Car, keys, credit cards, equipment and passes)
which are in his possession or under his control. The Executive shall, if
so required by the Company, confirm in writing his compliance with his
obligations under this Clause 18.4.
	 
	18.5	 	The Executive agrees that:

	 	18.5.1(a) 	 	the Company may, at its absolute discretion, give to the
Executive a Compensation Payment (which may, at the Company’s
discretion, be paid in instalments) in lieu of all or any part
of the unexpired period of the Term (to which, for the avoidance
of doubt, the Executive shall have no entitlement unless and
until the Company notifies the Executive in writing of its
decision to make the Compensation Payment to him) which shall be
in full and final settlement of all claims (including but not
limited to contractual claims) which the Executive may have
against the Company and/or any Associated Company and on payment
of which the Company and/or Associated Company shall have no
further obligations or liabilities to the Executive; and
	 
	 	18.5.1(b) 	 	where the Company decides to exercise its power under Clause
18.5.1(a) to make any such payment(s) to the Executive, the
Executive undertakes to take all reasonable and necessary steps
to find alternative employment to commence within a period
equivalent to the unexpired period of the Term or the notice
period set out in Clause 3 above (or where notice has been
served, the unexpired period of notice) commencing on the
Termination Date. The Company may, in its absolute discretion,
reduce the amount or amounts of any such payment(s) by such an
amount as reflects the Executive’s actual mitigation. For the
avoidance of doubt, such reduction may result in the cessation
of instalment payments, or the Executive being entitled to no
payment; and/or
	 
	 	18.5.2	 	the Company may, at its absolute discretion, require the
Executive not to attend at work and/or not to undertake all or
any of his duties hereunder for a single period of 6 months or
any part of the unexpired period of the Term, whichever period
is shorter, PROVIDED ALWAYS that the Company shall continue to
pay the Executive’s base

-13-

 

	 	 	 	salary and contractual benefits. For the avoidance of doubt, the
Executive shall not be entitled to receive any bonus payment for
any period during which he does not attend at work pursuant to
this clause. In the event that the Company instructs the
Executive not to attend work pursuant to this Clause 18.5.2,
then the periods of restriction set out in the Schedule shall be
reduced by any period during which the Executive did not attend
at work and/or did not undertake employment duties pursuant to
Clause 18.5.2.

	18.6	 	The Company shall have the right to suspend the Executive on full pay
pending any investigation into any potential dishonesty, gross misconduct
or any other circumstances which may give rise to a right to the to the
Company to terminate pursuant to Clause 18.1 above.
	 
	18.7	 	The termination of the Employment shall be without prejudice to any right
the Company may have in respect of any breach by the Executive of any of
the provisions of this Agreement which may have occurred prior to such
termination.
	 
	18.8	 	The Executive agrees that he will not at any time after the termination of
the Employment represent himself as still having any connection with the
Company or Associated Company, save as a former employee for the purpose
of communicating with prospective employers or complying with any
applicable statutory requirements.
	 
	18.9	 	The Executive hereby agrees that, in the event of the expiry of the fixed
term of his employment hereunder without it being renewed, he shall have
no claim against the Company under Section 135 Employment Rights Act 1996
in respect of a statutory redundancy payment.
	 
	19.	 	DIRECTORSHIPS
	 
	19.1	 	The Executive shall forthwith resign in writing from all directorships,
trusteeships and other offices he may hold from time to time with the
Company or any Associated Company without compensation for loss of office
in the event of:-

	 	19.1.1	 	the termination of his employment; or
	 
	 	19.1.2	 	the Company exercising its rights under Clause 18.5 above.

	19.2	 	In the event of the Executive failing to comply with his obligations under
Clause 19.1 above, he hereby irrevocably and unconditionally authorises
the Company to appoint some person in his name and on his behalf to sign
or execute any documents and/or do all things necessary to requisite to
give effect to such resignations as referred to in Clause 19.1 above.
	 
	20.	 	LIQUIDATION FOR RECONSTRUCTION OR AMALGAMATION
	 
	 	 	The Executive shall have no claim against the Company if the Employment is
terminated by reason of the liquidation of the Company for the purposes of
amalgamation or reconstruction provided that he is offered employment with
any concern or undertaking resulting from such amalgamation or
reconstruction on terms and conditions which, taken as a whole, are not
less favourable than the terms of this Agreement.

-14-

 

	21.	 	GRIEVANCE AND DISCIPLINARY PROCEDURES
	 
	 	 	If the Executive has any grievance relating to the Employment, he should
raise it with the Chairman of SFX Europe and thereafter (if the matter is
not resolved) with the Board. In such a case the Board will deal with the
matter by discussion and majority decision of those present and voting.
The disciplinary procedure applicable to the Executive is such procedure
as is set out from time to time in the Company’s Employee Handbook. For
the avoidance of doubt, the disciplinary procedure does not form part of
the Executive’s contract of employment.
	 
	22.	 	SEVERABILITY
	 
	 	 	The various provisions and sub-provisions of this Agreement and the
Schedule attached hereto are severable and if any provision or
sub-provision is held to be unenforceable by any court of competent
jurisdiction then such unenforceability shall not affect the
enforceability of the remaining provisions or sub-provisions in this
Agreement or the Schedule.
	 
	23.	 	WARRANTY
	 
	23.1	 	The Executive represents and warrants that he is not prevented by any
agreement, arrangement, contract (including but not limited to the
employment agreement dated May 1999 between Magnum Productions (Theatre)
Limited (formerly David Ian Productions Limited) and the Executive),
understanding, Court Order or otherwise, which in any way directly or
indirectly restricts or prohibits him from fully performing the duties of
the company, or any of them, in accordance with the terms and conditions
of this Agreement.
	 
	24.	 	NOTICES
	 
	24.1	 	Any notice, direction or instruction required or permitted to be given
hereunder shall be given in writing and may be given by telegram,
facsimile transmission, mail (if by registered mail and if postage is
pre-paid and a return receipt is requested), or by hand delivery, to (a)
in the case of the Company to its Registered Office for the time being and
(b) in the case of the Executive, to his last known address.
	 
	24.2	 	If notice, direction or instruction is given by telegram or facsimile
transmission or a similar method or by hand delivery, it shall be deemed
to have been given or made on the day on which it was given, and if
mailed, it shall be deemed to have been given or made on the third
business day following the day after which it was mailed.
	 
	24.3	 	For the purposes of this Clause 24, “business day” means a day on which
banks are open for business in the place of both the posting and the
address of the notice.
	 
	25.	 	DEFINITIONS
	 
	 	 	In this Agreement the following words and cognate expressions shall have
the meaning set out below:
	 
	25.1	 	an “Associated Company” includes any firm, company, corporation or other
organisation:

-15-

 

	 	25.1.1	 	which is directly or indirectly controlled by the Company;
	 
	 	25.1.2	 	which directly or indirectly controls the Company; or
	 
	 	25.1.3	 	which is directly or indirectly controlled by a third party who
also directly or indirectly controls the Company; or
	 
	 	25.1.4	 	of which the Company or any other Associated Company owns or has a
beneficial interest in 20% or more of the issued share capital or
20% or more of its capital assets; or
	 
	 	25.1.5	 	which is the successor in title or assign of the firms, companies,
corporations or other organisations referred to above.

	25.2	 	“The Board” shall mean the Board of Directors of the Company.
	 
	25.3	 	“Compensation Payment” means a sum calculated as follows:

	 	 	 	A X Pound Sterling B less C

365
	 
	 	“A” 	 	is the number of days of the unexpired Term.
	 
	 	“B” 	 	is the Executive’s annual base salary referred to Clause 5.1 above
on the date when he is notified in writing by the Company that it
will be making him a Compensation Payment. For the avoidance of
doubt, this shall not be include the value of any bonus, incentive
or commission entitlement, benefits or holiday entitlement which
would have accrued to the Executive had he been employed until the
expiry of the expiry of the Term.
	 
	 	“C” 	 	any reduction made pursuant to Clause 18.5.1(b).

	25.4	 	“Control” has the meaning ascribed by Section 416 Taxes Act 1988 (as
amended).
	 
	25.5	 	“HR Department” shall mean the Human Resources Department of Apollo
Leisure (UK) Limited.
	 
	25.6	 	“Immediate Relatives” shall include the Executive’s wife, children under
18 years of age, brothers and sisters and the aforesaid relatives by
marriage.
	 
	25.7	 	“Permitted Activities” shall mean the Executive’s current level of
involvement at the date hereof as producer, co-producer and/or manager of
touring productions of “Grease”, “SNF”, “Barnum” and “Happy Days” in the
UK.
	 
	25.8	 	“Retail Price Index” shall refer to the percentage increase figure
calculated over the preceding 12 months and defined by the Office of
National Statistics.
	 
	25.9	 	“SFX (Theatre) UK division” shall mean such division of the SFX Group
which is from time to time concerned with the theatre business in the UK.
	 
	25.10	 	“Termination Date” shall mean the date upon which the Executive’s
employment with the Company terminates.

-16-

 

	26.	 	CONSTRUCTION
	 
	26.1	 	The provisions of the Schedule attached hereto and any additional terms
endorsed in writing by or on behalf of the parties hereto shall be read
and construed as part of this Agreement and shall be enforceable
accordingly.
	 
	26.2	 	The benefit of each agreement and obligation of the Executive under Clause
14 and the Schedule attached hereto of this Agreement may be assigned to
and enforced by any other member of the Clear Channel Communications Inc
and all of its subsidiaries from time to time and such agreements and
obligations shall operate and remain binding, notwithstanding the
termination of this Agreement.
	 
	27.	 	PRIOR AGREEMENTS
	 
	27.1	 	This Agreement together with the 2 side letters dated 12 January 2005
attached to this Agreement as Schedules 3 and 4 cancel and are in
substitution for all previous letters of engagement, agreements and
arrangements (whether oral or in writing) relating to the subject-matter
hereof between the Company and the Executive all of which shall be deemed
to have been terminated by mutual consent.
	 
	27.2	 	The Executive hereby agrees to waive all claims and rights of action
(whether under statute, common law or otherwise) in any jurisdiction in
the world, howsoever arising (including but not limited to contractual
claims, breach of contract, tort and the Executive’s prospective
entitlement to bring such claims) which the Executive has or may have
against the Company or any Associated Company, its officers, employees or
shareholders, arising from or connected with the Executive’s previous
contract of employment with the Company or Associated Company, or the
termination thereof.
	 
	27.3	 	This Agreement and an Opt-Out Agreement of even date made between the
Executive and the Company (“the Opt-Out Agreement”) constitute the entire
terms and conditions of the Executive’s Employment and, save for as
provided otherwise in the Opt-Out Agreement, no waiver or modification
thereof shall be valid unless in writing, signed by the parties and only
to the extent therein set forth.
	 
	28.	 	GOVERNING LAW AND JURISDICTION
	 
	 	 	This Agreement is governed by and construed in accordance with the laws of
England. The parties hereto submit to the exclusive jurisdiction of the
English Courts.

-17-

 

SCHEDULE 1

Performance Bonus Calculation

Employee shall be entitled to receive a Performance Bonus based
on year over year EBITDA growth of two entities 1) England
Market Business Unit (MBU) 2) UK/International Theatrical,
Sports, Donington Division, collectively known as the
(“Entities”). Your Target Bonus amounts for each
entity are as follows:

1) England Market Business Unit (MBU) - £42,000

2) CCE UK/International Theatrical, Sports, Donington
- £98,000

1. If the Entities had positive growth in the year prior to
that for which the bonus is being calculated, then the
Performance Bonus will be calculated as follows:

If EBITDA for the Entities for such calendar year exceeds EBITDA
(pro forma calculation) (“EBITDA Growth Rate”) for the
immediately preceding calendar year then the Performance Bonus
is equal to the Target Bonus multiplied by the Percent of Bonus
Opportunity - as outlined in the table below.

     
(a)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	70%	 	30%	 	100%
	 	 	EBITDA	 	% of	 	Individual	 	 	 	Group	 	 	 	 
	Normalized	 	Growth	 	Bonus	 	Bonus	 	 	 	Bonus	 	Bonus	 	 
	Bonus	 	Rate	 	Opportunity	 	Target	 	Bonus 1	 	Target	 	2	 	Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	1	%	 	 	2.5	%	 	 	1.75	%	 	 	2,450	 	 	 	0.75	%	 	 	1,050	 	 	 	3,500	 
	 	 	 	 	 	2	%	 	 	5.0	%	 	 	3.50	%	 	 	4,900	 	 	 	1.50	%	 	 	2,100	 	 	 	7,000	 
	 	Target	 	 	 	3	%	 	 	7.5	%	 	 	5.25	%	 	 	7,350	 	 	 	2.25	%	 	 	3,150	 	 	 	10,500	 
	 	Bonus	 	 	 	4	%	 	 	10.0	%	 	 	7.00	%	 	 	9,800	 	 	 	3.00	%	 	 	4,200	 	 	 	14,000	 
	 	140,000	 	 	 	5	%	 	 	12.5	%	 	 	8.75	%	 	 	12,250	 	 	 	3.75	%	 	 	5,250	 	 	 	17,500	 
	 	in pounds sterling	 	 	 	6	%	 	 	20.0	%	 	 	14.00	%	 	 	19,600	 	 	 	6.00	%	 	 	8,400	 	 	 	28,000	 
	 	 	 	 	 	7	%	 	 	27.5	%	 	 	19.25	%	 	 	26,950	 	 	 	8.25	%	 	 	11,550	 	 	 	38,500	 
	 	 	 	 	 	8	%	 	 	35.0	%	 	 	24.50	%	 	 	34,300	 	 	 	10.50	%	 	 	14,700	 	 	 	49,000	 
	 	 	 	 	 	9	%	 	 	42.5	%	 	 	29.75	%	 	 	41,650	 	 	 	12.75	%	 	 	17,850	 	 	 	59,500	 
	 	 	 	 	 	10	%	 	 	50.0	%	 	 	35.00	%	 	 	49,000	 	 	 	15.00	%	 	 	21,000	 	 	 	70,000	 
	 	 	 	 	 	11	%	 	 	60.0	%	 	 	42.00	%	 	 	58,800	 	 	 	18.00	%	 	 	25,200	 	 	 	84,000	 
	 	 	 	 	 	12	%	 	 	70.0	%	 	 	49.00	%	 	 	68,600	 	 	 	21.00	%	 	 	29,400	 	 	 	98,000	 
	 	 	 	 	 	13	%	 	 	80.0	%	 	 	56.00	%	 	 	78,400	 	 	 	24.00	%	 	 	33,600	 	 	 	112,000	 
	 	 	 	 	 	14	%	 	 	90.0	%	 	 	63.00	%	 	 	88,200	 	 	 	27.00	%	 	 	37,800	 	 	 	126,000	 
	 	Target      15%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Growth	 	 	 	15	%	 	 	100.0	%	 	 	70.00	%	 	 	98,000	 	 	 	30.00	%	 	 	42,000	 	 	 	140,000	 
	 	 	 	 	 	16	%	 	 	110.0	%	 	 	77.00	%	 	 	107,800	 	 	 	33.00	%	 	 	46,200	 	 	 	154,000	 
	 	 	 	 	 	17	%	 	 	120.0	%	 	 	84.00	%	 	 	117,600	 	 	 	36.00	%	 	 	50,400	 	 	 	168,000	 
	 	 	 	 	 	18	%	 	 	130.0	%	 	 	91.00	%	 	 	127,400	 	 	 	39.00	%	 	 	54,600	 	 	 	182,000	 
	 	 	 	 	 	19	%	 	 	140.0	%	 	 	98.00	%	 	 	137,200	 	 	 	42.00	%	 	 	58,800	 	 	 	196,000	 
	 	 	 	 	 	20	%	 	 	150.0	%	 	 	105.00	%	 	 	147,000	 	 	 	45.00	%	 	 	63,000	 	 	 	210,000	 
	 	 	 	 	 	21	%	 	 	160.0	%	 	 	112.00	%	 	 	156,800	 	 	 	48.00	%	 	 	67,200	 	 	 	224,000	 
	 	 	 	 	 	22	%	 	 	170.0	%	 	 	119.00	%	 	 	166,600	 	 	 	51.00	%	 	 	71,400	 	 	 	238,000	 
	 	 	 	 	 	23	%	 	 	180.0	%	 	 	126.00	%	 	 	176,400	 	 	 	54.00	%	 	 	75,600	 	 	 	252,000	 
	 	 	 	 	 	24	%	 	 	190.0	%	 	 	133.00	%	 	 	186,200	 	 	 	57.00	%	 	 	79,800	 	 	 	266,000	 
	 	 	 	 	 	25	%	 	 	200.0	%	 	 	140.00	%	 	 	198,000	 	 	 	60.00	%	 	 	84,000	 	 	 	280,000	 

