Complaint: Federal Trade Commission (FTC): Complaints Against Sean Hannity, Freedom Concerts and...

8/7/2019 Complaint: Federal Trade Commission (FTC): Complaints Against Sean Hannity, Freedom Concerts and Freedom All

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CREW Icitizens for responsibilityand ethics in washingtonMarch 29, 2010

Jon LeibowitzChairmanFederal Trade Commi ssion600 Pennsylvania Ave., NWWashington, DC 20580Re: Complaint against Sean Hannity, Freedom Concerts and Freedom Alliance

Dear Chairman Leibowitz:Citizens for Responsibility and Ethic s in Washington ("CREW") respectfully requests

that the Federal Trade Commission ("FTC") investigate whether the Freedom Alliance, FreedomConcerts, Premiere Marketing, Sean Hannity, Lt. Col. Oliver North, and Duane Ward haveengaged in "unfair or deceptive acts or practices in or affecting commerce" in violation of 15U.S.c. 45(a) by suggesting the proceeds of all ticket sales for the Freedom Concerts go tocollege scholarships for the children of deceased and wounded military service members.Freedom Alliance

The Freedom Alliance is a nonprofit 501(c)(3) organization whose mission is to"advance the American Heritage of freedom by honoring and encouraging military service,defending the sovereignty of the United States and promoting a strong national defense." TheAlliance was founded in 1990 by Lt. Col. Oliver L. North, who now serves as the organization'shonorary chairman.' One of the Freedom Alliance's programs is a scholarship fund:

Freedom Alliance provides college scholarships to students who are dependents ofU.S. military personnel who have been killed or permanently disabled in a combatmission or a training accident. Freedom Alliance scholarships are awarded to helpthe sons and daughters ofAmerican heroes achieve a college education, and tohonor servicemembers who have sacrificed li fe or limb for our nation.'According to Freedom Alliance, it has awarded a total of $2.5 million in collegescholarships.' During 2008, Freedom Alliance awarded $802,250 in scholarships to 167

I http ://www.freedomalliance.org/index.php?option=com_content&task=v iew&id=2172&Itemid=2 1.2 Freedom Alliance, 2008 Form 990 .3 Freedom Alliance, 2008 Form 990. Recently, however, in response to allegati ons made against FreedomAlliance by a blogger, the organization claimed to have distributed $3.4 million in scholarships and creat ed ascholarship trust fund with additi onal money. See

1400Eye Street, N.W., Suite 450, Wash ington , D.C . 20005 I 202.408.5565 phone I 202.588.5020 fax www .citizensforethics .o


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students." In 2007, Freedom Alliance awarded $895,347 in grants, though the 990 does notspecifically separate out the money expended on scholarships from that awarded for otherpurposes.' Freedom Alliance awarded $306,500 in college scholarships in 20066 and $248,250in 2005. 7 In 2004, Freedom Alliance awarded $105,250 in grants, but did not indicate whatportion of those funds specifically went to college scholarships." Similarly, in 2003, FreedomAlliance awarded $88,000 in grants, but again did not indicate what portion of those fundsspecifically went to college scholarships." Freedom Alliance made no grants in 2002. 10

Thus, for the years Freedom Alliance separately lists funds spent on college scholarships- 2008,2006 and 2005 - it awarded $1,357,000 in college scholarships. Freedom Alliance's2007 Form 990 does not specifically state the amount awarded for scholarships, but it doesseparately list amounts paid to universities -- presumably for scholarship grants. Totaling thesegrants, it appears Freedom Alliance awarded $597,500 for college scholarships in 2007. There isno way to determine what portion of grant funds were expended on college scholarships in 2004and 2003, but even assuming all grants in those years were made for scholarships (an unlikelycircumstance given that the organization also awards grants to wounded, hospitalized servicemembers) a total of $193,250 could have spent on scholarships in those years. As a result,adding the scholarship awards for the years 2003 to 2008, at the outer limit, Freedom Alliancemight have awarded $2,147,750 in college scholarships, meaning the charity has overstated theamount awarded by a minimum of$352,250.

In addition to overstating its total scholarship expenditures, a disproportionately smallpercentage of Freedom Alliance's annual budget has gone to scholarships. As stated above, from2003 to 2008 Freedom Alliance awarded $2,147,750 in scholarships." During the same period,

http://www.freedomalliance.org/irnages/pdf, and_Iargepics/freedom_allianceJesponse.pdf.4 Freedom Alliance, 2008 Form 990.5 Freedom Alliance, 2007 Form 990. In addition to scholarships, Freedom Alliance also makes grants underthe "Support Our Troops" program, which provides "financial grants to military personnel wounded in OperationIraqi Freedom or Operation Enduring Freedom who are recuperating in a military hospital." Such funds "may beused for a variety of reasons including expenses, personal items, travel expenses for family visits, recreationalactivities, or other expenses that may facilitate their rehabilitation." !d.6 Freedom Alliance, 2006 Form 990.7 Freedom Alliance, 2005 Form 990.8 Freedom Alliance, 2004 Form 990.9 Freedom Alliance, 2003 Form 990.10 Freedom Alliance, 2002 Form 990.II Freedom Alliance, 2003-2008 Form 990s.

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the organization spent twice that amount on salaries and nearly quadruple that amount onshipping expenses: $4.7 million and $8.1 million respectively. 12 In addition, in 2008 alone,Freedom Alliance paid two fundraising firms a total of $2,696,739, more than they have given inscholarships from 2003 to 2008. 13

Freedom ConcertsOn July 11,2003, conservative Fox News Channel commentator Sean Hannity held thefirst of a series of "Freedom Concerts," featuring country music stars and conservative politicalfigures." The purpose of the concerts is allegedly to raise money for college scholarships forchildren ofwounded and killed military service members. 15In2003, Mr. Hannity's personal website, Hannity.com, indicated the money raised by the

concerts would go to the Hannity Scholarship Fund, then administered by the Freedom Alliance.The website stated:

Join Sean and friends in this grand event and help raise funds for the Hanni tyScholarship Fund, benefitting the children of those military men and women tothose that gave the ultimate sacrifice for their country and to those also woundedduring the call of duty. It features a live broadcast of Sean's show followed by aconcert with country stars Sara Evans and the Charlie Daniels Band, DarrylWorley and with special guest, Oliver North at Six Flags Great Adventure themepark in Jackson, New Jersey. The concert arena can hold 10,000 people, and weanticipate it will be packed to overflowing for this event. All you have to do is buya ticket specifically for the concert , and it will get you into the park as well. Youthen must show your concert t icket later in the day at one of the booths by thearena, to pick up your wristband that will allow you into the concert that night. . . .This charity event will raise funds for Freedom Alliance, which providesscholarships to the children of the military kil led in the line of duty. To makedonations to the Hannity Scholarship Fund, please CALL 1 (800)329-5454 ormake your secured donation online at the Freedom Alliance web site."

12Id. (Shipping expenses include line items labeled "Postage and Shipping" or "Postage and Delivery").13 Freedom Alliance, 2008 Form 990.14 http://web.archive.org/web/20030603185215/hannity.com/index.cfm/bay/content.event2.htm.15Id.

16 http://web.archive.org/web/20030603185215/hannity.com/index.cfm/bay/content.event2.htm.3


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By 2004, Mr. Hannity was no longer soliciting funds for his own scholarship fund,instead announcing that proceeds from the Freedom Concerts would be donated to the FreedomAlliance Scholarship Fund. l ?

