LENDINGTREE, INC.

FORM 10-K(Annual Report)

Filed 02/28/17 for the Period Ending 12/31/16

Address 11115 RUSHMORE DRIVE

CHARLOTTE, NC 28277Telephone 704-943-8942

CIK 0001434621Symbol TREE

SIC Code 6163 - Loan BrokersIndustry Consumer Lending

Sector FinancialsFiscal Year 12/31

http://www.edgar-online.com© Copyright 2017, EDGAR Online, Inc. All Rights Reserved.

Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

__________________________________________________

FORM 10-K__________________________________________________

(Mark One)

ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934

For the Fiscal Year Ended December 31, 2016or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the transition period from                                  to                                 Commission File No. 001-34063

__________________________________________________

LendingTree, Inc.(ExactnameofRegistrantasspecifiedinitscharter)

Delaware

(Stateorotherjurisdictionofincorporationororganization)

26-2414818

(I.R.S.EmployerIdentificationNo.)11115 Rushmore Drive, Charlotte, North Carolina 28277

(Addressofprincipalexecutiveoffices)(704) 541-5351

(Registrant'stelephonenumber,includingareacode)Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassCommonStock,$0.01ParValue

Name of each exchange on which registeredTheNASDAQStockMarket

Securities registered pursuant to Section 12(g) of the Act:None

________________________________________________________________________________________________________

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesýNooIndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.YesoNoýIndicatebycheckmarkwhethertheRegistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding

12months(orforsuchshorterperiodthattheregistrant wasrequiredtofilesuchreports), and(2)hasbeensubject tosuchfilingrequirementsforthepast90days.YesýNooIndicatebycheckmarkwhethertheRegistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmitted

andpostedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheRegistrant wasrequiredtosubmitandpostsuchfiles).YesýNooIndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(§229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,

tothebestofRegistrant'sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.o

IndicatebycheckmarkwhethertheRegistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerorasmallerreportingcompany.Seethedefinitionsof"largeacceleratedfiler,""acceleratedfiler"and"smallerreportingcompany"inRule12b-2oftheExchangeAct.

Largeacceleratedfilero Acceleratedfilerý Non-acceleratedfilero

(Donotcheckifasmallerreportingcompany) Smallerreportingcompanyo

IndicatebycheckmarkwhethertheRegistrantisashellcompany(asdefinedinRule12b-2oftheAct).YesoNoýTheaggregatemarketvalueofthevotingcommonstockheldbynon-affiliatesoftheRegistrantasofJune30,2016wasapproximately$629million.Forthepurposesofthe

foregoingcalculationonly,alldirectorsandexecutiveofficersoftheRegistrantandthesinglestockholderwhoownsinexcessof20%ofthevotingcommonstockareassumedtobeaffiliatesoftheRegistrant.AsofFebruary23,2017,therewere11,839,736sharesoftheRegistrant'scommonstock,parvalue$.01pershare,outstanding.

Documents Incorporated By Reference:PortionsoftheRegistrant'sproxystatementforits2017AnnualMeetingofStockholdersareincorporatedbyreferenceintoPartIIIherein.

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TABLE OF CONTENTS

    Page

PART I Item 1. Business 3Item 1A. Risk Factors 9Item 1B. Unresolved Staff Comments 21Item 2. Properties 21Item 3. Legal Proceedings 22Item 4. Mine Safety Disclosures 22

PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23Item 6. Selected Financial Data 26Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 28Item 7A. Quantitative and Qualitative Disclosures about Market Risk 39Item 8. Financial Statements and Supplementary Data 40Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 74Item 9A. Controls and Procedures 74Item 9B. Other Information 75

PART III Item 10. Directors, Executive Officers and Corporate Governance 76Item 11. Executive Compensation 76Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 76Item 13. Certain Relationships and Related Transactions, and Director Independence 76Item 14. Principal Accounting Fees and Services 76

PART IV Item 15. Exhibits, Financial Statement Schedules 77Item 16. Form 10-K Summary 81

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This annual report on Form 10-K for the fiscal year ended December 31, 2016 (the "Annual Report") contains "forward-looking statements" within themeaningoftheSecuritiesActof1933,asamended,andtheSecuritiesExchangeActof1934,asamendedbythePrivateSecuritiesLitigationReformActof1995.These forward-looking statements include statements related to our anticipated financial performance, business prospects and strategy; anticipated trends andprospectsinthevariousindustriesinwhichourbusinessesoperate;newproducts,servicesandrelatedstrategies;andothersimilarmatters.Theseforward-lookingstatementsarebasedonmanagement'scurrentexpectationsandassumptionsaboutfutureevents,whichareinherentlysubjecttouncertainties,risksandchangesincircumstances that are difficult to predict. The use of words such as "anticipates," "estimates," "expects," "projects," "intends," "plans" and "believes," amongothers,generallyidentifyforward-lookingstatements.

Actualresultscoulddiffermateriallyfromthosecontainedintheforward-lookingstatements.Factorscurrentlyknowntomanagementthatcouldcauseactualresultstodiffermateriallyfromthoseinforward-lookingstatementsincludethosemattersdiscussedbelow,includinginPartI.Item1A.RiskFactors.

Otherunknownorunpredictablefactorsthatcouldalsoadverselyaffectourbusiness,financialconditionandresultsofoperationsmayarisefromtimetotime.Inlightoftheserisksanduncertainties,theforward-lookingstatementsdiscussedinthisreportmaynotprovetobeaccurate.Accordingly,youshouldnotplaceunduerelianceontheseforward-lookingstatements,whichonlyreflecttheviewsofLendingTree,Inc.'smanagementasofthedateofthisreport.Weundertakenoobligationtoupdateorreviseforward-lookingstatementstoreflect changedassumptions, theoccurrenceofunanticipatedeventsorchangestofutureoperatingresultsorexpectations,exceptasrequiredbylaw.

PART I

ITEM 1.   Business

Our Company

LendingTree,Inc.("LendingTree",the"Company","we"or"us")operateswhatwebelievetobetheleadingonlineloanmarketplaceforconsumersseekingloansandothercredit-basedofferings.Ouronlinemarketplaceprovidesconsumerswithaccesstoproductofferingsfromover450activelenders(whichwerefertoas"NetworkLenders"),includingmortgageloans,homeequityloansandlinesofcredit,reversemortgageloans,autoloans,creditcards,personalloans,studentloans,smallbusinessloansandotherrelatedofferings.Inaddition,weoffertoolsandresources,includingfreecreditscores,thatfacilitatecomparisonshoppingfortheseloansandothercredit-basedofferings.Weseektomatchconsumerswithmultiplelenders,whocanprovidethemwithcompetingquotesfortheproducttheyareseeking.Byprovidingconsumersaccesstoabroadarrayofcredit-basedofferingsdirectlyfrommultiplelenders,ratherthanjustmultiplequotesfromthesame lender or indirectly through intermediaries, we believe our marketplace is differentiated from other providers operating loan comparison-shoppingmarketplaces.

Ourstrategicallydesignedandexecutedadvertisingandmarketingcampaigns(whichwerefertoasperformancemarketing)spanawidearrayofdigitalandtraditional media acquisition channels and promote our LendingTree and other brands and product offerings. Our marketing efforts are designed to attractconsumerstoourwebsitesandtoll-freetelephonenumbers.Interestedconsumerscompleteinquiryforms,providingdetailedinformationaboutthemselvesandtheloansorotherofferingstheyareseeking.Werefertosuchconsumerinquiriesasloanrequests.Wethenmatchtheseloanrequestswithlendersinourmarketplacethatareseekingtoservetheseconsumers'needs.Wegeneraterevenuefromtheselenders,generallyatthetimeoftransmittingaloanrequesttothem,intheformofamatchfee.Incertaininstancesoutsideourmortgagebusiness,wechargeotherkindsoffees,suchasclosedloanorclosedsalefees.Inadditiontoourprimaryloanrequestdatareferralbusiness,LendingTreealsomatchesconsumerswithlendersviawebsiteclicksandcallsforwhichlenderspayeitherfront-endorback-endfees.

Wearecontinuallyworkingtoimprovetheconsumerexperience.Wehavemadeinvestmentsintechnologically-adeptpersonnelandweusein-marketreal-timetestingtoimproveourdigitalplatforms.Additionally,weworkwithourlenders,includingprovidingtrainingandotherresources,toimprovetheconsumerexperience throughout the loan process. Further, we have been building and improving our My LendingTree platform, which provides a relationship-basedconsumerexperience,ratherthanjustatransaction-basedexperience.

Evolution and Future Growth of Our Business

At its inception, our original business was to serve consumers seeking home mortgage loans by matching them with various lenders. We launched theLendingTreebrandnationallyin1998and,overthelasteighteenyears,weinvestedsignificantlyinthisbrandtogainwidespreadconsumerrecognition.

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More recently, we have actively sought to expand the suite of loan and credit-based offerings we provide to consumers, in order to both leverage theapplicability of theLendingTreebrandaswell asmorefullyservetheneedsof consumersandlenders. Webelievethat consumerswithexistingLendingTree-brandedassociationswillbemorelikelytoutilizeourotherserviceofferingsthanthoseofotherproviderswhosebrandsconsumersmaynotrecognize.

InJune2014,were-launchedMyLendingTree,aplatformthatoffersapersonalizedloancomparison-shoppingexperience,byprovidingfreecreditscoresandcreditscoreanalysis.Thisplatformenablesustoobserveconsumers'creditprofilesandthenidentifyandalertthemtoloanandothercredit-basedofferingsonourmarketplace that may be more favorable than the loans they have at a given point in time. This is designed to provide consumers with measurable savingsopportunitiesovertheirlifetimes.

Byexpandingourportfolioofloanandcredit-basedofferings,wearegrowinganddiversifyingourbusinessandsourcesofrevenue.Weintendtocapitalizeonourexpertiseinperformancemarketing,productdevelopmentandtechnology,andtoleveragethewidespreadrecognitionoftheLendingTreebrandtoeffectthisstrategy.

Webelievetheconsumerandsmallbusinessfinancialservicesindustryisintheearlystagesofafundamentalshifttoonlineproductofferings,similartotheshiftthatstartedinretail andtravelmanyyearsagoandisnowwellestablished.Webelievethatlikeretail andtravel, asconsumerscontinuetomovetowardsonlineshoppingandtransactionsforfinancialservices,supplierswillincreasinglyshifttheirproductofferingsandadvertisingbudgetstowardtheonlinechannel.Webelievethestrengthofourbrandsandofourlendernetworkplaceusinastrongpositiontocontinuetobenefitfromthismarketshift.

Acquisition of CompareCards

OnNovember 16, 2016, we acquired Iron Horse Holdings, LLC, which does business under the name CompareCards. CompareCards is a leading onlinesourcefor side-by-side credit cardcomparisonshopping. CompareCards provides consumers withonecentralized locationfor pertinent credit cardinformationneededtofindthebestcardfortheirneeds.Theacquisitioncontinuesourdiversificationstrategyinnon-mortgagecategories.

Products

Wecurrently report our revenues in two product categories: (i) mortgage products and (ii) non-mortgage products. Non-mortgage products include creditcards,personalloans,homeequity,reversemortgage,autoloans,smallbusinessloansandstudentloans.Non-mortgageproductsalsoincludehomeimprovementreferralsandothercreditproductssuchascreditrepairanddebtsettlement.

Mortgageandnon-mortgageproductrevenueisasfollows(in thousands) :

  For the Year Ended December 31,  2016 2015 2014

Mortgageproducts $ 219,991 $ 165,272 134,137Non-mortgageproducts 164,411 88,944 33,213Total revenue $ 384,402 $ 254,216 $ 167,350

LendingTree does not charge consumers or small businesses for the use of our services. Revenues from our mortgage products are mostly derived fromupfrontmatchfeespaidbyNetworkLendersthatreceivealoanrequest,andinsomecasesupfrontfeesforclicksorcalltransfers.BecauseagivenloanrequestformcanbematchedwithmorethanoneNetworkLender,uptofivematchfeesmaybegeneratedfromasingleconsumerloanrequestform.Revenuesfromournon-mortgageproductsarederivedfromupfrontmatchfeespaidondeliveryofaloanrequest,clickorcallandclosedloanfees.Forourcreditcardproduct,wesendclick traffic to issuers and are paid per card approval. For the years endedDecember 31, 2016 ,2015and2014, one NetworkLender, loanDepot, LLC,accounted for13%,12%and13%of total revenue, respectively, and another Network Lender, Quicken Loans, accounted for 15%,11%and11%oftotalrevenue,respectively.

MortgageProducts

Ourmortgageproductscategoryincludesourpurchaseandrefinanceproducts.

We partner with lenders throughout the United States to provide full geographic lending coverage and to offer a complete suite of loan offerings on ourmarketplace. To participate on our marketplace, lenders are required to enter into contracts with us that state the terms and conditions for such participation,althoughthesecontractsgenerallymaybeterminatedforconveniencebyeitherparty.Weperformcertainduediligenceproceduresonprospectivenewlenders,includingscreeningagainstanationalanti-frauddatabasemaintainedbytheMortgageAssetResearchInstitute,whichhelpsmanageourriskexposure.Thedataisutilized to determine whether a lender and its principals are eligible to participate on our marketplace and have not been convicted of and/or penalized forfraudulentactivity.

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Consumersseekingmortgageloansthroughourloanmarketplacecanreceivemultipleconditionalloanoffersfromparticipatinglendersinresponsetoasingleloanrequestform.WerefertotheprocessbywhichwematchconsumersandNetworkLendersasthematchingprocess.Thismatchingprocessconsistsofthefollowingsteps:

(1) Loan  Request.  Consumers complete a single loan request form with information regarding the type of home loan product they are seeking, loanpreferencesandotherdata.Consumersalsoconsenttoasoftinquiryregardingtheircredit.

(2) Loan Request Form Matching and Transmission. Ourproprietarysystemsandtechnologymatchagivenconsumer'sloanrequestformdata,creditprofileandgeographiclocationagainstcertainpre-establishedcriteriaofNetworkLenders,whichmaybemodifiedfromtimetotime.Onceagivenloanrequestpassesthroughthematchingprocess,theloanrequestisautomaticallytransmittedtouptofiveparticipatingNetworkLenders.

(3) Lender Evaluation and Response. NetworkLendersthatreceivealoanrequestformevaluatetheinformationcontainedinittodeterminewhethertomakeaconditionalloanoffer.

(4) Communication of a Conditional Offer. AllmatchedNetworkLendersandanyconditionaloffersarepresentedtotheconsumeruponcompletionoftheloanrequestform.Consumerscanreturntothesiteandviewtheiroffer(s)atanytimebyloggingintotheirMyLendingTreeprofile.Additionally,matchedlendersandoffersarealsosenttotheemailaddressassociatedwiththeconsumerrequest.

(5) Loan Processing. ConsumersmaythenelecttoworkofflinewithrelevantNetworkLenderstoprovidepropertyinformationandadditionalinformationbearingontheircreditworthiness.IfaNetworkLenderapprovesaconsumer'sapplication,itmaythenunderwriteandoriginatealoan.

(6) Ongoing  Consumer  and  Lender  Support.  E-mail and telephone support are provided to both Network Lenders and consumers. This support isdesignedtoprovidetechnicalassistanceandincreaseoverallsatisfactionofNetworkLendersandconsumers.

Wealsooffer consumersanalternative"short-form"matchingprocess, whichprovidesthemwithlendercontact informationrather thanconditional offersfromNetworkLenders.Thisshort-formprocesstypicallyrequiresconsumerstosubmitlessdatathanrequiredinconnectionwiththematchingprocessdescribedaboveanddoesnotinvolveconsumerconsenttoaninquiryregardingcredit.

InJanuary2013,weexpandedourmortgageofferingsbylaunchingLoanExplorer,a"ratetable"loanmarketplace,whereconsumerscanentertheirloanandcredit profile and dynamically viewreal-time rates fromlenders without entering their contact information. Consumers then have the option of calling lendersdirectly, clickingthroughtolenders' websitesorsendingdatarequests forlenderstofollowupwiththemdirectly. Wedevelopedthis offeringthroughinternalproductdevelopmentefforts.

Non-MortgageProducts

Lending Products . Other lending products on our online marketplace include information, tools and access to multiple conditional loan offers for thefollowing:

• Auto, which includes our auto refinance and purchase loan products. Auto loans enable consumers to purchase newor used vehicles or refinance anexistingloansecuredbyanautomobile.

• Creditcards,whichincludeofferingsfrommostmajorcardissuers.Welaunchedthisofferinginthesecondquarterof2013.Additionally,asdescribedabove,duringthefourthquarterof2016,wepurchasedCompareCards,aleaderintheonlinecreditcardcomparisonindustry.

• Homeequityloansandlinesofcredit,whichenablehomeownerstoborrowagainsttheequityintheirhome,asmeasuredbythedifferencebetweenthemarketvalueofthehomeandanyexistingloanssecuredbythehome.Homeequityloansareone-timelumpsumloans,whereasahomeequitylineofcreditreflectsalineofrevolvingcreditwheretheborrowerhasflexibilitytodrawdownandrepaythelineovertime.

• Personalloans,whichareunsecuredobligationsgenerallycarryingshortertermsandsmallerloanamountsthanhomemortgages.Wehavehistoricallyoperatedapersonalloanoffering,butlaunchedanenhancedversionofthisofferinginthethirdquarterof2013.

• Reversemortgageloans,whicharealoanproductavailabletoqualifyinghomeownersage62orolder.Welaunchedthisofferinginthefirstquarterof2013throughinternalproductdevelopmentefforts.

• Smallbusinessloans,whichincludeabroadarrayoffinancingtypes,includingbutnotlimitedtoloanssecuredbyworkingcapital,equipment,realestateandotherformsoffinancing,providedtosmallandmedium-sizedbusinessesinamountsgenerallyupto(althoughsometimesexceeding)$1million.Welaunchedoursmallbusinessloanmarketplaceinthethirdquarterof2014.

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• Student loans, which includes both new loans to finance an education and related expenses, as well as refinancing of existing loans. We launched astudentloanofferinginthesecondquarterof2014andastudentloanrefinancingofferinginthefourthquarterof2014.Additionally,duringthesecondquarterof2016,wepurchasedSimpleTuition,aleadingonlinemarketingplatformforstudentloans.

Weintendtocontinueaddingnewlendingofferingsforconsumers,smallbusinessesandlendersonouronlinemarketplace,inordertogrowanddiversifyoursourcesof revenue. Wemaydevelopsuchnewofferingsthroughinternal product developmentefforts, strategic businessrelationships withthirdparties and/oracquisitions.

Other Products .Otherproductsalsoincludesinformation,toolsandaccesstothefollowing:

• Credit repair, throughwhichconsumers canobtain assistance improvingtheir credit profiles, in order to expandandimprove loanandother financialproductopportunitiesavailabletothem.

• Debtreliefservices,throughwhichconsumerscanobtainassistancenegotiatingexistingloans.

• Homeimprovementservices,throughwhichconsumershavetheopportunitytoresearchandfindhomeimprovementprofessionalservices.

• Personalcreditdata,throughwhichconsumerscangaininsightsintohowprospectivelendersandotherthirdpartiesviewtheircreditprofiles.

• Realestatebrokerageservices,throughwhichconsumersarematchedwithlocalrealtorswhocanassistthemintheirhomepurchaseorsaleefforts.

• Variousconsumerinsuranceproducts,includinghomeandautomobile,throughwhichconsumersarematchedwithinsuranceleadaggregatorstoobtaininsuranceoffers.