2. If negative growth in the year prior to that for which
the bonus is being calculated, then the Performance Bonus will
be calculated as follows:

     
(a) If EBITDA for the Entities for such calendar year
exceeds EBITDA (pro forma calculation) (“EBITDA Growth
Rate”) for the immediately preceding calendar year then the

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Performance Bonus is equal to the Target Bonus multiplied by the
Percent of Bonus Opportunity — as outlined in the table below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	70%	 	30%	 	100%
	Prior Year-	 	EBITDA	 	 	 	Individual	 	 	 	Group	 	 	 	 
	Negative Growth	 	Growth	 	% of Bonus	 	Bonus	 	 	 	Bonus	 	 	 	 
	Rate	 	Rate	 	Opportunity	 	Target	 	Bonus 1	 	Target	 	Bonus 2	 	Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	1	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	 	 	 	 	2	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	Target	 	 	 	3	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	Bonus	 	 	 	4	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	140,000	 	 	 	5	%	 	 	2.5	%	 	 	1.75	%	 	 	2,450	 	 	 	0.75	%	 	 	1,050	 	 	 	3,500	 
	 	in pounds sterling	 	 	 	6	%	 	 	5.0	%	 	 	3.50	%	 	 	4,900	 	 	 	1.50	%	 	 	2,100	 	 	 	7,000	 
	 	 	 	 	 	7	%	 	 	7.5	%	 	 	5.25	%	 	 	7,350	 	 	 	2.25	%	 	 	3,150	 	 	 	10,500	 
	 	 	 	 	 	8	%	 	 	10.0	%	 	 	7.00	%	 	 	9,800	 	 	 	3.00	%	 	 	4,200	 	 	 	14,000	 
	 	 	 	 	 	9	%	 	 	12.5	%	 	 	8.75	%	 	 	12,250	 	 	 	3.75	%	 	 	5,250	 	 	 	17,500	 
	 	 	 	 	 	10	%	 	 	15.0	%	 	 	10.50	%	 	 	14,700	 	 	 	4.50	%	 	 	6,300	 	 	 	21,000	 
	 	 	 	 	 	11	%	 	 	20.0	%	 	 	14.00	%	 	 	19,600	 	 	 	6.00	%	 	 	8,400	 	 	 	28,000	 
	 	 	 	 	 	12	%	 	 	25.0	%	 	 	17.50	%	 	 	24,500	 	 	 	7.50	%	 	 	10,500	 	 	 	35,000	 
	 	 	 	 	 	13	%	 	 	30.0	%	 	 	21.00	%	 	 	29,400	 	 	 	9.00	%	 	 	12,600	 	 	 	42,000	 
	 	 	 	 	 	14	%	 	 	40.0	%	 	 	28.00	%	 	 	39,200	 	 	 	12.00	%	 	 	16,800	 	 	 	56,000	 
	 	 	 	 	 	15	%	 	 	50.0	%	 	 	35.00	%	 	 	49,000	 	 	 	15.00	%	 	 	21,000	 	 	 	70,000	 
	 	 	 	 	 	16	%	 	 	60.0	%	 	 	42.00	%	 	 	58,800	 	 	 	18.00	%	 	 	25,200	 	 	 	84,000	 
	 	 	 	 	 	17	%	 	 	70.0	%	 	 	49.00	%	 	 	68,600	 	 	 	21.00	%	 	 	29,400	 	 	 	98,000	 
	 	 	 	 	 	18	%	 	 	80.0	%	 	 	56.00	%	 	 	78,400	 	 	 	24.00	%	 	 	33,600	 	 	 	112,000	 
	 	 	 	 	 	19	%	 	 	90.0	%	 	 	63.00	%	 	 	88,200	 	 	 	27.00	%	 	 	37,800	 	 	 	126,000	 
	 	Target 20%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Growth	 	 	 	20	%	 	 	100.0	%	 	 	70.00	%	 	 	98,000	 	 	 	30.00	%	 	 	42,000	 	 	 	140,000	 
	 	 	 	 	 	21	%	 	 	110.0	%	 	 	77.00	%	 	 	107,800	 	 	 	33.00	%	 	 	46,200	 	 	 	154,000	 
	 	 	 	 	 	22	%	 	 	120.0	%	 	 	84.00	%	 	 	117,600	 	 	 	36.00	%	 	 	50,400	 	 	 	168,000	 
	 	 	 	 	 	23	%	 	 	130.0	%	 	 	91.00	%	 	 	127,400	 	 	 	39.00	%	 	 	54,600	 	 	 	182,000	 
	 	 	 	 	 	24	%	 	 	140.0	%	 	 	98.00	%	 	 	137,200	 	 	 	42.00	%	 	 	58,800	 	 	 	196,000	 
	 	 	 	 	 	25	%	 	 	150.0	%	 	 	105.00	%	 	 	147,000	 	 	 	45.00	%	 	 	63,000	 	 	 	210,000	 

The Performance Bonus for any calendar year is calculated
through the last day of the calendar year and generally will be
payable to Employee within 90 days after the end of such
calendar year or, if later, as soon as reasonably practicable
after such time as the Company has completed its internal
accounting and audit processes for purposes of determining the
relevant EBITDA identified above (the “Bonus Pay
Date”). Following the end of such calendar year, Employee
shall provide such information and assistance as appropriate and
necessary for purposes of completing such determination. If
Employee is employed pursuant to this Agreement for only a
portion of a calendar year, then, assuming satisfaction of the
target for the minimum Performance Bonus amount, the amount (if
any) of the Performance Bonus for that calendar year will be
prorated based upon the number of months during such calendar
year that the Employee provided full-time services for the
Company pursuant to this Agreement.

As used herein, the term “EBITDA” shall mean, for any
calendar year, the Company’s earnings (excluding
extraordinary non-recurring items) for such calendar year (as
determined in accordance with generally accepted accounting
principles by the Company’s Chief Financial Officer) before
deduction of interest, taxes, depreciation and interest. The
calculation of EBITDA for each calendar year will be made by the
Company in good faith and on a consistent basis from year to
year.

Please note that due to other circumstances such as business
acquisition, business sale, accounting or non-operational
circumstances, additional modifications may be necessary and
appropriate. Any such proforma adjustments will be based on the
actual income of the business prior to its acquisition or
disposition. The computation of the prior year increase in
EBITDA must include payment of employee bonuses.

-19-

 

SCHEDULE 2

1.      Non-Competition

The Executive acknowledges that substantial goodwill in the
Company and its Associated Companies attaches to him. The
Company and the Executive anticipate that the Employment will
end on the fifth anniversary of the Commencement Date (“the
Expiry of the Term”). The Executive acknowledges that,
accordingly, the Company is entitled to protect its goodwill
until the Expiry of the Term and for such period thereafter as
is provided for in this Schedule. The Executive hereby agrees
that if the Employment terminates before, on or after the Expiry
of the Term he shall not (without the consent in writing of the
Board) for a period of six months (“Restricted
Period”) immediately following the Termination Date with
the UK and whether on his own behalf or in conjunction with or
on behalf of any other person, firm, company or other
organisation, (and whether as an employee, director, principal,
agent, consultant or in any other capacity whatsoever,) in
competition with the Company be directly or indirectly
(i) employed or engaged in, or (ii) perform services
in respect of, or (iii) be otherwise concerned with the
development or provision of any services (including but not
limited to services relating to any aspect of organising and/or
staging shows, tours and other events) which are of the same or
similar type to any services provided by the Company during the
twelve months immediately preceding the Termination Date
PROVIDED ALWAYS that the provisions of this paragraph 1
shall apply only in respect of services with which the Executive
was either personally concerned or for which he was responsible
whilst employed by the Company during the twelve months
immediately preceding the Termination Date.

2.      Non-Solicitation of
Customers

The Executive hereby agrees that he shall not for a period of
twelve months immediately following the Termination Date whether
on his own behalf or in conjunction with or on behalf of any
person, company, business entity or other organisation (and
whether as an employee, director, principal, agent, consultant
or in any other capacity whatsoever), directly or indirectly
(i) solicit or, (ii) assist in soliciting, or
(iii) accept, or (iv) facilitate the acceptance of, or
(v) deal with, in competition with the Company, the custom
or business of any Customer or Prospective Customer:

	 	 	 
	2.1	 	with whom the Executive has had material contact or
dealings on behalf of the Company during the twelve months
immediately preceding the Termination Date; or

	 
	2.2	 	for whom the Executive was, in a client management
capacity on behalf of the Company, directly responsible during
the twelve months immediately preceding the Termination Date.

3.      Non-Solicitation of
Employees

The Executive hereby agrees that he will not for a period of
twelve months immediately following the Termination Date either
on his own behalf or in conjunction with or on behalf of any
other person, company, business entity, or other organisation
(and whether as an employee, principal, agent, consultant or in
any other capacity whatsoever), directly or indirectly:

-20-

 

		
	3.1	
    (i) induce, or (ii) solicit, or (iii) entice or
    (iv) procure, any person who is a Company Employee to leave
    the Company’s or any Associated Company’s employment
    (as applicable) where that person is a Company Employee on the
    Termination Date;
	 
	3.2	
    be personally involved to a material extent in
    (i) accepting into employment to (ii) otherwise engaging or
    using the services of, any person who is a Company Employee on
    the Termination Date
	 
	4.	
    Associated Companies
	 
	4.1	
    The provisions of paragraphs 4.2 and 4.3 below shall only apply
    in respect of those Associated Companies (i) to whom the
    Executive gave his services, or (ii) for whom he was
    responsible, or (iii) with whom he was otherwise concerned,
    in the twelve months immediately preceding the Termination Date.
	 
	4.2	
    Paragraphs 1, 2, 3 and 5 in this Schedule shall apply as
    though references to the “Associated Company” were
    substituted for references to the “Company”. The
    obligations undertaken by the Executive pursuant to this
    Schedule shall, with respect to each Associated Company,
    constitute a separate and distinct covenant and the invalidity
    or unenforceability of any such covenant shall not affect the
    validity or enforceability of the covenants in favour of the
    Company or any other Associated Company.
	 
	4.3	
    In relation to each Associated Company referred to in
    paragraphs 4.1 and 4.2 above, the Company contracts as
    trustee and agent for the benefit of each such Associated
    Company. The Executive agrees that, if required to do so by the
    Company, he will enter into covenants in the same terms as those
    set out in paragraphs 1, 2, 3 and 5 hereof directly with
    all or any of such Associated Companies, mutatis mutandis. If
    the Executive fails, within 7 days of receiving such a
    request from the Company, to sign the necessary documents to
    give effect to the foregoing, the Company shall be entitled, and
    is hereby irrevocably and unconditionally authorised by the
    Executive, to execute all such documents as are required to give
    effect to the foregoing, on his behalf.
	 
	5.	
    Definitions

		
	 	
    For the purposes of this Schedule, the following words and
    cognate expressions shall have the meanings set out below:

		
	5.1	
    “Associated Company”, “Board”, and
    “Company” shall have the meanings set out in the
    Agreement attached hereto, and shall include their successors in
    title and assigns (as applicable).
	 
	5.2	
    “Company Employee” means any person who was employed
    by (i) the Company or (ii) any Associated Company, for
    at least six months prior to and on the Termination Date and

		
	5.2.1	
    with whom the Executive had material contact or dealings in
    performing his duties of his employment; or

		
	5.2.2	
    who has material contact with customers or suppliers of the
    Company in performing his or her duties of employment with the
    Company or any Associated Company (as applicable); or
	 
	5.2.3	
    who was a member of the management team of the Company or any
    Associated Company (as applicable).

		
	5.3	
    “Customer” shall mean any person, firm, company or
    other organisation whatsoever to whom the Company has supplied
    goods or services.
	 
	5.4	
    “Prospective Customer” shall mean any person, firm,
    company or other organisation with whom the Company has had any
    negotiations or material discussions regarding the possible
    supply of goods or services by the Company.
	 
	5.5	
    “Termination Date” shall have the meaning set out in
    Clause 25 of the Agreement

-21-

 

SCHEDULE
3

12 Little
Plucketts Way

Buckhurst
Will

Essex
169 5QU

12 January
2005

Miles
Wilkin

Chief Operating Officer

Clear Channel Entertainment

35/36 Grosvenor Street

London W1K 4QX

Dear
Miles

I
refer to my Service Agreement dated 5 October 2000 as amended by
the Deed of even date.

I
am writing to confirm that under Clause 4.1.5 “In addition
to the Executive’s role as Producer of “Grease” on a
worldwide basis, the Executive may produce up to three additional
productions outside the terms of the Service Agreement”. The
additional productions cannot include CCE’s current or future
touring productions and West End transfers from US Productions made
available to the company (for example, The Producers, CATS, Chicago,
Starlight Express, Hairspray).

Yours
sincerely,

/s/
David Ian

David
Ian

-22-

 

SCHEDULE 4

12 Little Plucketts Way

Buckhurst Will

Essex 169 5QU

12 January 2005

Miles Wilkin 

 Chief Operating Officer 

 Clear Channel Entertainment 

 35/36 Grosvenor Street 

 London W1K4QX

Dear Miles

I refer to my Service Agreement dated 5 October 2000 as
amended by the Deed of even date. Under the provisions of
Clause 10 of the Deed (referring to Clause 5.5 of my
Service Agreement), I have the right to terminate my employment
on 60 days’ notice in the event of CCE acquiring the
whole or part of [***] or [***] or enters into a significant transaction with [***]

I am writing to confirm that we have agreed that notwithstanding
the terms of my Service Agreement (as amended), I shall have the
right to pursue the acquisition of the whole or part of
[***] and/or [***] in the event that the
Board of CCE confirms to me in writing, such confirmation to be
given within 7 days of the Board of CCE resolving not to
proceed with such acquisition

It is the present intention that CCE will make this acquisition
or participate in it. In the event that CCE does make this
acquisition or participate in it, we shall negotiate in good
faith a direct participation by me in the enlarged entity to
reflect the fact that I have agreed to forgo a Superbonus based
on the gross consideration payable

In the event that the Board of CCE notifies me in writing that it
does not wish to participate in such acquisition, I shall have
the right to terminate my employment within 90 days on
2 months’ notice in accordance with the provisions of
Clause 10 of the Deed in order to pursue the acquisition
independently or with others. In this event the covenants in
Clause 17.1 and the Schedule to the Service Agreement shall
be waived and the provisions of Clause 5.2.1 of the Service
Agreement shall apply and I will be obliged to make the Clawback
Payment

Please acknowledge receipt and confirm. 

                Yours
sincerely,

/s/ David Ian

David Ian

Agreed and Confirmed 

 For and on behalf of Clear Channel Entertainment UK
(Theatrical Productions) Limited

 

	*** Confidential

-23-

 

SCHEDULE 5

The Working Time Regulations 1998

Opt-Out Agreement

I understand that the effect of the Working Time Regulations
1998 is to limit my average working time to a maximum of
48 hours, inclusive of overtime, over a 7 day period
averaged over 17 weeks. I understand that should I not wish
to work in excess of 48 hours then I will suffer no
detriment, nor be treated any less favourably than any other
employee.

Given these understandings I wish to dis-apply the effect of the
Regulations in relation to the maximum 48 hour limit, the
effect of which is to remove the 48 hour maximum limit in
relation to my employment indefinitely. For the avoidance of
doubt the terms of my contract of employment referring in
particular to my undertaking to work hours in addition to my
contractual hours where reasonably necessary are not affected by
this agreement.

Additionally I agree that should I wish to revert to the
48 hour maximum as specified in the Working Time
Regulations, I will give the Company and in particular my
manager a minimum of 4 weeks’ notice, in writing, of
the cancellation of this agreement in order that they can make
the necessary business arrangements to meet operational/customer
requirements.

	 	 	 
	
    
    Name

    	 	
     
	
    
    Signature

    	 	Date
	
    
    Signature of

    	 	 
	 
	
    
    on behalf of David Ian Productions Limited

    	 	
    Date

IN WITNESS whereof the parties hereto have executed this
Agreement as a Deed the day and hear first above written

	 	 	 
	
    
    SIGNED AS A DEED

    	 	
    )
	
    
    by the Company

    	 	
    )
	
    
    acting by

    	 	
    )
	 	 	
    )
	
    
    and

    	 	
    )
	 
	
    
    SIGNED AS A DEED and

    	 	
    )
	
    
    DELIVERED AS A DEED

    	 	
    )
	
    
    by

    	 	
    )
	
    
    acting by

    	 	
    )
	
    
    DAVID IAN LANE

    	 	
    )
	
    
    in the presence of

    	 	
    )

Witness’ Name

Address

Occupation

Signature

-24-

 

	 	 	 
	DATED
	 	2005

DEED

AMENDING A

SERVICE AGREEMENT

DATED 5 OCTOBER 2000

	 	 	 	 	 
	CLEAR CHANNEL ENTERTAINMENT UK

	 	 	(1	)
	(THEATRICAL PRODUCTIONS) LIMITED
	 	 	 	 
	 
	 	 	 	 
	(FORMERLY DAVID IAN PRODUCTIONS LIMITED)
	 	 	 	 
	 
	 	 	 	 
	DAVID IAN LANE

	 	 	(2	)

-25-

 

	 	 	DATE

	 	 	 	2005

	 	 	PARTIES
	 
	(1)	 	CLEAR CHANNEL ENTERTAINMENT UK (THEATRICAL PRODUCTIONS) LIMITED (formerly)
DAVID IAN PRODUCTIONS LIMITED) (Company Number 4018696) whose registered
office is at 1 Cluny Mews London SW5 9EG (“the Company”); and
	 
	(2)	 	DAVID IAN LANE of 12 Little Plucketts Way, Buckhurst Hill, Essex, IG9 5QU
(“the Executive”).
	 
