EFTA01378037.pdf

third parties" Because we receive, store and use a substantial amount of information received from or generated by our users. we are also impacted by laws and regulations governing privacy. use of personal data and data breaches, primarily in the case of our operations in the European Union. As a result. we could be subject to various private and governmental claims and actions. See Risk factors—Risks relating to our business—Unauthorized access of personal data could give rise to liabilities as a result of governmental regulation, conflicting legal requirements or differing views of personal privacy rights." As the provider of dating products with a membership-based element, we are also subject to laws and regulations in certain U.S. states and other countries that apply to our automatically-renewing membership payment models. Finally, certain U.S. states and certain countries in Asia have laws that specifically govern dating services. Employees As of September 30, 2015. we had approximately 1.500 full-time employees and approximately 3,300 part-time employees worldwide. Substantially all of our part-time employees are employed by our non-dating businesses and perform academic tutoring, test preparation and college counseling services. We are not subject to any collective bargaining agreements and believe that our relationship with our employees is good. Intellectual property We regard our intellectual property rights, including trademarks, domain names and other intellectual property, as critical to our success. For example, we rely heavily upon the use of trademarks (primarily Match, Meetic, OkCupid, OurTime. Tinder and The Princeton Review, and associated domain names, taglines and logos) to market our dating products and applications and build and maintain brand loyalty and recognition. We have an ongoing trademark and service mark registration program, pursuant to which we register our brand names and product names, taglines and logos and renew existing trademark and service mark registrations in the United States and other jurisdictions to the extent we determine it to be necessary or otherwise appropriate and cost-effective. In addition, we have a trademark and service mark monitoring policy pursuant to which we monitor applications filed by third parties to register trademarks and service marks that may be confusingly similar to ours, as well as potential unauthorized use of our material trademarks and service marks. Our enforcement of this policy affords us valuable protection under current laws, rules and regulations. We also reserve and file registrations (to the extent available) and renew existing registrations for domain names that we believe are material to our business. We also rely upon a combination of in-licensed third-party and proprietary trade secrets. including proprietary algorithms. and to a lesser extent. upon patented and patent-pending technologies. processes 112 Table of Content% and features relating to our matching process systems or related features, products and services with expiration dates from 2025 to 2034. We have an ongoing invention recognition program pursuant to which we apply for patents to the extent we determine it to be necessary or othenvise appropriate and cost- effective. We rely on a combination of internal and extemal controls, including applicable laws, rules and regulations and contractual restrictions with employees, contractors, customers, suppliers, affiliates and others, to establish, protect and otherwise control access to our venous intellectual property nghts. Facilities Our corporate headquarters are located in Dallas, Texas. We do not own any real property. Our facilities, which we lease (in some cases, from IAC) both in the United States and abroad, consist of executive and administrative offices and data centers. Certain significant properties that we lease, all of which consist of executive and administrative offices, are described in the table immediately below. Location Approximate Area Lease Expiration Date Use Dallas, Texas 50,000 square feet September 30, 2016(1) CorporateiMatch headquarters Paris, France 41,000 square feet December 31, 2021 Meetic headquarters New York. New York 11,000 square feet October 31, 2017 OkCupid headquarters West Hollywood. California 14,000 square feet December 31, 2016(2) Tinder headquarters Ghent, Belgium 12,000 square feet December 31. 2018 Twoo headquarters (I) In October 2015, we entered into a new lease for our C.orporaterlAatch headquarters in Dales. Texas. pursuant to which we have agreed to lease approximately 73 P00 square feet through March 31 2027 We volt move our Corporate/Match headquarters to this space co or before the expratoco of the lease related to our current space (2) in October 2015. Tinder moved es headquarters to a hutch's; owned by IAC end intends to roman in ens space ptssuant to tie services agreement blowing the cone:Wan of this offering The anginal *sae term nos through December 31, 2016, and wit adomahcally renew unless termnated by either party We also lease space in four data centers: two for our North American. Latin American and Asian operations (one in North Dallas, Texas from a third party and another in Ashburn, Virginia from IAC), and two for our European operations (one in Paris. France and another in Zaventem, Belgium, both from third parties). We believe that our current facilities are adequate to meet our ongoing needs. We also believe that, if we require additional space, we will be able to lease additional facilities on commercially reasonable terms. Legal proceedings From time to time. we are involved in various legal proceedings arising in the normal course of business activities. such as patent infringement claims. http: www.scc.gov An:hives edger dats157518911001047469150061311222645Rn-I ISP20139:21:IT AMJ CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0075197 CONFIDENTIAL SONY GM_00221381 EFTA01378037