Werefer to the various purchasers of leads fromour other marketplaces as lead purchasers. Wegenerate revenuethroughthe insurance products andrealestatebrokerageservicesthroughmatchfeespaidtousbyinsuranceleadaggregatorsandrealestatebrokersparticipatinginouronlinemarketplace.Wegeneraterevenuefromcreditrepairanddebtreliefserviceseitherthroughafeeforacustomerreferraltoaserviceproviderpartnerorthroughafeeatthetimeaconsumerenrollsinaprogramwithoneofourpartners.Revenueforhomeservicesisderivedprimarilythroughmatchingofleadstootherhomeservicesleadaggregators.

Seasonality

Revenueinourlendingbusinessissubjecttocyclicalandseasonaltrends.Homesales(andpurchasemortgages)typicallyriseduringthespringandsummermonthsanddeclineduringthefallandwintermonths,whilerefinancingandhomeequityactivityisprincipallydrivenbymortgageinterestratesaswellasrealestate values. However, in recent periods additional factors affecting the mortgage and real estate markets, such as the 2008-2009 financial crisis and ensuingrecessionhaveimpactedcustomaryseasonaltrends.

We anticipate revenue in our newer products to be cyclical as well; however, we have limited historical data to predict the nature and magnitude of thiscyclicality.Basedonindustrydata,weanticipatethatasourpersonalloanproductmatureswewillexperiencelessconsumerdemandduringthefourthandfirstquarters of each year. Other factors affecting our businesses include macro factors such as credit availability in the market, the strength of the economy andemployment.

Competition

Ourlendingandotherbusinessescompetewithotheronlinemarketingcompanies, includingonlineintermediaries thatoperatenetwork-typearrangements.Wealsofacecompetitionfromlendersthatsourceconsumerloanoriginationsdirectly.Thesecompaniestypicallyoperateconsumer-brandedwebsitesandattractconsumers via online banner ads, keyword placement on search engines, direct mail, television ads, retail branches, realtors, brokers, radio and other sources,partnershipswithaffiliatesandbusinessdevelopmentarrangementswithothers,includingmajoronlineportals.

Product Development

Weinvestinthecontinueddevelopmentofbothnewandexistingproductstoenhancetheexperiencesofconsumersandlendersastheyinteractwithus.Weincurredproductdevelopmentcostsof$19.8million,$16.8millionand$11.1millionduringtheyearsendedDecember31,2016,2015and2014,respectively,allofwhichwascompanysponsored.

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Financial Information About Segments and Geographic Areas

Wehaveonereportablesegment.See Note19—SegmentInformationtotheconsolidatedfinancialstatementsincludedelsewhereinthisreport.

Additional information on our financial performance by geographic areas can be found in Note 2—Significant Accounting Policies to the consolidatedfinancialstatementsincludedelsewhereinthisreport.

Corporate History

LendingTree, Inc., is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC. LendingTree, LLC, formerly known asLendingTree,Inc.,wasincorporatedinthestateofDelawareinJune1996andcommencednationwideoperationsinJuly1998.LendingTree,Inc.,wasacquiredbyIAC/InterActiveCorp("IAC")in2003andconvertedtoaDelawarelimitedliabilitycompany(LendingTree,LLC)inDecember2004.LendingTree,LLCenteredthe mortgage origination business through the acquisition of Home Loan Center, Inc. in 2004. On August 20, 2008, LendingTree, LLC(along with its parentholdingcompanyTree.com,Inc.)wasspunofffromIAC/InterActiveCorpintoaseparatepublicly-tradedcompany.Werefertotheseparationtransactionasthe"spin-off"inthisreport.Tree.comwasincorporatedasaDelawarecorporationinApril2008inanticipationofthespin-off.TheHomeLoanCenterbusinesswassoldtoDiscoverFinancialServicesin2012.Sincethen,theCompanyhasoperatedasapureonlinemarketplaceanddoesnotoriginateloans.EffectiveJanuary1,2015,wechangedourcorporatenamefromTree.com,Inc.toLendingTree,Inc.

Regulation and Legal Compliance

OurbusinessesmarketandprovideservicesinheavilyregulatedindustriesthroughanumberofdifferentonlineandofflinechannelsacrosstheUnitedStates.Asaresult,wearesubjecttoavarietyofstatutes,rules,regulations,policiesandproceduresinvariousjurisdictionsintheUnitedStates,including:

• Restrictionsontheamountandnatureoffeesorinterestthatmaybechargedinconnectionwithaloan,suchasstateusuryandfeerestrictions;

• Restrictions on the manner in which consumer loans are marketed and originated, including, but not limited to, the making of required consumerdisclosures, such as the Federal Trade Commission's Mortgage Advertising Practices ("MAP") Rules, federal Truth-in-Lending Act, the federal EqualCredit Opportunity Act, the federal Fair Credit Reporting Act, the federal Fair Housing Act, the federal Real Estate Settlement Procedures Act("RESPA"),andsimilarstatelaws;

• Restrictions imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd Frank Act") and current or future rulespromulgated thereunder, including, but not limited to, limitations on fees charged by mortgage lenders, mortgage broker disclosures and rulespromulgatedbytheConsumerFinancialProtectionBureau("CFPB"),whichwascreatedundertheDodd-FrankAct;

• Restrictions on the amount and nature of fees that may be charged to lenders and real estate professionals for providing or obtaining consumer loanrequests,suchasunderRESPA;

• Restrictions on the amount and nature of fees that may be charged to consumers for real estate brokerage transactions, including any incentives andrebatesthatmaybeofferedtoconsumersbyourbusinesses;

• Federal andState lawsrelating to the implementation of the Secure andFair Enforcement of Mortgage Licensing Act of 2008(the "SAFEAct") thatrequireustobelicensedinallStatesandtheDistrictofColumbia(licensingrequirementsareapplicabletobothindividualsand/orbusinessesengagedinthesolicitationoforthebrokeringofresidentialmortgageloansand/orthebrokeringofrealestatetransactions);

• Stateandfederalrestrictionsonthemarketingactivitiesconductedbytelephone,mail,email,mobiledeviceortheinternet,includingtheTelemarketingSalesRule("TSR"),theTelephoneConsumerProtectionAct("TCPA"),statetelemarketinglaws,federalandstateprivacylaws,theCAN-SPAMAct,andtheFederalTradeCommissionActandtheiraccompanyingregulationsandguidelines;

• Statelawsrequiringlicensureforthesolicitationoforbrokeringofconsumerloanswhichcouldaffectusinourpersonalloan,automobileloan,studentloanorothernon-mortgageconsumerlendingbusinesses;

• Restrictionsontheusageandstorageofconsumercredit information, suchasthosecontainedinthefederal Fair Credit ReportingActandthefederalCreditRepairOrganizationAct;and

• State"BirdDog"lawswhichrestricttheamountandnatureoffees,ifany,thatmaybechargedtoconsumersforautomobiledirectandindirectfinancing.

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Intellectual Property

We believe that our intellectual property rights are vital to our success. To protect our intellectual property rights in our brand, technology, products,improvementsandinventions,werelyonacombinationoftrademarks,tradesecret,patentsandotherlaws,andcontractualrestrictionsondisclosure,includingconfidentialityagreementswithstrategicpartners,employees,consultantsandotherthirdparties.Asneworimprovedproprietarytechnologiesaredevelopedorinventionsareidentified,weseekpatentprotectionintheUnitedStatesandabroad,asappropriate.WehavetwoissuedU.S.patentsrelatingtoourtechnologies,includingthoserelatingtothemethodandnetworkforcoordinatingaloanovertheinternet,whichexpirein2018.InMarch2014,afederaljuryfoundthesetwopatentsinvalid.See Note13—Contingenciesinthenotestotheconsolidatedfinancialstatementsincludedelsewhereinthisreport.

Many of our services are offered under proprietary trademarks and service marks. We generally apply to register or secure by contract our principaltrademarksandservicemarksastheyaredevelopedandused.Wehave48trademarksandservicemarksregisteredwiththeUnitedStatesPatentandTrademarkOffice.Theseregistrationscantypicallyberenewedat10-yearintervals.

Wereserveandregisterdomainnameswhenandwherewedeemappropriateandwecurrentlyhaveapproximately1,232registereddomainnames.Wealsohaveagreementswiththirdpartiesthatprovideforthelicensingofpatentedandproprietarytechnologyusedinourbusiness.

Fromtimetotime,wemaybesubjectedtolegalproceedingsandclaims,orthreatenedlegalproceedingsorclaims,includingallegationsofinfringementofthird-partytrademarks,copyrights,patentsandotherintellectualpropertyrightsofthirdparties.Inaddition,theuseoflitigationmaybenecessaryforustoenforceourintellectual propertyrights,protecttradesecretsortodeterminethevalidityandscopeofproprietaryrightsclaimedbyothers.Anylitigationofthisnature,regardless of outcomeormerit, couldresult insubstantial costs anddiversionofmanagement andtechnical resources, anyofwhichcouldadverselyaffect ourbusiness, financial condition and results of operations.See Note13—Contingencies—Intellectual PropertyLitigation—Zillowin the notes to the consolidatedfinancialstatementsincludedelsewhereinthisreport.

Employees

AsofDecember31,2016,wehad399employees,ofwhichapproximately388arefull-timeand11aretemporaryorpart-time.Noneofouremployeesarerepresentedundercollectivebargainingagreementsandweconsiderourrelationswithemployeesandindependentcontractorstobegood.

Additional Information

Website and Public Filings

Wemaintain a corporate website atwww.lendingtree.com and an investor relations website at investors.lendingtree.com . None of the information on ourwebsite is incorporated by reference in this report, or in any other filings with, or in any information furnished or submitted to, the Securities and ExchangeCommission(the"SEC").

Wemakeavailable,freeofchargethroughourwebsite,ourreportsonForms10-K,10-Qand8-K,ourproxystatementfortheannualshareholders'meetingandbeneficialownershipreportsonForms3,4and5assoonasreasonablypracticableafterwefilesuchmaterialwith,orfurnishsuchmaterialto,theSEC.OurfilingswiththeSECareavailable tothepublicovertheInternet at theSEC'swebsiteatwww.sec.gov , or at theSEC'spublicreferenceroomlocatedat 100FStreet,N.E.,Washington,DC20549.PleasecalltheSECat1-800-SEC-0330forfurtherinformationontheoperationofthepublicreferenceroom.

Code of Business Conduct and Ethics

Ourcodeofbusinessconductandethics,whichappliestoallemployees,includingallexecutiveofficersandseniorfinancialofficersanddirectors,ispostedonourwebsiteatinvestors.lendingtree.com/corporate-governance.cfm .ThisisourcodeofethicspursuanttoItem406ofSECRegulationS-KandtherulesofTheNASDAQStockMarket.AnyamendmentstoorwaiversofthecodeofbusinessconductandethicsthatareofthetypedescribedinItem406(b)and(d)ofRegulationS-Kwillbedisclosedonourwebsite.

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ITEM 1A.   RiskFactors

Investing in our common stock involves a high degree of risk. Before making an investment decision, you should carefully consider the risks described below,together with all of the other information included in this annual report and the information incorporated by reference herein. If any of the risks described below,or incorporated by reference into this annual report actually occur, our business, financial condition or results of operations could suffer. In that case, the tradingprice of our common stock may decline and you may lose all or part of your investment. The risks and uncertainties we have described are not the only ones weface. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business, financial condition andresults of operations. Certain statements below are forward-looking statements. See the information included under the heading "Cautionary Statement RegardingForward-Looking Information."

Risks Related to Our Business and Industry

Adverse conditions in the primary and secondary mortgage markets, as well as the general economy, could materially and adversely affect our business,financialconditionandresultsofoperations.

Constraints in the primary andsecondary mortgage markets have in the past had, andmayin the future have, an adverse effect on our business, financialconditionandresultsofoperations.Generally,increasesininterestratesadverselyaffecttheabilityofourNetworkLenderstocloseloans,andadverseeconomictrendslimittheabilityofourNetworkLenderstoofferhomeloansotherthanlow-marginconformingloans.Ourbusinessesmayexperienceadeclineindemandfortheirofferingsduetodecreasedconsumerdemandasaresultoftheconditionsdescribedabove,noworinthefuture.Conversely,duringperiodswithdecreasedinterestrates,NetworkLendershavelessincentivetouseourmarketplaces,orinthecaseofsuddenincreasesinconsumerdemand,ourNetworkLendersmaylacktheabilitytosupportsuddenincreasesinvolume.

WedependonrelationshipswithNetworkLendersandanyadversechangesintheserelationshipscouldadverselyaffectourbusiness,financialconditionandresultsofoperations.

Oursuccessdependsinsignificantpartonthefinancialstrengthoflendersparticipatingonourmarketplacesandcontinuingrelationshipswithsuchlenders.NetworkLenderscould,foranyreason,experiencefinancialdifficultiesandceaseparticipatingonourlendermarketplace,failtopaymatchand/orclosingfeeswhendueand/ordropthequalityoftheirservicestoconsumers.WecouldalsohavecommercialorotherdisputeswithsuchNetworkLendersfromtimetotime.TheoccurrenceofoneormoreoftheseeventswithasignificantnumberofNetworkLenderscould,aloneorincombination,haveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

Failure to maintain brand recognition and attract and retain consumers in a cost-effective manner could materially and adversely affect our business,financialconditionandresultsofoperations.

Inordertoattract visitors toourwebsites, convert thesevisitors intoloanrequests forourNetworkLendersandleadpurchasersandgenerate repeat visitsfrom consumers, our businesses must promote and maintain their various brands. Brand promotion and maintenance requires the expenditure of considerablemoneyandresourcesforonlineandofflineadvertising,marketingandrelatedefforts,aswellasthecontinuedprovisionandintroductionofhigh-qualityproductsandservices.

Brandrecognitionisakeydifferentiatingfactoramongprovidersofonlineservices.Webelievethatcontinuingtobuildandmaintaintherecognitionofourvariousbrandsiscriticaltoachievingincreaseddemandfortheservicesprovidedbyourbusinesses.Accordingly,wehavespent,andexpecttocontinuetospend,significantamountson,anddevotesignificantresourcesto,branding,advertisingandothermarketinginitiatives,whichmaynotbesuccessfulorcost-effective.Thefailureofourbusinessestomaintaintherecognitionoftheirrespectivebrandsandattractandretainconsumersinacost-effectivemannercouldmateriallyandadverselyaffectourbusiness,financialconditionandresultsofoperations.

Adversepublicityfromlegalproceedingsagainstusorourbusinesses,includinggovernmentalproceedingsandconsumerclassactionlitigation,orfromthedisclosure of information security breaches, could negatively impact our various brands, which could materially and adversely affect our business, financialconditionandresultsofoperations.Inaddition,theactionsofourthird-partymarketingpartnerswhoengageinadvertisingonourbehalfcouldnegativelyimpactourvariousbrands.

Wedependonsearchenginesandotheronlinesourcestoattractvisitorstoourwebsites,andifweareunabletoattractthesevisitorsandconvertthemintoloanrequestsforourNetworkLendersandleadpurchasersinacost-effectivemanner,ourbusinessandfinancialresultsmaybeharmed.

Oursuccessdependsonourabilitytoattractonlineconsumerstoourwebsitesandconvertthemintocustomersinacost-effectivemanner.Wedepend,inpart,onsearchenginesandotheronlinesourcesforourwebsitetraffic. Weareincludedinsearchresultsasaresultofbothpaidsearchlistings,wherewepurchasespecificsearchtermsthatresultintheinclusionofour

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advertisement, and, separately, organic searches, that depend upon the searchable content on our sites. Search engines and other online sources revise theiralgorithmsfromtimetotimeinanattempttooptimizetheirsearchresults.

Ifoneormoreofthesearchenginesorotheronlinesourcesonwhichwerelyforwebsitetrafficweretomodifyitsgeneralmethodologyforhowitdisplaysourwebsites,resultinginfewerconsumersclickingthroughtoourwebsites,ourbusinesscouldsuffer.Ifanyfreesearchenginetrafficonwhichwerelybeginscharging fees for listing or placement, or if one or more of the search engines or other online sources on which we rely for purchased listings, modifies orterminatesitsrelationshipwithus,ourexpensescouldrise,wecouldlosecustomers,andtraffictoourwebsitescoulddecrease,allofwhichcouldhaveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

Wecompetewithanumberofotheronlinemarketingcompanies,andwefacethepossibilityofnewcompetitors.

Wecurrentlycompetewithanumberofotheronlinemarketingcompaniesandweexpectthatcompetitionwillintensify.Someoftheseexistingcompetitorsmayhavemorecapitalorcomplementaryproductsorservicesthanwedo,andtheymayleveragetheirgreatercapitalordiversificationinamannerthatadverselyaffectsourcompetitiveposition,includingbymakingstrategicacquisitions.Inaddition,newcompetitorsmayenterthemarketandmaybeabletoinnovateandbringproductsandservicestomarketfaster,oranticipateandmeetconsumerorNetworkLenderdemandbeforewedo.Othernewcomers,includingmajorsearchengines and content aggregators, may be able to leverage their existing products and services to our disadvantage. We may be forced to expend significantresources to remain competitive with current and potential competitors. If any of our competitors are more successful than we are at attracting and retainingcustomersorNetworkLenders,ourbusiness,financialconditionandresultsofoperationscouldbemateriallyandadverselyaffected.

Oursuccess depends, in part, onthe integrity of oursystemsandinfrastructures. Systeminterruptionandthe lackof integrationandredundancyinthesesystemsandinfrastructuresmayhaveamaterialandadverseimpactonourbusiness,financialconditionandresultsofoperations.

Oursuccessdepends,inpart,onourabilitytomaintaintheintegrityofoursystemsandinfrastructures,includingwebsites,informationandrelatedsystems,callcentersanddistributionandfulfillmentfacilities.Systeminterruptionandthelackofintegrationandredundancyinourinformationsystemsandinfrastructuresmaymaterially andadversely affect our ability to operate websites, process andfulfill transactions, respondto customer inquiries andgenerally maintain cost-efficient operations. We may experience occasional system interruptions that make some or all systems or data unavailable or prevent our businesses fromefficientlyprovidingservicesorfulfillingorders.Wealsorelyonaffiliateandthird-partycomputersystems,broadbandandothercommunicationssystemsandserviceprovidersinconnectionwiththeprovisionofservicesgenerally,aswellastofacilitate,processandfulfilltransactions.Anyinterruptions,outagesordelaysinoursystemsandinfrastructures,ourbusinesses,ouraffiliatesand/orthirdparties,ordeteriorationintheperformanceofthesesystemsandinfrastructures,couldimpairtheabilityofourbusinessestoprovideservices,fulfillordersand/orprocesstransactions.Fire,flood,powerloss,telecommunicationsfailure,hurricanes,tornadoes, earthquakes, acts of war or terrorism, acts of God, unauthorized intrusions or computer viruses, and similar events or disruptions may damage orinterruptcomputer,broadbandorothercommunicationssystemsandinfrastructuresatanytime.Anyoftheseeventscouldcausesysteminterruption,delaysandlossofcriticaldata,andcouldpreventourbusinessesfromprovidingservices,fulfillingordersand/orprocessingtransactions.Whileourbusinesseshavebackupsystems for certain aspects of their operations, these systems are not fully redundant and disaster recovery planning is not sufficient for all eventualities. Inaddition,wemaynothaveadequateinsurancecoveragetocompensateforlossesfromamajorinterruption.Ifanyoftheseeventsweretooccur,itcouldmateriallyandadverselyaffectourbusiness,financialconditionandresultsofoperations.

A breach of our network security or the misappropriation or misuse of personal consumer information may have a material and adverse impact on ourbusiness,financialconditionandresultsofoperations.