	 	 	INTRODUCTION
	 
	(A)	 	The parties entered into a service agreement dated 5 October 2000 in
respect of the Executive’s employment with the Company (“the Service
Agreement”).
	 
	(B)	 	The parties wish to vary the Service Agreement in the manner set out in
the following provisions of this Deed.
	 
	 	 	OPERATIVE PROVISIONS
	 
	1	 	In Clause 1 there shall be substituted for the words “Managing Director of
the SFX (Theatre) UK Division” the words “sole CEO of the Clear Channel
-Entertainment Theatre, UK and International Division”.
	 
	2	 	The following words shall also be added to the end of Clause 1:

	 	 	 	“The Executive may terminate the Employment by giving to the Company
3 months’ notice in writing in the event that his direct reporting
line changes to any person other than the CEO or COO of Clear
Channel Entertainment (“CCE”) currently Brian Becker and Miles
Wilkin respectively, provided that such notice shall be given within
one month of such change becoming effective.” In the event of the
Executive terminating his employment under this Clause 1, the
covenants in Clause 17.1 and the Schedule to the Service
Agreement shall be waived by the Company.

-26-

 

	3	 	In Clause 2.1 there shall be substituted for the words “for a period of
five years, expiring on the fifth anniversary of the Commencement Date”
the words “until 31 December 2010 when it shall expire automatically
PROVIDED ALWAYS that either the Company or the Executive may terminate
this employment of the Executive at any time subject to giving to the
other twelve months’ written notice in accordance with the provision of
Clause 24 of the Service Agreement, subject always to the provisions of
Clauses 5.2.2 and 5.2.3 of this Agreement”.
	 
	4	 	In Clause 3.1 there shall be substituted for the words “be employed in
the post of sole Managing Director of the SFX (Theatre) UK division the
words “oversee the operation of the CCE European theatrical business, the
CCE European sports business, Donington and the CCE London head office in
Grosvenor Street”. Theatrical business includes UK theatres plus numerous
West End, touring and European productions and also be responsible for all
theatrical business throughout the rest of the world, excluding North
America.”
	 
	5	 	A new Clause 4.1.5 shall be added as follows:

	 	 	 	“In addition to the Executive’s role as Producer of “Grease” on a
worldwide basis, “the Executive may produce up to three additional
productions outside the terms of the Service Agreement subject to:

	 	(a)	 	the provisions of Clause 4.1.4 of the Service Agreement (other
than Clause 4.1.4(ii) which shall be deleted); and
	 
	 	(b)	 	CCE having the right to match the Executive’s investment in
such production on a pound for pound basis up to a maximum of
50 %, if it is within the Executive’s power to grant such a
right, and if it is not, up to a maximum of 50 % of the
Executive’s own investment.”

	6	 	Clause 5.1 shall be deleted and substituted with the following wording:

	 	 	 	“The Company shall pay to the Executive a salary of Pound Sterling
350,000 per annum, payable monthly in arrears by equal instalments.
This revised salary shall take retrospective effect from 1 January
2004. The shortfall of salary accrued from 1 January 2004 shall be
paid in a lump sum upon execution of the deed between Clear Channel
Entertainment UK (Theatrical Productions) Limited (formerly David
Ian Productions Limited) and David Ian Lane dated 2005 (“the
Deed”).

-27-

 

	 	 	 	The salary shall be increased thereafter by 3% on 1 January 2006 and
on 1 January in each succeeding year during the continuation of this
Agreement”

	7	 	Clause 5.2 shall be deleted and substituted with the following:

	 	 	 	5.2.2 “The Executive shall be paid a retention bonus of Pound
Sterling 500,000 on the date hereof (“the Retention Bonus”). If the
Executive terminates the employment at any time during its term in
accordance with the provisions of Clause 1 or Clause 2.1 or Clause
5.5 of this Agreement, other than in circumstances amounting to
repudiation or constructive dismissal, the Executive agrees to repay
to Company, within 21 days of the effective date of such
termination, a pro rata portion of the Pound Sterling 500,000
payment paid to Executive on 1 January 2005, less taxes and other
withholdings paid on the retention bonus amount by the Executive,
based upon any portion of the 6 year period running from 1 January
2005 through 31 December 2010 which has not been completed at the
time of the termination (“Clawback Payment”).
	 
	 	 	 	5.2.3 If the Company terminates the employment of the Executive in
accordance with the provisions of Clause 2.1 of this Agreement for
any reason other than the Executive’s misconduct and/or material
breach of contract in accordance with the provisions of Clause 18 of
this Agreement, no Clawback Payment shall be due to the Company from
the Executive.”

	8	 	A new clause 5.3 shall be inserted as follows:

	 	 	 	“The Executive will be entitled to a further bonus in each year
during the continuation of this Agreement calculated in accordance
with CCE formula at Appendix 1 of the Deed. For the purposes of this
bonus calculation, the figure of Pound Sterling 140,000 shall be
used as the benchmark figure at which the Executive achieves 15%
EBITDA growth and the remainder of the table shall be calculated
accordingly.”

	9	 	A new clause 5.4 shall be inserted as follows;

	 	 	 	“The Executive shall be entitled to further bonuses in respect of
“The Phantom of the Opera” Las Vegas production (“the Production”)
as follows:

-28-

 

	 	(a)	 	Pound Sterling 50,000 on the signature of the Deed.
	 
	 	(b)	 	Pound Sterling 50,000 shall be payable to the Executive
subject to the Production opening on time and on budget which
for the purposes of this Clause shall mean at the time and
subject to the final budget as agreed between the Parties.
This bonus shall be paid within 60 days of the Production
opening; and
	 
	 	(c)	 	A further maximum bonus of Pound Sterling 75,000 shall be
payable to the Executive on 31 December 2006 and on 31
December in each succeeding year during the continuation of
this Agreement based on the Production having run for 50 weeks
in the relevant year and pro rated on a weekly basis for any
lesser period. This payment shall be conditional on the
Production generating a “weekly operating profit”, which for
the purposes of this sub clause shall mean that the Production
produces an operating profit above the break even figure
determined from the books and records of CCE. The further
bonus payable under this sub clause (c) shall be reduced by
Pound Sterling 1,500 (being the due proportion of Pound
Sterling 75,000 for 50 weeks) for each and any week that the
Production produces an operating profit (or loss) below the
break even figure referred to above.
	 
	 	(d)	 	the Executive shall be entitled to one business class return
flight for his wife and his children and full reimbursement
for a family size hotel suite at the Venetian Hotel in Las
Vegas for 21 nights, during the Production period.”

	10	 	A new clause 5.5 shall be inserted as follows:

	 	 	 	“In the event that CCE acquires the whole or part of [***]
(“[***]”) or the [***] (“[***]”) or enters into a significant
transaction with [***] on completion of such transaction
(“Completion”), the Executive shall be entitled to terminate
this Agreement within 90 days of such transaction closing by
giving to the Company not less than 2 months’ written notice in
accordance with the provisions of Clause 24 of the Service
Agreement. In the event of such termination the Clawback

 

			
	***	 	Confidential

-29-

 

	 	 	 	Payment shall be due from the Executive to the Company in
accordance with the terms of Clause 5.2.2”.

	11	 	Clause 5.3 shall be re-numbered accordingly.
	 
	12	 	Clause 6.1 shall be deleted and substituted with the following wording;

	 	 	 	“Until termination of the Employment, the Company shall provide the
Executive with a car allowance for the sole and exclusive use of a
motor car at the rate of Pound Sterling 32,000 per annum payable
monthly to cover all the running expenses of such motor car
including maintenance and repairs but hot motor tax; insurance
premiums, petrol (including business and personal) and oil which
will be separately paid by the Company subject to the Executive
submitting receipts or other appropriate invoices.”

	13	 	In clause 12.1 there shall be substituted for the words and figure “five
per cent (5%)” the words and figure “ten per cent (10%)”.
	 
	14	 	Except as expressly varied by this Deed, the Service Agreement shall
remain in full force and effect.
	 
	 	 	IN WITNESS whereof this Deed has been executed the day and year first above written

-30-

 

	 	 	 	 	 	 	 
	ATTESTATIONS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	for and on behalf of
	 	 	 	 	 	 
	CLEAR CHANNEL ENTERTAINMENT UK

	 	 	 	 	 	/s/ MILES WILKIN
	(THEATRICAL PRODUCTIONS) LIMITED
	 	 	 	 	 	 
	 

	 	 	)	 	 	 
	(FORMERLY DAVID IAN PRODUCTIONS
	 	 	 	 	 	 
	by its duly authorised officer

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Director
	 	 	 	 	 	 
	In the presence of
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Witness: [ILLEGIBLE]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation: PA
	 	 	 	 	 	 

Address: 39 Heathfield Road, Kaston Village BR26B6

	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	DAVID IAN LANE

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ DAVID IAN LANE
	 
	 	 	 	 	 	 
	Witness: A S FAIRHALL
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address: 5 Ospringe Street, Faversham, Kent ME138TJ
	 
	 	 	 	 	 	 
	Occupation: PA
	 	 	 	 	 	 

-31-

 

Appendix A

Performance Bonus Calculation

Employee shall be entitled to receive a Performance Bonus based
on year over year EBITDA growth of two entities 1) England
Market Business Unit (MBU) 2) UK/International Theatrical,
Sports, Donington Division, collectively known as the
(“Entities”). Your Target Bonus amounts for each
entity are as follows:

1) England Market Business Unit (MBU)-£42,000

2) CCE UK/International Theatrical, Sports,
Donington-£98,000

1.     If the Entities had positive
growth in the year prior to that for which the bonus is being
calculated, then the Performance Bonus will be calculated as
follows:

If EBITDA for the Entities for such calendar year exceeds EBITDA
(pro forma calculation) (“EBITDA Growth Rate”) for the
immediately preceding calendar year then the Performance Bonus
is equal to the Target Bonus multiplied by the Percent of Bonus
Opportunity — as outlined in the table below.

     
(a)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	70%		 	30%		 	100%	
	 	 	 	 	 	 	 		 	 		 	 	
	 	 	EBITDA		 	 	 	Individual		 	 	 	Group		 	 	 	 
	 	 	Growth		 	% of Bonus		 	Bonus		 	 	 	Bonus		 	 	 	 
	Normalized	 	Rate		 	Opportunity		 	Target		 	Bonus 1		 	Target		 	Bonus 2		 	Total	
	Bonus	 	 		 	 		 	 		 	 		 	 		 	 		 	 	
	 	 	 	1	%	 	 	2.5	%	 	 	1.75	%	 	 	2,450	 	 	 	0.75	%	 	 	1,050	 	 	 	3,500	 
	 	 	 	2	%	 	 	5.0	%	 	 	3.50	%	 	 	4,900	 	 	 	1.50	%	 	 	2,100	 	 	 	7,000	 
	
    
    Target

    	 	 	3	%	 	 	7.5	%	 	 	5.25	%	 	 	7,350	 	 	 	2.25	%	 	 	3,150	 	 	 	10,500	 
	
    
    Bonus

    	 	 	4	%	 	 	10.0	%	 	 	7.00	%	 	 	9,800	 	 	 	3.00	%	 	 	4,200	 	 	 	14,000	 
	
    
    140,000

    	 	 	5	%	 	 	12.5	%	 	 	8.75	%	 	 	12,250	 	 	 	3.75	%	 	 	5,250	 	 	 	17,500	 
	
    
    in pounds sterling

    	 	 	6	%	 	 	20.0	%	 	 	14.00	%	 	 	19,600	 	 	 	6.00	%	 	 	8,400	 	 	 	28,000	 
	 	 	 	7	%	 	 	27.5	%	 	 	19.25	%	 	 	26,950	 	 	 	8.25	%	 	 	11,550	 	 	 	38,500	 
	 	 	 	8	%	 	 	35.0	%	 	 	24.50	%	 	 	34,300	 	 	 	10.50	%	 	 	14,700	 	 	 	49,000	 
	 	 	 	9	%	 	 	42.5	%	 	 	29.75	%	 	 	41,650	 	 	 	12.75	%	 	 	17,850	 	 	 	59,500	 
	 	 	 	10	%	 	 	50.0	%	 	 	35.00	%	 	 	49,000	 	 	 	15.00	%	 	 	21,000	 	 	 	70,000	 
	 	 	 	11	%	 	 	60.0	%	 	 	42.00	%	 	 	58,800	 	 	 	18.00	%	 	 	25,200	 	 	 	84,000	 
	 	 	 	12	%	 	 	70.0	%	 	 	49.00	%	 	 	68,600	 	 	 	21.00	%	 	 	29,400	 	 	 	98,000	 
	 	 	 	13	%	 	 	80.0	%	 	 	56.00	%	 	 	78,400	 	 	 	24.00	%	 	 	33,600	 	 	 	112,000	 
	 	 	 	14	%	 	 	90.0	%	 	 	63.00	%	 	 	88,200	 	 	 	27.00	%	 	 	37,800	 	 	 	126,000	 
	 
	
    
    Target 15% Growth

    	 	 	15	%	 	 	100.0	%	 	 	70.00	%	 	 	98,000	 	 	 	30.00	%	 	 	42,000	 	 	 	140,000	 
	 	 	 	16	%	 	 	110.0	%	 	 	77.00	%	 	 	107,800	 	 	 	33.00	%	 	 	46,200	 	 	 	154,000	 
	 	 	 	17	%	 	 	120.0	%	 	 	84.00	%	 	 	117,600	 	 	 	36.00	%	 	 	50,400	 	 	 	168,000	 
	 	 	 	18	%	 	 	130.0	%	 	 	91.00	%	 	 	127,400	 	 	 	39.00	%	 	 	54,600	 	 	 	182,000	 
	 	 	 	19	%	 	 	140.0	%	 	 	98.00	%	 	 	137,200	 	 	 	42.00	%	 	 	58,800	 	 	 	196,000	 
	 	 	 	20	%	 	 	150.0	%	 	 	105.00	%	 	 	147,000	 	 	 	45.00	%	 	 	63,000	 	 	 	210,000	 
	 	 	 	21	%	 	 	160.0	%	 	 	112.00	%	 	 	156,800	 	 	 	48.00	%	 	 	67,200	 	 	 	224,000	 
	 	 	 	22	%	 	 	170.0	%	 	 	119.00	%	 	 	166,600	 	 	 	51.00	%	 	 	71,400	 	 	 	238,000	 
	 	 	 	23	%	 	 	180.0	%	 	 	126.00	%	 	 	176,400	 	 	 	54.00	%	 	 	75,600	 	 	 	252,000	 
	 	 	 	24	%	 	 	190.0	%	 	 	133.00	%	 	 	186,200	 	 	 	57.00	%	 	 	79,800	 	 	 	266,000	 
	 	 	 	25	%	 	 	200.0	%	 	 	140.00	%	 	 	196,000	 	 	 	60.00	%	 	 	84,000	 	 	 	280,000	 

2.     If negative growth in the year
prior to that for which the bonus is being calculated, then the
Performance Bonus will be calculated as follows:

-32-

 

		
	(a)	
    If EBITDA for the Entities for such calendar year exceeds EBITDA
    (pro forma calculation) (“EBITDA Growth Rate”) for the
    immediately preceding calendar year then the Performance Bonus
    is equal to the Target Bonus multiplied by the Percent of Bonus
    Opportunity — as outlined in the table below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	70%	 	30%	 	100%
	 	 	 	 	 	 	 	 	 	 	 