According to Freedom Concert's website, since 2003 over $10 million has been raised forthe Freedom Alliance Scholarship Fund through the Freedom Concerts and generous donationsfrom the Sean Hannity Show and its listeners. 18 The website states "the Scholarship Fund isdesignated for the education of children ofU.S. service members who have been killed or 100%permanently disabled in an operational mission or training accident. All net proceeds from ticketsales (after musical talent, production, promotion and venue expenses) are donated to theScholarship Fund.,,19 Nowhere on Freedom Concert's website is either the dollar amount orpercentage of each ticket's price donated to the scholarship fund indicated." A web search,however, indicates that for at least one 2007 concert held in San Diego, California, a $4 "fee"was included in the ticket price as a donation to the Freedom Alliance."

Judging by two August 2009 Freedom Concerts in Texas and Nevada that respectivelygrossed $621,792 and $520,840,22 it seems fair to estimate that each concert grosses a minimumof $500,000. Since 2003, there have been at least 18 concerts, which - estimating conservatively- would have grossed at least $9 million, millions more than Freedom Alliance has spent oncollege scholarships.

Premiere MarketingThe owner of FreedomConcerts.com, the website promoting the concerts and sellingconcert tickets and merchandise, is Duane Ward, the president of Premiere Speakers Bureau."In the 1980s, Mr. Ward served as the public relations director for Rev. Jerry Falwell 's MoralMajority" before heading the National Christian Network." In 1987, Mr. Ward opened his own

17 http://web.archive.org/web/20040701203516/http:/hannity.com/.18 https://freedomconcerts.com/.19Id.

20 See Id.21 http://web.archive.org/web/20070820035316/http://760kfinb.com/kfinb_info/hannity_freedom_concerti.22 http://pulsemusic.proboards.com/index.cgi?action=display&board=gmn&thread=89285&page=I;http://pulsemusic.proboards.com/index.cgi?board=gmn&action=display&thread=88862.23 http://www.networksolutions.com/whois-search/freedomconcerts.com.24 Falwell to Assume Temporary Pulpit in Maine, AssociatedPress, January 6, 1986;25 Peter 1. Boyer, Falwell Buys a Cable-TV Network, New York Times, January 16, 1986.

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public relations firm, The Ward Group, and in 1988 launched a fundraising campaign for Lt. Col.Oliver North's legal defense fund." From 1988 to 1993, Mr. Ward served as Lt. Col. North'schief of staff.27 In 1994, Mr. Ward founded the Christian Speakers & Artists Agency, and in 1999he incorporated the business in Florida under the new name, Premiere Speakers Bureau."Premiere represents a number of conservative celebrities, including Mr. Hannity and Lt. Col.North."

Billboard listed the promoter of an August 8, 2009 Freedom Concert in Nevada asPremiere Marketing." In addition, a license agreement for a "Sean Hannity Freedom ConcertTour" ("Tour") event to be held at the University ofCentral Florida Arena ("UCF Arena") onAugust 14,2010, names the licensee as "Duane Ward, Premiere Marketing, Inc.,,31 The arena ischarging Premiere Marketing a $28,000 licensing fee. While the agreement indicates that onlythe arena has the right to sell or distribute tickets, an addendum to the agreement allows the Tour"to promote its schedule to listeners and viewers of Sean Hannity Radio and Television beforethe 'on sale date" and gives the Tour the right to promote and sell "pre-sale" tickets before May1,2010.32 Under this unusual agreement, such tickets are specifically "exempt from any ticketservice fee/charges (e.g. "Ticketmastcrt).?" As ofMarch 26,2010, the higher-priced ticketsalready had sold out," meaning Premiere Marketing will receive all the proceeds for those ticketsales, excluding sales tax.

26 David E. Anderson, Mainstream Churches Entering 'Star Wars' Debate, UPI, May 15, 1987; Jean Heller,Nationwide Campaign Seeks Money for NOlih Legal Help, St. Petersburg Times, July 31, 1988.27 iExalt, Inc.'s ChristianSpeakers.com Adds Exclusive Representation of Oliver L. North, Business Wire,May 25, 2000.28 http://tnbear.tn.gov/ECommerce/Common/FilingDetail.aspx?FilingNum=000280458;http://tnbear.tn.gov/ECommerce/Common/FilingDetail.aspx?FilingNum=000451479;http://sunbiz.org/scripts/cordet.exe?action=DETFIL&inCLdoc_number=P99000092836&inq_came j rom=NAMFWD&cor_web_names_seq_ number=OOO 1&names_name_ind=N&names_cor_number=&names_name_seq=&names_narne_ind=&names_comp_name=PREMIERESPEAKERSBUREAU&names_filinLtype=.29 http://premierespeakers.com.30http://pulsemusic.proboards.com/index.cgi?board=gmn&action=display&thread=8886231 University of Central Florida Arena License Agreement, November 4,2009 (attached as Exhibit A).32 Addendum: 2010 Sean Hannity Freedom Concert Tour Rider.331d.

34 https://freedomconcelis.com/orJando.5


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Freedom Concert merchandise, such as t-shirts and autographed copies ofLt. Col.North's book, American Heroes, are sold through Premiere Collectibles." As its website states,Premiere Collectibles is "Brought to you in association with Premiere Speakers Bureau.'?"Premiere Speakers Bureau, Premiere Marketing and Premiere Collectibles all share the sameFranklin, Tennessee address."

Deceptive MarketingMr. Hannity, who is exclusively represented by Premiere Speakers Bureau, is promotingconcerts staged by Premiere Marketing for the alleged benefit of the Freedom Alliance, whosehonorary chairman is also an exclusive Premiere Speakers Bureau client, Lt. Col. North, who hashad a decades-long relationship with Premiere's president, Duane Ward. It is quite possible Mr.

Hannity and Lt. Col. North receive their usual speaking fees for appearing at these concerts."The concerts, rather than being the wholly charitable enterprises they are billed as, really appearto be for-profit events for the benefit of Premiere Marketing, with an unknown portion of theproceeds donated to the Freedom Alliance for college scholarships."These facts and the role of Premiere and Mr. Ward are well-hidden from consumers whohave been deliberately misled by to believe the full price of their concert tickets goes to collegescholarships for the children of killed and wounded military service members.Although Freedom Concerts' website indicates the net proceeds from the concerts go tothe scholarship fund, Mr. Hannity has a record of using his television show on Fox tomisrepresent the facts:

35 https://premierecollectibles.com/freedom_concert_store.36 https://premierecollectibles.com.37 UCF Arena license agreement denotes Premiere Marketing's address as 109 International Drive, Suite

300, Franklin, TN 37067. The web sites for Premiere Speakers Bureau and Premiere Collectibles provide the sameaddress. See http://premierespeakers.com;https://premierecollectibles.com.38 Although in a March 18,20 10 statement Freedom Alliance claimed it "has never provided planes, hotels,cars, limos, or "anything else to Sean" and that "Sean pays for all his own transportation, hotels, and all relatedexpenses for himself and his family and friends and staff," because Premiere Marketing - and not Freedom Alliance

-- actually stages the concerts and pays all related expenses, it is entirely possible Mr. Hannity has received paymentand travel expenses from Premiere Marketing for participating in Freedom Concerts. Similarly, Freedom Alliance'sstatement is silent as to any payments Lt. Col. North may have received for participating in the concerts.39 As explained above, according to a single 2007 advertisement on San Diego radio station 760 KFMB'sweb site, the proceeds may be $4 per ticket, but CREW has been unable to find any other references to eitherspecific dollar figures or percentages ofticket sales donated to Freedom Alliance through Freedom Concerts.