Anypenetration of network security or other misappropriation or misuse of personal consumer information maintained by us or our third-party marketingpartnerscouldcauseinterruptionsintheoperationsofourbusinessesandsubjectustoincreasedcosts,litigationandotherliabilities.Claimscouldalsobemadeagainstusorourthird-partymarketingpartnersforothermisuseofpersonalinformation,suchasforunauthorizedpurposesoridentitytheft,whichcouldresultinlitigation and financial liabilities, as well as administrative action from governmental authorities. Real or perceived security breaches could also significantlydamageourreputationwithconsumersandthirdpartieswithwhomwedobusiness.

We may be required to expend significant capital and other resources to protect against and remedy any potential or existing security breaches and theirconsequences.Wealsofacerisksassociatedwithsecuritybreachesaffectingthirdpartieswithwhomweareaffiliatedorotherwiseconductbusinesswithonline.ConsumersaregenerallyconcernedwithsecurityandprivacyoftheInternet,andanypublicizedsecurityproblemsaffectingourbusinessesand/orthoseofthirdpartiesmaydiscourageconsumersfromdoingbusinesswithus,whichcouldhaveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

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Litigation and indemnification of secondary market purchasers could have a material and adverse effect on our business, financial condition, results ofoperationsandliquidity.

Inconnectionwiththesaleofloanstosecondarymarketpurchasers,HomeLoanCenter,Inc.("HLC")maybeliableforcertainindemnification,repurchaseand premium repayment obligations. For example, in connection with the sale of loans to secondary market purchasers, HLC made certain representationsregardingrelatedborrowercreditinformation,loandocumentationandcollateral.Totheextentthattheserepresentationswereincorrect,HLCmayberequiredtorepurchase loans or indemnify secondary market purchasers for losses due to borrower defaults. HLCalso agreed to repurchase loans or indemnify secondarymarketpurchasersforlossesduetoearlypaymentdefaults(i.e., latepaymentsduringalimitedtimeperiodimmediatelyfollowingHLC'soriginationoftheloan).Further,HLCagreedtorepayalloraportionoftheinitialpremiumspaidbysecondarymarketpurchasersininstanceswheretheborrowerprepaystheloanwithinaspecifiedperiodoftime.HLChasmadepaymentsfortheseliabilitiesinthepastandexpectstomakepaymentsfortheseliabilitiesinthefuture.

Wecontinuetobeliablefortheseindemnificationobligations,repurchaseobligationsandpremiumrepaymentobligationsfollowingthesaleofsubstantiallyall of the operating assets of our LendingTree Loans business. We have in the past and intend to continue to negotiate in the future with secondary marketpurchasers to settle any existing and future contingent liabilities, but we cannot assure you we will be able to do so on terms acceptable to us, or at all. Theoccurrenceofindemnificationclaims,repurchaseobligationsorpremiumrepaymentsbeyondourreservesforthesecontingencies,orourinabilitytosettlewithsecondarymarketpurchasers,mayhaveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

Difficultmarketconditionshaveadverselyaffectedthemortgageindustry.

Declinesinthehousingmarketfrom2006throughearly2012,asmeasuredbytheS&P/Case-Schiller20-citycompositehomepriceindex,withhomepricedeclines and increased foreclosures, unemployment and under-employment, negatively impacted the credit performance of mortgage loans and resulted insignificant write-downs of asset values by financial institutions, including government-sponsored entities as well as major commercial and investment banks.Thesewrite-downs,initiallyofmortgage-backedsecurities butsubsequentlyofotherasset-backedsecurities, credit default swapsandotherderivativeandcashsecurities,inturn,causedmanyfinancialinstitutionstoseekadditionalcapital,mergewithlargerandstrongerinstitutionsand,insomecases,tofail.

Reflectingconcernaboutthestabilityofthehousingmarketsgenerallyandthestrengthofcounterparties,manylendersandinstitutionalinvestorsreducedorceased providing funding to borrowers, including to other financial institutions. This market disruption and tightening of credit led to an increased level ofcommercialandconsumerdelinquencies,lackofconsumerconfidenceandincreasedmarketvolatility.Theresultingeconomicpressureonconsumersandlackofconfidenceinthefinancialmarketshashadinthepastandmayhaveinthefuture,anadverseeffectonourbusiness,financialconditionandresultsofoperations.

While conditions in the housing markets have improved since 2013, the failure to sustain such improvements could have adverse effects on us and ourNetworkLenders.Further,ourbusinesscouldbeadverselyaffectedbytheactionsandcommercialsoundnessofotherbusinessesinthefinancialservicessector.Asaresult,defaultsby,orevenrumorsorquestionsabout,oneormoreoftheseentities,orthefinancialservicesindustrygenerally,haveinthepast,andmayinthefuture,leadtomarket-wideliquidityproblemsandcouldleadtodisruptionsinthemortgageindustry.Anysuchdisruptioncouldhaveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

Ourrecentrevenuegrowthhasbeendriveninsignificantpartbypersonalloanofferings.Iflendersparticipatingonourmarketplacedecidetoreducetheirofferings of personal loans or if such loans become unattractive to consumers because of higher interest rates demanded by lenders, then our results ofoperationsandfuturegrowthprospectscouldbemateriallyandadverselyaffected.

Were-launchedourpersonalloanproductinthethirdquarterof2013.Revenuefrompersonalloanofferingswasresponsibleforasignificantportionofthegrowthinthenon-mortgagerevenueoverthelastfewyears.Revenuefromourpersonalloanproductincreased$15.2millionin2016from2015and$38.9millionin2015from2014.

Personalloansareunsecuredobligationsandgenerallycarryshortertermsandsmallerloanamountsthanmortgages. Becausetheyareunsecured,theyaregenerally riskier assets for lenders than mortgages or other secured loans. Consumer demand for unsecured loans offered on our marketplace is often forrefinancingof higher interest credit card debt or for a lower interest alternative to credit card debt for a contemplated larger purchase that wouldotherwise bepurchasedwithacreditcard.Lendersparticipatingonourmarketplacemayreducetheirwillingnesstomakepersonalloansatmoreattractiveinterestratesthancreditcarddebtandmayforthatreason,orforanyotherreason,reducetheirdemandforpersonalloanrequestsgeneratedfromourpersonalloanmarketplace.Reasonsthatlendersmightreducetheirwillingnesstomakepersonalloansatattractiveinterestratesmayincluderegulatorychanges,stricterinstitutionallendingcriteria, a lack of adequate funding sources or capital for loan originations, or increased borrower default levels, which may occur upon adverse changes inregional,nationalorglobaleconomic

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conditions. Additionally, lenders may tighten their underwriting standards, making it more difficult for consumers to qualify for personal loans. If lendersparticipatingonourmarketplacedecidetoreducetheirofferingsofpersonalloans,tightentheirunderwritingstandards,orifpersonalloansbecomeunattractivetoconsumers because of higher interest rates demanded by lenders, then our results of operations and future growth prospects could be materially and adverselyaffected.

NetworkLendersaffiliatedwithourmarketplacesarenotprecludedfromofferingproductsandservicesoutsideofourmarketplaces,orobtainingproductsandservicesfromourcompetitors.

Because our businesses do not have exclusive relationships with Network Lenders, consumers may obtain loans from these third-party service providerswithout having to use our marketplaces. Network Lenders can offer loans directly to consumers through their own marketing campaigns or other traditionalmethodsofdistribution,suchasreferralarrangements,physicalstore-frontoperationsorbrokeragreements.NetworkLendersmayalsoofferloansandservicestoprospective customers online directly, throughoneor more online competitors of our businesses, or both. If a significant number of consumers seekloans andservices directly from Network Lenders or through our competitors as opposed to through our marketplaces, our business, financial condition and results ofoperationscouldbemateriallyandadverselyaffected.

Someofourlendingservicesarenewtothemarketandmayfailtoachieveormaintaincustomeracceptanceandprofitability.

Wehavelaunchednewnon-mortgageproductsoverthelastseveralyears.Wedonothaveasmuchexperiencewiththesenewnon-mortgageproductsaswiththemortgageproducts.Accordingly,newnon-mortgageproductsmaybesubjecttogreaterrisksthanourmorematuremortgageproducts.

Thesuccessofnewproductswemayofferwilldependonanumberoffactors,including:

• Implementing,atanacceptablecost,productfeaturesofferedbyourcompetitorsand/orexpectedbyconsumersandlenders;

• Marketacceptancebyconsumersandlenders;

• Offeringsbycurrentandfuturecompetitors;

• Ourabilitytoattractandretainmanagementandotherskilledpersonnelforthesebusinesses;

• Ourabilitytocollectamountsowedtousfromthirdparties;

• Ourabilitytodevelopsuccessfulandcost-effectivemarketingcampaigns;and

• Our ability to timely adjust marketing expenditures in relation to changes in demand for the underlying products and services offered by our leadpurchasers.

Ourresultsofoperationsmaysufferifwefailtosuccessfullyanticipateandmanagetheseissuesassociatedwithnewproducts.

Ifweareunabletocontinuallyenhanceourproductsandservicesandadaptthemtotechnologicalchangesandconsumerandlenderand/orleadpurchaserneeds,includingtheemergenceofnewcomputingdevicesandmoresophisticatedonlineservices, wemaylosemarketshareandrevenueandourbusinesscouldsuffer.

Weneedtoanticipate,developandintroducenewproducts,servicesandapplicationsonatimelyandcost-effectivebasisthatkeeppacewithtechnologicaldevelopmentsandchangingconsumerandcustomerneeds.Forexample,thenumberofindividualswhoaccesstheinternetthroughdevicesotherthanapersonalcomputer, such as tablets, mobile telephones, televisions and set-top box devices has increased significantly and this trend is likely to continue. Because eachmanufacturerordistributormayestablishuniquetechnicalstandardsforitsdevices,ourwebsitesmaynotbefunctionalorviewableonthesedevices.Additionally,newdevicesandnewplatformsarecontinuallybeingreleased.Consumersaccessmanytraditionalwebservicesonmobiledevicesthroughapplications,orapps.

Itisdifficulttopredicttheproblemswemayencounterinimprovingourwebsites'functionalitywiththesealternativedevicesordevelopingappsformobileplatforms. If wefail to developourwebsites or appstorespondtotheseor other technological developments andchangingconsumerandcustomerneedscosteffectively,wemaylosemarketshare,whichcouldmateriallyandadverselyaffectourbusiness,financialconditionandresultsofoperations.

Wemayfailtoadequatelyprotectourintellectualpropertyrightsormaybeaccusedofinfringingintellectualpropertyrightsofthirdparties.

Weregardourintellectualpropertyrights,includingpatents,servicemarks,trademarksanddomainnames,copyrights,tradesecretsandsimilarintellectualproperty(asapplicable),ascriticaltooursuccess.Ourbusinessesalsorelyheavilyuponsoftwarecodes,informationaldatabasesandothercomponentsthatmakeuptheirproductsandservices.

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We rely on a combination of laws and contractual restrictions with employees, customers, suppliers, affiliates and others to establish and protect theseproprietary rights. Despite these precautions, it may be possible for a third party to copy or otherwise obtain and use trade secrets or copyrighted intellectualproperty without authorization which, if discovered, might require legal action to correct. In addition, third parties may independently and lawfully developsubstantiallysimilarintellectualproperties.

Wehavegenerallyregisteredandcontinuetoapplytoregister,orsecurebycontractwhenappropriate,ourprincipaltrademarksandservicemarksastheyaredevelopedandused,andreserveandregisterdomainnameswhenandwherewedeemappropriate.Wegenerallyconsidertheprotectionofourtrademarkstobeimportantforpurposesofbrandmaintenanceandreputation.Whilewevigorouslyprotectourtrademarks,servicemarksanddomainnames,effectivetrademarkprotectionmaynotbeavailableormaynotbesoughtineverycountryinwhichproductsandservicesaremadeavailable,andcontractualdisputesmayaffecttheuseofmarksgovernedbyprivatecontract. Similarly, not everyvariationofadomainnamemaybeavailable orberegistered, evenif available. Ourfailuretoprotect our intellectual property rights in a meaningful manner or challenges to related contractual rights could result in erosion of brand names and limit ourabilitytocontrol marketingonorthroughtheInternet usingourvariousdomainnamesorotherwise, whichcouldmaterially andadverselyaffect ourbusiness,financialconditionandresultsofoperations.

We have been granted patents and we have patent applications pending with the United States Patent and Trademark Office and various foreign patentauthorities for various proprietary technologies andother inventions. Thestatus of anypatent involves complexlegal andfactual questions, andthe breadth ofclaimsallowedisuncertain.Accordingly,anypatentapplicationfiledmaynotresultinapatentbeingissued,orexistingorfuturepatentsmaynotbeadjudicatedvalidbyacourtorbeaffordedadequateprotectionagainstcompetitorswithsimilartechnology.InMarch2014,afederaljuryfoundourtwoissuedpatentsinvalid.See Note13—Contingencies—IntellectualPropertyLitigation—Zillowinthenotestotheconsolidatedfinancialstatementsincludedelsewhereinthisreport.Inaddition,thirdpartiesmaycreatenewproductsormethodsthatachievesimilarresultswithoutinfringinguponpatentsthatweown.

Likewise,theissuanceofapatenttousdoesnotmeanthatourprocessesorinventionswillbefoundnottoinfringeuponpatentsorotherrightspreviouslyissuedtothirdparties.

Fromtimetotime,intheordinarycourseofbusinesswearesubjectedtolegalproceedings,claimsandcounterclaims,orthreatenedlegalproceedings,claimsor counterclaims, including allegations of infringement of the trademarks, copyrights, patents andother intellectual property rights of third parties. In addition,litigationmaybenecessaryinthefuturetoenforceourintellectualpropertyrights,protecttradesecretsortodeterminethevalidityandscopeofproprietaryrightsclaimed by others. Any litigation of this nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technicalresources,anyofwhichcouldmateriallyandadverselyaffectourbusiness,financialconditionandresultsofoperations.Patentlitigationtendstobeparticularlyprotractedandexpensive.In2014,weparticipatedinajurytrialforthelitigationdescribedinNote13—Contingencies—IntellectualPropertyLitigation—Zillowin the notes to the consolidated financial statements included elsewhere in this report. The legal expenses associated with this jury trial were material andnegativelyaffectedourresultsofoperationsfor2014.

Ourframeworkformanagingrisksmaynotbeeffectiveinmitigatingourriskofloss.

Ourriskmanagementframeworkseekstomitigateriskandappropriatelybalanceriskandreturn.Wehaveestablishedprocessesandproceduresintendedtoidentify, measure, monitor and report the types of risk to which we are subject, including credit risk, market risk, liquidity risk, operational risk, legal andcompliance risk, andstrategic risk. Weseekto monitor andcontrol our riskexposure througha frameworkof policies, procedures andreportingrequirements.Theremayberisksthatexist,orthatdevelopinthefuture,thatwehavenotappropriatelyanticipated,identifiedormitigated.Ifourriskmanagementframeworkdoesnoteffectivelyidentifyormitigateourrisks,wecouldsufferunexpectedlossesandcouldbemateriallyandadverselyaffected.

TheintendedbenefitsoftheCompareCardsacquisitionmaynotberealized.

TheCompareCardsacquisitionposesrisksforourongoingoperations,including,amongothers:

• that senior management’s attention may be diverted from the management of daily operations to the integration of the business acquired in theacquisition;

• wemaybeunabletoretainkeyemployeesofCompareCards;

• costsandexpensesassociatedwithanyundisclosedorpotentialliabilities;

• thatthebusinessacquiredintheacquisitionmaynotperformaswellasanticipated;

• adverseconditionsintheeconomymayaffectcreditcardissuersandtheirwillingnesstoissuenewcredit;

• credit card issuers and other advertisers in the business verticals in which we or CompareCards operate may be unwilling to advertise on our orCompareCards'swebsitesormobileapplications;

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• changesinapplicationapprovalratesbycreditcardissuercustomers;

• increasedcompetitionanditseffectonourorCompareCards'swebsitetraffic,click-throughrates,advertisingrates,margins,andmarketshareabilitytoprovidecompetitiveservicetocreditcardissuersandtoconsumersusingCompareCards'andouronlineofferingsandotherplatforms;

• ourabilitytomaintainbrandrecognitionforbothusandCompareCardsandtoeffectivelyleveragetheLendingTreebrandwiththeCompareCardsbrand;

• ourabilitytodevelopnewproductsandservicesandenhanceexistingones;

• risksassociatedwithourongoinglitigationwithNextAdvisorincludingtheeffectofthepreliminaryinjunctionobtainedbyNextAdvisoronaportionoftheacquiredCompareCardsbusiness;and

• assumedliabilitiesassociatedwithCompareCards'historicaloperations,includingasaresultofprivacyregulationsordatabreaches.

Asaresultoftheforegoing,theCompareCardsacquisitionmaynotbeaccretivetousintheneartermoratall.Furthermore,ifwefailtorealizetheintendedbenefitsofthebusinessacquiredintheacquisition,themarketpriceofourcommonstockcoulddeclinetotheextentthatthemarketpricereflectsanexpectationofthosebenefits.

Otheracquisitionsorstrategicinvestmentsthatwepursuemaynotbesuccessfulandcoulddisruptourbusinessandharmourfinancialcondition.

Wemay consider or undertake strategic acquisitions of, or material investments in, businesses, products or technologies. We may not be able to identifysuitable acquisition or investment candidates, or evenif wedoidentify suitable candidates, theymaybe difficult to finance, expensive to fundandthere is noguaranteethatwecanobtainanynecessaryregulatoryapprovalsorcompletesuchtransactionsontermsthatarefavorabletous.Totheextentwepaythepurchaseprice of any acquisition or investment in cash or through borrowings under our revolving credit facility, it would reduce our cash balances and/or result inindebtednesswemustservice,whichmayhaveamaterialandadverseeffectonourbusinessandfinancialcondition.Ifthepurchasepriceispaidwithourstock,itwouldbedilutivetoourstockholders.Inaddition,wemayassumeliabilitiesassociatedwithabusinessacquisitionorinvestment,includingunrecordedliabilitiesthatarenotdiscoveredatthetimeofthetransaction,andtherepaymentofthoseliabilitiesmayhaveamaterialandadverseeffectonourfinancialcondition.Theremayalsobelitigationorotherclaimsarisinginconnectionwithanacquisitionitself.

Wemaynotbeabletosuccessfullyintegratethepersonnel,operations,businesses,productsortechnologiesofanacquisitionorinvestment.Integrationmaybe particularly challenging if we enter into a line of business in which wehave limited experience and the business operates in a difficult legal, regulatory orcompetitiveenvironment. Wemayfindthatwedonothaveadequateoperationsorexpertisetomanagethenewbusiness.Theintegrationofanyacquisitionorinvestmentmaydivertmanagement'stimeandresourcesfromourcorebusiness,whichcouldimpairourrelationshipswithourcurrentemployees,customersandstrategicpartnersanddisruptouroperations.Acquisitionsandinvestmentsalsomaynotperformtoourexpectationsforvariousreasons,includingthelossofkeypersonnel or customers. If we fail to integrate acquisitions or investments or realize the expected benefits, we may lose the return on these acquisitions orinvestmentsorincuradditionaltransactioncostsandourbusinessandfinancialconditionmaybeharmedasaresult.

Werelyontheperformanceofhighlyskilledpersonnelandifweareunabletoattract, retainandmotivatewell-qualifiedemployees,ourbusinesscouldbeharmed.