	Prior Year-	 	EBITDA	 	 	 	Individual	 	 	 	Group	 	 	 	 
	Negative Growth	 	Growth	 	% of Bonus	 	Bonus	 	 	 	Bonus	 	 	 	 
	Rate	 	Rate	 	Opportunity	 	Target	 	Bonus	 	Target	 	Bonus 2	 	Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	1	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	 	 	 	 	2	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	Target	 	 	 	3	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	Bonus	 	 	 	4	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	140,000	 	 	 	5	%	 	 	2.5	%	 	 	1.75	%	 	 	2,450	 	 	 	0.75	%	 	 	1,050	 	 	 	3,500	 
	 	in pounds sterling	 	 	 	6	%	 	 	5.0	%	 	 	3.50	%	 	 	4,900	 	 	 	1.50	%	 	 	2,100	 	 	 	7,000	 
	 	 	 	 	 	7	%	 	 	7.5	%	 	 	5.25	%	 	 	7,350	 	 	 	2.25	%	 	 	3,150	 	 	 	10,500	 
	 	 	 	 	 	8	%	 	 	10.0	%	 	 	7.00	%	 	 	9,800	 	 	 	3.00	%	 	 	4,200	 	 	 	14,000	 
	 	 	 	 	 	9	%	 	 	12.5	%	 	 	8.75	%	 	 	12,250	 	 	 	3.75	%	 	 	5,250	 	 	 	17,500	 
	 	 	 	 	 	10	%	 	 	15.0	%	 	 	10.50	%	 	 	14,700	 	 	 	4.50	%	 	 	6,300	 	 	 	21,000	 
	 	 	 	 	 	11	%	 	 	20.0	%	 	 	14.00	%	 	 	19,600	 	 	 	6.00	%	 	 	8,400	 	 	 	28,000	 
	 	 	 	 	 	12	%	 	 	25.0	%	 	 	17.50	%	 	 	24,500	 	 	 	7.50	%	 	 	10,500	 	 	 	35,000	 
	 	 	 	 	 	13	%	 	 	30.0	%	 	 	21.00	%	 	 	29,400	 	 	 	9.00	%	 	 	12,600	 	 	 	42,000	 
	 	 	 	 	 	14	%	 	 	40.0	%	 	 	28.00	%	 	 	39,200	 	 	 	12.00	%	 	 	16,800	 	 	 	56,000	 
	 	 	 	 	 	15	%	 	 	50.0	%	 	 	35.00	%	 	 	49,000	 	 	 	15.00	%	 	 	21,000	 	 	 	70,000	 
	 	 	 	 	 	16	%	 	 	60.0	%	 	 	42.00	%	 	 	58,800	 	 	 	18.00	%	 	 	25,200	 	 	 	84,000	 
	 	 	 	 	 	17	%	 	 	70.0	%	 	 	49.00	%	 	 	68,600	 	 	 	21.00	%	 	 	29,400	 	 	 	98,000	 
	 	 	 	 	 	18	%	 	 	80.0	%	 	 	56.00	%	 	 	78,400	 	 	 	24.00	%	 	 	33,600	 	 	 	112,000	 
	 	 	 	 	 	19	%	 	 	90.0	%	 	 	63.00	%	 	 	88,200	 	 	 	27.00	%	 	 	37,800	 	 	 	126,000	 
	 	Target 20%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Growth	 	 	 	20	%	 	 	100.0	%	 	 	70.00	%	 	 	98,000	 	 	 	30.00	%	 	 	42,000	 	 	 	140,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	107,80	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	21	%	 	 	110.0	%	 	 	77.00	%	 	 	 	 	 	 	33.00	%	 	 	46,200	 	 	 	154,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	117,60	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	22	%	 	 	120.0	%	 	 	84.00	%	 	 	 	 	 	 	36.00	%	 	 	50,400	 	 	 	168,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	127,40	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	23	%	 	 	130.0	%	 	 	91.00	%	 	 	 	 	 	 	39.00	%	 	 	54,600	 	 	 	182,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	137,20	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	24	%	 	 	140.0	%	 	 	98.00	%	 	 	 	 	 	 	42.00	%	 	 	58,800	 	 	 	196,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	147,00	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	25	%	 	 	150.0	%	 	 	105.00	%	 	 	 	 	 	 	45.00	%	 	 	63,000	 	 	 	210,000	 

The Performance Bonus for any calendar year is calculated
through the last day of the calendar year and generally will be
payable to Employee within 90 days after the end of such
calendar year or, if later, as soon as reasonably practicable
after such time as the Company has completed its internal
accounting and audit processes for purposes of determining the
relevant EBITDA identified above (the “Bonus Pay
Date”). Following the end of such calendar year, Employee
shall provide such information and assistance as appropriate and
necessary for purposes of completing such determination. If
Employee is employed pursuant to this Agreement for only a
portion of a calendar year, then, assuming satisfaction of the
target for the minimum Performance Bonus amount, the amount (if
any) of the Performance Bonus for that calendar year will be
prorated based upon the number of months during such calendar
year that the Employee provided full-time services for the
Company pursuant to this Agreement.

As used herein, the term “EBITDA” shall mean, for any
calendar year, the Company’s earnings (excluding
extraordinary non-recurring items) for such calendar year (as
determined in accordance with generally accepted accounting
principles by the Company’s Chief Financial Officer) before
deduction of interest, taxes, depreciation and interest. The
calculation of EBITDA for each calendar year will be made by the
Company in good faith and on a consistent basis from year to
year.

Please note that due to other circumstances such as business
acquisition, business sale, accounting or non-operational
circumstances, additional modifications may be necessary and
appropriate. Any such proforma adjustments will be based on the
actual income of the business prior to its acquisition or
disposition. The computation of the prior year increase in
EBITDA must include payment of employee bonuses.

-33-

 

[CLEAR CHANNEL ENTERTAINMENT LOGO]

July 1, 2005

Mr. David Ian Lane

12 Little Plucketts Way

Buckhurst Hill

Essex

IG9 5QU

This will confirm the second AMENDMENT made this 1st day of July 2005 to the
SERVICE AGREEMENT made 5th day of October 2000 and amended by DEED the 12th day
of January 2005.

BETWEEN:

	 	 	 	(1) CLEARCHANNEL ENTERTAINMENT UK (THEATRICAL PRODUCTIONS)
LIMITED (formerly DAVID IAN PRODUCTIONS LIMITED) (Company No:
4018696) a company registered in England, whose registered
office is 1 Cluny Mews, London SW5 9EG (“the Company”); and
	 
	 	 	 	(2) DAVID IAN LANE of 12 Little Plucketts Way, Buckhurst Hill,
Essex IG9 5QU (“the Executive”).

WHEREAS the Board of Directors of the Company (“the Board”) has approved the

terms of this Agreement under which the Executive is to be employed.

IT IS HEREBY AGREED as follows:

	 	1.	 	In Clause 1 there shall be substituted for the words “sole CEO of
the Clear Channel Entertainment Theatre., UK and International
Division” the words “CEO of the Clear Channel Entertainment
Theatre., UK and International Division and Global Chairman of
Theatre”.
	 
	 	2.	 	Clause 5.3 shall be deleted and substituted with the following:
	 
	 	 	 	“In 2005, the Executive will be entitled to a further bonus in each

year during the continuation of the Agreement calculated in
accordance with CCE formula at Appendix 1 of the Deed. For the
purposes of this bonus calculation, the figure of Pound Sterling
140,000 shall be used as the benchmark figure at which the employee
achieves 15% EBITDA growth and the remainder of the table shall be
calculated accordingly. For calendar year 2006 and for the
continuation of the Agreement, the Executive will be entitled to a
further bonus in accordance with CCE formula at Appendix 2 of the
Deed. For the purposes of this bonus calculation, the figure of
Pound Sterling 175,000 shall be used as the benchmark figure at
which the employee achieves 15% EBITDA growth and the remainder of
the table shall be calculated accordingly.”

Clear Channel Entertainment (713) 693-8600 Tel — (713) 693-8672 Fax

2000 West Loop South — Suite 1300 — Houston, TX 77027 — www.clearchannel.com

-34-

 

Mr. David Ian Lane

Second Amendment

July 1, 2005

Page 2

	 	3.	 	Appendix 1 shall be deleted and substituted with Appendix 1 herein.
	 
	 	4.	 	A new clause 5.4 shall be inserted as follows:
	 
	 	 	 	“The Executive will be entitled to a further bonus of Pound
Sterling 25,000 if the actual EBITDA results for North American
Theatrical exceeds the June 2005 forecasted EBITDA.”
	 
	 	5.	 	All other terms and conditions of the Service Agreement remain in
full force and effect.

	 	 	 	 	 	 	 
	ATTESTATIONS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	MILES WILKIN

	 	 	)	 	 	/s/ MILES WILKIN
	for and on behalf of

	 	 	)	 	 	 
	CLEAR CHANNEL ENTERTAINMENT UK
	LIMITED
	 	 	 	 	 	 
	By its duly authorized officer and director
	 
	 	 	 	 	 	 
	in the Presence of
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Witness:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	DAVID IAN LANE

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ DAVID IAN LANE
	 
	 	 	 	 	 	 
	Witness: A S FAIRHALL
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address: 5 Ospringe Street, Faversham, Kent ME138TJ
	 
	 	 	 	 	 	 
	Occupation: PA
	 	 	 	 	 	 

-35-

 

APPENDIX 1

Performance Bonus Calculation

Employee shall be entitled to receive a Performance Bonus based
on year over year EBITDA growth of two entities 1) England
Market Business Unit (MBU) 2) UK/International Theatrical,
Sports, Donington Division, collectively known as the
(“Entities”). Your Target Bonus amounts for each
entity are as follows:

			
	1) 	 	
    England Market Business Unit (MBU) — £42,000
	 
	2) 	 	
    CCE UK/International Theatrical, Sports, Donington — £98,000

1. If the Entities had positive growth in the year prior to
that for which the bonus is being calculated, then the
Performance Bonus will be calculated as follows:

If EBITDA for the Entities for such calendar year exceeds EBITDA
(proforma calculation) (“EBITDA Growth Rate”) for the
immediately preceding calendar year then the Performance Bonus
is equal to the Target Bonus multiplied by the Percent of Bonus
Opportunity — as outlined in the table below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	EBITDA		 	% of Bonus		 	 	 	 	 	 
	 	 	Growth Rate		 	Opportunity		 	Bonus 1		 	Bonus 2		 	Total	
	 	 	 		 	 		 	 		 	 		 	 	
	 	 	 	 	 	1%	 	 	 	2.5%	 	 	 	1,050	 	 	 	2,450	 	 	 	3,500	 
	 	 	 	 	 	2%	 	 	 	5.0%	 	 	 	2,100	 	 	 	4,900	 	 	 	7,000	 
	 	Target	 	 	 	3%	 	 	 	7.5%	 	 	 	3,150	 	 	 	7,350	 	 	 	10,500	 
	 	Bonus	 	 	 	4%	 	 	 	10.0%	 	 	 	4,200	 	 	 	9,800	 	 	 	14,000	 
	£	140,000	 	 	 	5%	 	 	 	12.5%	 	 	 	5,250	 	 	 	12,250	 	 	 	17,500	 
	 	 	 	 	 	6%	 	 	 	20.0%	 	 	 	8,400	 	 	 	19,600	 	 	 	28,000	 
	 	 	 	 	 	7%	 	 	 	27.5%	 	 	 	11,550	 	 	 	26,950	 	 	 	38,500	 
	 	 	 	 	 	8%	 	 	 	35.0%	 	 	 	14,700	 	 	 	34,300	 	 	 	49,000	 
	 	 	 	 	 	9%	 	 	 	42.5%	 	 	 	17,850	 	 	 	41,650	 	 	 	59,500	 
	 	 	 	 	 	10%	 	 	 	50.0%	 	 	 	21,000	 	 	 	49,000	 	 	 	70,000	 
	 	 	 	 	 	11%	 	 	 	60.0%	 	 	 	25,200	 	 	 	58,800	 	 	 	84,000	 
	 	 	 	 	 	12%	 	 	 	70.0%	 	 	 	29,400	 	 	 	68,600	 	 	 	98,000	 
	 	 	 	 	 	13%	 	 	 	80.0%	 	 	 	33,600	 	 	 	78,400	 	 	 	112,000	 
	 	 	 	 	 	14%	 	 	 	90.0%	 	 	 	37,800	 	 	 	88,200	 	 	 	126,000	 
	 	Target	 	 	 	15%	 	 	 	100.0%	 	 	 	42,000	 	 	 	98,000	 	 	 	140,000	 
	 	 	 	 	 	16%	 	 	 	110.0%	 	 	 	46,200	 	 	 	107,800	 	 	 	154,000	 
	 	 	 	 	 	17%	 	 	 	120.0%	 	 	 	50,400	 	 	 	117,600	 	 	 	168,000	 
	 	 	 	 	 	18%	 	 	 	130.0%	 	 	 	54,600	 	 	 	127,400	 	 	 	182,000	 
	 	 	 	 	 	19%	 	 	 	140.0%	 	 	 	58,800	 	 	 	137,200	 	 	 	196,000	 
	 	 	 	 	 	20%	 	 	 	150.0%	 	 	 	63,000	 	 	 	147,000	 	 	 	210,000	 
	 	 	 	 	 	21%	 	 	 	160.0%	 	 	 	67,200	 	 	 	156,800	 	 	 	224,000	 
	 	 	 	 	 	22%	 	 	 	170.0%	 	 	 	71,400	 	 	 	166,600	 	 	 	238,000	 
	 	 	 	 	 	23%	 	 	 	180.0%	 	 	 	75,600	 	 	 	176,400	 	 	 	252,000	 
	 	 	 	 	 	24%	 	 	 	190.0%	 	 	 	79,800	 	 	 	186,200	 	 	 	266,000	 
	 	 	 	 	 	25%	 	 	 	200.0%	 	 	 	84,000	 	 	 	196,000	 	 	 	280,000	 

-36-

 

2.  If
negative growth in the year prior to that for which the bonus is
being calculated, then the Performance Bonus will be calculated as
follows:

	(a)  
	If EBITDA for the Entities for such calendar year exceeds
EBITDA (pro forma calculation)(“EBITDA Growth Rate”) for
the immediately preceding calendar year then the Performance Bonus is
equal to the Target Bonus multiplied by the Percent of Bonus
Opportunity — as outlined in the table below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	30%	 	 	70%	 	 	100%	 
	 	 	 	 	 	 	 	 	 	 	 	CCE UK/Int’l	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Theatrical, Sports,	 	 	 	 
	 	 	 	 	 	 	 	 	England MBU	 	 	Donington	 	 	 	 
	 	 	EBITDA	 	 	% of Bonus	 	 	Bonus	 	 	 	 	 	Bonus	 	 	 	 	 	 	 
	 	 	Growth Rate	 	 	Opportunity	 	 	Target	 	 	Bonus 1	 	 	Target	 	 	Bonus 2	 	 	Total	 
	 
	 	 	1	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 	 
	 
	 	 	2	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 	 
	Target
	 	 	3	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 	 
	Bonus
	 	 	4	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 	 
	£140,000
	 	 	5	%	 	 	2.5	%	 	 	0.75	%	 	 	1,050	 	 	 	1.75	%	 	 	2,450	 	 	 	3,500	 	 
	 
	 	 	6	%	 	 	5.0	%	 	 	1.50	%	 	 	2,100	 	 	 	3.50	%	 	 	4,900	 	 	 	7,000	 	 
	 
	 	 	7	%	 	 	7.5	%	 	 	2.25	%	 	 	3,150	 	 	 	5.25	%	 	 	7,350	 	 	 	10,500	 	 
	 
	 	 	8	%	 	 	10.0	%	 	 	3.00	%	 	 	4,200	 	 	 	7.00	%	 	 	9,800	 	 	 	14,000	 	 
	 
	 	 	9	%	 	 	12.5	%	 	 	3.75	%	 	 	5,250	 	 	 	8.75	%	 	 	12,250	 	 	 	17,500	 	 
	 
	 	 	10	%	 	 	15.0	%	 	 	4.50	%	 	 	6,300	 	 	 	10.50	%	 	 	14,700	 	 	 	21,000	 	 
	 
	 	 	11	%	 	 	20.0	%	 	 	6.00	%	 	 	8,400	 	 	 	14.00	%	 	 	19,600	 	 	 	28,000	 	 
	 
	 	 	12	%	 	 	25.0	%	 	 	7.50	%	 	 	10,500	 	 	 	17.50	%	 	 	24,500	 	 	 	35,000	 	 
	 
	 	 	13	%	 	 	30.0	%	 	 	9.00	%	 	 	12,600	 	 	 	21.00	%	 	 	29,400	 	 	 	42,000	 	 
	 
	 	 	14	%	 	 	40.0	%	 	 	12.00	%	 	 	16,800	 	 	 	28.00	%	 	 	39,200	 	 	 	56,000	 	 
	 
	 	 	15	%	 	 	50.0	%	 	 	15.00	%	 	 	21,000	 	 	 	35.00	%	 	 	49,000	 	 	 	70,000	 	 
	 
	 	 	16	%	 	 	60.0	%	 	 	18.00	%	 	 	25,200	 	 	 	42.00	%	 	 	58,800	 	 	 	84,000	 	 
	 
	 	 	17	%	 	 	70.0	%	 	 	21.00	%	 	 	29,400	 	 	 	49.00	%	 	 	68,600	 	 	 	98,000	 	 
	 
	 	 	18	%	 	 	80.0	%	 	 	24.00	%	 	 	33,600	 	 	 	56.00	%	 	 	78,400	 	 	 	112,000	 	 
	 
	 	 	19	%	 	 	90.0	%	 	 	27.00	%	 	 	37,800	 	 	 	63.00	%	 	 	88,200	 	 	 	126,000	 	 
	Target
	 	 	20	%	 	 	100.0	%	 	 	30.00	%	 	 	42,000	 	 	 	70.00	%	 	 	98,000	 	 	 	140,000	 	 
	 
	 	 	21	%	 	 	110.0	%	 	 	33.00	%	 	 	46,200	 	 	 	77.00	%	 	 	107,800	 	 	 	154,000	 	 
	 
	 	 	22	%	 	 	120.0	%	 	 	36.00	%	 	 	50,400	 	 	 	84.00	%	 	 	117,600	 	 	 	168,000	 	 
	 
	 	 	23	%	 	 	130.0	%	 	 	39.00	%	 	 	54,600	 	 	 	91.00	%	 	 	127,400	 	 	 	182,000	 	 
	 
	 	 	24	%	 	 	140.0	%	 	 	42.00	%	 	 	58,800	 	 	 	98.00	%	 	 	137,200	 	 	 	196,000	 	 
	 
	 	 	25	%	 	 	150.0	%	 	 	45.00	%	 	 	63,000	 	 	 	105.00	%	 	 	147,000	 	 	 	210,000	 	 

The
Performance Bonus for any calendar year is calculated through the
last day of the calendar year and generally will be payable to
Employee within 90 days after the end of such calendar year or,
if later, as soon as reasonably practicable after such time as the
Company has completed its internal accounting and audit processes for
purposes of determining the relevant EBITDA identified above (the
“Bonus Pay Date”). Following the end of such calendar year,
Employee shall provide such information and assistance as appropriate
and necessary for purposes of completing such determination. If
Employee is employed pursuant to this Agreement for only a portion
of a calendar year, then, assuming satisfaction of the target for the
minimum Performance Bonus amount, the amount (if any) of the
Performance Bonus for that calendar year will be prorated based upon
the number of months during such calendar year that the Employee
provided full-time services for the Company pursuant to this
Agreement.