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On July 10, 2003, Mr. Hannity reminded viewers that a Freedom Concert was to be heldthe following evening. He stated, "And by the way, you can still go. Great Adventure, Jackson,Ne w Jersey, Six Flags. All the proceeds go for the scholarship fund.,,40

On May 27,2004, Mr. Hannity was promoting the Freedom Concerts with his guest, Lt.Col. North. Mr. Hannity asked Lt. Col. North to talk more about the scholarship fund and Lt.Col. North stated, "I get letters every single day into the foundation. There's no overhead.There's no expenses taken out. Every penny that's donated or that's raised through thingslike the Freedom Concert on July 8, when I hope everybody watches (sic) is going to join usout there."?' Lt. Col. North continued, " And what we're going to do is we're going capstone this$2 million fundraising campaign. Every penny of which will go to support a youngster incollege. All they have to do is get into college. The check goes to the college.'?"

On May 19,2005, promoting his upcoming Freedom Concert at Six Flags in Jackson,Ne w Jersey, Mr. Hannity proclaimed, "Every penny, 100 percent of the donations, are appliedto the Freedom Alliance Scholarship Fund. We're going to send all 1,300 kids of slain soldiersto college with your help.?"

On July 28, 2006, Mr. Hannity played a video clip, taped at a Freedom Concert in Ne wJersey, ofLt. Col. North declaring to the audience, "Look at this crowd that's gathering here forthis wonderful concert, all of which, every penny [that] comes in goes to support the widows,the orphans, the dependents of those who died in the line of duty.?"

On June 6, 2007, Mr. Hannity promoted an upcoming Freedom Concert, stating "Thepurpose is all the money that we make we put in a scholarship fund for the children ofthese slain heroes.t'"

On December 2,2009, Mr. Hannity stated, "All the benefits of these funds benefit theFreedom Alliance Scholarship. All the proceeds go to them, a scholarship fund for thechildren of slain heroes.?"

40 Hannity & Calmes, Fox July 10,2003.41 Hannity & Calmes, Fox, May 27,2004.421d.

43 Hannity & Calmes, Fox, May 19,2005.44 Hannity & Calmes, Fox, July 28, 2006.45 Hannity & Calmes, Fox, June 6, 2007; (available athttp://www.youtube.com/user/TheFreedomAlliance#p/f/4/oenadMX4Ano).46 Hannity, Fox, December 2,2009.

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More recently, Mr. Hannity appears to have been trying to cover himself againstallegations of deceptive marketing, stating that all proceeds go to scholarships, but then addingthe caveat, "the net proceeds." For example, after having stated that all proceeds go to thescholarship fund on December 2, 2009, the next evening, December 3, Mr. Hannity stated,"Here's the best part: all the proceeds go to the Freedom Alliance scholarship fund for thechildren of slain soldiers, the net proceeds.'?"

Legal ViolationsAt least tens of thousands of people (likely over one hundred thousand) have purchasedtickets to Freedom Concerts since the tours first began in 2003. Generous contributors believedthe full price of their tickets was going to support a particular program providing scholarships tochildren ofmilitary service members killed or wounded in action. In fact, it appears only a smallportion of each ticket price - perhaps $4 - has been spent on the charitable programs described todonors. Instead, Premiere Marketing and Collectibles has collected all funds generated by ticketand tour merchandise sales and donated some unknown amount to Freedom Alliance. Not only

were individual donors deceived, but their gifts left fewer dollars to support the many legitimatenonprofit organizations that operate real programs for the benefit of children of killed andwounded service members. In addition, Freedom Alliance has deceived donors by repeatedlyclaiming that through 2008, $2.5 million was spent on scholarships, yet a review of the charity'sown IRS Form 990s indicate the real figure is no more than $2.15 million, probably less.Section 5(a) of the Federal Trade Commission Act, 15U.S.C. 45(a) prohibits "unfair ordeceptive acts or practices affecting commerce." In numerous instances, Sean Hannity and Lt.Col. Oliver North, in connection with soliciting charitable solicitations from donors, represented,expressly or by implication, that the full value of the tickets purchased for the Freedom Concertswould go to a legitimate charitable organization the primary purpose of which is to serve the

public good by assisting the children of killed and wounded military service members withcollege scholarships. In truth and in fact, however, the vast majority of the donors' contributionsdoes not go to pay for college scholarships, but instead goes to corporate entities, PremiereMarketing and Premiere Collectibles, controlled by private persons, namely Duane Ward, forindividual pecuniary gain. Therefore, the representations made by Mr. Hannity, Lt. Col. Northand others associated with Freedom Concerts are false and misleading and constitute deceptiveacts or practices in violation of section 5(a) of the FTC Act, 15 U.S.C. 45(a).Conclusion

At a time when our nation is at war, it is despicable that a small group ofpeople may bepreying upon the generosity of Americans by deceiving them into believing they are aiding thechildren of killed and wounded service members when, in fact, most of the money raised is goingto a for-profit venture. CREW respectfully requests that the FTC immediately investigate the

47 Hannity, Fox, December 3,2009.8


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Freedom Concerts to ascertain whether these concerts are being promoted in violation of theprohibition on deceptive marketing.

Thank you for your consideration.

' M ilerarue oanExecutive Director

Encls.cc: David C. Vladeck

Director, Bureau ofConsumer ProtectionJerry BrownAttomey GeneralState of CalifomiaBill McCo llumAttomey GeneralState of FloridaThurbert BakerAttomey GeneralState ofGeorg iaPaula DowAttomey GeneralState ofNew JerseyCatherine Cortez MastoAttomey GeneralState ofNevadaRichard CordayAttomey GeneralState ofOhioW.A. Drew Edmondson

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Attorney GeneralState ofOklahomaGreg AbbottAttorney GeneralState of Texas

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EXHIBIT A


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UCF ARENAUNIVERSITY OF CENTRAL FLOR II)A ARENALICENSE AGREEMENT

ITillS LICENSE AG H.Ef:I\IF.NT (the "Agreement") is made and entered into this ~ l tlay of November,2009, by and between G LOBAL SI'ECTlW M, L.r ., a Delaware limited partnership, on beha lf of University ofCentral Florida the VCF ARF.NA. having its principa l office at SON. Gemini Blvd.Orlando, Florida, (hereinafter"Licensor"). and the following entity: ICompa ny/ l.icensl'e: Mr. Duane Ward, Premiere Mar1


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D. Should it become necessary in the judgment of Licensor To Evacuate The Premises Because OfA BombThreat Or For Other Reasons Of Publ ic Safety Licensee Will Peaceably Vacate The Premises In A TimelyAnd Orderly Manner. Once Licensor Has Declared That The Facility Is Safe To Re-Enter, Licensee WillBe Granted Use OfThe Licensor For Sufficient Time Following Evacuation To Complete Presentation OfActiv ity Without Additional Rental Charge Providing Such Time Does Not Interfere With AnotherBuilding Commitment. If 10The Sole Judgment Of Licensor It Is Not Possible To Complete ThePresentationOfThe Acti vity, Licensor Charges Shall Be Forfeited, Prorated. Or Adjusted At TheDiscretion Of The Licensor Based On The Situation And The Licensee Hereby Waives Any Claim ForDamages Or Compensation From The Licensor.

2. Tenn; Scheduling; Renewal.A. The term of the license granted hereby shall begin Sa tu rday, Allgusl I4 'h, 2Ul0 (the "Term").I I In addition to the period set forth in the preced ing paragraph, Licenso r shall make the Arcria

available to Licensee, without charge, for (i) preparation of the Event and deli very, move-in and set-up of Licensee'sfreight and oilier propert ies on T il E SAME DATE beg inning at 6:00 AM and (ii) load-out immediately followingconclusion of the Event, ending at a mutually agreed time but in any event no later than I I :59 PM.