Webelieveoursuccesshasdepended,andcontinuestodepend,ontheeffortsandtalentsofourmanagementteamandourhighlyskilledemployees,includingoursoftwareengineers, analysts, marketingprofessionals andsalesstaff. Ourfuturesuccessdependsonourcontinuingabilitytoattract, develop, motivateandretainhighlyqualifiedandskilledemployees.Thelossofanyofourseniormanagementorkeyemployeescouldmateriallyandadverselyaffectourabilitytobuildontheeffortstheyhaveundertakenandtoexecuteourbusinessplan,andwemaynotbeabletofindadequatereplacements.Wecannotensurethatwewillbeabletoretaintheservicesofanymembersofourseniormanagementorotherkeyemployees.Ifwedonotsucceedinattractingwell-qualifiedemployeesorretainingandmotivatingexistingemployees,ourbusinessandresultsofoperationscouldbeharmed.

NetworkLendersandleadpurchasersonourmarketplacesmaynotprovidecompetitivelevelsofservicetoconsumers,whichcouldmateriallyandadverselyaffectourbrandsandbusinessesandtheirabilitytoattractconsumers.

Theabilityofourbusinessestoprovideconsumerswithahigh-qualityexperiencedepends,inpart,onconsumersreceivingcompetitivelevelsofconvenience,customerservice, priceandresponsivenessfromNetworkLendersandleadpurchasersparticipatingonourothermarketplaceswithwhomtheyarematched.Iftheseprovidersdonotprovideconsumerswithcompetitive

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levels of convenience, customer service, price and responsiveness, the value of our various brands may be harmed, the ability of our businesses to attractconsumerstoourwebsitesmaybelimitedandthenumberofconsumersmatchedthroughourmarketplacesmaydecline,whichcouldhaveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

AsignificantportionofourtotalrevenueisderivedfromtwoNetworkLenders,andourresultsfromoperationscouldbeadverselyaffectedandstockholdervalueharmedifwelosesignificantbusinessfromeitheroftheseNetworkLenders.

For the years ended December 31, 2016, 2015and 2014, one Network Lender accounted for 13%,12%and13%of total revenue, and another NetworkLender accounted for 15%,11%and11%, of total revenue. If either of these significant Network Lenders were to cease purchasing loan requests and theCompanywereunabletoreplacetheassociateddemand,thelosscouldhaveamaterialadverseeffectonourresultsofoperationsintheshorttermandpotentiallyalsothelongerterm.Also,ifeitherNetworkLenderreducesitsvolumeofloanrequestsforanyreason,ourbusinesscouldbeadverselyaffected.

Wehaveincurredsignificantoperatinglossesinthepastandwemaynotbeabletogeneratesufficientrevenuetobeprofitableoverthelongterm.

Wehaveahistoryofincurringoperatinglossesfromcontinuingoperations,includingfortheyearendedDecember31,2014,andalthoughwewereprofitablein2015and2016,wehaveanaccumulateddeficitof$722.6millionatDecember31,2016.Ifwefailtomaintainorgrowourrevenueandmanageourexpenses,wemayincursignificantlossesinthefutureandnotbeabletomaintainprofitability.

WewillexperiencecostsandrisksassociatedwithatwobuildingofficecomplexwepurchasedinCharlotte,NorthCarolina.

In December 2016, our subsidiary, Rexford Office Holdings, LLC, completed the purchase of two office buildings in Charlotte, North Carolina for anaggregatepurchasepriceof$23.5million.Weintendtooccupyaportionofthisspaceandleaseaportionofthisspacetoothertenants.Therearecostsandrisksassociatedwithowningandleasingrealestatethatmayapplytousinconnectionwithowningandleasingtheseproperties,including:

• realestatetaxesandmaintenancecosts;

• financialdifficultiesorleasedefaultsbyourtenants;

• tenantturnoverandlossofpotentialtenantstocompetinglandlords;

• actionsbycompetinglandlordsthatmaydecreaseorpreventincreasesintheoccupancyandrentalratesofourproperties;

• costs of compliance with governmental rules and regulations, including the Americans with Disabilities Act, and zoning laws and potential liabilitythereunder;

• changesinthecostoravailabilityofadequateinsurance,includingcoverageformoldandasbestos;

• costsassociatedwithenvironmentalconditionsorretainedliabilitiesforsuchconditions;and

• lessflexibilitytomoveintoalternativespaceorexpandintoalternativegeographiclocationsthanwemighthaveifweleasedourprimaryheadquarters.

Anyofthesecostsandrisksmaynegativelyimpactourearningsandcauseourstockpricetodecline.

Our revolving credit facility contains financial covenants and other restrictions on our actions, and it could therefore limit our operational flexibility orotherwiseadverselyaffectourfinancialcondition.Failuretocomplywiththetermsofanysuchfacilitycouldimpairourrightstotheassetsthathavebeenpledgedascollateralunderthefacility.

OnOctober22,2015,ourwholly-ownedsubsidiaryLendingTree,LLCenteredintoa$125.0millionfive-yearseniorsecuredrevolvingcreditfacilitywhichmaturesonOctober22,2020(the"RevolvingCreditFacility").TheproceedsoftheRevolvingCreditFacilitycanbeusedtofinanceworkingcapitalneeds,capitalexpenditures, and general corporate purposes, including to finance permitted acquisitions. We do not currently have any borrowings outstanding under theRevolvingCreditFacility.

The Revolving Credit Facility contains certain restrictive covenants, which include a consolidated debt to consolidated EBITDAratio and a consolidatedEBITDA to consolidated interest expense ratio. In addition, the Revolving Credit Facility contains customary affirmative and negative covenants, including,subjecttocertainexceptions,restrictionsonourabilityto,amongotherthings:

• incuradditionalindebtedness;

• grantliens;

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• makeloansandinvestments;

• enterintomergersormakecertainfundamentalchanges;

• makecertainrestrictedpayments,includingdividends,distributions,stockrepurchasesorredemptions;

• sellassets;

• enterintotransactionswithaffiliates;

• enterintorestrictivetransactions;

• enterintosaleandleasebacktransactions;

• enterintohedgingtransactions;and

• engageincertainothertransactionswithoutthepriorconsentofthelenders.

TheRevolvingCreditFacilityrequiresLendingTree,LLCtopledgeascollateral,subjecttocertaincustomaryexclusions,100%oftheassets,including100%of its equity in all of its subsidiaries. The obligations under this facility are unconditionally guaranteed on a senior basis by LendingTree, Inc. and specificsubsidiaries of LendingTree, LLC, which guarantees are secured by a pledge as collateral, subject to certain customary exclusions, of 100% of each suchguarantor'sassets,including100%ofitsequityinallofitssubsidiaries.

IfaneventofdefaultoccursorifweotherwisefailtocomplywithanyofthenegativeoraffirmativecovenantsoftheRevolvingCreditFacility,thelendersmaydeclareall oftheobligationsandindebtednessundersuchfacilitydueandpayable.Insuchascenario,thelenderscouldexercisetheirlienonthepledgedcollateral,whichwouldhaveamaterialadverseeffectonourbusiness,operations,financialconditionandliquidity.ForadditionalinformationontheRevolvingCreditFacility,see Note11—RevolvingCreditFacility,inthenotestotheconsolidatedfinancialstatementsincludedelsewhereinthisreport.

Ifourgoodwillorindefinite-livedintangibleassetsbecomeimpaired,wemayberequiredtorecordasignificantchargetoearnings.

Under accounting principles generally accepted in the United States of America ("GAAP"), wereviewthe carrying value of goodwill and indefinite-livedintangibleassetsonanannualbasisasofOctober1,ormorefrequentlyifaneventoccursorcircumstanceschangethatwouldmorelikelythannotreducethefairvalueofareportingunitbelowitscarryingvalue.Factorsthatmaybeconsideredachangeincircumstances,indicatingthatthecarryingvalueofourgoodwillorindefinite-livedintangibleassetsmaynotberecoverable,includeadeclineinstockpriceandmarketcapitalization,reducedfuturecashflowestimatesandslowergrowthratesinourindustryorourcustomers'industries.Wemayberequiredtorecordasignificantchargeinourfinancialstatementsduringaperiodinwhichanyimpairmentofourgoodwillorindefinite-livedintangibleassetsisdetermined,negativelyimpactingourresultsofoperations.

Chargestoearningsresultingfromacquisitionsmayadverselyaffectouroperatingresults.

UnderGAAP,whenweacquirebusinesses,weallocatethepurchasepricetotangibleassetsandliabilitiesandidentifiableintangibleassetsacquiredattheiracquisitiondatefairvalues.Anyresidualpurchasepriceisrecordedasgoodwill.Wealsoestimatethefairvalueofanycontingentconsideration.Ourestimatesoffairvaluearebaseduponassumptionsbelievedtobereasonablebutwhichareuncertainandinvolvesignificantjudgmentsbymanagement.Afterwecompleteanacquisition,thefollowingfactorscouldresultinmaterialchargesandadverselyaffectouroperatingresultsandmayadverselyaffectourcashflows:

• costsincurredtocombinetheoperationsofcompaniesweacquire,suchastransitionalemployeeexpensesandemployeeretentionorrelocationexpenses;

• impairmentofgoodwillorintangibleassets;

• areductionintheusefullivesofintangibleassetsacquired;

• impairmentoflong-livedassets;

• identificationof,orchangesto,assumedcontingentliabilities;

• changesinthefairvalueofanycontingentconsideration;

• chargestoouroperatingresultsduetoduplicativepre-mergeractivities;

• chargestoouroperatingresultsfromexpensesincurredtoeffecttheacquisition;and

• chargestoouroperatingresultsduetotheexpensingofcertainstockawardsassumedinanacquisition.

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Substantiallyallofthesepotentialchargeswouldbeaccountedforasexpensesthatwoulddecreaseournetincomeandearningspersharefortheperiodsinwhichthosecostsareincurred.Chargestoouroperatingresultsinanygivenperiodcoulddiffersubstantiallyfromotherperiodsbasedonthetimingandsizeofouracquisitionsandtheextentofacquisitionaccountingadjustments.

Inparticular,weacquiredCompareCardsinNovember2016for$80.7millionincashatclosingandcontingentconsiderationpaymentsofupto$22.5millionineachof2017and2018.Weassignedafairvalueofthecontingentconsiderationof$23.1million.Wewillreassessthisfairvaluequarterly,andincreasesordecreases based on the actual performance of CompareCards against the contingent consideration targets or other factors will cause decreases or increases,respectively,inourresultsofoperations.Thesequarterlyadjustmentscouldhaveamaterialadverseeffectonourresultsofoperations.

Risks Related to Compliance and Regulation

Failuretocomplywithpast,existingornewlaws,rulesandregulations,ortoobtainandmaintainrequiredlicenses,couldmateriallyandadverselyaffectourbusiness,financialconditionandresultsofoperations.

WemarketandprovideservicesinheavilyregulatedindustriesthroughanumberofdifferentchannelsacrosstheUnitedStates.Asaresult,ourbusinesseshavebeenandremainsubjecttoavarietyofstatutes,rules,regulations,policiesandproceduresinvariousjurisdictionsintheUnitedStates,whicharesubjecttochangeat anytime. Thefailureofourbusinessestocomplywithpast, existingornewlaws, rulesandregulations, ortoobtainandmaintainrequiredlicenses,could result in administrative fines and/or proceedings against us or our businesses by governmental agencies and/or litigation by consumers, which couldmateriallyandadverselyaffectourbusiness,financialconditionandresultsofoperationsandourbrand.

Our businesses conduct marketing activities via the telephone, the mail and/or through online marketing channels, which general marketing activities aregoverned by numerous federal and state regulations, such as the Telemarketing Sales Rule, state telemarketing laws, federal and state privacy laws, the CAN-SPAMAct, the Telephone Consumer Protection Act and the Federal Trade Commission Act and its accompanying regulations and guidelines, among others.IncreasedregulationbytheU.S.FederalTradeCommission("FTC")andFederalCommunicationsCommission("FCC")hasresultedinrestrictionsontelephonecallstoresidentialandwirelesstelephonesubscribers.

Additional federal, state and in some instances, local laws regulate secured and unsecured lending activities, which impacts the marketplace, lenders andconsumers. Theselawsgenerallyregulatethemannerinwhichlendingandlending-relatedactivitiesaremarketedormadeavailable, includingadvertisingandother consumer disclosures, payments for services and record keeping requirements; these laws include RESPA, the Fair Credit Reporting Act, the Truth inLendingAct,theEqualCreditOpportunityAct,theFairHousingActandvariousstatelaws.Statelawsoftenrestricttheamountofinterestandfeesthatmaybechargedbyalenderormortgagebroker,orotherwiseregulatethemannerinwhichlendersormortgagebrokersoperateoradvertise.

Failuretocomplywithapplicablelawsandregulatoryrequirementsmayresultin,amongotherthings,revocationoforinabilitytorenewrequiredlicensesorregistrations,lossofapprovalstatus,terminationofcontractswithoutcompensation,administrativeenforcementactionsandfines,privatelawsuits,includingthosestyledasclassactions,ceaseanddesistordersandcivilandcriminalliability.

Moststatesrequirelicensestosolicit,brokerormakeloanssecuredbyresidentialmortgagesandotherconsumerloanstoresidentsofthosestates,aswellastooperaterealestatereferralandbrokerageservices,andinmanycasesrequirethelicensureorregistrationofindividualemployeesengagedinaspectsofthesebusinesses. In 2008, Congress mandated that all states adopt certain minimumstandards for the licensing of individuals involved in mortgage lending or loanbrokering.CompliancewiththeserequirementsmayrenderitmoredifficultforusandourNetworkLenderstooperateormayraiseourinternalcostsorthecostsofourNetworkLenders,whichmaybepassedontousthroughlessfavorablecommercialarrangements.Whileourbusinesseshaveendeavoredtocomplywithapplicablerequirements,theapplicationoftheserequirementstopersonsoperatingonlineisnotalwaysclear.Moreover,anyofthelicensesorrightscurrentlyheldbyourbusinessesorouremployeesmayberevokedpriorto,ormaynotberenewedupon,theirexpiration.Inaddition,ourbusinessesorouremployeesmaynotbegrantednewlicensesorrightsforwhichtheymayberequiredtoapplyfromtimetotimeinthefuture.

Likewise,statesormunicipalitiesmayadoptstatutesorregulationsmakingitunattractive,impracticableorinfeasibleforourbusinessestocontinuetoconductbusiness in such jurisdictions. The withdrawal from any jurisdiction due to emerging legal requirements could materially and adversely affect our business,financialconditionandresultsofoperations.

Ourbusinessesarealsosubjecttovariousstate,federaland/orlocallaws,rulesandregulationsthatregulatetheamountandnatureoffeesthatmaybechargedfortransactionsandincentives,suchasrebates,thatmaybeofferedtoconsumersbyourbusinesses,aswellasthemannerinwhichthesebusinessesmayoffer,advertise or promote transactions. For example, RESPAgenerally prohibits the payment or receipt of referral fees and fee shares or splits in connection withresidentialmortgageloantransactions,subjecttocertainexceptions.Theapplicabilityofreferralfeeandfeesharingprohibitionstolendersandrealestate

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providers,includingonlinenetworks,mayhavetheeffectofreducingthetypesandamountsoffeesthatmaybechargedorpaidinconnectionwithrealestate-securedloanofferingsoractivities,includingmortgagebrokerage,lendingandrealestatebrokerageservices,orotherwiselimitingourandourNetworkLenders'abilitytoconductmarketingandreferralactivities.

Various federal, state and, in some instances, local, laws also prohibit unfair and deceptive sales practices. We have adopted appropriate policies andprocedurestoaddresstheserequirements(suchasappropriateconsumerdisclosuresandcallscripting,callmonitoringandotherqualityassuranceandcompliancemeasures),butitisnotpossibletoensurethatallemployeescomplywithourpoliciesandproceduresatalltimes.

Compliancewiththeselaws,rulesandregulationsisasignificantcomponentofourinternalcosts,andnewlaws,rulesandregulationsarefrequentlyproposedandadopted,requiringustoadoptnewproceduresandpractices.Changestoexistinglaws,rulesandregulationsorchangestointerpretationofexistinglaws,rulesandregulationscouldresultinfurtherrestrictionofactivitiesincidentaltoourbusinessandcouldhaveamaterialandadverseeffectonourbusiness,resultsofoperationandfinancialcondition.

Parties through which our businesses conduct business similarly may be subject to federal and state regulation. These parties typically act as independentcontractors andnot as agents in their solicitations andtransactions with consumers. Wecannot ensure that these entities will comply with applicable lawsandregulationsatalltimes.Failureonthepartofalender,websiteoperatororotherthirdpartytocomplywiththeselawsorregulationscouldresultin,amongotherthings,claimsofvicariousliabilityoranegativeimpactonourreputationandbusiness.

Regulatory authorities and private plaintiffs may allege that we failed to comply with applicable laws, rules and regulations where we believe we havecomplied. These allegations may relate to past conduct and/or past business operations, such as our discontinued mortgage origination operation (which wassubjecttovariousstateandlocallaws,rulesandregulations).Evenallegationsthatouractivitieshavenotcompliedordonotcomplywithallapplicablelawsandregulations may have a material and adverse effect on our business, financial condition and results of operations. The alleged violation of such laws, rules orregulations may entitle an individual plaintiff to seek monetary damages, or may entitle an enforcing government agency to seek significant civil or criminalpenalties,costsandattorneys'fees.Regardlessofitsmerit,anallegationtypicallyrequireslegalfeeexpenditurestodefendagainst.Wehaveinthepastandmayinthefuturedecidetosettleallegationsofnon-compliancewithlaws,rulesandregulationswhenwedeterminethatthecostofsettlementislessthanthecostandriskofcontinuingtodefendagainstanallegation.Settlementsmayrequireustopaymonetaryfinesandmayrequireustoadoptnewproceduresandpractices,whichmayrenderit moredifficult tooperateormayraiseourinternalcosts. Thefutureoccurrenceofoneormoreoftheseeventscouldhaveamaterial andadverseeffectonourbusiness,financialconditionandresultsofoperations.

OurbusinessesarealsosubjecttotheDodd-FrankAct,whichcontainsacomprehensivesetofprovisionsdesignedtogovernthepracticesandoversightoffinancialinstitutionsandotherparticipantsinthefinancialmarkets.TheDodd-FrankActrequiresvariousfederalagenciestoadoptabroadrangeofnewrulesandregulations, manyofwhichhavenotyetbeenadoptedandtopreparenumerousstudiesandreportsforCongress,whichcouldresult inadditionallegislativeorregulatoryaction.TheDodd-FrankAct,aswellasotherlegislativeandregulatorychanges,couldhaveasignificantimpactonusby,forexample,requiringustochangeourbusinesspractices, limitingourabilitytopursuebusinessopportunities, imposingadditional costsonus, limitingfeeswecancharge, impactingthevalue of our assets, or otherwise adversely affecting our businesses. Among other things, the Dodd-Frank Act established the Consumer Financial ProtectionBureautoregulateconsumerfinancialservicesandproducts,includingcredit,savingsandpaymentproducts.TheeffectoftheDodd-FrankActonourbusinessandoperationshasbeenandcouldcontinuetobesignificant,dependinguponremainingimplementingregulations,theactionsofourcompetitorsandthebehaviorofothermarketplaceparticipants.Inaddition,wehavebeen,andlikelywillcontinuetoberequiredtoinvestsignificantmanagementtimeandresourcestoaddressthevariousprovisionsoftheDodd-FrankActandthenumerousregulationsthatarerequiredtobeissuedunderit.