-37-

 

As used herein, the term “EBITDA” shall mean, for any
calendar year, the Company’s earnings (excluding
extraordinary non-recurring items) for such calendar year (as
determined in accordance with generally accepted accounting
principles by the Company’s Chief Financial Officer) before
deduction of interest, taxes, depreciation and interest. The
calculation of EBITDA for each calendar year will be made by the
Company in good faith and on a consistent basis from year to
year.

Please note that due to other circumstances such as business
acquisition, business sale, accounting or non-operational
circumstances, additional modifications may be necessary and
appropriate. Any such proforma adjustments will be based on the
actual income of the business prior to its acquisition or
disposition. The computation of the prior year increase in
EBITDA must include payment of employee bonuses.

-38-

 

APPENDIX 2

Performance Bonus Calculation

Employee shall be entitled to receive a Performance Bonus based
on year over year EBITDA growth of two entities 1) North
American Theatrical 2) UK/International Theatrical, Sports,
Donington Division, collectively known as the
(“Entities”). Your Target Bonus amounts for each
entity are as follows:

1)     North American theatrical — £87,500

2)     CCE UK/International Theatrical, Sports, Donington —
£87,500

1. If the Entities had positive growth in the year prior to
that for which the bonus is being calculated, then the
Performance Bonus will be calculated as follows:

If EBITDA for the Entities for such calendar year exceeds EBITDA
(pro forma calculation) (“EBITDA Growth Rate”) for the
immediately preceding calendar year then the Performance Bonus
is equal to the Target Bonus multiplied by the Percent of Bonus
Opportunity — as outlined in the table below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	50%	 	50%	 	 
	 	 	 	 	 	 	 	 	CCE UK/Int’l	 	 
	 	 	 	 	 	 	 	 	Theatrical,	 	 
	 	 	 	 	 	 	North American	 	Sports,	 	 
	 	 	 	 	 	 	Theatrical	 	Donington	 	100%
	 	 	EBITDA	 	% of Bonus	 	 	 	 	 	 
	 	 	Growth Rate	 	Opportunity	 	Bonus 1	 	Bonus 2	 	Total
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1	%	 	 	2.5	%	 	 	2,188	 	 	 	2,188	 	 	 	4,375	 
	 	 	 	2	%	 	 	5.0	%	 	 	4,375	 	 	 	4,375	 	 	 	8,750	 
	
    
    Target

    	 	 	3	%	 	 	7.5	%	 	 	6,563	 	 	 	6,563	 	 	 	13,125	 
	
    
    Bonus

    	 	 	4	%	 	 	10.0	%	 	 	8,750	 	 	 	8,750	 	 	 	17,500	 
	
    
    £175,000

    	 	 	5	%	 	 	12.5	%	 	 	10,938	 	 	 	10,938	 	 	 	21,875	 
	 	 	 	6	%	 	 	20.0	%	 	 	17,500	 	 	 	17,500	 	 	 	35,000	 
	 	 	 	7	%	 	 	27.5	%	 	 	24,063	 	 	 	24,063	 	 	 	48,125	 
	 	 	 	8	%	 	 	35.0	%	 	 	30,625	 	 	 	30,625	 	 	 	61,250	 
	 	 	 	9	%	 	 	42.5	%	 	 	37,188	 	 	 	37,188	 	 	 	74,375	 
	 	 	 	10	%	 	 	50.0	%	 	 	43,750	 	 	 	43,750	 	 	 	87,500	 
	 	 	 	11	%	 	 	60.0	%	 	 	52,500	 	 	 	52,500	 	 	 	105,000	 
	 	 	 	12	%	 	 	70.0	%	 	 	61,250	 	 	 	61,250	 	 	 	122,500	 
	 	 	 	13	%	 	 	80.0	%	 	 	70,000	 	 	 	70,000	 	 	 	140,000	 
	 	 	 	14	%	 	 	90.0	%	 	 	78,750	 	 	 	78,750	 	 	 	157,500	 
	
    
    Target

    	 	 	15	%	 	 	100.0	%	 	 	87,500	 	 	 	87,500	 	 	 	175,000	 
	 	 	 	16	%	 	 	110.0	%	 	 	96,250	 	 	 	96,250	 	 	 	192,500	 
	 	 	 	17	%	 	 	120.0	%	 	 	105,000	 	 	 	105,000	 	 	 	210,000	 
	 	 	 	18	%	 	 	130.0	%	 	 	113,750	 	 	 	113,750	 	 	 	227,500	 
	 	 	 	19	%	 	 	140.0	%	 	 	122,500	 	 	 	122,500	 	 	 	245,000	 
	 	 	 	20	%	 	 	150.0	%	 	 	131,250	 	 	 	131,250	 	 	 	262,500	 
	 	 	 	21	%	 	 	160.0	%	 	 	140,000	 	 	 	140,000	 	 	 	280,000	 
	 	 	 	22	%	 	 	170.0	%	 	 	148,750	 	 	 	148,750	 	 	 	297,500	 
	 	 	 	23	%	 	 	180.0	%	 	 	157,500	 	 	 	157,500	 	 	 	315,000	 
	 	 	 	24	%	 	 	190.0	%	 	 	166,250	 	 	 	166,250	 	 	 	332,500	 
	 	 	 	25	%	 	 	200.0	%	 	 	175,000	 	 	 	175,000	 	 	 	350,000	 

-39-

 

2.     If negative growth in the year
prior to that for which the bonus is being calculated, then the
Performance Bonus will be calculated as follows:

     
(a) If EBITDA for the Entities for such calendar year
exceeds EBITDA (pro forma calculation)(“EBITDA Growth
Rate”) for the immediately preceding calendar year then the
Performance Bonus is equal to the Target Bonus multiplied by the
Percent of Bonus Opportunity — as outlined in the
table below.

Target

Bonus

£175,000

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	50%		 	50%		 	100%	
	 	 	 	 	 		 	 		 	 	
	 	 	 	 	 	 	CCE UK/Int’l		 	 
	 	 	 	 	 	 	Theatrical,		 	 
	 	 	 	 	North American		 	Sports,		 	 
	 	 	 	 	Theatrical		 	Donington		 	 
	 		 	 	 	 		 	 		 	 
	EBITDA		 	% of Bonus		 	Bonus		 	 	 	Bonus		 	Bonus		 	 
	Growth Rate		 	Opportunity		 	Target		 	Bonus 1		 	Target		 	2		 	Total	
	 		 	 		 	 		 	 		 	 		 	 		 	 	
	 	1	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	2	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	3	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	4	%	 	 	0.0	%	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0	 
	 	5	%	 	 	2.5	%	 	 	1.25	%	 	 	2,188	 	 	 	1.25	%	 	 	2,188	 	 	 	4,375	 
	 	6	%	 	 	5.0	%	 	 	2.50	%	 	 	4,375	 	 	 	2.50	%	 	 	4,375	 	 	 	8,750	 
	 	7	%	 	 	7.5	%	 	 	3.75	%	 	 	6,563	 	 	 	3.75	%	 	 	6,563	 	 	 	13,125	 
	 	8	%	 	 	10.0	%	 	 	5.00	%	 	 	8,750	 	 	 	5.00	%	 	 	8,750	 	 	 	17,500	 
	 	9	%	 	 	12.5	%	 	 	6.25	%	 	 	10,938	 	 	 	6.25	%	 	 	10,938	 	 	 	21,875	 
	 	10	%	 	 	15.0	%	 	 	7.50	%	 	 	13,125	 	 	 	7.50	%	 	 	13,125	 	 	 	26,250	 
	 	11	%	 	 	20.0	%	 	 	10.00	%	 	 	17,500	 	 	 	10.00	%	 	 	17,500	 	 	 	35,000	 
	 	12	%	 	 	25.0	%	 	 	12.50	%	 	 	21,875	 	 	 	12.50	%	 	 	21,875	 	 	 	43,750	 
	 	13	%	 	 	30.0	%	 	 	15.00	%	 	 	26,250	 	 	 	15.00	%	 	 	26,250	 	 	 	52,500	 
	 	14	%	 	 	40.0	%	 	 	20.00	%	 	 	35,000	 	 	 	20.00	%	 	 	35,000	 	 	 	70,000	 
	 	15	%	 	 	50.0	%	 	 	25.00	%	 	 	43,750	 	 	 	25.00	%	 	 	43,750	 	 	 	87,500	 
	 	16	%	 	 	60.0	%	 	 	30.00	%	 	 	52,500	 	 	 	30.00	%	 	 	52,500	 	 	 	105,000	 
	 	17	%	 	 	70.0	%	 	 	35.00	%	 	 	61,250	 	 	 	35.00	%	 	 	61,250	 	 	 	122,500	 
	 	18	%	 	 	80.0	%	 	 	40.00	%	 	 	70,000	 	 	 	40.00	%	 	 	70,000	 	 	 	140,000	 
	 	19	%	 	 	90.0	%	 	 	45.00	%	 	 	78,750	 	 	 	45.00	%	 	 	78,750	 	 	 	157,500	 
	Target	20	%	 	 	100.0	%	 	 	50.00	%	 	 	87,500	 	 	 	50.00	%	 	 	87,500	 	 	 	175,000	 
	 	21	%	 	 	110.0	%	 	 	55.00	%	 	 	96,250	 	 	 	55.00	%	 	 	96,250	 	 	 	192,500	 
	 	22	%	 	 	120.0	%	 	 	60.00	%	 	 	105,000	 	 	 	60.00	%	 	 	105,000	 	 	 	210,000	 
	 	23	%	 	 	130.0	%	 	 	65.00	%	 	 	113,750	 	 	 	65.00	%	 	 	113,750	 	 	 	227,500	 
	 	24	%	 	 	140.0	%	 	 	70.00	%	 	 	122,500	 	 	 	70.00	%	 	 	122,500	 	 	 	245,000	 
	 	25	%	 	 	150.0	%	 	 	75.00	%	 	 	131,250	 	 	 	75.00	%	 	 	131,250	 	 	 	262,500	 

The Performance Bonus for any calendar year is calculated
through the last day of the calendar year and generally will be
payable to Employee within 90 days after the end of such
calendar year or, if later, as soon as reasonably practicable
after such time as the Company has completed its internal
accounting and audit processes for purposes of determining the
relevant EBITDA identified above (the “Bonus Pay
Date”). Following the end of such calendar year, Employee
shall provide such information and assistance as appropriate and
necessary for purposes of completing such determination. If
Employee is employed pursuant to this Agreement for only a
portion of a calendar year, then, assuming satisfaction of the
target for the minimum Performance Bonus amount, the amount (if
any) of the Performance Bonus for that calendar year will be
prorated based upon the

-40-

 

number of months during such calendar year that the Employee
provided full-time services for the Company pursuant to this
Agreement.

As used herein, the term “EBITDA” shall mean, for any
calendar year, the Company’s earnings (excluding
extraordinary non-recurring items) for such calendar year (as
determined in accordance with generally accepted accounting
principles by the Company’s Chief Financial Officer)before
deduction of interest, taxes, depreciation and interest. The
calculation of EBITDA for each calendar year will be made by the
Company in good faith and on a consistent basis from year to
year.

Please note that due to other circumstances such as business
acquisition, business sale, accounting or non-operational
circumstances, additional modifications may be necessary and
appropriate. Any such proforma adjustments will be based on the
actual income of the business prior to its acquisition or
disposition. The computation of the prior year increase in
EBITDA must include payment of employee bonuses.

-41-exv10w9

 

EXHIBIT 10.9

CONFIDENTIAL TREATMENT REQUESTED PURSUANT TO RULE 24B-2

Certain portions, indicated by [***], of this exhibit have been omitted
pursuant to a request for confidential treatment under Rule 24b-2 of the
Securities and Exchange Act of 1934. The omitted materials have been filed
separately with Securities and Exchange Commission.

PERSONAL SERVICES AGREEMENT

[Arthur Fogel]

This Personal Services Agreement is entered into this 3rd day of December 2002
effective the 1st day of September 2002, between SFX Entertainment, Inc., a
Delaware corporation, doing business as Clear Channel Entertainment (the
“Company”) and Arthur Fogel (the “Executive”). This Personal Services Agreement
replaces any and all previous agreements, including the Employment Agreement
dated July 1, 1999, as amended.

     WHEREAS, the Company and the Executive desire to enter into an employment
and personal services relationship under the terms and conditions set forth in
this Agreement;

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

1. TERM.

     The Executive’s term of employment (“Term”) starts on the effective date
of this Agreement and ends on the close of business on December 31, 2007,
hereinafter the “Expiration Date,” unless terminated earlier in accordance
herewith.

2. TITLE AND DUTIES.

     The Executive’s title is President of the Company’s Music-Touring
Division. In this capacity Executive will render special, unique, unusual, and
extraordinary personal services based on the relationships he has developed with
and the experience he has had working with particular musical artists
(including, without limitation, those artists identified in Exhibit B), groups,
managers, and agents, his specialized knowledge of musical touring, his
experience in organizing musical tours, his connections, and his intellect, all
of which have peculiar value to the Company, and the loss of which cannot be
reasonably or adequately compensated in an action at law for damages. In
addition to performing these unique personal services, the Executive shall
perform other job duties that are usual and customary for this position, and
such additional duties, consistent with his position, as the Company may from
time to time direct. The Executive will report to the Co-CEOs of the Company’s
Music Division, (currently) Don Law and Dave Lucas. The Executive will devote
his full working time and efforts to the business and affairs of the Company.
Although Executive will reside in California and his primary office will be in
Los Angeles, his duties will require him to travel extensively. Notwithstanding
the foregoing, the Executive shall be permitted, subject to his duties to avoid
competing with the Company, to devote a modest portion of his business time to
personal investments and commitments not related to the business of the Company,
provided that the time devoted thereto shall not interfere in any material
respect with the performance of the Executive’s duties under this Agreement. In
addition, subject to the Executive’s duty to avoid competing with the Company
and to the approval in advance of the Company’s General Counsel, which approval
shall not be unreasonably withheld. Executive may serve on boards of directors
of not-for-profit organizations and companies which do not compete with the
Company, provided that service on any such board of directors shall not
interfere in any material respect with the performance of the Executive’s
services under this Agreement. Unless separately consented to in writing,
nothing in this Agreement shall be construed to allow the Executive to serve as
an officer, director, consultant, or employee of Grand Entertainment, Inc.
(“Grand Entertainment”) or Michael Cohl, or any affiliate of any of the
foregoing, or to participate in the business in any fashion of Grand
Entertainment or Michael Cohl, other than by receiving

1

 

dividends distributed in respect of an ownership interest not to exceed five
(5%) percent of all issued and outstanding shares of Grand Entertainment, so
long as (i) such dividends represent not more than the Executive’s proportionate
share of the dividends that Grand Entertainment is making to all holders of the
applicable class of Grand Entertainment equity securities and (ii) without the
prior written consent of the Company’s General Counsel, which consent may be
withheld for any reason whatsoever, the Executive does not acquire additional
Grand Entertainment equity securities (other than in exchange for, or as a
distribution in respect of, the Executive’s current Grand Entertainment equity
securities).