C. Coordination of any and all deliveries for the Event (o r each session thereof) will be theresponsibi lity of Licensee. lf Load-out shall run beyond the mutually agreed upon time, licensee shall be liable forany additional expenses incurred by licensor, including but not limited to payments to labor.3. Duties of Licensee . In connection with the presentation of the Event, Licensee shall provide (or causeto beprovided) and pay for the following : ,A (I) All participants andstaff required for the proper presentation ofthe Event, including butnot limited to performer. medical staff, and any other sta ff required for the proper presentation of the Event and.where specified by Licensee, sound system. lighting, staging, technical , catering and set-up personnel regularlyemp loyed by Licensee in presenting the Event, together with Workers' Compensation Insurance with respect to suchpersonne l; and

(2) All tangible items of property necessary for the proper presenta tion of the Event.B. All ASCAP , BMI and similar licenses required for the use of copyrighted or licensed music in

connection with the presentation of the Event, and all other licenses or penn its required in connection with the useof the Arena for the Event, all o f which licenses and permits sha ll beprocured by Licensee prior to commencementof the Term and presented to Licensor upon Written request ; I

C. The advertis ing, promotion and publicity campaign necessary and desirable to promote the Event;",dD. Tl l l lnY (30) complimentary tickets to Licensor to each sess ion of the Event, with locations of

seats to bemutually agreed to for sa le to thegeneral public. I4. Dut ies of Licensor. In connection with the presentation of the Event, Licensor shall provide. or cause to beprovided, the following (the costs of which shall be borne by Licensee in addition to the Base License Fee lasdefined in Section 6A(I ) below] , except as otherwise expressly provided below):

A. The Arena, including the general concourse area, public address systems and such other parts orareas of the Arena as may be necessary for Licensee to present and produce (if appl icable) the Event (the costs ofwhich shall be included within the Base License Fee);

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TB. Electricity and other utilities for lighting, healing, air conditioning and other services used in

conjunct ion with the Even t and the set-up and removal related thereto; IC. Cleaning and janitorial service during and after the Event;D. All necessa ry support services, including, hUI not limited to, a ll ancillary staff necessary to hold

the Event at the Arena (other than those being provided by Licensee pursuant to Subsection 3A( t) above), Includingushers, doormen, emergency medical technicians(for patrons only), security guardsand supervisors (includingovernight security) , change-over and set-up crew, heating and air conditioning supe rintendent, house electrician,carpenter. telephone operator and ticket takers for the day or eve ning of eac h session of the Event; IE. Addi tional items, perso nnel and services, other than those set forth above, which Licensee requests

to be prov ided in connection with the Event and which Licensor is reasonably ab le to provide, such as stagehandsfor set-up, take down and prod uctions, additiona l production requirements, catering, and lighting and/or soundequipment other than the current sound or lighting system in Arena, Box Offi ce Fees (3.5% of gross capped atSI,500) all of which sha ll be subject to the approval ofLicensor. I5. Marketing and Advertising.

A. Licensee, at its expense, sha ll provide the necessary personnel to, and shall use its reasonable bestefforts to, market and promote the Event. 1

B. (I ) All advertisements for the Event sha ll bedeve loped by Licensee ( including, but notlimited to, a ll adverti sing publici ty material, promotions material, press re leases, posters, flyers and handbills) andshall be produced at the sole cos t and expense of Licensee. 1

(2) Withou t the prior written approval of Licensor, which approva l shall not be unreasonablywithheld or delayed. Licensee shall no t in any manner transmit, record or videotape or otherwise reproduce ordisseminate any part of, or a description of any part of, the Event (including, but not limited to, radio, telev ision,cable television, commercial television, closed c ircuit television and/or pay television, video disc or phonographrecord ing). I

(3) Without the prior written approval of Licensor . which approval may bewith held inLicensor's sole discretion , Licensee shall not permit any comm ercial banner, signage, advertisement or promotionalannouncement to be posted or made with in the Arena or adjacent grounds. I

(4) Subject to the provisions of Subsection 58(3) above, Licensee sha ll have the right to sellsponsorship for the Event. All revenues generated from the sale by Licensee of such sponsorship shall beretainedby Licensee, provided that all such sales shall be subject to the prior written app roval of Licensor. Licensor herebyretain s the right to sell sponsorship for the Event, for which Licensor sha ll rece ive a commission of Ten (10% )percent on gross sales revenues from such sales. All remaining revenues sha ll be paid to Licensee at the time ofsettlement in accordance with Subsection 6C. I

(5) Licen see shall make mention of the name "VCF Arena" as the site of the Event inconnection with any advertising or promotion the reof. All promotional mate rials shall contain the standard ''UCFArena" logo positioned full width across the bottom. However, Licensor must approve all such uses of the UCFArena name prior to dissemination of any promotional materials, which approval shall not be unreasonably J..ithheldor delayed. I

(6) A ll advertisements for the Event presented pursuant to the provisionsof th is Agreement(including but not limited to, all advertising, publicity materia l, promotions material, press releases, posters, flyers,handbills and radio and telev ision commercials) shall be submitted by Licensee to Licensor for its prior approva lbefore use. 3


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C. If Licensee seeks the assistance of Licensor with respect 10group sa les for the Event, Licenseeshall pay Licensor a Ten (10 -/_) percent commission for all group sales tickets sold by Licensor's Group SalesDepartment, plus approved expenses. Said commission shall be calculated upon the gross ticket price less Iapplicable sales or amusement taxes.6. License fe e .

A. In consideration of the licensee granted hereby and Licensor's agreeme nt to provide the items setforth in Paragraph 4 he reof, Licensee sha ll pay Licensor the following (collect ively, the "License Fee"): II. FLAT RENTAL FEE OF $28,000 Cash PLUS 6.S-/ . (SIX AN I> A IIALF PE RCENT)

FLORIDA SALE.."i TA X OF TIlE FLAT RENTAL FEE AMOUNT, PLUS REIMBURSABLEEXPENSES AS LISTED IN SUBSECTIONS 4E (with the exception of sounds/lights. which willnot be provided by Licensor); plus

Ic. At the conclusion of the Event (or each session nf the Event, i f applicable), Licensor and l icenseeshall conduct a preliminary settlement respecting all items o f income and expense which are subjects o f t h iAgreement. At said settlement., Licensee and Licensor shall preliminarily account to the other for all incomb itemsreceived by each as of such date and shall make payment to the other (i f applicable) of any and all sums due to theother in accordance with this Section 6. A final settlement shall bemade by the parties within seven (7) businessdays following the expiration of the Tenn. ID. Licensee acknowledges that use of all Suite Seating areas in the Arena are not hereby licensed or

provided by Licensor to Licensee and agrees that any revenue derived from the utilizat ion or license of such Suitesareas in connection with the Event shall be for the sole account of Licensor. 1E. Licensee shall pay Licensor the License Fee and any and all additional fees due e r e u n e i t abatement, deduction or set-off. Licensor may, at its election, collect all or any part of the License Fee duehereunder out of the receipts of sales of tickets, by whatever SOUTee, or concessions provided by or on behalfofLicensor, and Licensor shall have a first lien upon and security interest in such receipts to the extent of any amountrequired to be paid to Licensor by Licensee hereunder.