In response to conditions in the U.S. financial markets and economy, as well as a heightened regulatory and Congressional focus on consumer lending,regulatorshaveincreasedtheirscrutinyofthefinancialservicesindustry,theresultofwhichhasincludednewregulationsandguidance.Weareunabletopredictthelong-termimpactofthisenhancedscrutiny.Wearealsounabletopredictwhetheranyadditionalorsimilarchangestostatutesorregulations,includingtheinterpretationorimplementationthereof,willoccurinthefuture.

Thecollection,processing,storage,useanddisclosureofpersonaldatacouldgiverisetoliabilitiesasaresultofgovernmentalregulation,conflictinglegalrequirementsordifferingviewsofpersonalprivacyrights.

Intheprocessingof consumertransactions, our businesses receive, transmit andstore a largevolumeof personally identifiable informationandother userdata.Thecollection,sharing,use,disclosureandprotectionofthisinformationaregovernedbytheprivacyanddatasecuritypoliciesmaintainedbyusandourbusinesses. Moreover, there are federal, state and international laws regarding privacy and the storing, sharing, use, disclosure and protection of personallyidentifiable information and user data. Specifically, personally identifiable information is increasingly subject to legislation and regulations in numerousjurisdictionsaroundtheworld,theintentofwhichistoprotecttheprivacyofpersonalinformationthatiscollected,processedandtransmitted

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inorfromthegoverningjurisdiction.IntheUnitedStates,regulationsandinterpretationsconcerningpersonallyidentifiableanddatasecuritypromulgatedbystateandfederalregulators,includingtheCFPBandFTC,couldconflictorgiverisetodifferingviewsofpersonalprivacyrights.Wecouldbemateriallyandadverselyaffectediflegislationorregulationsareexpandedtorequirechangesinbusinesspracticesorprivacypolicies,orifgoverningjurisdictionsinterpretorimplementtheirlegislationorregulationsinwaysthatnegativelyaffectourbusiness,financialconditionandresultsofoperations.

Ourfailure,and/orthefailurebythevariousthird-partyvendorsandserviceproviderswithwhomwedobusiness,tocomplywithapplicableprivacypoliciesor federal, state or similar international laws and regulations or any compromise of security that results in the unauthorized release of personally identifiableinformationorotheruserdatacoulddamagethereputationofthesebusinesses, discouragepotential usersfromourproductsandservicesand/orresult infinesand/orproceedingsbygovernmental agenciesand/orconsumers, oneorall ofwhichcouldmateriallyandadverselyaffect ourbusiness,financial conditionandresultsofoperations.

ChangesintheregulationoftheInternetcouldnegativelyaffectourbusiness.

Laws,rulesandregulationsgoverningInternetcommunications,advertisingande-commercearedynamicandtheextentoffuturegovernmentregulationisuncertain.Federalandstateregulationsgovernvariousaspectsofouronlinebusiness,includingintellectualpropertyownershipandinfringement,tradesecrets,thedistribution of electronic communications, marketing and advertising, user privacy and data security, search engines and Internet tracking technologies. FuturetaxationontheuseoftheInternetore-commercetransactionscouldalsobeimposed.Existingorfutureregulationortaxationcouldhindergrowthinornegativelyimpact the use of the Internet generally, including the viability of Internet e-commerce, which could reduce our revenue, increase our operating expenses andexposeustosignificantliabilities.

IfNetworkLendersfailtoproducerequireddocumentsforexaminationby,orotheraffiliatedpartiesfailtomakecertainfilingswith,stateregulators,wemaybesubjecttofines,forfeituresandtherevocationofrequiredlicenses.

Some of the states in which our businesses maintain licenses require them to collect various loan documents from Network Lenders and produce thesedocumentsforexaminationbystateregulators.WhileNetworkLendersarecontractuallyobligatedtoprovidethesedocumentsuponrequest,thesemeasuresmaybeinsufficient.Failuretoproducerequireddocumentsforexaminationcouldresultinfines,aswellastherevocationofourlicensestooperateincertainstates,whichcouldhaveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

Regulationspromulgatedbysomestatesmayimposecomplianceobligationsondirectors,executiveofficers,largecustomersandanypersonwhoacquiresacertainpercentage(forexample,10%ormore)oftheequityinalicensedentity,includingrequiringsuchpersonstoperiodicallyfilefinancialandotherpersonalandbusinessinformationwithstateregulators.Ifanysuchpersonrefusesorfailstocomplywiththeserequirements,wemaybeunabletoobtaincertainlicensesandexistinglicensingarrangementsmaybejeopardized.Theinabilitytoobtain,orthelossof,requiredlicensescouldhaveamaterialandadverseeffectonourbusiness,financialconditionandresultsofoperations.

Risks Related to an Investment in our Common Stock

Fluctuationsinouroperatingresults,quartertoquarterearningsandotherfactorsmayresultinsignificantdecreasesinthepriceofourcommonstock.

Themarket pricefor ourcommonstockhasbeenvolatile sinceourspin-off. Inaddition, thetradingvolumeinourcommonstockhasfluctuatedandmaycontinue to fluctuate, causing significant price variations to occur. As of December 31, 2016, since our spin-off, the price per share of our commonstock hasfluctuatedfromanintra-daylowof$1.42persharetoanintra-dayhighof$139.59pershare.Ifthemarketpriceofoursharesdeclinessignificantly,thevalueofaninvestmentinourcommonstockwoulddecline.Themarketpriceofourcommonstockmayfluctuateordeclinesignificantlyinthefuture.Someofthefactorsthatcouldnegativelyaffectthepriceofourcommonstockorresultinfluctuationsinthepriceortradingvolumeofourcommonstockinclude:

• variationsinourquarterlyoperatingandfinancialresults;

• variationsinourprojectedoperatingandfinancialresults;

• failuretomeetanalysts'earningsestimates;

• publication of research reports about us, our NetworkLenders or our industry or the failure of securities analysts to cover our commonshares or ourindustry;

• additionsordeparturesofkeymanagementpersonnel;

• adversemarketreactiontoanyindebtednesswemayincurorpreferredorcommonshareswemayissueinthefuture;

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• changesinourdividendpaymentpolicyorfailuretoexecuteourexistingpolicy;

• actionsbyshareholders;

• changesinmarketvaluationsofothercompaniesinourindustry,includingourcustomersandcompetitors;

• announcementsbyusorourcompetitorsofsignificantcontracts,acquisitions,dispositions,strategicpartnerships,jointventuresorcapitalcommitments;

• speculationinthepressorinvestmentcommunity,includingshortselling;

• changesor proposedchangesinlawsorregulations affectingourindustryor enforcement of theselawsandregulations, or announcements relatingtothesematters;

• changesinestimatedfairvalueofcontingentconsiderationrelatedtoacquisitions;and

• changesingeneraleconomicormarketconditions.

Recently,andinthepast,thestockmarkethasexperiencedextremepriceandvolumefluctuations.Thesemarketfluctuationscouldresultinextremevolatilityinthetradingpriceofourcommonstock,whichcouldcauseadeclineinthevalueofyourinvestmentinourcommonshares.Inaddition,thetradingpriceofourcommonstockcoulddeclineforreasonsunrelatedtoourbusinessorfinancialresults,includinginreactiontoeventsthataffectothercompaniesinourindustryevenifthoseeventsdonotdirectlyaffectus.Youshouldalsobeawarethatpricevolatilitymaybegreaterifthepublicfloatandtradingvolumeofourcommonstockarelow.Thesefactorsmayresultinshort-termorlong-termnegativepressureonthevalueofourcommonstock.

Ifsecuritiesorindustryanalystsdonotpublishresearchorpublishinaccurateorunfavorableresearchaboutourbusiness,ourstockpriceandtradingvolumecoulddecline.

Thetradingmarketforinternetmarketplaceoperatorsandlead-generationcompaniesdepends,inpart,ontheresearchandreportsthatsecuritiesorindustryanalystspublishabouttheindustryandspecificcompanies.Ifoneormoreanalystscoveringuscurrentlyorinthefuturefailtopublishreportsonusregularly,demandforourcommonstockcoulddecline,whichcouldcauseourstockpriceandtradingvolumetodecline.Ifoneormorerecognizedsecuritiesorindustryanalyststhatcoverourcompanyorourindustryinthefuturedowngradesourcommonstockorpublishesinaccurateorunfavorableresearchaboutourbusinessorindustry,ourstockpricewouldlikelydecline.

Twoholdersofourcommonstockownasubstantialportionofouroutstandingcommonstock,whichconcentratesvotingcontrolandlimitsyourabilitytoinfluencecorporatematters.

AsofFebruary23,2017,DouglasLebda,ourChairmanandChiefExecutiveOfficer,andLibertyInteractiveCorporationbeneficiallyownedapproximately21%and23%,respectively,ofouroutstandingcommonstock.LibertyInteractivealsohastherighttonominate20%ofthetotalnumberofdirectorsservingontheboard,roundedup.Twoofoursevendirectors,NealDermerandCraigTroyer,werenominatedbyLibertyInteractive.

Therefore,fortheforeseeablefuture,Mr.LebdaandLibertyInteractivewilleachhaveinfluenceoverourmanagementandaffairsandallmattersrequiringshareholderapproval,includingtheelectionorremoval(withorwithoutcause)ofdirectorsandapprovalofanysignificantcorporatetransaction,suchasamergerorothersaleofusorourassets.TheinterestsofMr.LebdaorLibertyInteractivemaynotnecessarilyalignwiththeinterestsofourotherstockholders.Mr.LebdaorLibertyInteractivecouldelecttosellasignificantinterestinusandyoumayreceivelessthanthethen-currentfairmarketvalueorthepriceyoupaidforyoursharesasaresultofsuchtransaction.Thisconcentratedcontrolcoulddelay,deferorpreventachangeofcontrol,merger,consolidation,takeoverorotherbusinesscombinationinvolvingusthatotherstockholdersmayotherwisesupport.Thisconcentratedcontrolcouldalsodiscourageapotentialinvestorfromacquiringourcommonstockandmightharmthemarketpriceofourcommonstock.

Futuresalesofcommonstockbyourexistingstockholdersmaycauseourstockpricetofall.

Themarketpriceofourcommonstockcoulddeclineasaresultofsalesbyourexistingstockholdersinthemarket,ortheperceptionthatthesesalescouldoccur.Thesesalesmightalsomakeitmoredifficultforustosellequitysecuritiesatatimeandpricethatwedeemappropriate.

We may issue additional shares of our common stock in the future pursuant to current or future equity incentive plans, or in connection with futureacquisitionsorfinancings.Ifweweretoraisecapitalinthefuturebysellingsharesofourcommonstock,orsecuritiesthatareconvertibleintoourcommonstockorissuingsharesofourcommonstockinabusinessacquisition,theirissuancewouldhaveadilutiveeffectonthepercentageownershipofourstockholdersand,dependingonthepricesatwhichsuch

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shares or convertible securities are soldor issued, ontheir investment in our commonstockand, therefore, couldhavea material adverse effect onthe marketpricesofourcommonstock.

UnderaregistrationrightsagreementwithLibertyInteractive,LibertyInteractiveanditspermittedtransfereesareentitledtothreedemandregistrationsrights(andunlimited piggybackregistration rights) in respect of the shares of our commonstockreceived byLiberty Interactive as a result of the spin-off andothersharesofourcommonstockacquiredbyLibertyInteractiveoritsaffiliates.Theseholderswillalsobepermittedtoexercisetheirregistrationrightsinconnectionwithcertainhedgingtransactionsthattheymayenterintoinrespectoftheregistrableshares.Thepresenceofadditionalsharesofourcommonstocktradinginthepublicmarket,asaresultoftheexerciseofsuchregistrationrights,mayhaveanadverseeffectonthemarketpriceofoursecurities.

Anti-takeoverprovisionsinourcharterdocumentsandunderDelawarelawcouldmakeanacquisitionofusmoredifficult,limitattemptsbystockholderstoreplaceorremoveourmanagementandaffectthemarketpriceofourcommonstock.

Provisions in our certificate of incorporation and bylaws, as amended and restated, may have the effect of delaying or preventing a change of control orchangesinourmanagement.Ouramendedandrestatedarticlesofincorporationand/oramendedandrestatedbylawsincludeprovisionsthat:

• Authorizeourboardofdirectorstoissue,withoutfurtheractionbyourstockholders,uptofivemillionsharesofundesignatedpreferredstock,sometimesreferredtoas"blankcheckpreferred";

• Prohibitcumulativevotingintheelectionofdirectors;

• Provide that vacancies on our board of directors may be filled only by the affirmative vote of a majority of directors then in office or by the soleremainingdirector;

• Providethatonlyourboardofdirectorsmaychangethesizeofourboardofdirectors;

• Specifythatspecialmeetingsofourstockholdersmaybecalledonlybyoratthedirectionofourboardofdirectorsorbyapersonspecificallydesignatedwithsuchauthoritybytheboard;and

• Prohibitstockholdersfromtakingactionbywrittenconsent.

Theprovisionsdescribedabovemayfrustrateorpreventanyattemptsbyourstockholderstoreplaceorremoveourcurrentmanagementbymakingitmoredifficultforstockholderstoreplacemembersofourboardofdirectors,whichisresponsibleforappointingourmanagement.Theseprovisionsmayalsohavetheeffectofdelayingorpreventingachangeofcontrolofourcompany,evenifstockholderssupportsuchachangeofcontrol.

Wedonotintendtopayanycashdividendsonourcommonstockintheforeseeablefuture.

Wehavenotdeclaredorpaidacashdividendonourcommonstockduringthefourmostrecentfiscalyears.Wehavenocurrentintentiontodeclareorpaycash dividends on our common stock in the foreseeable future. In addition, the Revolving Credit Facility contains certain restrictions on our ability to paydividends. See Note 11—Revolving Credit Facility, in the notes to the consolidated financial statements included elsewhere in this report. The declaration,paymentandamountoffuturecashdividends,ifany,willbeatthediscretionofourboardofdirectors.Asaresult,capitalappreciation,ifany,ofourcommonstockwillbethesolesourceofgainfortheforeseeablefutureforholdersofourcommonstock.

Ourfinancialresultsfluctuateasaresultofseasonality,whichmaymakeitdifficulttopredictourfutureperformanceandmayadverselyaffectourcommonstockprice.

Ourmortgageproductsbusinessishistoricallysubjecttoseasonaltrends.Thesetrendsreflectthegeneralpatternsofthemortgageindustryandhousingsales,whichtypicallypeakinthespringandsummerseasons.Inrecentperiods,broadercyclicaltrendsininterestrates,aswellasthemortgageandrealestatemarkets,haveupset thecustomaryseasonal trends. However, seasonal trendsmayresumeandourquarterly operatingresults mayfluctuate. Ournon-mortgageproductsbusinesses have various seasonality trends which may create further uncertainty in our quarterly operating results.See Item1. Business—Seasonality includedelsewhereinthisreportformoreinformation.Anyoftheseseasonaltrends,orthecombinationofthem,maynegativelyimpactthepriceofourcommonstock.

ITEM 1B.   UnresolvedStaffComments

Notapplicable.

ITEM 2.   Properties

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Ourprincipalexecutiveofficesarecurrentlylocatedinapproximately37,800squarefeetofofficespaceinCharlotte,NorthCarolinaunderaleasethatexpiresinDecember2020.Inaddition,wehaveofficeslocatedinapproximately6,100squarefeetofofficespaceinBurlingame,CaliforniaunderaleasethatexpiresinMarch2017andapproximately13,000squarefeetofadditionalofficespaceinCharlotte,NorthCarolinaunderaleasethatexpiresinAugust2018.

InDecember2016,wecompletedtheacquisitionoftwoofficebuildingsinCharlotte,NorthCarolina,withapproximately64,000and73,000squarefeetofoffice space, respectively. Weintend to utilize one or both buildings in the future as our principal executive offices and any unused space will continue to beoccupiedbytenants.

ITEM 3.   LegalProceedings

Intheordinarycourseofbusiness,wearepartytolitigationinvolvingproperty,contract,intellectualpropertyandavarietyofotherclaims.Theamountsthatmay be recovered in such matters may be subject to insurance coverage.See Note13— Contingencies in the notes to the consolidated financial statementsincludedelsewhereinthisreportforadiscussionofourcurrentlitigation.

ITEM 4.   MineSafetyDisclosures

Notapplicable.

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PART II

ITEM 5.   MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities

General Market Information, Holders and Dividends

OurcommonstockisquotedontheNASDAQGlobalSelectMarketunderthetickersymbol"TREE".Thetablebelowsetsforth, forthecalendarperiodsindicated,thehighandlowintradaysalespricespershareforLendingTreecommonstockasreportedontheNASDAQStockMarket.Thestockpriceinformationisbasedonpublishedfinancialsources.

Year Ended December 31, 2016 High Low

FirstQuarter $ 100.19 $ 52.11SecondQuarter 106.82 64.07ThirdQuarter 112.00 87.50FourthQuarter 110.10 75.05

Year Ended December 31, 2015 High Low

FirstQuarter $ 58.00 $ 38.85SecondQuarter 78.78 54.32ThirdQuarter 139.59 73.56FourthQuarter 131.83 85.18

AsofFebruary23,2017,therewereapproximately790holdersofrecordofourcommonstockandtheclosingpriceofthecommonstockwas$122.25.

Wehavenot declaredacashdividendonourcommonstockduringthefour most recent fiscal years. Wehavenocurrent intentiontodeclare or paycashdividendsonourcommonstockintheforeseeablefuture.Thedeclaration,paymentandamountoffuturecashdividends,ifany,willbeatthediscretionofourboardofdirectors.TherevolvingcreditfacilityweenteredintoonOctober22,2015containscontractualrestrictionsonourabilitytopaydividends.See Note11—RevolvingCreditFacility,inthenotestotheconsolidatedfinancialstatementsincludedelsewhereinthisreportforadditionalinformation.

Performance Graph

The performance graph shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or incorporated by reference into any filings under theSecurities Act or the Exchange Act, except as otherwise expressly set forth by specific reference in such filing.

Setforthbelowisalinegraph,fortheperiodfromDecember31,2011throughDecember31,2016,comparingthecumulativetotalstockholderreturnof$100invested(assumingthat all dividendswerereinvested) in (1) our commonstock, (2) thecumulative returnof all companies listedontheNASDAQCompositeIndexand(3)thecumulativetotalreturnoftheResearchDevelopmentGroup("RDG")Internetindex.Returnsovertheindicatedperiodsshouldnotbeconsideredindicativeoffuturestockpricesorstockholderreturns.

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Unregistered Sales of Equity Securities and Use of Proceeds

DuringtheyearendedDecember31,2016,wedidnotissueorsellanysharesofourcommonstockorotherequitysecuritiesintransactionsthatwerenotregisteredundertheSecuritiesAct.

Issuer Purchases of Equity Securities

IneachofJanuary2010,May2014,January2016andFebruary2016,theboardofdirectorsauthorizedandweannouncedastockrepurchaseprogramwhichallowedfortherepurchaseofupto$10.0million, $10.0million, $50.0millionand$40.0million, respectively, ofourcommonstock. AtDecember31,2016,approximately$48.7 million remains authorized for share repurchase under this program. Under this program, we can repurchase stock in the open market orthroughprivately-negotiatedtransactions.Wehaveusedavailablecashtofinancetheserepurchases.Wewilldeterminethetimingandamountofanyadditionalrepurchases based on our evaluation of market conditions, applicable SEC guidelines and regulations, and other factors. This program may be suspended ordiscontinuedatanytimeatthediscretionofourboardofdirectors.NosharesofcommonstockwererepurchasedunderthestockrepurchaseprogramduringthequarterendedDecember31,2016.AsofFebruary23,2017,approximately$48.7millionremainsauthorizedforsharerepurchase.