3. COMPENSATION AND BENEFITS

     (a) BASE SALARY. The Company will pay the Executive an annual base salary
of $600,000. The Executive’s base salary will be adjusted annually on January 1
of each year, beginning January 1, 2004, by a percentage equal to the percentage
increase, if any, in the regional cost of living index measured by the United
States Government for the Los Angeles standard metropolitan statistical area.
If and when the Executive’s base salary is increased in accordance with this
Agreement, the new base salary shall constitute the Executive’s base salary for
all purposes under this Agreement. All payments of base salary will be made in
installments according to the Company’s regular payroll practice, prorated
monthly or weekly where appropriate.

     (b) ADDITIONAL PAYMENTS. In addition to the other payments provided
herein, the Executive will be paid the following amounts by April 1 of the
applicable year: $30,000 in 2003; $24,000 in 2004; $18,000 in 2005; $12,000 in
2006; and, $6,000 in 2007. The Company shall pay $1,500 to Strategy Capital
Corporation and $1,500 to Lenard, Brisbin & Klotz LLP within ten (10) days of
signing this Agreement, and $61,390.79 to Continental Trust on or before
December 3, 2002. As part of his next paycheck, the Executive will be paid
monies due him as the result of the salary increase in Paragraph 3(a), which as
per this Agreement is effective as of September 1, 2002.

     (c) PERFORMANCE BONUS. Commencing with January 1, 2002, the Executive
shall be eligible to receive a Performance Bonus, which bonus shall be payable,
no later than March 31 of each calendar year following the year for which the
bonus is earned. The amount of the bonus shall be calculated as set forth in the
Performance Bonus Calculation attached as “Exhibit A” to this Agreement, and
incorporated by this reference. The payments of this bonus, if any, shall be
offset against the Bonus Advance to the Executive described in Paragraph 3(g) of
this Agreement until such time as the Bonus Advance is fully repaid to the
Company.

     (d) KEY ACT BONUS. Beginning January 1, 2003, the Executive will be
eligible to earn and receive a Key Act Bonus as described in “Exhibit B” to this
Agreement and incorporated by this reference. Payments of the Key Act Bonus
shall be offset against the Bonus Advance to the Executive described in
Paragraph 3(g) of this Agreement until such time as the Bonus Advance is fully
repaid to the Company.

     (e) EMPLOYMENT BENEFIT PLANS. The Executive will be entitled to
participate in all pension, profit sharing, and other retirement plans, all
incentive compensation plans, and all group health, hospitalization and
disability or other insurance plans, paid vacation, sick leave and other
Executive welfare benefit plans in which other similarly situated Executives of
the Company may participate as described in the Company’s Employee Guide. To the
extent necessary to secure key man life insurance or such other insurance as the
Company may wish to buy, Executive agrees to submit himself, at the Company’s
expense, upon request of the Company and within a reasonable period of time, to
a physical examination designated by the Company. The Company shall maintain the
confidentiality of the results of any such examination, except as may be
necessary for the Company to obtain the benefits of any such insurance. The
Executive’s failure to pass any such physical inspection shall not constitute a
breach of this Agreement.

2

 

     (f) EXPENSES. The Company will pay or reimburse the Executive for all
normal and reasonable travel and entertainment expenses incurred by the
Executive in connection with the Executive’s responsibilities to the Company
upon submission of proper vouchers in accordance with the Company’s expense
reimbursement policy as applied to similarly situated executives. The Company
will provide Executive with access to a credit card subject to the approval of
credit card company and based on the Executive’s credit history. Payment is the
responsibility of the Executive and should only be used for business purposes.
Employee shall be eligible for fringe benefits and perquisites that are
available to similarly situated executives.

     (g) BONUS ADVANCE. The Company will advance One Million Five Hundred
Thousand Dollars ($1,500,000.00) to the Executive upon execution of this
Personal Services Agreement or at the direction of the Executive as a bonus
advance (the “Bonus Advance”). Executive will repay this Bonus Advance to the
Company during the course of his employment through offsets against any Key Act
Bonus or Performance Bonus earned by Executive. Assuming the Executive completes
the Term, any remaining Bonus Advance that has not been repaid to the Company by
offset shall be deemed earned by the Executive as a Completion Bonus. If the
Executive’s employment is terminated before the Expiration Date, any remaining
unearned Bonus Advance shall be treated as follows: (i) the Executive shall
repay any Unearned Portion of the Bonus Advance within ten (10) business days
following termination, if the Executive is terminated for “Cause” or terminates
without “Good Reason”; (ii) the Executive shall be deemed to have earned any
(otherwise) Unearned Portion of the Bonus Advance if the Executive terminates
with “Good Reason” or is terminated without “Cause” or “Justification” or due
to death or disability; (iii) solely for purposes of this section and Section
10(c) below, if the Executive is terminated with “Justification,” the Executive
shall repay any Unearned Portion of the Bonus Advance within ten (10) business
days following termination, however in calculating the amount to be repaid the
Executive, in addition to receiving credit for amounts already earned and offset
against the Bonus Advance, the Executive will be deemed to have earned 25% of
the Bonus Advance at the conclusion of each calendar year 2003-2006 during his
employment (by way of example only, if the Executive is terminated with
“Justification” in 2005, the Executive will be deemed to have earned 50%
($750,000) of the Bonus Advance, which amount will be added to any Bonus Advance
offsets previously earned, in determining the amount, if any, the Executive is
required to repay under this section). The “Unearned Portion of the Bonus
Advance” shall mean One Million Five Hundred Thousand Dollars ($1,500,000.00),
less any amounts in respect of any Performance Bonus or Key Act Bonus offset
against the Bonus Advance.

     (h) In accordance with applicable law, the Company will deduct taxes and
other legally required or authorized payments from the annual base salary and
from all other payments to the Executive under this Agreement.

     (i) In connection with all bonus calculations, the Executive shall have
the following audit rights: The Executive, a Big 4 accounting firm or a mutually
agreed upon certified public accountant on his behalf may, at the Company’s
offices and at the Executive’s expense, examine the Company’s books and records
relevant to the calculation of his bonuses hereunder solely for the purposes of
verifying the accuracy of statements rendered by the Company to the Executive.
Such books and records may be examined as aforesaid only (a) during the
Company’s normal business hours, (b) upon reasonable notice to the Company, and
(c) within three (3) months after the date the applicable statement is delivered
hereunder. The Executive shall not have the right to examine such books and
records more frequently than once in any twelve (12) month period or more than
once with respect to any particular statement. Each statement shall be deemed
final and binding upon the Executive as an account stated and shall not be
subject to any claim or objection by the Executive (i) unless the Executive
notifies the Company of his specific written objection to the applicable
statement, stating the basis thereof in reasonable detail within six (6) months
after the date such statement is delivered hereunder, and (ii) unless, within
six (6) months after delivering such written objection, the Executive makes
proper service of process upon the Company in a suit instituted in a court of
proper jurisdiction. Also, with each bonus

3

 

payment made under the Agreement, the Company shall provide a reasonably
detailed statement of the calculation of the amount of such payment.

     (j) VACATION. Executive shall be entitled to five (5) weeks paid vacation
per calendar year during the Term.

4. NONDISCLOSURE OF CONFIDENTIAL INFORMATION.

     (a) GENERAL CONFIDENTIALITY OBLIGATIONS. During the course of the
Executive’s employment with the Company, the Company will provide the Executive
with access to, and Executive will likely develop for the Company certain
confidential information, trade secrets, and other matters which are of a
confidential or proprietary nature, including but not limited to the Company’s
talent buying process and methods, talent contracts, touring agreements,
contracts with venues, contracts with promoters, contracts for the exploitation
of television, radio, cable, Internet, video, film, recording, publishing,
photographic, theatrical production, exhibition, management, merchandising,
licensing, marketing, or sponsorship contracts, methods, and, protocols,
contracts with partners, consultants, employees and joint venturers, valuation
of tours, the components and methodology of valuations of tours, customer lists,
pricing information, profit margins, including calculations of tour
profitability, production and cost data, compensation and fee information,
formal and informal strategic business plans, budgets, financial statements,
internal protocols and processes and other information the Company treats as
confidential or proprietary (collectively the “Confidential Information”). The
Company provides on an ongoing basis such Confidential Information as the
Company deems necessary or desirable to aid the Executive in the performance of
his duties. The Executive understands and acknowledges that all such
Confidential Information is confidential and proprietary, and agrees not to
disclose such Confidential Information to anyone outside the Company except to
the extent that (i) the Executive deems such disclosure or use reasonably
necessary or appropriate in connection with performing his duties on behalf of
the Company; (ii) the Executive is required by order of a court of competent
jurisdiction (by subpoena or similar process) to disclose or discuss any
Confidential Information, provided that in such case, the Executive shall
promptly inform the Company’s General Counsel of such event, shall cooperate
with the Company in attempting to obtain a protective order or to otherwise
restrict such disclosure, and shall only disclose Confidential Information to
the minimum extent necessary to comply with any such court order; (iii) such
Confidential Information becomes generally known to and available for use in the
industries in which the Company does business, other than as a result of any
action or inaction by the Executive; or, (iv) such disclosure is reasonably
necessary to the Executive’s legal representative to protect the interests of
the Executive in any dispute or potential dispute involving the Executive
(provided the Executive first obtains the written approval of the Company’s
General Counsel, which approval will not be unreasonably withheld). The
Executive further agrees that he will not during employment or at any time ever
thereafter use such Confidential Information in competing, directly or
indirectly, with the Company, or disclose such Confidential Information outside
the Company. Insofar as the Executive is concerned, the Executive agrees that
all Confidential Information is the exclusive property of the Company.

     (b) CONFIDENTIALITY AS TO GRAND ENTERTAINMENT AND MICHAEL COHL. The
Executive agrees not to disclose any information about the Company’s business
operations, personnel, plans, finances, including but not limited to any
information about the Company’s touring business, artists, contracts, protocols,
methods, and finances, whether or not the Company treats the information as
Confidential Information, to any employee, agent, or representative of Grand
Entertainment or Michael Cohl at any time, except as necessary in the
performance of Executive’s duties to the Company.

4

 

     (c) PUBLIC STATEMENTS. During the Term, the Executive agrees that he will
not make any public statement or announcement concerning the Company to the
press or any media without coordination and approval of the statement or
announcement with the Company’s public relations department.

     (d) COMPANY USE OF EXECUTIVE’S LIKENESS OR QUOTES. During or after the
Term, without the Executive’s prior written consent, the Company shall not use
or authorize the use of any likeness of Executive, or attribute any quote to
Executive.

     (e) SURVIVAL. At such time as the Executive shall cease to be employed by
the Company, he will immediately turn over to the Company all Confidential
Information, including papers, directories, documents, writings, electronically
stored information in any form, other property, and all copies of them, provided
to or created by him during the course of his employment with the Company;
provided, however, that Executive shall be entitled to retain a copy of his
personal rolodex. This nondisclosure covenant is binding on the Executive, as
well as his heirs, successors, legal representatives and estate, and will
survive the termination of this Agreement for any reason.

5. NONSOLICITATION OF COMPANY EMPLOYEES.

     To further preserve the rights of the Company pursuant to the
nondisclosure covenant discussed above, and for the consideration promised by
the Company under this Agreement, during the Term and for a period of 12 months
thereafter the Executive will not, directly or indirectly, (i) solicit or
encourage any current or prospective employee of the Company, or of any
subsidiary or affiliate of the Company who works, or has worked or been offered
employment by the Company within the preceding 12-month period (other than
Executive’s personal assistant), to terminate his/her employment with the
Company or any subsidiary or affiliate of the Company; or (ii) solicit or
encourage any such employee to accept employment with any business, operation,
corporation, partnership, association, agency, or other person or entity. This
provision shall apply regardless of the reason for termination of employment.

6. NON-COMPETITION DURING TERM.

     To further preserve the rights of the Company pursuant to the
nondisclosure covenant discussed above, and for the consideration promised by
the Company under this Agreement, during the Term, the Executive will not,
directly or indirectly, as an owner, director, principal, agent, officer,
employee, partner, consultant, servant, or otherwise, carry on, operate, manage,
control, or become involved in any manner with any business, operation,
corporation, partnership, association, agency, or other person or entity which
is in the same or similar lines of business as the Company, as of the date
hereof, which business includes the business of presenting, promoting, and
producing of touring concert events and other live entertainment events and the
exploitation of intellectual property rights associated with any tour or event,
and the representation of artists or groups, in any location in which the
Company, or any subsidiary or affiliate of the Company, operates or has plans
or has projected to operate during the Executive’s employment with the Company,
including any area within a 75-mile radius of any such location. The Executive
agrees that during the Term, he will inform the Company of each material
business opportunity related to the Company’s business promptly following his
becoming aware of the opportunity, and that he will not, directly or indirectly,
exploit any such opportunity for his own account or for the account of any other
person or entity. The foregoing shall not prohibit the Executive from owning up
to five percent (5%) of the issued and outstanding stock of any publicly held
company or Grand Entertainment (subject to the limitations set forth in clauses
(i) and (ii) of Paragraph 2, which is a potential competitor of the Company’s
Music Touring Division. Further, the Executive agrees not to receive or accept,
directly or indirectly, compensation, remuneration, commissions, bonuses,
special dividends, special distributions, gifts or any other transfer of
anything of value or other consideration of any kind, from Grand Entertainment
or Michael Cohl, and will not perform any services for Grand Entertainment or
Michael Cohl

5

 

during the period of his employment by the Company. This provision shall apply
regardless of the reason for termination of employment, except that this
provision shall not apply if the Executive is terminated by the Company without
“Cause” or “Justification” or terminates for “Good Reason.” If the Executive is
terminated without “Cause” or “Justification” or terminates for “Good Reason,”
the Executive agrees to comply with this provision for twelve (12) months
following the termination of employment, provided that the Company abides by the
applicable provisions of Paragraph 10(c) below.

7. NONSOLICITATION OF TALENT, GROUPS, ACTS, VENDORS AND CUSTOMERS AND NON-DISPARAGEMENT.

     To further preserve the rights of the Company pursuant to the
nondisclosure covenant contained in this Agreement and the Company’s substantial
investment in its business, and for the consideration promised by the Company
under this Agreement, during the Term and for a period of twelve months after
the Term, the Executive will not, directly or indirectly, either for himself or
for any other business, operation, corporation, partnership, association,
agency, or other person or entity, call upon, compete for, solicit, divert, or
take away, or attempt to divert or take away current or prospective talent,
group, act, promoter, venue, agent, vendor, or customer with whom the Company
or any subsidiary or affiliate of the Company (i) has an existing agreement or
business relationship; (ii) has had an agreement or business relationship
within the twelve-month period preceding the Executive’s last day in the later
of an employment or any consulting relationship with the Company; or (iii) is in
negotiations to enter an agreement or business relationship. This provision
shall apply regardless of the reason for termination of employment, except that
this provision shall not apply if the Executive is terminated by the Company
without “Cause” or “Justification” or terminates for “Good Reason.” If the
Executive is terminated without “Cause” or “Justification” or terminates for
“Good Reason,” the Executive agrees to comply with this provision for twelve
(12) months following the termination of employment, provided the Company abides
by the applicable provisions of Paragraph 10(c) below. The Executive and the
Company further agree that during the same period, neither shall disparage the
other.

8. ENFORCEMENT OF PARAGRAPHS 4, 5, 6, AND 7.

     The Company and the Executive agree that the restrictions and commitments
contained in Paragraphs 4, 5, 6, 7, 10 and 13(c) of this Agreement are
reasonable in scope and duration and are necessary to protect the Company’s
business interests and/or Confidential Information. If any provision of these
covenants as applied to the Executive in any circumstance is adjudged by a court
or arbitrator to be invalid or unenforceable, the remaining obligations of the
Company under this Agreement shall be rendered void and unenforceable. The
parties agree and acknowledge that the breach of these covenants will cause
irreparable damage to the Company, and that the Company shall be entitled to
seek injunctive relief therefor in any court with jurisdiction and that the
Company’s right to seek injunctive relief shall in no way limit any other
remedies that the Company may have (including, without limitation, the right to
seek monetary damages). Should the Executive violate the provisions of any of
paragraphs 4, 5, 6, or 7 of this Agreement, in addition to all other rights and
remedies available to the Company at law or in equity, the duration of these
covenants shall automatically be extended for a period of time equivalent to the
period of the breach.