B. A non-refundable deposit in the amount of Ten Thousand (SIO.OOO) Dollars is due and payableto Licensor upon execution of this Agreement. Licensee agrees to make additional deposit with Licensor at addresson this agreement. of such sums as Licensor feels are necessary to cover those costs, including excessive Ichangeovers or set-ups, which the Licensor would encounter on behalf of Licensee in relation to the event and tomake such payment by Certified Check payable to the UCF ARENA in lawful money of the United States bfAmerica. Licensor agrees that such demand will not bemade more than twenty days prior to the first date of theevent described herein.

7. Licenses.

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A. Licensee shall secure in advance. prior to commencement of the Term. (a) all licenses and permitsthat may be required by or in connection with the use of the Arena for the Event and (b) all licenses required by anyperforming arts societies, such as ASCAP and/or BMI. for music or other works to be utilized or displayed ihconnection with the Event. Licensee shall do all other acts necessary to comply with all laws and requirements of allpublic authorities and all rules and regulations of Licensor in connection with the presentation of the Event.IB. Licensee shall not use the name, likeness or image of any player, performer or otherattraction in connection with the Event or the advertising thereof unless Licensee fh allhave entered into a license or similar agreement with such party respecting such TIghts.I


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c. ILicen see acknowledges tha t, in tbe e n ol Licenso r believes and req uest in writing, init s sa le d iscretion, tha i :lI ny of fhe :n list(s) or pel'"former(s) lhal a re subject of theEvent may be " non- resident a liens" (as defin ed in Sec tion 7701 (b)( I) (8) of theUnited Slates In ternal Revenu e Code (" m C", lhe n Licenso r sha ll have th e r ighl.nOlwilhstamlin g any provision of this Agreement tc th e cont ra ry, to withh old 10t hir ty percent (30%) of a ny amounts owed by Licen so r 10 Licensee hereunder , forpurposes of remitting such amounts to the Uniced Sla tes T reasury in compliancewilh In.C Section 1441; provided, however, Licensor shall 1I0t with hold any amountsin the event either ( i) Licensee provides to Licenso r pr ior 10 the Event a writtencertificat ion, in a form acce ptable to Licensor in its sole disc retion, that th ere are no" non re sident aliens" (as defined under the III-C) perfoml ing at the Event, andLice nsor has no reasonable basis ( 0 believe oth er"..ise, or (ii ) such a rtist(s) or I'performer(s) have , prior to the Event , en te red into a Centra l \ VithholdingAgreement ("CWA") with the IRS a nd \'dthh olding agent, a nd Licensor has beenprovided with a COP)' of the CWA pr ior 10 the Event ,"

8. Concessions: Merchand ising: Programs IA. Licenso r specifically reserves to itse lf and its concessionaires the right to sell, and proceeds fromthe sale of, refreshments and beverages, parking privileges and all other concessions at the Event (except as Iotherwise provided in Subsec tion 88 below). Licensee shall not sell or distribute, whether or not on acomplimentary basis, any food, beverage or other merchandise and shall have no right to operate a concessionduring the Event, without obtaining Licensor's prior written approval. l

B. With respect to merchandise concess ions, Licensor, or persons designated by it, shall sell uchmerchandise, and all proceeds from the sale thereof, after deduction of applicable taxes and city licenses andinspections charges, sha l l be d ivided Seventy-Ftve (75Y_) pe rcent to Licensee a nd Twe nty-Five (250/_) percent10 Licensor. Prior to the commencement of the Term. Licensee shall deliver, or cause to be delivered, all Imerchandise to be sold by Licensor hereunder. Licensee shall insure against and bear the risk ofdamage, theft orother loss of such merchandise, whether or not such merchandise is in the possession or control ofLicensor at thetime of such loss, and shall be respons ible for all freight and transportation of such merchandise to and from theArena. Ninety (90-1.) 10 Lice nsee and T en (10-/_) to Licensor on C ll ' s and DVU's.9. Time of Occupancy.

Licensor agrees to open the Arena to the public at least one ( I) hour before the Event (or each sessionthereof). j10. Insurance.

A. Licensee shall obta in, at its own cost and expense, commercial general liability insurance II I thename of Licensee which shall insure all operations of licensee contemplated by this Agreement and the contractualassumption ofliability reflected by this Agreement. Such insurance shall bewritten with a limit of at least O:'iEMILLION DOLLARS (5 1,000,000.00) combined single limit for bodily injury and property damage liability,personal injury liability and coverage for all acts and/or omissions of any employees, agents, players, performers.contractors or sub-contractors re tained by Licensee. Such insurance shall be endorsed to beprimary to and notcontributory with any coverage of Licensor, Glohal Spectrum LLP, Unive rsity of Centra l Flor ida AthleticAssociation, Inc., UCF, th e Hoard of T rustees of th e Unlverairy of Cen t ra l Florida, a nd th e State of Fjorlda ,which may be applicable to the cla im. Licensee shall also cause the required policy of insurance to be endorsed toinclude Licensor, Globa l Sp ectrum Ll .P, Untversuy of Centra l Florida Alh let ic Associa tion, lnc., UCF,lt heHoard ofTrustees of the University of Cent ra l Florida, The UCF Convoca tion Cente r Cor p and th e state ofFlorida as additional insureds with respect to the operations and obligations contemplated by this Agreement.

B. Licensee shall also maintain. at its own cost and expense, Workman's Compensation Insurance inrespect of its players, performers and other employees whose services are contemplated by this Agreement.S


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IC. C EIH IF ICATES EVIDENC ING INSURANCE RF.QUIIU: l> PUI-tSUANT TO THISSECT ION 10 SIIA" L BE I>ROVID EI>TO LICENSOR NOT LESS T IIAN TEN (10) DAYS I'R IOR TOCOMMENCEMENT OF Ti l E TERM. The pol icies shall also provide, and the certificate sha ll so note, that thecoveragesmay not be canceled or that a major change in coveragemay not be implemented without at least thirty(30) days' prior written notice given to Licensor. I

D. LICENSOR SHALLHAVETHE ABSOLUTE RIG IIT TOTERMINATE TIllS AGREEM ENTUPON WRIH ENNOTICE TO LICENSEE IF LICENSEEDOES NOT DELIVERTO LICENSORTHE ICERTIFICATE OR CERTIFICATES OF INSURANCE REQUIRED HEREUNDER. IN THE EVENT OF SUCHTERMINAn ON BY LICENSOR, Tl IERE SHALL BE NO FURTHER LIABlLl lY OF ANY KIND OR NAl U REWIIATSOEVERBY LICENSORTO LICENSEE, ANDLICENSORSHALL RETAINTHE RIGIIT TOPROCEED WITH A LEGAL ACTION AGAINST LICENSEE TO RECOVER ANY AND ALL DAMAGESAND/OR LOSS OF PROFITS SUSTAINED BY LICENSOR BY REASON OF LICENSEE'S DEFAULTHEREUNDER.