Additionally,theLendingTreeFourthAmendedandRestated2008StockandAwardIncentivePlanallowsemployeestoforfeitsharesofourcommonstocktosatisfyfederalandstatewithholdingobligationsupontheexerciseofstockoptions,thesettlementofrestrictedstockunitawardsandthevestingofrestrictedstockawardsgrantedtothoseindividualsunderthisplan.DuringthequarterendedDecember31,2016,12,854shareswerepurchasedrelatedtotheseobligationsundertheLendingTreeFourthAmendedandRestated2008StockandAwardIncentivePlan.Thewithholdingofthosesharesdoesnotaffectthedollaramountornumberofsharesthatmaybepurchasedunderthestockrepurchaseprogramdescribedabove.

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ThefollowingtableprovidesinformationabouttheCompany'spurchasesofequitysecuritiesduringthequarterendedDecember31,2016.

Period Total Number of

Shares Purchased (1) Average PricePaid per Share

Total Number ofShares Purchased asPart of Publicly

Announced Plans orPrograms (2)

MaximumNumber/ApproximateDollar Value of Shares

that May Yet bePurchased Under thePlans or Programs

(inthousands)

10/1/16-10/31/16 — $ — — $ 48,74811/1/16-11/30/16 11,832 $ 83.68 — $ 48,74812/1/16-12/31/16 1,022 $ 104.15 — $ 48,748Total 12,854 $ 85.30 — $ 48,748

(1) During October 2016, November 2016 and December 2016, 0 shares, 11,832 shares and 1,022 shares, respectively (totaling 12,854 shares), werepurchased to satisfy federal andstate withholdingobligations of our employees uponthe settlement of restricted stockunit awards andthe vesting ofrestrictedstockawards,allinaccordancewithourFourthAmendedandRestated2008StockandAwardIncentivePlan,asdescribedabove.

(2) Seethenarrativedisclosureabovethetableforfurtherdescriptionofourpubliclyannouncedstockrepurchaseprogram.

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ITEM 6.   SelectedFinancialData

The summary financial data presented below represents portions of our consolidated financial statements and are not complete. The following financialinformation should be read in conjunction with Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and ourconsolidatedfinancialstatementsandnotestheretocontainedinItem8.FinancialStatementsandSupplementaryDataincludedelsewhereinthisAnnualReport.Historicalresultsarenotnecessarilyindicativeoffutureperformanceorresultsofoperations.

  Year Ended December 31,

  2016 2015 2014 2013 2012 (1)

  (inthousands,exceptpershareamounts)

Results of Operations: Revenue $ 384,402 $ 254,216 $ 167,350 $ 139,240 $ 77,443Income(loss)fromcontinuingoperations(2) 31,208 51,316 (487) (673) (2,249)(Loss)incomefromdiscontinuedoperations(3) (3,714) (3,269) 9,849 4,620 48,874Netincomeandcomprehensiveincome $ 27,494 $ 48,047 $ 9,362 $ 3,947 $ 46,625

Weightedaveragesharesoutstanding: Basic 11,812 11,516 11,188 11,035 10,695Diluted 12,773 12,541 11,188 11,035 10,695

Income(loss)persharefromcontinuingoperations: Basic $ 2.64 $ 4.46 $ (0.04) $ (0.06) $ (0.21)Diluted $ 2.44 $ 4.09 $ (0.04) $ (0.06) $ (0.21)

(Loss)incomepersharefromdiscontinuedoperations: Basic $ (0.31) $ (0.28) $ 0.88 $ 0.42 $ 4.57Diluted $ (0.29) $ (0.26) $ 0.88 $ 0.42 $ 4.57

Netincomepershare: Basic $ 2.33 $ 4.17 $ 0.84 $ 0.36 $ 4.36Diluted $ 2.15 $ 3.83 $ 0.84 $ 0.36 $ 4.36

Cashdividendpershare $ — $ — $ — $ — $ 1.00

Financial Position: Cashandcashequivalents(4)(5) $ 91,131 $ 206,975 $ 86,212 $ 91,667 $ 80,190Totalassets $ 323,427 $ 295,781 $ 139,891 $ 152,644 $ 143,171Totallong-termliabilities(5) $ 25,285 $ 612 $ 4,889 $ 5,437 $ 5,883Totalshareholders'equity(4) $ 231,435 $ 241,142 $ 96,366 $ 87,008 $ 82,922

(1) InJune2012,wesoldsubstantiallyalloftheoperatingassetsofourLendingTreeLoansbusiness.See ITEM7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—ResultsofOperationsfortheYearsEndedDecember31,2016,2015and2014—DiscontinuedOperationsformoreinformation.

(2) In 2015, we released the majority of the valuation allowance, which, along with federal and state income taxes, resulted in a total tax benefit of $23.0million.See Note10—IncomeTaxesinthenotestotheconsolidatedfinancialstatementsincludedelsewhereinthisreportforadditionalinformation.

(3) See ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations for the Years EndedDecember31,2016,2015and2014—DiscontinuedOperationsforadiscussionofdiscontinuedoperations.

(4) InNovember2015,wecompletedanequityofferingof852,500sharesofourcommonstock,receivingnetproceedsof$91.5million.

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(5) InNovember2016,weacquiredCompareCardsfor$80.7millionincashatclosingandcontingentconsiderationpaymentsofupto$22.5millionineachof2017and2018.Weassignedafairvalueofthecontingentconsiderationof$23.1million,whichisinincludedintotallong-termliabilities.Wewillreassessthisfairvaluequarterly.InDecember2016,weacquiredtwoofficebuildingsinCharlotte,NorthCarolinafor$23.5millionincash.See Note6—BusinessAcquisitionsandNote4—PropertyandEquipment,respectively,inthenotestotheconsolidatedfinancialstatementsincludedelsewhereinthisreportforadditionalinformation.

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ITEM 7.   Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations

ThefollowingManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsshouldbereadinconjunctionwithourconsolidatedfinancial statements and accompanying notes included elsewhere within this report. This discussion includes both historical information and forward-lookinginformation that involves risks, uncertainties and assumptions. Our actual results may differ materially from management's expectations as a result of variousfactors,includingbutnotlimitedtothosediscussedinthesectionsentitled"RiskFactors"and"CautionaryStatementRegardingForward-LookingInformation."

Company Overview

LendingTree,Inc.istheparentofLendingTree,LLCandseveralcompaniesownedbyLendingTree,LLC.

LendingTreeoperates what webelievetobetheleadingonlineloanmarketplacefor consumers seekingloansandother credit-basedofferings. Ouronlinemarketplace provides consumers with access to product offerings fromour NetworkLenders, including mortgage loans, homeequity loans and lines of credit,reverse mortgage loans, auto loans, credit cards, personal loans, student loans, small business loans andother related offerings. In addition, weoffer tools andresources, including free credit scores, that facilitate comparison shopping for these loan and other credit-based offerings. We seek to match consumers withmultiplelenders,whocanprovidethemwithcompetingquotesfortheproducttheyareseeking.Wealsoserveasavaluedpartnertolendersseekinganefficient,scalableandflexiblesourceofcustomeracquisitionwithdirectlymeasurablebenefits,bymatchingtheconsumerinquirieswegeneratewiththeselenders.

Our My LendingTree platform offers a personalized loan comparison-shopping experience by providing free credit scores and credit score analysis. Thisplatformenablesustoobserveconsumers'creditprofilesandthenidentifyandalertthemtoloanandothercredit-basedopportunitiesonourmarketplacethatmaybemorefavorablethantheloanstheymayhaveatagivenpointintime.Thisisdesignedtoprovideconsumerswithmeasurablesavingsopportunitiesovertheirlifetimes.

Inadditiontooperatingourcoremortgagebusiness,wearefocusedongrowingournon-mortgagelendingbusinessesanddevelopingnewproductofferingsand enhancements to improve the experiences that consumers and lenders have as they interact with us. By expanding our portfolio of loan and credit-basedofferings, we are growing and diversifying our business and sources of revenue. We intend to capitalize on our expertise in performance marketing, productdevelopmentandtechnology,andtoleveragethewidespreadrecognitionoftheLendingTreebrandtoeffectthisstrategy.

Webelievetheconsumerandsmallbusinessfinancialservicesindustryisintheearlystagesofafundamentalshifttoonlineproductofferings,similartotheshiftthatstartedinretail andtravelmanyyearsagoandisnowwellestablished.Webelievethatlikeretail andtravel, asconsumerscontinuetomovetowardsonlineshoppingandtransactionsforfinancialservices,supplierswillincreasinglyshifttheirproductofferingsandadvertisingbudgetstowardtheonlinechannel.Webelievethestrengthofourbrandsandofourlendernetworkplaceusinastrongpositiontocontinuetobenefitfromthismarketshift.

The LendingTree Loans business is presented as discontinued operations in the accompanying consolidated balance sheets, consolidated statements ofoperations and comprehensive income and consolidated cash flows for all periods presented. Except for the discussion under the heading "DiscontinuedOperations,"theanalysiswithinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsreflectsourcontinuingoperations.

Acquisition of CompareCards

OnNovember16,2016,weacquiredIronHorseHoldings,LLC,whichdoesbusinessunderthenameCompareCardsfor$80.7millionincashatclosingandcontingentconsiderationpaymentsofupto$22.5millionineachof2017and2018,subjecttoachievingspecificgrowthtargets.CompareCardsisaleadingonlinesourcefor side-by-side credit cardcomparisonshopping. CompareCards provides consumers withonecentralized locationfor pertinent credit cardinformationneededtofindthebestcardfortheirneeds.Theacquisitioncontinuesourdiversificationstrategy.

Acquisition of North Carolina Office Properties

InDecember2016,wecompletedtheacquisitionoftwoofficebuildingsinCharlotte,NorthCarolina,for$23.5millionincash.Weintendtoutilizeoneorbothbuildingsinthefutureasourprincipalexecutiveoffices,andanyunusedspacewillcontinuetobeoccupiedbytenants.

WithourexpansioninNorthCarolina,wereceivedagrantfromthestatethatprovidesupto$4.9millioninreimbursementsover12yearsforinvestinginrealestateandinfrastructureinadditiontoincreasingjobsinNorthCarolinaatspecifictargetedlevelsbetween2017and2020,andmaintainingthejobsthereafter.Additionally,thecityofCharlotteandthecountyofMecklenburgprovidedagrantthatwillbepaidoverfiveyearsandisbasedonapercentageofnewpropertytaxwepayonthedevelopment.

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Recent Mortgage Interest Rate Trends

Interestrateandmarketriskscanbesubstantialinthemortgageleadgenerationbusiness.Short-termfluctuationsinmortgageinterestratesprimarilyaffectconsumerdemandformortgagerefinancings, whilelong-termfluctuationsinmortgageinterest rates, coupledwiththeU.S.real estate market, affect consumerdemand for new mortgages. Consumer demand, in turn, affects lender demand for mortgage leads from third-party sources. Typically, a decline in mortgageinterestrateswillleadtoreducedlenderdemand,astherearemoreconsumersinthemarketplaceseekingfinancingand,accordingly,lendersreceivemoreorganicleadvolume.Conversely,anincreaseinmortgageinterestrateswilltypicallyleadtoanincreaseinlenderdemand,astherearefewerconsumersinthemarketplaceand,accordingly,thesupplyoforganicmortgageleadvolumedecreases.

AccordingtoFreddieMac,30-yearmortgageinterestratesgenerallydeclinedas2014progressed,toanaverageof3.86%inDecember2014,thelowestsinceMay2013.InJanuary2015,30-yearmortgageinterestratescontinuedtodecline,reachingamonthlyaverageof3.67%,afterwhichthemortgageinterestratesgenerallyincreasedto3.96%bytheendof2015.In201630-yearinterestratesdeclined,reachinganaverageof3.44%inAugust2016,thelowestsinceJanuary2013.ByDecember2016,30-yearmortgageinterestratesincreasedtoanaverageof4.20%.

Onafull-yearbasis,30-yearmortgageinterestratesdeclinedtoanaverage3.65%in2016,ascomparedto3.85%and4.17%in2015and2014,respectively.

Typically, as mortgage interest rates decline, there are more consumers in the marketplace seeking refinancings and, accordingly, the mix of mortgageorigination dollars moves towards refinance mortgages. According to Mortgage Bankers Association ("MBA") data, total refinance origination dollars haveincreasedfrom43%oftotal2014mortgageoriginationdollarsto45%in2015and48%in2016,asaresultofthegeneraldecreaseinaveragemortgageinterestrates.

Looking forward, MBAis projecting 30-year mortgage interest rates to climbin 2017, to an average 4.5%on30-year fixed rate mortgages. According toMBAprojections,asinterestratesclimb,themixofmortgageoriginationdollarswillmovetowardspurchasemortgageswiththerefinancesharerepresentingjust30%for2017.

The U.S. Real Estate Market

ThehealthoftheU.S.realestatemarketandinterestratelevelsaretheprimarydriversofconsumerdemandfornewmortgages.Consumerdemand,inturn,affectslenderdemandforpurchasemortgageleadsfromthird-partysources.Typically,astrongrealestatemarketwillleadtoreducedlenderdemandforleads,asthere are more consumers in the marketplace seeking financing and, accordingly, lenders receive more organic lead volume. Conversely, a weaker real estatemarketwilltypicallyleadtoanincreaseinlenderdemand,astherearefewerconsumersinthemarketplaceseekingmortgages.

Despitecontinuedindicationsofeconomicrecovery,in2014,existinghomesalesnationwidedeclinedapproximately3%over2013,accordingtotheNationalAssociationofRealtors("NAR"),likelyduetolesseninghousingaffordabilityandhighermortgageinterestrates.However,salesofexistinghomesinthesecondhalfof2014wereup6%fromthefirsthalfoftheyear,aseconomicgrowthaccelerated,housinginventoryincreasedandsalespricesmoderated.Thismomentumcontinuedinto2015,

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withnationwideexistinghomesalesincreasingapproximately7%over2014,equatingtothehousingmarket'sbestyearinnearlyadecade.

While nationwide existing home sales in 2016 increased 3% over 2015, the NAR expects lower (but moderate) growth in existing home sales in 2017comparedto 2016, in largepart dueto thesmaller inventoryof homesfor sale, withthesupplyof homesfor sale at its lowest since1999, andtheanticipatedincreaseinmortgagerates.

Results of Operations for the Years ended December 31, 2016 , 2015 and 2014

 

Year Ended December 31, 2016 vs. 2015 2015 vs. 2014

 

2016 2015 2014 $

Change%

Change $

Change%

Change

(Dollarsinthousands)

Mortgageproducts $ 219,991 $ 165,272 $ 134,137 $ 54,719 33% $ 31,135 23%Non-mortgageproducts 164,411 88,944 33,213 75,467 85% 55,731 168%

Revenue 384,402 254,216 167,350 130,186 51 % 86,866 52 %

Costsandexpenses: Costofrevenue(exclusive of depreciation and amortization shownseparately below) 13,764 9,370 7,903 4,394 47% 1,467 19%

Sellingandmarketingexpense 261,100 172,849 112,704 88,251 51% 60,145 53%

Generalandadministrativeexpense 37,227 30,030 25,883 7,197 24% 4,147 16%

Productdevelopment 13,761 10,485 7,457 3,276 31% 3,028 41%

Depreciation 4,944 3,008 3,245 1,936 64% (237) (7)%

Amortizationofintangibles 1,243 149 136 1,094 734% 13 10%

Restructuringandseverance 122 422 373 (300) (71)% 49 13%

Litigationsettlementsandcontingencies 129 (611) 10,618 740 121% (11,229) (106)%

Totalcostsandexpenses 332,290 225,702 168,319 106,588 47 % 57,383 34 %

Operating income (loss) 52,112 28,514 (969) 23,598 83 % 29,483 3,043 %

Otherincome(expense),net: Interestexpense,net (561) (171) (2) 390 228% 169 8,450%

Otherincome 23 — — 23 —% — —%

Income (loss) before income taxes 51,574 28,343 (971) 23,231 82 % 29,314 3,019 %

Incometax(expense)benefit (20,366) 22,973 484 (43,339) (189)% 22,489 4,646%

Net income (loss) from continuing operations 31,208 51,316 (487) (20,108) (39)% 51,803 10,637 %

(Loss) income from discontinued operations (3,714) (3,269) 9,849 (445) (14)% (13,118) (133)%

Netincomeandcomprehensiveincome $ 27,494 $ 48,047 $ 9,362 $ (20,553) (43)% $ 38,685 413 %

Revenue

Revenueincreasedin2016comparedto2015duetoincreasesinournon-mortgageproductsof$75.5millionandinourmortgageproductsof$54.7million.

Ournon-mortgageproductsincludethefollowingnon-mortgagelendingproducts:personalloans,creditcards,homeequityloansandlinesofcredit,reversemortgageloans,autoloans,smallbusinessloansandstudentloans.Ournon-mortgageproductsalsoincludehomeimprovementreferralsandothercreditproductssuchascreditrepairanddebtsettlement.Manyofournon-mortgageproductsarenotindividuallysignificanttorevenue.Theincreaseinrevenuefromournon-mortgageproductsin2016comparedto2015isprimarilyduetoanincreaseinlendersonourexchange,increasedmarketingeffortsandtwobusinessacquisitions.Thisresultedinanincreaseinthenumberofconsumerscompletingrequestformsforthenon-mortgageproductsin2016.

Revenuefromourpersonalloanproductincreased$15.2millionto$66.5millionin2016from$51.3millionin2015,or30%.Revenuefromourpersonalloansproductincreasedin2016duetoanincreaseinlendersonourexchangeandincreasedmarketingefforts,partiallyoffsetbydecreasesinrevenueearnedperconsumer. Certain of our onlinepersonal loanlenders experiencedwell-publicizedchallenges in2016, in particular, general unavailability of capital, increasedpricingdemandedbyinvestorsofpersonal

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loans,whichinsomecasesledtoreductionsinmarketingspendandtighteninginunderwritingstandards.Webelievethemarketforournon-mortgageproducts,includingpersonalloans,remainsunder-penetratedandwebelievelong-termgrowthprospectsarestrongfornon-mortgageproducts.Asignificantindustry-widecontractionintheavailability of capital for non-mortgagelendingproducts wouldlikelyadverselyaffect our non-mortgageproduct revenues. While weexpectsignificantgrowthinournon-mortgageproductsin2017comparedto2016,wedonotanticipatethegrowthratewillmeetthe2016growthof85%.

Revenuefromourcredit cardproductincreased$29.6millionto$39.4millionin2016from$9.8millionin2015,or302%.Revenuefromourcredit cardproduct increased in 2016 due to increases in payouts from issuers in addition to increased marketing efforts. Additionally, the CompareCards acquisition,completedonNovember16,2016,increasedrevenueby$9.2millionin2016.

For2016and2015,noothernon-mortgageproductrepresentedmorethan10%ofrevenue,howevercertainothernon-mortgageproductsexperiencednotableincreases. Revenuefromourhomeequityproduct increased$13.6millionin2016comparedto2015, duetoanincrease inlender coverageandanincrease inrevenueearnedperconsumercombinedwithincreasedmarketingefforts.

Theincreaseinrevenuefromourmortgageproductsin2016comparedto2015isprimarilyduetoanincreaseinrevenuefromourrefinanceproduct.Therevenuefromourrefinanceproductincreasedapproximately$50.0millionin2016from2015,primarilyduetoanincreaseinlenderdemandandanincreaseinmarketing efforts. The number of consumers completing a request form for mortgage products increased in 2016 from 2015, partially offset by a decrease inrevenueearnedperconsumerin2016comparedto2015.Weexpectmoremoderateyear-over-yeargrowthinmortgagerevenue.