9. TERMINATION.

     The Executive’s employment with the Company may be terminated under the
following circumstances:

     (a) DEATH. The Executive’s employment with the Company shall terminate
upon the death of the Executive.

6

 

     (b) DISABILITY. The Company may terminate the Executive’s employment in
the event of Executive’s “Disability, which shall mean Executive’s incapacity to
perform substantially all of the essential functions of his position under this
Agreement for one hundred twenty (120) days or more within any period of three
hundred sixty-five (365) consecutive days because of mental or physical
condition, illness or injury, consistent with applicable state and federal law.
In the event of any dispute regarding the existence of Employee’s Disability,
the matter will be resolved, at the Company’s expense, by the determination of a
physician qualified to practice medicine in the State of California, selected by
Employee and approved by Company, or, failing such approval, by a majority of
three physicians qualified to practice medicine in the State of California, one
to be selected by Company, one to be selected by Employee and the third to be
selected by the two designated physicians. As an alternative to termination of
employment, the Company may elect to provide long term disability coverage for
the Executive, cease the further accrual of obligations to pay compensation and
bonus payments (other than Key Act Bonuses with respect to artists already
signed) to the Executive, and maintain the Executive’s health insurance benefits
until the earlier of exhaustion of long term disability payments, or the
Expiration Date. If the Executive is “disabled” and the Company elects not to
terminate the Executive, the Executive shall be excused from performing his
duties under Paragraph 2 only of this Agreement during the period of disability.

     (c) TERMINATION BY THE COMPANY. The Company may terminate the Executive’s
employment for “Cause” or for “Justification;” provided, however, that the right
to terminate for Justification shall expire upon a “Change in Control” (as
defined below).

          “Cause” shall mean: (i) conduct by the Executive constituting a
material act of misconduct or gross negligence in connection with the
performance of his duties, including, without limitation, violation of the
Company’s policy on harassment or discrimination, misappropriation of funds or
property of the Company or any of its affiliates other than the occasional,
customary and de minimis use of Company property for personal purposes, or other
similar misconduct as reasonably determined by the Company; (ii) the Executive’s
refusal or failure to follow lawful directives consistent with his title and
position where such refusal or failure has continued for more than 10 days
following written notice of such refusal or failure; (iii) a conviction of the
Executive for, or a plea of nolo contendere by the Executive to, any felony or
other lesser crime involving battery, fraud, embezzlement, or misappropriation
of the property of the Company or other conduct by the Executive that, as
reasonably determined by the Company, has resulted in, or would result in injury
to the reputation or potential liability of the Company if he were retained in
his position with the Company; (iv) a breach by the Executive of any of the
provisions contained in Paragraphs 5, 6, or 7 or a material breach by the
Executive of Paragraph 4 of this Agreement; or (v) a material violation by the
Executive of the Company’s employment policies or procedures of which Executive
had notice.

          “Justification” shall mean: (i) the failure by the Executive to use
his commercially reasonable best efforts to present the Company with at least
six (6) touring opportunities that are reasonably expected to achieve a level of
profitability consistent with historical levels for successful tours and the
budgets established by the Music division in consultation with the Executive or
(ii) the failure by the Executive to correct performance deficiencies validly
identified and documented by the Company in an annual review of the Executive’s
business performance. For purposes of this Agreement, any touring opportunity
presented by the Company’s Music-Touring Division in which the Executive has
material involvement shall be deemed presented by the Executive. The Company may
terminate the Executive’s employment for “Justification” by delivering notice to
the Executive (with specific reference to this Paragraph 9(c)) specifying that
the Company terminating the Term pursuant to this provision of Paragraph 9(c).

          The Executive will be given a reasonable opportunity to cure any
violations of the “Cause” (30 days maximum) or “Justification” (60 days maximum)
provisions (above) which are susceptible to being cured.

7

 

     (d) TERMINATION BY THE EXECUTIVE. The Executive may terminate his
employment with the Company only for “Good Reason,” which shall mean (i) breach
by the Company of a material provision of this Agreement; (ii) a material
adverse change in the Executive’s title, authority, reporting, compensation or
responsibilities, including the Company ceasing to pursue its music touring line
of business; (iii) a breach by the Company of the provision in Paragraph 2 of
the Agreement that states the Executive will reside in California and have his
primary office in Los Angeles; or (iv) a failure by the Company to use its
commercially reasonable best efforts in reviewing for approval the Key Act tour
proposals presented by the Executive. The Company will be given a reasonable
opportunity to cure (30 days maximum) any violations of this provision which are
susceptible to being cured.

10. COMPENSATION UPON TERMINATION.

     (a) DEATH. If the Executive’s employment with the Company terminates by
reason of the death of the Executive, the Company will, within 90 days or such
shorter period as may be required by law, pay in a lump sum amount to such
person as the Executive shall designate in a notice filed with the Company or,
if no such person is designated, to the Executive’s estate, the Executive’s
accrued and unpaid base salary and vacation pay and earned Performance or Key
Act Bonuses, if any, calculable (to the extent reasonably practicable) as of and
through the date of death, reimbursement of any expenses incurred but not yet
paid as of the date of death, and any payments to which the Executive’s spouse,
beneficiaries, or estate may be entitled under any applicable Executive benefit
plan (in accordance with the terms of such plans and policies). Should there be
any Unearned Portion of the Bonus Advance at the date of death, the Company
shall cancel any obligation to repay this amount as a death benefit to the
person designated by the Executive, or if no person is designated, to the
Executive’s estate. For the avoidance of doubt, the foregoing is not intended,
nor shall it be construed, to limit the Company’s obligation to pay Key Act
Bonuses following the date of death with respect to any Key Act signed before
the date of death.

     (b) DISABILITY. If the Executive’s employment with the Company terminates
by reason of his “Disability” (as defined herein), the Company shall, within 90
days or such shorter period as may be required by law, pay in a lump sum amount
to the Executive his accrued and unpaid base salary and vacation pay and earned
Performance or Key Act Bonuses, if any, calculable (to the extent reasonably
practicable) as of and through the date of termination, and any payments to
which Executive may be entitled under any applicable employee benefit plan (in
accordance with the terms of such plans and policies). Should there be any
Unearned Portion of the Bonus Advance as of the date of termination because of
disability, the Company shall cancel any obligation to repay this amount as a
disability benefit to the Executive. For the avoidance of doubt, the foregoing
is not intended, nor shall it be construed, to limit the Company’s obligation to
pay Key Act Bonuses following the date of termination because of disability with
respect to any Key Act signed before the date of disability.

     (c) TERMINATION BY THE COMPANY OR BY THE EXECUTIVE. If the Executive’s
employment with the Company is terminated by the Company for Cause or
Justification or if the Executive terminates his employment with the Company for
any reason other than for Good Reason, the Company will promptly pay in a lump
sum amount to the Executive his accrued and unpaid base salary and vacation pay,
if any, as of the date of termination. The Company will, within 90 days, pay
earned Performance or Key Act Bonuses, if any, calculable (to the extent
reasonably practicable) as of and through the date of termination, and any
payments to which he may be entitled under any applicable employee benefit plan
(in accordance with the terms of such plans and policies). If the Company
terminates Executive’s employment for Cause, or if the Executive terminates for
any reason other than for Good Reason, Executive shall promptly repay to the
Company any Unearned Portion of the Bonus Advance. If the Company terminates
Executive’s employment for Justification,

8

 

the Bonus Advance shall be deemed earned as of the date of termination in
accordance with the following schedule: as of December 31, 2003, 25%; as of
December 31, 2004, 50%; as of December 31, 2005, 75%; as of December 31, 2006,
100% and consistent with the provisions of Section 3(g)(iii) above. It is agreed
that the Company can offset any payments due the Executive with any payments due
to the Company by the Executive in respect of the Unearned Portion of the Bonus
Advance before making any payment to the Executive. If the Company terminates
Executive’s employment without Cause or Justification or if the Executive
terminates his employment with the Company for Good Reason as defined by this
Agreement, the Company shall continue to pay the Executive the base salary
payable pursuant to Paragraph 3(a) of this Agreement at the time of such
termination, less required withholdings, during the Payment Period specified
below (the “Payments”). As used herein, the “Payment Period” shall mean the
shorter of 18 consecutive months or the time remaining until the Expiration
Date. As a condition to the Company’s obligation to make the Payments, Executive
shall execute a general release of all employment-related claims (the “Release”)
that Executive may have against the Company for the Company’s terminating
Executive’s employment, and shall comply with the terms of Paragraphs 5-7 of
this Agreement for a period of 12 months from the date of termination, as well
as Paragraph 4 as written. The Release shall include a release of all
employment-related claims, including without limitation, any and all claims for:
breach of this Agreement; the termination of the Executive’s employment;
wrongful termination; discrimination, harassment or retaliation; breach of
contract; breach of a covenant of good faith and fair dealing; and violation of
any federal, state or municipal statute, including, but not limited to, Title
VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act of 1967, the Americans with Disabilities Act of
1990, the Family and Medical Leave Act, the Fair Labor Standards Act, the Worker
Adjustment Retraining Notifications Act, the Older Workers Benefit Protection
Act, the California Fair Employment and Housing Act, and Labor Code Sections
201, et seq. The Payments shall not be subject to mitigation, offset or
reduction based on the Executive’s finding of other gainful employment or his
failure to find other gainful employment. For the avoidance of doubt, the
foregoing is not intended, nor shall it be construed, to limit the Company’s
obligation to pay Key Act Bonuses following the date of termination for
Justification with respect to any Key Act signed before the date of termination
for Justification.

     (d) EFFECT OF COMPLIANCE WITH COMPENSATION UPON TERMINATION PROVISIONS.
Upon complying with Subparagraphs 10(a) through 10(c) above, as applicable, the
Company will have no further obligations to the Executive under this Agreement,
except as otherwise expressly provided under this Agreement, provided that such
compliance will not adversely affect or alter the Executive’s rights to receive
any vested benefits under any employee benefit plan of the Company in which the
Executive is a participant, unless, otherwise provided in such employee benefit
plan or any agreement or other instrument attendant thereto.

11. PARTIES BENEFITED; ASSIGNMENTS.

     This Agreement shall be binding upon the Executive, his heirs and his
personal representative or representatives, and upon the Company and its
respective successors and assigns. Neither this Agreement nor any rights or
obligations hereunder may be assigned by the Executive, except that Executive
may designate beneficiaries to receive any amounts that would otherwise be paid
to Executive’s estate. The Executive shall have the right to modify or revoke
any designation of beneficiaries, by written notice to the Company. The Company
may not assign or transfer this Agreement or any rights or obligations
hereunder. For purposes of this Agreement, a “Change in Control,” meaning a sale
of all or substantially all of the assets of Clear Channel Entertainment, the
Company’s Music Division or the Company’s Music Touring Division, or any
transaction or series of related transactions (including without limitation, any
merger, reorganization, consolidation or purchase of outstanding equity
interests) resulting in the transfer of 50% or more of the outstanding voting
securities of Clear Channel Entertainment, shall not be considered an
assignment.

9

 

12. NOTICES.

     Any notice provided for in this Agreement will be in writing and will be
deemed to have been given when delivered or mailed by United States registered
or certified mail, return receipt requested, postage prepaid. If to the Board or
the Company, the notice will be sent to Don Law, 36 Bay State Rd., Cambridge, MA
02138 and Dave Lucas, 11100 Santa Monica Blvd., 7th Floor, Los Angeles, CA 90025
and a copy of the notice will be sent to Brian E. Becker and Dale A. Head, Clear
Channel Entertainment, 2000 West Loop South, Suite 1300, Houston, TX 77027. If
to the Executive, the notice will be sent to Arthur Fogel at 3034 Paulcrest
Drive, Los Angeles, CA 90046 and a copy of the notice will be sent to Adam M.
Klotz, Esq., Lenard, Brisbin & Klotz LLP, 1801 Century Park West, 6th Flr., Los
Angeles, CA 90067-6406. Such notices may alternatively be sent to such other
address as any party may have furnished to the other in writing in accordance
with this Agreement, except that notices of change of address shall be effective
only upon receipt.

13. GOVERNING LAW, DISPUTE RESOLUTION AND LIMITATION ON DAMAGES.

     (a) GOVERNING LAW. Except with regard to matters involving the
indemnification of the Executive under Delaware law as set forth in Paragraph
16, this Agreement shall be governed by and construed in accordance with the
internal laws of the State of California without giving effect to any choice of
law or conflict provisions or rule (whether of the State of California or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of California. The parties agree that the
venue for any Court-filed dispute will be the Central District of California.

     (b) ARBITRATION OF DISPUTES. Except for the Company’s right to obtain
injunctive relief, Executive and Employer agree that any dispute or claim,
whether based on contract, tort, discrimination (including, without limitation,
claims arising under Title VII of the Civil Rights Act of 1964, as amended, the
Age Discrimination in Employment Act, the Americans with Disabilities Act, the
Equal Pay Act, the Family and Medical Leave Act, and all comparable state or
local laws, retaliation, violation of public policy, or otherwise, relating to,
arising from, or connected in any manner with this Agreement, or Executive’s
employment or Consulting exclusively shall be resolved through final and binding
arbitration. Arbitration shall proceed in accord with the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association
(“AAA”) (the “Rules”) in effect at the time the claim or dispute arose, unless
other rules are agreed upon by the parties. Executive may obtain a copy of the
Rules from www.adr.org. Notwithstanding any AAA rule to the contrary, the
parties shall be allowed to conduct any discovery otherwise allowed by
California law.

     The arbitration shall be held in Los Angeles, California and, except with
regard to matters involving the indemnification of the Executive under Delaware
law as set forth in Paragraph 16 the substantive law of the State of California
shall apply. The arbitration shall be conducted by one arbitrator, selected by
mutually agreeable means, who is a member of the AAA, unless the parties
mutually agree to the appointment of an alternative arbitrator. The arbitrator
shall have jurisdiction to determine any claim, including the arbitrability of
any claim, submitted to her or him. The arbitrator may grant any relief
authorized by law for any properly established claim, including dispositive or
other motions which may determine the merits of any claim or defense, and
discovery motions. The arbitrator shall neither disregard nor refuse to enforce
the Employer’s lawful policies, nor shall the arbitrator require the Employer to
adopt a policy which previously was not adopted lawfully.

     Each party will bear her, his or its own arbitration costs, unless they
are unreasonable. Prior to the hearing, the parties shall agree, determine and
allocate filing and administrative fees and the arbitrator’s hearing and study
fees between the parties. Notwithstanding any rule to the contrary (including
AAA Rules), the parties

10

 

shall be allowed to recover any relief damages, in law or in equity, which the
parties could otherwise obtain in a court of competent jurisdiction for the
claims or defenses raised. Additionally, the arbitrator shall have the authority
to award costs to the prevailing party.

     The arbitrator’s decision shall be in writing, including a statement of
the reason for the decision. The award shall be subject to judicial review in
accordance with the prevailing standards for judicial review of arbitral awards
in effect at the time. The interpretation and enforceability of this paragraph
of this Agreement exclusively shall be governed and construed in accord with the
United States Federal Arbitration Act, 9 U.S.C. Section 1, et seq. If any
portion of this Section is not enforceable or void, the Parties expressly
authorize and require that any such portion or portions to be stricken entirely
or amended/modified so as to be in compliance with applicable law.

     (c) LIMITATION ON DAMAGES. The parties agree to the following:

     (i) The parties hereto agree that the payments set forth in the
applicable provision of Paragraph 10(c) constitute fair and adequate
compensation for damages for any termination by the Company without “Cause”
or “Justification” or by the Executive for “Good Reason.”

     (ii) If the Executive is terminated for “Cause” or “Justification” or
terminates without “Good Reason,” the Company may only seek money damages
for any violations of sections 4-7 and/or the “Cause” provision, and to
recoup any unrepaid Bonus Advance and/or any improper expenses.

     It is agreed and understood that this provision shall in no way limit
either party’s ability to obtain injunctive or other relief that is otherwise
available under the Agreement or applicable law.

14. DEFINITION OF COMPANY.

     As used in this Agreement, the term “Company” shall include Clear Channel
Entertainment, SFX Entertainment, Inc., any of their past, present and future
divisions, operating companies, subsidiaries, affiliates and parents.

15. LITIGATION AND REGULATORY COOPERATION.

     During and after the Executive’s employment, the Executive shall
reasonably cooperate with the Company in the truthful defense or prosecution of
any claims or actions now in existence or which may be brought in the future
against or on behalf of the Company which relate to events or occurrences that
transpired while the Executive was employed by the Company. The Executive’s
cooperation in connection with such claims or actions shall include, but not be
limited to, being available to meet with counsel to prepare for discovery or
trial and to act as a witness on behalf of the Company at mutually convenient
times. During and after the Executive’s employment, the Executive also shall
cooperate fully and truthfully with the Company in connection with any
investigation or review of any federal, state or local regulatory authority as
any such investigation or review relates to events or occurrences that
transpired while the Executive was employed by the Company. The Company will pay
the Executive on an hourly basis (to be derived from his starting base salary)
for his time spent responding to any litigation or regulatory matters at the
Company’s request that occurs after the termination of his employment
relationship with the Company, and reimburse the Executive for all costs and
expenses incurred in connection with his performance under this paragraph,
including, but not limited to, reasonable attorneys’ fees and costs.