E. In the event that Licensee fail s to procure and present the aforesaid insurance. Licensor shall havethe right, but not the obligat ion. to do so on Licensee's behal f and at Licensee's expense and shall be entitled toreimbursement for the cos ts thereof as part of the License Fee due and payable hereunder,

IF. None of Licensor or its officers, partners, employees or agents shall be responsible or liable forany loss or damage to the personal property of Licensee or its employees, players, performe rs or agents inconnection with its use of the Arena hereunder.II . Indemnity,

Licensee hereby agrees to indemnify, de fend, save and hold harmless Licensor. Global Spectrum LLP,University of Central Florida Athletic Association. Inc . University of Centra l Florida. UCF Convocation CenterCorp. and the State o f Florida, and UCF Properties Corporation and their trustees , directors. o fficers and emp loyeesfrom and against any and all claim s. suits, losses, injuries, damages, liabili t ies and expenses, includin g] withoutlimitation, reasonable atto rneys' fees and expenses and costs of investigation (whether or not Iitigatiod occurs)incurred in connection therewith, occasioned with. arisi ng or alleged to arise from, wholly or in part. (i) any breachof this Agreement by Licensee, or (ii) the exercise by l icensee of the priv ileges herein granted or the provision byLicensor of materials, equipment or services in connection therewith or (iii) the acts or omissions, or violation ofany applicable law , rul e, regulation or order, o f or by Licensee or any of its agents . owners, officers, directors,members, manage rs, rep resentatives, contractors, exhibitors, employee s, servants, player s, guests, or iinvitees,part icipants or artists appearing in the Event (including support personnel in connection with the presentation of theEvent). persons assis t ing Licensee (whethe r on a paid or voluntary bas is ) or any person admitted to the Arena byLicensee. during the Term or any other time whi le the Arena (or any part thereof) is used by or are under the controlof Licensee. The provisions of this Section II shall survive any exp iration or termination of this Agreement

12. Ticket Sales .A. During the Tenn hereo f, a ll admittance into the Arena sha ll be by ticket only. The Arena will begenera l admission. and all registrants will be registered to a designated seating level based upon available seating

after all production sea ting holds (if app licable) have been determined. IB. Licensee has no right by virtue o f this license to sell or distribute tickets to the Event. it beingunderstood that Licensor retains the sole right to control the means and manner of sale and distr ibution of t tckets.Licensor shall not penn it tickets or passes in excess of the seating capacity of the Arena to be so ld or distributed .Licensor agrees that any seat w ith limited or impaired vision shall nor be placed on sa le unless written approval isreceived from Licensee and. if permission is granted. such tickets shall be clear ly marked accordingly asOBSTRUCTED." 6


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C. Licensor sha ll cause "Ticketmaster" to furnish ticketing services for the Event , and Licensor shallact as the custodian of all revenue from the sale of tickets sold. Such revenues shall not be released to Licensee untilsett lement, in accordance with Subsection 6C hereof. Payment of all "inside cha rges" or similar charges imposed byTicketmaster upon the event promoter or venue shall be the sole responsibility of Licensor. ID. Licensor shall impose a $10.00 per veh icle charge for event parking. The collection of such fundsshall be the soh: revenue of the Licen sor. Licensor shall pay all taxes and fees associated with such revenues.Parking fees may be increased at the sole and absolute discretion of the UC F Arena. The collection of such rundsshall be the sole revenue of the Licen sor. Licensor shall pay all taxes and fees associa ted with such revenues.E. Licensor shall impo se a $2.00 University facility surcharge on every purchased ticket, theproceeds of which sha ll be deducted from the gross proceeds and payable solely to the Licensor.F. Licensee shall have the right to review the seat allocation for all reporters, critics, reviewers andother working press personnel wh ich have been made by Licensor.

13. Remedies Upon Breach.In the event any party fails to performany of its ob ligations herein, the non-breaching party shall give thebreaching party notice in writing of such breach. If the breaching party shall not cure said breach within ten'( 10)days after receipt of notice if a monetary breach, or within thirty (30) days after rece ipt of notice if a breach bf anyother nature, the non-breaching party , at its option, shall have the right to (i) cancel this Agreement by giving five(5) days written notice thereof to the breaching party, (ii) sue the breaching party for legal or equitable relief, and/or

(iii) pursue any other remedy allowed hereunder or under applicab le law; provided, however, in the event the nonbreach ing party may suffer irrepa rable harm as a result of the breaching party' s breach, then it shall not be requiredto give written notice to the breaching party, or to wait any period of time before pursuing any remedies hereunderor under applicable law.14. Minors : Fore ign Nationa ls.

In the event that any minor or foreign national is scheduled to appear in the Event which is the subject ofthis Agreement, Licensee shall, in advance of such Event, obtain all necessary Employment Certificates and'othcrpermits and authorizations as may be required by any governmental authority .15. Compliance With Laws.

A. Licensee shall abide by, conform to and comply with, and shall cause every person under itsdirection or control who is connected with the performance of any aspect of th is Agreement to fully abide by,conform to and comply with all applicable laws, rules, regulations and ordina nces of the United States of America ,the Slate of Florida, the County o f Orange (Orlando, FI), the University of Central Florida and their respectiveagencies, as well as all rules and regulations ofLicensor for the use , occupancy and operat ion of the Arena. 11fLicensee is controlling any sale or distribution of tickets, Licensee will comply with all federal , state and municipallaws, statutes, ordinances or regulations relating to the payment of taxes or charges on tickets, admissions orreservations , and make returns and pay all such taxes or charges immediately when due, and indemnify Licensoragainst all liability, claim, loss or payment of any kind by reason of Licen see's failure or omission to comply withany such law or regulation and/or to pay all or any such taxes or charges. I

B. Licensee shall not use or attempt to use any part of the Arena for any usc or proposed use whichwould be contrary to law , common dece ncy or good morals or otherwise improper or detrimen tal to the reputationofLicensor. I

C. Licensee agrees not to discriminate against any employee or any applicant for employment for anyreason prohibited by law , and furt her agrees not to discrim inate7


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aga inst any person re lative to admission, services or privileges of fered to or enjoyed by the general public for anyreason prohibited by law.16. Restriction s On and Further Ob ligations of Licensee.

A. Licensee agrees not to do any act or suffer any act to be done during the Tenn of this Agreementwhich shall mar, deface or injure any part o f the Arena; and upon expiration of lhe Term. Licensee shall deliver upto Licensor the premi ses a foresaid in as goo d condition and repair as the same be found at the beginning of theTerm, excepting usua l wear and tear. I

B. If Licensee brings into the Arena any additional d isplays, props, decorations, materials or otherpersonal property , it must fully comply with the Fire Code of the State of Florida, i.e., all wiring on booths ordisplay fixtures must meet the rules and standards of the Florida/Orange county Board of Fire Underwrit ers and FireDepartment. Among other precautions, cloth, paper decorations, pine boughs, leaves, tree branches and all Otherdecorations must be flameproofed. Use of combustible material is forbidden. I

( I) Licensee understands that approva l from the Fire Marsha ll's Office must be ob tainedbefore bringing into the A rena explos ives , gasol ine, kerosene, acetylene or other fuel or combust ibles. Such aperm it shall be submitted for review to Licensor upon receipt and prior to the commencement of the Tenn. I

(2) Licen see understands that the fire fighting equ ipment in the buildings , such as fireexti nguishers and fire hose cab inets and exit s, sha ll not be covered or concealed in any manner whatsoever frompublic view or access.C. No gasoline motor drive n vehicles will be pennitted to enter into the bui lding, except at Licensor'sdiscretion.D. Licensee shall use the Arena in a safe and careful manner.E. Licensee agrees to furni sh Licensor with detailed production and house requirements and/or infonn ation forLicensee's use ofspace(s) no late r than four week s pr ior to the beginning of the term of th is agreement. I

F. (I ) Licensor and its authorized representatives shall have the righ t at al l times to enter uponand have access to the Are na, includ ing those areas to be used for the event described herein at any time and on anyoccasion without any restrictions whatsoever. I

(2) A duly autho rized repre sentative of Licen see sha ll be in atte ndance at the Arena when thedoors are opened and throughout the Event scheduled hereunder including scheduled move in and move out times .Licensee shall provide all of its representatives and working personnel to be adm itted to any part of the Arena withdisti nctive, visual identification which shall be approved by Licen sor prior to the commencement of the Tenn .