Revenueincreasedin2015comparedto2014duetoincreasesinournon-mortgageproductsof$55.7millionandinourmortgageproductsof$31.1million.

Theincreaseinrevenuefromournon-mortgageproductsin2015comparedto2014isprimarilyduetoincreasesinrevenuefromourpersonalloansproductandourcreditcardsproduct.Revenuefromourpersonalloansproductincreased$38.9millionto$51.3millionin2015from$12.3millionin2014,or316%,dueto growing awareness in the market of the product, an increase in lenders on our exchange, increases in revenue earned per matched consumer and increasedmarketingefforts.Revenuefromourcreditcardsproductincreased$9.2millionto$9.8millionin2015from$0.7millionin2014,or1314%,duetoincreasesinpayoutsfromissuersinadditiontoincreasedmarketingefforts.For2015and2014,noothernon-mortgageproductrepresentedmorethan10%ofrevenue.

Theincreaseinrevenuefromourmortgageproductsin2015comparedto2014isprimarilyduetoanincreaseinrevenuefromourrefinanceproduct.Therevenuefromourrefinanceproductincreasedapproximately$30.0millionin2015from2014primarilyduetoincreaseddemandofbothnewandexistinglendersonourmarketplace.Additionally,mortgageinterestrateswerelowerin2015comparedto2014,causinganincreaseinsalesoftherefinanceproduct.Thenumberofconsumerscompletingarequestformformortgageproductsincreasedin2015from2014,partiallyoffsetbyadecreaseinrevenueearnedperconsumerin2015comparedto2014.

Cost of revenue

Costofrevenueconsistsprimarilyofcostsassociatedwithcompensationandotheremployee-relatedcosts(includingstock-basedcompensation)relatingtointernally-operatedcustomercallcenters,third-partycustomercallcenterfees,creditscoringfees,creditcardfees,websitenetworkhostingandserverfees.

Costofrevenueincreasedin2016from2015,primarilyduetoincreasesof$1.3millionincompensationandbenefitsasaresultofincreasesinheadcount,$0.9millionincreditscoringfees,$0.7millionincallcentertechnologyfees,$0.6millionincreditcardfeesand$0.4millioninleadverificationfees.

Costofrevenueincreasedin2015from2014,primarilyduetoincreasesof$1.1millionincompensationandbenefitsasaresultofincreasesinheadcountand$0.7millionincreditcardfees,partiallyoffsetbya$0.7milliondecreaseincreditscoringfees.

Costofrevenueasapercentageofrevenuedecreasedslightlyto4%in2016and2015from5%in2014.

Selling and marketing expense

Sellingandmarketingexpenseconsistsprimarilyofadvertisingandpromotionalexpenditures,feespaidforconsumerinquiriesandcompensationandotheremployee-related costs (including stock-based compensation) for personnel engagedin sales or marketing functions. Advertising andpromotional expendituresprimarilyincludeonlinemarketing,aswellastelevision,printandradiospending.Advertisingproductioncostsareexpensedintheperiodtherelatedadisfirstrun.

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Theincreases in sellingandmarketingexpensein 2016comparedto 2015and2015comparedto 2014wereprimarily dueto increases in advertisingandpromotionalexpenseof$84.0millionand$57.1million,respectively,asdiscussedbelow.Inaddition,sellingandmarketingexpenseincreasedin2016comparedto2015andin2015comparedto2014duetoanincreaseincompensationandbenefitsof$4.3millionand$3.1million,respectively,asaresultofincreasesinheadcount.

Advertisingandpromotionalexpenseisthelargestcomponentofsellingandmarketingexpense,andiscomprisedofthefollowing:

Year Ended December 31, 2016 vs. 2015 2015 vs. 2014

 

2016 2015 2014 $

Change%

Change $

Change%

Change

(Dollarsinthousands)Online $ 210,635 $ 127,294 $ 86,088 $ 83,341 65% $ 41,206 48%Broadcast 28,455 28,066 14,011 389 1% 14,055 100%Other 4,131 3,863 2,056 268 7% 1,807 88%Total advertising expense $ 243,221 $ 159,223 $ 102,155 $ 83,998 53% $ 57,068 56%

Weincreasedouradvertisingexpendituresin2016comparedto2015andin2015comparedto2014,inordertogenerateadditional consumerinquiriestomeettheincreaseddemandoflendersonourmarketplace.

Wewillcontinuetoadjustsellingandmarketingexpendituresdynamicallyinrelationtoanticipatedrevenueopportunities.

General and administrative expense

Generalandadministrativeexpenseconsistsprimarilyofcompensationandotheremployee-relatedcosts(includingstock-basedcompensation)forpersonnelengaged in finance, legal, tax, corporate information technology, humanresources and executive management functions, as well as facilities and infrastructurecostsandfeesforprofessionalservices.

Generalandadministrativeexpenseincreasedin2016comparedto2015,primarilyduetoincreasesincompensationandbenefitsof$2.0millionasaresultofincreasesinheadcount,increasesinprofessionalfeesof$3.1million,increasesintravelandentertainmentexpensesof$0.8million,increasesinfacilityexpensesof$0.6millionandincreasesinothertaxexpenseof$0.5million.Theincreaseinprofessionalfeesispartiallyduetoanincreaseinacquisitionrelatedexpensesof$0.9million.

Generalandadministrativeexpenseasapercentageofrevenuedecreasedto10%in2016comparedto12%in2015.

Generalandadministrativeexpenseincreasedin2015comparedto2014,primarilyduetoincreasesincompensationandbenefitsof$2.0millionasaresultofincreasesinheadcount,increasesinrecruitingexpensesof$0.5million,increasesincomputersoftwaremaintenanceof$0.8millionandincreasesinprofessionalfeesof$0.8million,partiallyoffsetbydecreasesinassetimpairmentsof$0.3million.

Generalandadministrativeexpenseasapercentageofrevenuedecreasedto12%in2015comparedto15%in2014.

Product development

Product development expense consists primarily of compensation and other employee-related costs (including stock-based compensation) and third-partylaborcoststhatarenotcapitalized,foremployeesandconsultantsengagedinthedesign,development,testingandenhancementoftechnology.

Productdevelopmentexpenseincreasedin2016comparedto2015andin2015comparedto2014,aswecontinuedtoinvestininternaldevelopmentofnewand enhanced features, functionality and business opportunities that we believe will enable us to better and more fully serve consumers and lenders. Productdevelopmentexpensesarecomprisedprimarilyofcompensationandotheremployee-relatedcosts.Weincreasedheadcountin2016comparedto2015andin2015comparedto2014,inordertosupportplannedproductlaunches.

Litigation settlements and contingencies

Litigation settlements and contingencies consists of expenses related to actual or anticipated litigation settlements, in addition to legal fees incurred inconnectionwithvariouspatentlitigationclaimswearepursuing.

During2014,weparticipatedinajurytrialfortheZillowlitigationdescribedinNote13—Contingenciesinthenotestotheconsolidatedfinancialstatementsincludedelsewhereinthisreport.Thelegalexpensesassociatedwiththisjurytrialandpost-

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trialmotionsincreasedourlitigationsettlementsandcontingenciesexpensefor2014.Inaddition,inOctober2014,thecourtawardedNexTag'sattorneyfeesandcoststotaling$2.3million,whichwererecordedaslitigationexpensein2014.WeappealedtheawardofNexTag'sattorneyfeesandcostsinNovember2014and,inJune2015,wereachedasettlementagreementwithNexTagfor$1.1million.DuringtheyearendedDecember31,2015,werecorded$0.6millioninincomeprimarilyduetoanadjustmentinthereserveforNexTagattorneyfeesandcostsassociatedwiththismatter,partiallyoffsetbylegalfees.DuringtheyearendedDecember31,2014,werecorded$10.6millioninexpenses,dueprimarilytolegalfeesincurredinconnectionwiththispatentlitigation.

Income tax expense

  Year Ended December 31,

  2016 2015 2014

(in thousands, except percentages)

Incometax(expense)benefit $ (20,366) $ 22,973 $ 484Effective tax rate 39.5% (81.1)% (49.8)%

For2016,theeffectivetaxratevariedfromthestatutoryrateof35%primarilyduetothebenefitderivedfromthefederalresearchtaxcredit,partiallyoffsetby state taxes, including the impact of a reduction in the North Carolina state incometax rate which reduced the value of our deferred tax assets. The federalresearchtaxcreditbenefitistheresultofastudycompletedduringthesecondquarterfortheopentaxyearsof2011through2015,plusanestimateofthebenefitfromcurrentresearchactivities.

For2015, theeffectivetaxrate variedfromthestatutoryrate of 35%primarily duetothereversal of thefederal andpartial reversal of thestate valuationallowancesetupinprioryearsagainstourdeferredtaxassets,partiallyoffsetbystatetaxes.

For2014,theeffectivetaxratesvariedfromthestatutoryrateof35%primarilyduetostatetaxes.

Discontinued Operations

OnJune6,2012,wesoldsubstantiallyalloftheoperatingassetsofourLendingTreeLoansbusinessforapproximately$55.9millionincashtoDiscover.

DiscovergenerallydidnotassumeliabilitiesoftheLendingTreeLoansbusinessthatarosebeforetheclosingdate,exceptforcertainliabilitiesdirectlyrelatedtoassetsDiscoveracquired.Ofthepurchasepricepaid,asofDecember31,2016,$4.0millionisbeingheldinescrowinaccordancewiththeagreementwithDiscoverforcertainloanlossobligationsthatremainwithusfollowingthesale.

During2016,2015and2014, (loss)incomefromdiscontinuedoperationsof$(3.7)million,$(3.3)millionand$9.8million,respectively,wasprimarilyattributable to the LendingTree Loans business. In 2014, results of discontinued operations were primarily due to income froman adjustment in the loan lossreserveasaresultofasettlementwithoneofLendingTreeLoans'secondarymarketpurchasers,partiallyoffsetbycostsrelatingtotheongoingwind-downofthebusiness.In2016and2015,lossfromdiscontinuedoperationswasprimarilyduetolitigationsettlementsandcontingenciesandlegalfeesassociatedwithongoinglegalproceedings.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

We report adjusted EBITDA as a supplemental measure to GAAP. This measure is the primary metric by which we evaluate the performance of ourbusinesses,onwhichourmarketingexpendituresandinternalbudgetsarebasedandbywhichmanagementandmanyemployeesarecompensated.Webelievethatinvestors shouldhaveaccess tothesameset of tools that weuseinanalyzingourresults. Thisnon-GAAPmeasure shouldbeconsideredinadditiontoresultspreparedinaccordancewithGAAP,butshouldnotbeconsideredasubstitutefororsuperiortoGAAPresults.WeprovideandencourageinvestorstoexaminethereconcilingadjustmentsbetweentheGAAPandnon-GAAPmeasuresdiscussedbelow.

Definition of Adjusted EBITDA

WereportAdjustedEBITDAasnetincomefromcontinuingoperationsadjustedtoexcludeinterest,incometax,amortizationofintangiblesanddepreciation,andtofurtherexclude(1)non-cashcompensationexpense,(2)non-cashimpairmentcharges,(3)gain/lossondisposalofassets,(4)restructuringandseveranceexpenses, (5) litigationsettlements andcontingencies andlegal fees for certain patent litigation, (6) acquisitions anddispositionsincomeor expense(includingwithrespecttochangesinfair valueofcontingentconsideration)and(7)one-timeitems.AdjustedEBITDAhascertainlimitationsinthatit doesnottakeintoaccounttheimpacttoourstatementofoperationsofcertainexpenses,includingdepreciation,non-cashcompensationand

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acquisition-related accounting. Weendeavor to compensate for the limitations of the non-GAAPmeasures presented by also providing the comparable GAAPmeasureswithequalorgreaterprominenceanddescriptionsofthereconcilingitems,includingquantifyingsuchitems,toderivethenon-GAAPmeasures.Thesenon-GAAPmeasuresmaynotbecomparabletosimilarlytitledmeasuresusedbyothercompanies.

One-Time Items

AdjustedEBITDAisadjustedforone-timeitems,ifapplicable.Itemsareconsideredone-timeinnatureiftheyarenon-recurring,infrequentorunusualandhavenotoccurredinthepasttwoyearsorarenotexpectedtorecurinthenexttwoyears,inaccordancewithSECrules.Fortheperiodspresentedinthisreport,therearenoadjustmentsforone-timeitems,exceptfor$0.1millionrelatedtoanestimatedsettlementforunclaimedpropertyin2015.

Non-Cash Expenses that are Excluded from Adjusted EBITDA

Non-cash compensation expense consists principally of expense associated with grants of restricted stock, restricted stock units and stock options. Theseexpensesarenotpaidincash,andweincludetherelatedsharesinourcalculationsoffullydilutedsharesoutstanding.Uponsettlementofrestrictedstockunits,exerciseofcertainstockoptionsorvestingofrestrictedstockawards,theawardsmaybesettled, onanetbasis, withusremittingtherequiredtaxwithholdingamountfromourcurrentfunds.

Amortization of intangibles are non-cash expenses relating primarily to intangible assets acquired through acquisitions. At the time of an acquisition, theintangible assets of the acquired company, suchas purchase agreements, technologyandcustomer relationships, are valuedandamortized over their estimatedlives.

Thefollowingtableisareconciliationofnetincome(loss)fromcontinuingoperationstoAdjustedEBITDA.

Year Ended December 31,

 

2016 2015 2014

(inthousands)

Net income (loss) from continuing operations $ 31,208 $ 51,316 $ (487)AdjustmentstoreconciletoAdjustedEBITDA: Amortizationofintangibles 1,243 149 136Depreciation 4,944 3,008 3,245Restructuringandseverance 122 422 373Lossondisposalofassets 640 748 282Impairmentoflong-livedassets — — 805Non-cashcompensation 9,647 8,370 7,277Estimatedsettlementforunclaimedproperty — 134 —Acquisitionexpense 959 84 60Litigationsettlementsandcontingencies 129 (611) 10,618Interestexpense,net 561 171 2Incometaxexpense(benefit) 20,366 (22,973) (484)

Adjusted EBITDA $ 69,819 $ 40,818 $ 21,827

Financial Position, Liquidity and Capital Resources

General

AsofDecember31,2016,wehad$91.1millionofcashandcashequivalentsand$4.1millionofrestrictedcashandcashequivalents,comparedto$207.0millionofcashandcashequivalentsand$6.5millionofrestrictedcashandcashequivalentsasofDecember31,2015.

In2016,wepurchased690,218sharesofourcommonstockpursuanttoastockrepurchaseprogramfor$48.5million.

InDecember2016,weacquiredtwoofficebuildingsinCharlotte,NorthCarolinafor$23.5millionincash.InNovember2016,weacquiredCompareCardsfor $80.7millioncashat closingandpotential future contingent considerationpayments of upto$22.5millionineachof 2017and2018, subject to achievingspecifiedtargets.See Note6—BusinessAcquisitionsandNote4—PropertyandEquipment, respectively, inthenotestotheconsolidatedfinancial statementsincludedelsewhereinthisreportforadditionalinformation.

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In November 2015, wecompleted an equity offering of 852,500shares of our commonstock. Wereceived net proceeds of $91.5 million, after deductingapproximately$5.9millioninunderwritingdiscountsand$0.7millioninofferingexpenses.

Weexpectourcashandcashequivalentsandcashflowsfromoperationstobesufficienttofundouroperatingneedsforthenexttwelvemonthsandbeyond.Ourrevolvingcreditfacilitydescribedbelowisanadditionalpotentialsourceofliquidity.

Senior Secured Revolving Credit Facility

OnOctober22,2015,weestablisheda$125.0millionfive-yearSeniorSecuredRevolvingCreditFacilitywhichmaturesonOctober22,2020(the"RevolvingCreditFacility").TheproceedsoftheRevolvingCreditFacilitycanbeusedtofinanceworkingcapitalneeds,capitalexpendituresandgeneralcorporatepurposes,includingtofinancepermittedacquisitions.AsofFebruary28,2017,wedonothaveanyborrowingsundertheRevolvingCreditFacility.

For additional information onthe RevolvingCredit Facility,see Note11—Revolving Credit Facility in the notes to the consolidated financial statementsincludedelsewhereinthisreport.

Cash Flows from Continuing Operations

Ourcashflowsattributabletocontinuingoperationsareasfollows:

 

Year Ended December 31,

 

2016 2015 2014

(inthousands)Netcashprovidedbyoperatingactivities $ 58,454 $ 32,584 $ 9,075Netcash(usedin)providedbyinvestingactivities (117,215) 4,901 2,704Netcash(usedin)providedbyfinancingactivities (46,880) 86,909 (7,651)

CashFlowsfromOperatingActivities

Ourlargestsourceofcashprovidedbyouroperatingactivitiesisrevenuesgeneratedbyourmortgageandnon-mortgageproducts.Ourprimaryusesofcashfromour operating activities include advertising and promotional payments and fees paid for consumer inquiries. In addition, our uses of cash fromoperatingactivitiesincludecompensationandotheremployee-relatedcosts,othergeneralcorporateexpenditures,litigationsettlementsandcontingenciesandincometaxes.

Netcashprovidedbyoperatingactivitiesattributabletocontinuingoperationsincreasedin2016from2015primarilyduetoanincreaseinrevenue,partiallyoffsetbyanincreaseincostofrevenueandsellingandmarketing.Additionally,therewasanincreaseincashfromchangesinworkingcapitalprimarilydrivenbychangesinaccountsreceivableandincometaxespayable.

Netcashprovidedbyoperatingactivitiesattributabletocontinuingoperationsincreasedin2015from2014primarilyduetoanincreaseinrevenue,partiallyoffset by an increase in cost of revenue and selling and marketing. Additionally, there was a decrease in payments related to litigation settlements andcontingenciesandanetincreaseincashfromchangesinworkingcapitalprimarilydrivenbychangesinaccountspayableandothercurrentliabilitiesandincometaxespayable.

CashFlowsfromInvestingActivities

Netcashusedininvestingactivitiesattributabletocontinuingoperationsin2016of$117.2millionconsistedprimarilyoftheacquisitionofCompareCardsfor$81.2million,theacquisitionofSimpleTuitionfor$4.5million,theacquisitionoftwoofficebuildingsinCharlotte,NorthCarolinafor$23.4millionand$10.6millionrelatedtointernallydevelopedsoftwareandtheacquisitionofanaircraft.Thiswaspartiallyoffsetbya$2.5milliondecreaseinrestrictedcashduetothereleaseoffundsinescrowforthesuretybondsduetoareductionincollateralrequirements.

Netcashprovidedbyinvestingactivitiesattributabletocontinuingoperationsin2015of$4.9millionconsistedprimarilyof$12.2millioninthereleaseofrestricted cash previously held in escrowin connection with the sale of LendingTree Loans, offset by capital expenditures of $7.2 million primarily related tointernallydevelopedsoftware.

Net cashprovided by investing activities attributable to continuing operations in2014of$2.7 million consisted primarily of capital expenditures of $3.9millionand$0.7millioninpaymentstoacquireabusiness,whichwasmorethanoffsetbyadecreaseinrestrictedcashof$7.3million.In2014,wereachedandexecutedasettlementwiththedisputingpartyontheearnoutrelatedtoanacquisition,uponwhich$2.0millionofcashpreviouslyheldinescrowwasreleased.Additionally, in 2014, wereachedandexecutedasettlement withoneofour LendingTreeLoans' secondarymarket purchasers relatedtoloanlossobligations,uponwhich$2.0millionofcashpreviouslyheldinescrowwasreleasedtous.Finally,in2014,wereachedandexecutedasettlement

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withanothersecondarymarketpurchaserrelatedtoloanlossobligations,uponwhich$3.1millionofcashpreviouslyheldbysuchsecondarymarketpurchaserwaspaidout.