11

 

16. INDEMNIFICATION AND INSURANCE; LEGAL EXPENSES.

     The Company shall indemnify the Executive to the fullest extent permitted
by the laws of the State of Delaware, as in effect at the time of the subject
act or omission, and shall advance to the Executive reasonable attorneys’ fees
and expenses as such fees and expenses are incurred (subject to an undertaking
from the Executive to repay such advances if it shall be finally determined by a
judicial decision which is not subject to further appeal that the Executive was
not entitled to the reimbursement of such fees and expenses), and the Executive
will be entitled to the protection of any applicable insurance policies that the
Company may elect to maintain generally for the benefit of certain of its
directors and officers against costs, charges and expenses incurred or sustained
by him in connection with actions, suits or proceedings to which he may be made
a party by reason of his being or having been a director, officer or Executive
of the Company or any of its subsidiaries, or his serving or having served any
other enterprise as a director, officer or Executive at the request of the
Company (other than any dispute, claim or controversy arising under or relating
to this Agreement).

     The Executive shall indemnify the Company to the fullest extent permitted
by the law, and shall hold the Company harmless of and from any claims, demands,
suits, causes of action, complaints, charges, damages, and awards of any kind
which arise from or are related to any wrongful acts or malfeasance by the
Executive which constitutes sexual harassment or embezzlement in violation of
the law.

17. REPRESENTATIONS AND WARRANTIES OF THE EXECUTIVE.

     The Executive represents and warrants to the Company that he is under no
contractual or other restriction which is inconsistent with the execution of
this Agreement, the performance of his duties hereunder or the other rights of
Company hereunder. The Executive also represents and warrants to the Company
that he is under no physical or mental disability that would prevent the
performance of his duties under this Agreement, with reasonable accommodations.

18. MISCELLANEOUS.

     This Agreement contains the entire agreement of the parties relating to
the subject matter hereof. This Agreement supersedes any prior written or oral
agreements or understandings between the parties relating to the subject matter
hereof. No modification or amendment of this Agreement shall be valid unless in
writing and signed by or on behalf of the parties hereto. The failure of a party
to require performance of any provision of this Agreement shall in no manner
affect the right of such party at a later time to enforce any provision of this
Agreement. A waiver of the breach of any term or condition of this Agreement
shall not be deemed to constitute a waiver of any subsequent breach of the same
or any other term or condition. This Agreement is intended to be performed in
accordance with, and only to the extent permitted by, all applicable laws,
ordinances, rules and regulations. Except to the extent otherwise provided by
Paragraph 8 of this Agreement, if any provision of this Agreement, or the
application thereof to any person or circumstance, shall, for any reason and to
any extent, be held invalid or unenforceable, such invalidity and
unenforceability shall not affect the remaining provisions hereof or the
application of such provisions to other persons or circumstances, all of which
shall be enforced to the greatest extent permitted by law. The headings in this
Agreement are inserted for convenience of reference only and shall not be a part
of or control or affect the meaning of any provision hereof. The rights and
obligations of the parties under this Agreement shall survive any termination of
this Agreement to the extent necessary to the intended preservation of these
rights and obligations.

12

 

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

	 	 	 	 	 
	DATED: DEC 2/2002 	/s/ Arthur Fogel	 
	 	Arthur Fogel 	 

DATED:                                         

	 	 	 	 	 
	DATED: 12/3/02 	SFX ENTERTAINMENT, INC.

	 
	 	By:  	/s/ Dale A. Head	 
	 	Name:  	Dale A. Head 	 
	 	Title:  	Executive Vice President

and General Counsel 	 
	 

13

 

EXHIBIT A

SENIOR MANAGEMENT

PERFORMANCE BONUS CALCULATION

The following bonus amounts will be paid (or offset against
the Bonus Advance in full), in accordance with the Agreement and
the conditions described below:

The basis of calculation for the performance bonus is Earnings
Before Interest and Taxes (EBIT). As used herein, the term
“EBIT” shall mean, for any calendar year, the
Company’s earnings, as determined in accordance with
generally accepted accounting principles by the Company’s
Chief Financial Officer (excluding extraordinary non-recurring
items), before deduction of interest and taxes. With regard to
sources of income from a new business acquired or an existing
business disposed of by the Company, appropriate adjustments
will be made so that EBIT growth is determined on a pro forma
basis. Any such pro forma adjustments will be based on the
estimated income of the business prior to its acquisition or
disposition. The EBIT growth percentage target is calculated
each year by taking the year prior’s pro forma
EBITDA (earnings, as determined in accordance with generally
accepted accounting principles by the Company’s Chief
Financial Officer (excluding extraordinary non-recurring items),
before deduction of interest, taxes, depreciation and
amortization), multiplying by the Growth Percentage Target and
subtracting the prior year’s depreciation and amortization.
The calculation of EBIT for each calendar year will be made by
the Company’s Chief Financial Officer in good faith and on
a consistent basis from year to year and will be consistent with
SEC financial reporting standards. At the beginning of each
calendar year, the Executive will receive the EBIT and EBITDA
Growth Percentage Targets for that year for his review and
input. The computation of the prior year increase in EBIT must
include payment of all bonuses.

All Company (Clear Channel Entertainment):

	 	 	 	 	 	 	 
	Growth Percentage Target	 	 
	(over prior year EBITDA	 	 
	and will be converted to	 	 
	EBIT)	 	Bonus Amount
	 	 	 
	 	15% - 19.9%	 	 	$	60,000	 
	 	20% - 24.9%	 	 	$	120,000	 
	 	25% or more	 	 	$	150,000	 

Division (Music):

	 	 	 	 	 	 	 
	Growth Percentage Target	 	 
	(over prior year EBITDA	 	 
	and will be converted to	 	Bonus Amount as
	EBIT)	 	Percentage of Base Salary
	 	 	 
	 	15% - 19.9%	 	 	 	10%	 
	 	20% - 24.9%	 	 	 	20%	 
	 	25% or more	 	 	 	25%	 

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For 2002, the EBITDA percentage growth target translates to the
EBIT growth percentage as indicated below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Music 2001		 	 	 	 	 	Music 2002 Targets		 	 	 	 
	 	 	 	 	EBITDA Target		EBITDA %		EBIT Target		EBIT %	
	
    
    FY2001 EBITDA

    	 	 	89,573,000	 	 	 	103,009,000	 	 	 	15.0%	 	 	 	73,162,000	 	 	 	22.5%	 
	
    
    FY2001 D&A

    	 	 	29,841,000	 	 	 	107,488,000	 	 	 	20.0%	 	 	 	77,646,000	 	 	 	30.0%	 
	
    
    FY2001 EBIT

    	 	 	59,732,000	 	 	 	111,966,000	 	 	 	25.0%	 	 	 	82,125,000	 	 	 	37.5%	 
	CCE 2001	 	 	 	 	CCE 2002 Targets		 	 	 
	 	 	 	 	EBITDA Target		EBITDA %		EBIT Target		EBIT %	
	
    
    FY2001 EBITDA

    	 	 	127,975,000	 	 	 	147,171,000	 	 	 	15.0%	 	 	 	73,930,000	 	 	 	35.0%	 
	
    
    FY2001 D&A

    	 	 	73,241,000	 	 	 	153,570,000	 	 	 	20.0%	 	 	 	80,329,000	 	 	 	47.0%	 
	
    
    FY2001 EBIT

    	 	 	54,734,000	 	 	 	159,969,000	 	 	 	25.0%	 	 	 	86,728,000	 	 	 	58.5%	 

15

 

EXHIBIT B

KEY ACT BONUS CALCULATION

The following bonus amounts will be paid (or offset against the
Bonus Advance (in full)), in accordance with the Agreement and
the conditions described below:

(1) [***]

     
(a) A bonus of TWO HUNDRED FIFTY THOUSAND DOLLARS
($250,000.00) will be paid upon the signing of tour agreement of
[***] with Clear Channel Entertainment.

     
(b) If tour profit is equal to or greater than $6,000,000,
Executive will be paid a bonus of SEVEN HUNDRED FIFTY THOUSAND
DOLLARS ($750,000.00), in addition to the bonus earned in
section (a) above.

     
(c) If tour profit is equal to or greater than $8,000,000,
Executive will be paid a bonus of SEVEN HUNDRED FIFTY THOUSAND
DOLLARS ($750,000.00), in addition to the bonus earned in
sections (a) and (b) above.

     
(d) If tour profit is equal to or greater than $10,000,000,
Executive will be paid a bonus of SEVEN HUNDRED FIFTY THOUSAND
DOLLARS ($750,000.00), in addition to the bonus earned in
sections (a), (b) and (c) above. Further, for each
additional $2,000,000 in tour profit above $10,000,000,
Executive will be paid an additional bonus of SEVEN HUNDRED
FIFTY THOUSAND DOLLARS ($750,000.00).

(2) [***]

     
(a) A bonus of TWO HUNDRED THOUSAND DOLLARS ($200,000.00)
will be paid upon the of tour signing agreement of [***] with Clear
Channel Entertainment.

     
(b) If tour profit is equal to or greater than $2,000,000,
Executive will be paid a bonus of ONE HUNDRED FIFTY THOUSAND
DOLLARS ($150,000.00), in addition to the bonus earned in
section (a) above.

     
(c) If tour profit is equal to or greater than $3,000,000,
Executive will be paid a bonus of ONE HUNDRED FIFTY THOUSAND
DOLLARS ($150,000.00), in addition to the bonus earned in
sections (a) and (b) above.

     
(d) If tour profit is equal to or greater than $4,000,000,
Executive will be paid a bonus of ONE HUNDRED FIFTY THOUSAND
DOLLARS ($150,000.00), in addition to the bonus earned in
sections (a), (b) and (c) above. Further, for each
additional $1,000,000 in tour profit above $4,000,000, Executive
will be paid an additional bonus of ONE HUNDRED FIFTY THOUSAND
DOLLARS ($150,000.00).

 

	*** Confidential

16

 

(3)     [***]

          (a)   A
bonus of TWO HUNDRED THOUSAND DOLLARS ($200,000.00) will be paid upon
the signing of tour agreement of [***] with
Clear Channel Entertainment.

          (b)   If
tour profit is equal to or greater than $2,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in section (a) above.

          (c)   If
tour profit is equal to or greater than $3,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in sections (a) and (b) above.

          (d)   If
tour profit is equal to or greater than $4,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in sections (a), (b) and (c) above.
Further, for each additional $1,000,000 in tour profit above
$4,000,000, Executive will be paid an additional bonus of ONE HUNDRED
FIFTY THOUSAND DOLLARS ($150,000.00).

(4)     [***]

          (a)   A
bonus of ONE HUNDRED THOUSAND DOLLARS ($100,000) will be paid upon
the signing of tour agreement of [***] with
Clear Channel Entertainment.

          (b)   If
tour profit is equal to or greater than $2,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in section (a) above.

          (c)   If
tour profit is equal to or greater than $3,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in sections (a) and (b) above.

          (d)   If
tour profit is equal to or greater than $4,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in sections (a), (b) and (c) above.
Further, for each additional $1,000,000 in tour profit above
$4,000,000, Executive will earn an additional bonus of ONE HUNDRED
FIFTY THOUSAND DOLLARS ($150,000.00).

(5)     [***]

          (a)   A
bonus of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) will be paid upon
the signing of tour agreement of [***] with
Clear Channel Entertainment.

          (b)   If
tour profit is equal to or greater than $2,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in section (a) above.

 

	*** Confidential

17

 

     (c)  If
tour profit is equal to or greater than $3,000,000, Executive will
be paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00),
in addition to the bonus earned in sections (a) and (b) above.

     (d)  If
tour profit is equal to or greater than $4,000,000, Executive will be
paid a bonus of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), in
addition to the bonus earned in sections (a), (b) and (c) above.
Further, for each additional $1,000,000 in tour profit above
$4,000,000, Executive will be paid an additional bonus of ONE HUNDRED
FIFTY THOUSAND DOLLARS ($150,000.00).

     For
the purposes of the calculation, “Clear Channel
Entertainment” shall be deemed to include the Company or any of
its affiliates or designees, and a Key Act shall be considered
“signed” (1) when the artist’s authorized
representative has signed a written and binding tour performance
agreement, provided that, in the Company’s good faith judgment,
there is then available on commercially reasonable terms,
non-appearance insurance that fully insures the projected show costs
and the initial amount due in respect to the Key Act Bonus for such
tour, or (2) in the absence of such availability, if such
non-appearance insurance is not so available, when the tour has commenced.

     For
the purposes of the calculation of the Key Act Bonus, “tour
profit” shall be defined as the difference between (1) the
sum of all revenues from the tour (includable in the “gross
income or revenue” (as defined in the applicable tour
performance agreement) thereof), including items such as foreign
exchange gain, and interest income, minus, without any duplication
(2) amounts payable to the artist under the applicable tour
performance agreement, all taxes, charitable contributions, expenses
included in the “gross revenue” or “gross income”
for the purposes of determining such amounts payable to the artist,
expenses directly associated with the applicable tour, such as tour
staff costs and related expenses, cancellation insurance, executive
travel as it relates to the applicable tour, local promoter fees,
liability insurance, foreign exchange loss, tour staff bonuses,
payments of the Key Act Bonuses previously paid with respect to the
applicable tour, shares paid to joint venturers or partners, and
interest expense deductible in accordance with the applicable tour
agreement. Local venue income and promoter profits shall be excluded
from the calculation in a manner consistent with calculations for
prior periods. Calculations of tour profit shall be completed within
120 days after the conclusion of each tour, and any Key Act Bonus due
paid within ten days after calculations are complete.

     If
a tour for any of the five artists above comes to CCE as a Proposed
Project from Grand Entertainment projects, no Key Act Bonus will be
due with respect to such tour.

18

 

AMENDMENT

     WHEREAS SFX Entertainment, Inc. d/b/a Clear Channel Entertainment
(hereinafter referred to as “Company”) and Arthur Fogel (hereinafter referred to
as “Executive”) entered into a Personal Services Agreement (hereinafter referred
to as “Agreement”) effective from the 1st day of September, 2002 and ending on
December 31, 2007;

     WHEREAS, the parties desire to amend the above-referenced Agreement to be
effective upon execution of this Amendment;

     NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the parties hereto, the parties
enter into this Amendment.

1. The parties wish to amend Section 2 “Title and Duties” solely as it
relates to his title and lines of reporting; the remainder of this Section shall
remain unchanged. The Executive’s title shall be “President, TNA International”
and he shall report to the President and CEO, Global Music, currently Michael
Rapino.

2. The parties wish to delete Section 3(c) “Performance Bonus” and the
attached “Exhibit A” in their entirety, to be replaced as follows:

(c) NON-KEY ACT BONUS. Executive will be eligible to earn and receive a
Non-Key Act Bonus, as set forth below, based on the Tour Profit on all
touring acts booked,

(i) Definition: “Non-Key Act:” For purposes of this section “non-key
acts” shall be defined as all touring acts booked excluding those acts
described in Exhibit B to the Agreement, i.e.: [***].

(ii) 2004 Bonus: If a total Tour Profit of $5,000,000.00 is reached
for non-key acts booked in 2004, Executive shall be eligible to
receive a bonus in the amount of $450,000.00 payable on January
15, 2005.

(iii) 2005 Bonus: If a total cumulative profit for calendar years 2004
and 2005 of $10,000,000.00 is reached for non-key acts, Executive
shall be eligible to receive a bonus in the amount of $320,000.00
payable on January 15, 2006.

	2.	 	This Addendum represents the complete and total understanding of the
parties with respect to the content thereof, and cannot be modified or
altered except if done so in writing, executed by both parties.

 

			
	***Confidential

19

 

	3.	 	This Addendum shall in no way modify, alter, change or otherwise delete
any provision of the Agreement unless specifically done so by the terms of
this Addendum, and all the remaining provisions of the Agreement shall
remain in full force and effect.

AGREED:

	 	 	 	 	 	 
	EXECUTIVE: 	/s/ Arthur Fogel	 	DATE: JAN 13/05
	 	ARTHUR FOGEL 	 	 

	 	 	 	 	 	 
	COMPANY: 	/s/ Mike McGee	 	DATE: 1-20-05
	 	BY:    MIKE McGEE 	 	 
	 	Chief Administrative Officer

SFX ENTERTAINMENT, INC.,

D/B/A CLEAR CHANNEL ENTERTAINMENT 	 	 
	 

20

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