F. In licensing the use of the Arena to Licensee, it is understood that Licen sor does not relinquish theright to contro l the management thereof and to enforce all necessa ry rules Iand regulations. The decision ofLicenso r's repre sentative as to the number of persons that can safely and freelymove about in the Arena shall be fina l. Licenso r reserves the right to refuse admission to, eject or cau se to beejected from the premi ses, any obj ectionable person, or persons and neither the Licensor nor any of its omckrs,agents, or emp loyees shall be liable to Licensee for any damages that may be sustained by Licensee through exerciseby Licensor of such right I

G. A ll portions of the sidewalks, entries, doors, passages, vestibules, ha lls, corridors , stairways,passageways and all way s of access to public utilities of the Arena shall be kep t unobstructed by Licensee and notused for any other purpose other than ingress or egress.

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17. Misce llaneous.A. This Agreement (including any and all exh ibits hereto) reflects the entire agreement between theparties respecting the subject matter hereof and supersedes any and all prior agreements, unde rstandings or Icomm itment s, written or oral, between the parties hereto. This Agreement may only be modified or amended by a

subsequent written agreement signed by both parties hereto. IB. Notices by Licensor and Licensee to each other shall be deemed duly given if ( i) de livered:

personally with a signed receipt evidencing such delivery, (ii) transmitted by telecop ier with confirmation o transmission, (ii i) mailed by certified mail, return rece ipt requested, postage prepaid, or {iv] delivered by dulyrecognized air courier serv ice to the followin g addresses: .

Company/Licensee:

Licensor: Global Spectrum, L.P.UCF ArenaUniversity ofCentra l FloridaP.O. Box 161500Orlando, FL 32816Attn : Lexie Boone, General ManagerFax: 407-823-0248

C. This Agreement may be transferred or ass igned by Licensee provided the ass ignee agrees, inwrit ing, to be bound by all of the provisions hereof. I

D. The relationship between Licensor and Licensee is that of independent contractors and not agentsor emp loyees. Under no c ircumstances shall this license be considered a con tract of partnership or joint vemure.Neither party shall be liable for any of the debts, accounts, obl igations or other liab ilities of the other party, itsagents or employees, and neither party shall have any authority to obligate or bind the othe r party in any mannerexcept as may be expressly provided herein. I

E. ( I) If any even t occurs whereby Licensor's performance hereunder is materially hampered,whether before or dur ing the Term, as a result (wholly or in part) of any cause not entirely within Licensor's' controland which it cou ld not by reasonable diligence have avoided, such as destruction or damage to the Arena orlunfitness of the Arena for occupancy as a result of fire or other Act of God, riot, labor strike, national or localemergency, ca lamity or other cause not enti rely within Licensor's contro l (each a "Licenso r Force Majeure"),Licensor's performance unde r th is Agreement shall be suspended for the period of the Licensor Force Majeure, andLicensor shall return to Licensee any advance payment made to Licensor for the affected period without any furtherliability or obligation on the part of Licensor which arises out of such suspension. I

(2) If any event occurs whereby Licensee's performance hereunder is materially hampered,whether before or during the Term, as a result (wholly or in part) of any cause not entirely within Licensee's controland which it could not by reasonable diligence have avoided (each a "Licensee Force Majeure"), then, withoutlimiting Licensor's rights as a resu lt of the occurrence of the Licensee Force Majeu re, Licensor shall have the opt ion,without liability, to suspend the engagement for the Event for the duration of such Licensee Force Mejeurel bygiving Licensee written notice thereof.9


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(3) Upon removal or cessation of the Licensor Force Majeure or Licensee Force Majeure, asapplicable, the part ies' respective rights and obligations hereunder shall be reinstated for any and all subsequentsess ions of the Event remaining in the Tenn. I

F. This Agreement is entered into in the State of Florida and , in the event of any controversy orlitigation, shall be governed by and construed in accordance with the laws of the Slate of Florida, without regard toits principles of conflicts oflaws. I

G. No waive r sha ll be effective unless in writing and executed by the party to be charged witHsuchwaiver. No waiver shall be deemed a continuing waiver in respect of any subsequent breach or default, whethersimilar or dissimilar nature, unless expressly so stated in writing. II I. The invalidity or uncnforceabillty of any particular provision of this Agreement shall not affect theother provisions hereof, and this Agreemen t shall be construed in all respects as if such invalid or unenforceable

provision were omitted. II . Any head ings preceding the text of the several sect ions, paragraphs or subparagraphs hereof areinserted solely for conven ience of reference and shall not constitute a part of this Agreement, nor shall they f e its

meaning, construction or effect. IJ. This Agreement may be executed in multiple counterparts, each of which shall be deemed anoriginal but together shall constitute one and the same instrument. IK. Licensee represe nts and warrants to Licensor that it has the full right, power and autbority'to enter

into and perform this Agreement. IINWITNESS WH EREOF, the parties hereto have duly executed this Agreement the day and year firstabove written.

Lice nsor:GLOBAL SP EC1'RUM, L.P.

: Name: Lexie BooneTitle: General Manager

Name : Mr. Duane Ward. Premiere Marketing, Inc.Title : _

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Deposit:

UNIVERSITY OF CENTRAL FLOR IDA ARENAlGLOBAL SPECTRUMCONTRACT SUMMA){YATTAC IIMF:NT A

A non-refundable deposit in the amount of Ten Thousand(S IO,OOO.OO) Dollars is due and payable to Licensor upon execution of thisAgreement.All funds/deposits mu st be in t he form of a cert ified chec k.Fina l Estimated I>eposit : N/A

GLOBAL SI'ECfRUM, 1...1'.,FOR/ ; ;==-==--a.Name: Lexie BooneTitle: General Manager

Licensee;

Name: Mr, Duane Ward, Premiere Marketing. Inc.Tille:. _

I I


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ADDENDUM2010 Scan Hannity Freedom Concert Tour Rider

(To Be Att ached To All Venue Agreements)This Addendum desc ribes additional terms that app ly 10 the main venue rental agreement to which it is attached

and wherein it may be referenced . On any applicable item or topic where language occurs both in the Agreementand the Addendum , the language in the Addendum shall app ly. Any re ference to "t he Tour" below refers to thesame party to the venue rental agreement otherwise identified as " Promoter" , "Licensee" , " Lessee" , "Renter] ,"Tenant", etc .

I. FREEDOM STOHr.A. The Tour shall fuJly statT and operate a special merchandise operationknown as the "Freedom

Store" wherei n various commemorative and novelty items will be sold, proceeds from whkh willbenefit the official Tour charity . Se lling wi ll bedone by the Tour sta ff and a ll sa les in l h ~ a r e awill be exempt from any concession fee. with on e-hundred percent (100% ) of the revenues beingretained by the Tour. IB. Thi s Freedom Store is separate and apart from any Arti st merchandise sa les which will be subjectto any venue concession terms as ag reed upon between Venue and the Tour. I

c. The Tou r shall be responsible for any applicable taxes related to the sa les ofmerchandise therein.D. This Freedom Store may include Author signing act ivity and may require appropriate spat forlong lines to cue for the book signing. A representative of the Tour will advance these details with

the Venue in order to ensure there are no traffic flow problems at the event.2. TICKETS

A. On Sa le Da te . The "On Sale" dale for the Tour will be on ou r about Saturday. May 1. 2010.IB. Pre Sa les period . As is customary, the Tour will promote its schedule to listeners and viewers ofSean Hannity Radio and Television be fore the "on sa le date." These patrons will have the

opportunity to purchase a package that includes, among other items. concert tickets . The Tour willdisc lose the quantity and level of'tickets so ld through th is pre-von sa le date" activity to the venue .Any tickets pre- sold be fore the "on sa le da te" will be exempt from any ticket service fees/charges(e.g. "Ticketmastcr"). The Tour understands and agrees that these pre-sale tickets will be' subjectto any app licable sales taxes and faci lity fees as agreed upon between the Venue and the Tour.IC. Tou r Ticke t Coo rdi nator. The Tour has des ignated Mr. Damon Goude as the Tour SalesManager. Mr. Goude will work closely with the Venue Box Office representativ e well in advanceof the event to sca le the seating, ass ign seating and handle any seat ing issues that may arise prio rto , and on the day of. the event. I

D. Comp Tickets. The Tour anticipates that approximately Six Hundred (600) complimentarytickets will be allocated from the sea t ing manifest in order to satisfy Tour obligation s to provideromp tickets to Art ists/Program Personnel. Radio Affiliate Partn ers. Venue & The Tour Charily .These comp tickets will be exempt from any fees.

3. EXHIB ITS .. I>ISPLA \ 'SA. Prom otlonat Partnerts). In each market where the Tour visits, one o r more a l k . R . a d i ~ f f i l i a t e s

has granted certain exclusive promotional righ ts to the Tou r in their mark et. Those rights includethe following:

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I. The abi lity, subject to any Venue limitations and/or restrictions, to display certain ~ e d i a(signs, banners, posters, etc.] on behal f of their station and/or their sponsors throughoutthe venue (separate from any presence they may have on stage as part of the production),I2. The right, as venue space and rules allow, to set up exhib its in the public areas of thevenue. I

3. The right to hold a reception in space designated by the Tour, and as avai lable from thevenue.B. Financia l Responsibility. Any costs associated with fulfilling the above rights shall be borneexclusively by the Radio Affiliatc(s). Likewise, the affiliate is respons ible for working directlywith appropriate venue personnel to manage all aspects of this activ ity, including but not limitedto, authorizing and paying fora ll orders for labor, pipe and drape, electricity, special security,rigging, function-specific catering, etc. Once the Tour has cleared specific space that maype usedfor non-production function, each ent ity holding such a function shall be the sole responsible partyb m e Ic. Tour Cha n ty. In like manner, the Tour Charity (Freedom Alliance Foundation, Inc.) shan havethe right to occupy and use some function space (to be cleared in advance by the Tour) for theiron-site operations. The Charity will also be responsible for all costs associated with their

presence..t. STAGING.

A, Venue agrees to provide a 60x40 stage (height to be advanced by production) that will support 100pounds per square foot minimum. black skirting material on front and sides of stage, and two (2)sets oflighted stairs at no cost to the Tour. IB. A work area wi ll be requ ired beside the stage on each side. This area must be twelve ( 12) reetwide and forty (40) feet deep, starting at the downstage edge. Venue is asked to advise Tour no

less than sixty (60) days before show date if this area will encroach into fire lanes.5. BIKE RACKS ..(: BARRICADES.

A. The Tour anticipates that it will utilize anywhere fromten (10) to twenty (20) bike rack barriers inthe production area around the stage and enough bike rack to fonn a perimeter around the entireplatfonn of FOH sound. lighting and fixed camera positions . The Venue is asked to have1these onhand and ready to be set during load-in and set up on day o f show

6. CREDENTIALS/PASSES & SI'F:C IAL I>ARKING.A. Tou r Passes. The Tour will solely design and produce passes (aka "tour credentials") that willprovide access to the stage, production areas, backstage and any other non-public access areas thatthe venue makes available to the Tour. The Tour will work with Venue security personnel toidentify and explain the Tour credential scheme and hold a security meeting with security

personnel on day of show to go over any questions, updates, concerns, etc. IB. Non-Production VIP Passes. The Tour Radio Affiliate(s) and the Tour Charity may design theirown access passes that will help them secure access to their respective pre-show functions. These

passes will not provide access to any other areas or to the concert. IC. SpeciaVV IP Parking. In the event there is a need for, and an ability to provide special parkingareas and/or services (such as "Valet") for "VIP' s", whether with the Tour, the Radio Affiliate(s)or the Charity, the Tour will work with the Venue and will approve any accommodat ions: and/orparking pass design and distribution with the Venue.

7. MEDIA13


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B.

A. The Tour is CLOSED to all media other than the Talk Radio station(s) referenced above in sect ion3 A. Unless the Tour provides the Venue with any notice of change, all media inquiries madedirect ly to the venue are to be notified that this is "a closed show." This includes, but is not limitedto, any Television, Radio, Prin t or Internet media as well as photographers or videographers otherthan those approved by the Tour.

8. l' I I0TOGRAI 'I I ERSA. Pat ron Camera Policy. The Tour camera policy is as follows: Photo cameras must havea lens

of less than -t"long, must be used from the ticket holder's ass igned seat and no nash may be used.I' rofessional Pholographers . Professional cameras are not allowed and video cameras Je notallowed. The on ly exceptions to this policy are those expressly gran ted by the Tour.

9. SUITE FOR TOUR CIIAIUTYA. Where app licable and possible, the Tour requests that the Venue use its best efforts to mal{e one( I) suite ava ilable to the Tour Charity so that it may host certain VIP' s to watch the concert.

10. PO l lCt: ESCORT IA. A police escort will be required after the show for the Sean Hannity Bus (1) and for the LynyrdSkynyrd buses (4). The Venue is asked to ass ist the Tour in securing these escorts. A Tou rtransportation coordinator will be on site and will make more specific arrangements with theofficer(s) handling the escort before the headliner takes the stage .

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II . POWEI{A. Venue agrees to notify the Tour no Jess than sixty (6O) days in advance of show ifany oftbe

following power requ irements are not possible: II . All power must be located no further than fifty (50') feet from upstage center. Lighting

and sound power must be served by di fferent grounds. All meta l objects including thestage, scaffolding, towers, mix platforms. etc. that may come into contact with live powereven accidentally, must be securely grounded. 111e venue electrician shall be equippedwith proper lugs for connection of all cables and have ava ilable spare parts. fuses; extralugs etc. in the event of accidental overloads or other unfo reseen events. I

2. Lighting power sha ll be Two (2) legs = Ix600amp & Ix400amp three (3) phase, five (5)wire.

3. Sound power shall beOne (I ) leg = Ix400amp three(3) phase, five (5) wire.4. Motor power sha ll beOne (I ) leg = Ix60amp three (3) phase, four (4) wire.5. Bus ("S hore") power for eight (8) buses shall be (220) volts, sixty (60) amps, sing le

phase, Four (4) wire. I6. Use of generators must be approved in advance by the To ur. When generator power isrequired, two (2) 140KW Television rated, hush power, crystal sync- lock capable

generators will be needed. No construction type generators may be used.12. MEDICAL

A. Venue will supply the Tour with the name of a doctor with privileges of admission to a nearbyhospital who is a lso available for emergency call during all periods from load-in through load-our.

13. PRODUCTION ADVANCEA. Tour Production Manager. The Tour Producer (Mr. Frank Breeden) will secure the services ofa

Tour Production Manager who will advance all technical aspects of the Tour with the Venueproduction personne l. The Venue is asked to provide a package of materials that include all venuespecifications, diagrams, floor plans, photographs, etc. in an electronic format to be e-mailcd toFrank Breeden (frank@frankbreeden .com).

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Complaint: Federal Trade Commission (FTC): Complaints Against Sean Hannity, Freedom Concerts and...

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Transcript of Complaint: Federal Trade Commission (FTC): Complaints Against Sean Hannity, Freedom Concerts and...