CashFlowsfromFinancingActivities

Netcashusedinfinancingactivitiesattributabletocontinuingoperationsin2016of$46.9millionconsistedprimarilyoftherepurchaseofourstockof$48.5millionand$4.1 million in withholding taxes paid byus uponsurrender of shares to satisfy obligations onequity awards; offset by $5.8 million in excess taxbenefitsfromstock-basedawardactivity.

Netcashprovidedbyfinancingactivitiesattributabletocontinuingoperationsin2015of$86.9millionconsistedprimarilyofnetproceedsfromtheNovember2015equityofferingof$91.5millionand$4.6millioninexcesstaxbenefitsfromstock-basedawardactivity,offsetby$7.6millioninwithholdingtaxespaidbyusuponthesurrenderofsharestosatisfyobligationsonequityawards,$1.2millionforthepaymentofdebtissuancecosts,therepurchaseofourstockof$0.2millionand$0.1millionindividendpayments.

Netcashusedinfinancingactivitiesattributabletocontinuingoperationsin2014of$7.7millionconsistedprimarilyof$4.8millioninwithholdingtaxespaidbyusuponthesurrenderofsharestosatisfyobligationsonequityawardsandtherepurchaseofourstockof$2.6million.

Off-Balance Sheet Arrangements

Wehavenooff-balancesheetarrangementsotherthanouroperatingleaseobligationsandfundingcommitmentspursuanttooursuretybonds,noneofwhichhave or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results ofoperations,liquidity,capitalexpendituresorcapitalresourcesthatismaterialtoinvestors.See Note12—Commitmentstotheconsolidatedfinancialstatementsincludedelsewhereinthereportforfurtherdetails.

Summary of Contractual Obligations

ThefollowingtablesetsforthourcontractualobligationsandcommercialcommitmentsasofDecember31,2016.

Payments Due By Period as of December 31, 2016

Contractual Obligations (a) TotalLess Than1 Year 1-3 Years 3-5 Years

More Than5 Years

Operatingleaseobligations(b) $ 4,681 $ 1,374 $ 2,252 $ 1,055 $ —Long-termcontractualobligations(c) 23,600 — 23,600 — —Total contractual obligations $ 28,281 $ 1,374 $ 25,852 $ 1,055 $ —

(a) Excludes potential obligations under surety and litigation bonds and the indemnification obligations, repurchase obligations and premium repaymentobligationsforwhichourHLCsubsidiarycontinuestobeliablefollowingthesaleofsubstantiallyalloftheoperatingassetsofourLendingTreeLoansbusiness in the second quarter of 2012. Excludes a $0.6 million accrual related to uncertain tax position, as we are unable to determine when, or if,paymentsforthesetaxeswillultimatelybemade.

(b) Ouroperatingleaseobligationsareassociatedwithofficespace.

(c) Includesaliabilityof$23.1millionfortheestimatedfairvalueofcontingentconsiderationobligationsreflectedonthebalancesheetfortheacquisitionofCompareCards.Actualcontingentconsiderationpaymentscouldrangefromzeroto$45.0million.Alsoincludesa$0.5millionhold-backofthepurchasepricerelatedtotheSimpleTuitionacquisition.

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Critical Accounting Policies and Estimates

ThefollowingdisclosureisprovidedtosupplementthedescriptionofouraccountingpoliciescontainedinNote2—SignificantAccountingPoliciestotheconsolidatedfinancialstatementsincludedelsewhereinthisreportinregardtosignificantareasofjudgment.Thisdisclosureincludesaccountingpoliciesrelatedtoboth continuing operations and discontinued operations. Management is required to make certain estimates and assumptions during the preparation of theconsolidatedfinancial statements in accordancewithgenerally acceptedaccountingprinciples. Theseestimates andassumptionsimpact thereportedamount ofassetsandliabilitiesanddisclosuresofcontingentassetsandliabilitiesasofthedateoftheconsolidatedfinancialstatements.Theyalsoimpactthereportedamountofnetearningsduringanyperiod.Actualresultscoulddifferfromthoseestimates.Becauseofthesizeofthefinancialstatementelementstowhichtheyrelate,someofouraccountingpoliciesandestimateshaveamoresignificantimpactonourconsolidatedfinancialstatementsthanothers.Adiscussionofsomeofourmoresignificantaccountingpoliciesandestimatesfollows.

Loan Loss Obligations

Wemakeestimatesastoourexposurerelatedtoourobligationtorepurchaseloanspreviouslysoldtoinvestorsortorepaypremiumspaidbyinvestorsinpurchasingloans,andreserveforsuchcontingenciesaccordingly.Suchpaymentstoinvestorsmayberequiredincaseswhereunderwritingdeficiencies,borrowerfraud,documentationdefects,earlypaymentdefaultsandearlyloanpayoffsoccurred.

OurHLCsubsidiarycontinuestobeliableforcertainindemnificationobligations,repurchaseobligationsandpremiumrepaymentobligationsfollowingthesaleofsubstantiallyalloftheoperatingassetsofourLendingTreeLoansbusinessonJune6,2012.Approximately$4.0millionisbeingheldinescrowpendingresolutionofcertainofthesecontingentliabilities.Wehavebeennegotiatingwithcertainsecondarymarketpurchaserstosettleanyexistingandfuturecontingentliabilities,butwemaynotbeabletocompletesuchnegotiationsonacceptableterms,oratall.BecausewedonotservicetheloansLendingTreeLoanssold,wedonotmaintainnorhaveaccesstothecurrentbalancesandloanperformancedatawithrespecttotheindividualloanspreviouslysoldtoinvestors.Accordingly,weareunabletodetermine,withprecision,ourmaximumexposureforbreachesoftherepresentationsandwarrantiesLendingTreeLoansmadetotheinvestorsthatpurchasedsuchloans.

Weestimatetheliabilityforloanlossesusingasettlementdiscountframework.Thisapproachestimatesthelifetimelossesonthepopulationofremainingloans originated and sold by LendingTree Loans using actual defaults for loans with similar characteristics and projected future defaults. It also considers thelikelihoodofclaimsexpectedduetoallegedbreachesofrepresentationsandwarrantiesmadebyLendingTreeLoansandthepercentageofthoseclaimsinvestorsestimateLendingTreeLoansmayagreetorepurchase.Wethenapplyasettlementdiscountfactortotheresultoftheforegoingtoreflectpublicly-announcedbulksettlementsforsimilarloantypesandvintages,ourownsettlementexperience,aswellasLendingTreeLoans'non-operatingstatus,inordertoestimatearangeofthepotentialobligation.Changestoanyoneofthesefactorscouldsignificantlyimpacttheestimateoftheliabilityandcouldhaveamaterialandadverseimpactonourresultsofoperationsforanyparticularperiod.

Wehaveconsideredbothobjectiveandsubjectivefactors inourestimationprocess, butgivencurrent general industrytrendsinmortgageloansaswell ashousing prices, market expectations and actual losses related to LendingTree Loans' obligations could vary significantly from the obligation recorded as ofDecember31,2016of$6.8millionortherangeofremainingloanlossesof$4.4millionto$8.0million.See Note18—DiscontinuedOperations—LendingTreeLoans—LoanLossObligationstotheconsolidatedfinancialstatementsincludedelsewhereinthisreportforadditionalinformationontheloanlossreserve.

Income Taxes

Estimatesofdeferredincometaxesandthesignificant itemsgivingrisetothedeferredassetsandliabilities areshowninNote10—IncomeTaxestotheconsolidatedfinancialstatementsincludedelsewhereinthisreport,andreflectmanagement'sassessmentofactualfuturetaxestobepaidonitemsreflectedintheconsolidatedfinancialstatements,givingconsiderationtobothtimingandtheprobabilityofrealization.Actualincometaxescouldvaryfromtheseestimatesduetofuturechangesinincometaxlaw,stateincometaxapportionmentortheoutcomeofanyreviewofourtaxreturnsbytheIRS,aswellasactualoperatingresultsthatmayvarysignificantlyfromanticipatedresults.

Wealsorecognizeliabilitiesforuncertaintaxpositionsbasedonthetwo-stepprocessprescribedbytheaccountingguidanceforuncertaintyinincometaxes.Thefirststepistoevaluatethetaxpositionforrecognitionbydeterminingiftheweightofavailableevidenceindicatesitismorelikelythannotthatthepositionwillbesustainedonaudit,includingresolutionofrelatedappealsorlitigationprocesses,ifany.Thesecondstepistomeasurethetaxbenefitasthelargestamountthatismorethan50%likelyofbeingrealizeduponultimatesettlement.Thismeasurementstepisinherentlydifficultandrequiressubjectiveestimationsofsuchamountstodeterminetheprobabilityofvariouspossibleoutcomes.Weconsidermanyfactorswhenevaluatingandestimatingourtaxpositionsandtaxbenefits,whichmayrequireperiodicadjustmentsandwhichmaynotaccuratelyanticipateactualoutcomes.

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Avaluationallowanceisprovidedondeferredtaxassetsifitisdeterminedthatitis"more likely than not" thatthedeferredtaxassetwillnotberealized.

Inthefourthquarterof2015,weconcluded,baseduponallavailableevidence,itwasmorelikelythannotwewouldhavesufficientfuturetaxableincometorealize the majority of our net deferred tax assets. As a result, we released the majority of the valuation allowance in 2015. We significantly improved ouroperatingperformancein2015,emergedfromcumulativelossesinrecentyearstoacumulativeprofitpositionandprojecttaxableincomeinfutureyears.Whilewebelievetheassumptionsincludedinourprojectionsoffuturetaxableincomearereasonable,iftheactualresultsvaryfromexpectedresultsduetounforeseenchangesintheeconomyormortgageindustry,orotherfactors,wemayneedtomakefutureadjustmentstothevaluationallowanceforall,oraportion,ofthenetdeferredtaxassets.

At December 31, 2016 and 2015, we recorded a partial valuation allowance of $2.1 million and$2.3 million , respectively, primarily related to state netoperatinglosses,whichwedonotexpecttobeabletoutilizepriortoexpiration.

Stock-Based Compensation

Theformsofstock-basedawardsgrantedtoouremployeesareprincipallyrestrictedstockunits("RSUs"),RSUswithperformanceconditions,restrictedstockandstockoptions.ThevalueofRSUandrestrictedstockawardsismeasuredattheirgrantdatesasthefairvalueofcommonstockandamortizedratablyasnon-cashcompensationexpenseoverthevestingterm.ThevalueofRSUswithperformanceconditionsismeasuredattheirgrantdatesasthefairvalueofcommonstockandrecognizedasnon-cashcompensationexpense,usingagradedvestingattributionmodelthatconsiderstheprobabilityofthetargetsbeingachieved.Thevalueofstockoptionsissued,asdiscussedinNote9—Stock-BasedCompensationtotheconsolidatedfinancialstatementsincludedelsewhereinthisreport,isestimatedusingaBlack-Scholesoptionpricingmodel.Ifanawardismodified,wedetermineifthemodificationrequiresanewcalculationoffairvalueorchangeinthevestingtermoftheaward.

AsofDecember31,2016,therewasapproximately$7.8million,$7.5million,$1.7millionand$0.1millionofunrecognizedcompensationcostrelatedtostockoptions, RSUs, RSUswith performance conditions andrestricted stock, respectively. These costs are expected to be recognized over a weighted-averageperiodofapproximately1.5yearsforstockoptions,1.9yearsforRSUs,1.9yearsforRSUswithperformanceconditionsand0.4yearsforrestrictedstock.

Recoverability of Long-Lived Assets

Wereviewthecarryingvalueofalllong-livedassets,primarilypropertyandequipment,anddefinite-livedintangibleassetsforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingvalueofanassetmaybeimpaired.Impairmentisconsideredtohaveoccurredwheneverthecarryingvalueofalong-livedassetcannotberecoveredfromcashflowsthatareexpectedtoresult fromtheuseandeventualdispositionoftheasset. Thisrecoverabilitytestrequiresustomakeassumptionsandjudgmentsrelatedtofactorsusedinacalculationofundiscountedcashflows,including,butnotlimitedto,management’sexpectationsforfutureoperationsandprojectedcashflows.ThekeyassumptionsusedinthiscalculationincludeAdjustedEBITDA,theremainingusefullivesoftheprimarycashflowgeneratingassetintheassetgroupand,toalesserextent,thedeductionofcapitalexpendituresandtaxespaidincashtoarriveatnetcashflows.

Duringthefourthquarterof2014,welostkeycustomersandexperiencedadeclineinrevenueforacertainproductincludedwithintheEducationbusiness.Accordingly,inearly2015,weamendedourstrategiccourseforthisproduct,resultinginareductioninanticipatedfuturecashflows.AtDecember31,2014,wereviewedthelong-livedassetsassociatedwiththisproductforrecoverability,resultinginanimpairmentchargetocustomerlistsandinternallydevelopedsoftwareofapproximately$0.8million.Thefairvalueofthelong-livedassetswasdeterminedusingadiscountedcashflowmodel.Theimpairmentchargeisincludedingeneralandadministrativeexpenseontheaccompanyingconsolidatedstatementofoperationsandcomprehensiveincome.

Thevalueoflong-livedassetssubjecttoassessmentforimpairmentis$97.0millionatDecember31,2016.

Business Acquisitions

Whenweacquirebusinesses,weallocatethepurchasepricetotangibleassetsandliabilitiesandidentifiableintangibleassetsacquiredattheiracquisitiondatefairvalues.Anyresidualpurchasepriceisrecordedasgoodwill.WealsoestimatethefairvalueofanycontingentconsiderationusingLevel3unobservableinputs.Ourestimatesoffairvaluearebaseduponassumptionsbelievedtobereasonablebutwhichareuncertainandinvolvesignificantjudgmentsbymanagement.

We reassess the fair value of contingent consideration quarterly until the contingency is resolved, and changes in the fair value are recorded in operatingincome(expense)intheconsolidatedstatementsofoperations.

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New Accounting Pronouncements

See Note2—SignificantAccountingPoliciestotheconsolidatedfinancialstatementsincludedelsewhereinthisreportforadescriptionofrecentaccountingpronouncements.

ITEM 7A.   QuantitativeandQualitativeDisclosuresaboutMarketRisk

Other than our Revolving Credit Facility, which currently has no borrowings outstanding, we do not have any financial instruments that are exposed tosignificantmarketrisk.Wemaintainourcashandcashequivalentsinbankdepositsandshort-term,highlyliquidmoneymarketinvestments.Ahypothetical100-basispointincreaseordecreaseinmarketinterestrateswouldnothaveamaterialimpactonthefairvalueofourcashequivalentssecurities,orourearningsonsuchcashequivalents,butwouldhaveaneffectontheinterestpaidonborrowingsundertheRevolvingCreditFacility,ifany.AsofFebruary28,2017,therewerenoborrowingsundertheRevolvingCreditFacility.

Fluctuations in interest rates affect consumer demand for new mortgages and the level of refinancing activity which, in turn, affects lender demand formortgageleads.Typically,adeclineinmortgageinterestrateswillleadtoreducedlenderdemandforleadsfromthird-partysources,astherearemoreconsumersin the marketplace seeking refinancings and, accordingly, lenders receive more organic lead volume. Conversely, an increase in mortgage interest rates willtypically lead to an increase in lender demand for third-party leads, as there are fewer consumers in the marketplace and, accordingly, the supply of organicmortgageleadvolumedecreases.

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ITEM 8.   FinancialStatementsandSupplementaryData

INDEX TO FINANCIAL STATEMENTS

   

PageNumber

LENDINGTREE,INC.ANDSUBSIDIARIES:ReportofIndependentRegisteredPublicAccountingFirm 41CONSOLIDATEDFINANCIALSTATEMENTS: ConsolidatedStatementsofOperationsandComprehensiveIncome 42 ConsolidatedBalanceSheets 43 ConsolidatedStatementsofShareholders'Equity 44 ConsolidatedStatementsofCashFlows 45 NotestoConsolidatedFinancialStatements 46

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Report of Independent Registered Public Accounting Firm

TotheBoardofDirectorsandShareholdersofLendingTree,Inc.

Inouropinion,theaccompanyingconsolidatedbalancesheetsandtherelatedconsolidatedstatementsofoperationsandcomprehensiveincome,ofshareholders’equityandofcashflowspresentfairly,inallmaterialrespects,thefinancialpositionofLendingTree,Inc.anditssubsidiariesatDecember31,2016andDecember31,2015,andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31,2016inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Alsoinouropinion,theCompanymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee ofSponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements, for maintainingeffectiveinternalcontroloverfinancialreportingandforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting,includedinManagement'sReportonInternalControloverFinancialReportingappearingunderItem9A.OurresponsibilityistoexpressopinionsonthesefinancialstatementsandontheCompany's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the PublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatementandwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.Ourauditsofthefinancialstatementsincludedexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement, andevaluatingtheoverall financial statementpresentation. Ouraudit ofinternalcontroloverfinancialreportingincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternal controlbasedontheassessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditsprovideareasonablebasisforouropinions.

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsand dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

/s/PricewaterhouseCoopersLLP

Charlotte,NorthCarolinaFebruary28,2017

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LENDINGTREE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

  Year Ended December 31,

  2016 2015 2014  (inthousands,exceptpershareamounts)

Revenue $ 384,402 $ 254,216 $ 167,350Costsandexpenses: Costofrevenue(exclusive of depreciation and amortization shown separately below) 13,764 9,370 7,903Sellingandmarketingexpense 261,100 172,849 112,704Generalandadministrativeexpense 37,227 30,030 25,883Productdevelopment 13,761 10,485 7,457Depreciation 4,944 3,008 3,245Amortizationofintangibles 1,243 149 136Restructuringandseverance 122 422 373Litigationsettlementsandcontingencies 129 (611) 10,618

Total costs and expenses 332,290 225,702 168,319Operating income (loss) 52,112 28,514 (969)Otherincome(expense),net: Interestexpense,net (561) (171) (2)Otherincome 23 — —

Income (loss) before income taxes 51,574 28,343 (971)Incometax(expense)benefit (20,366) 22,973 484Net income (loss) from continuing operations 31,208 51,316 (487)(Loss) income from discontinued operations (3,714) (3,269) 9,849Net income and comprehensive income $ 27,494 $ 48,047 $ 9,362

Weighted average shares outstanding: Basic 11,812 11,516 11,188Diluted 12,773 12,541 11,188

Income (loss) per share from continuing operations: Basic $ 2.64 $ 4.46 $ (0.04)Diluted $ 2.44 $ 4.09 $ (0.04)

(Loss) income per share from discontinued operations: Basic $ (0.31) $ (0.28) $ 0.88Diluted $ (0.29) $ (0.26) $ 0.88

 Net income per share: Basic $ 2.33 $ 4.17 $ 0.84Diluted $ 2.15 $ 3.83 $ 0.84

Theaccompanyingnotestoconsolidatedfinancialstatementsareanintegralpartofthesestatements.

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LENDINGTREE, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS

December 31, 2016 December 31, 2015

 (inthousands,exceptparvalue

andshareamounts)ASSETS: Cashandcashequivalents $ 91,131 $ 206,975Restrictedcashandcashequivalents 4,089 6,541Accountsreceivable(netofallowanceof$1,059and$606,respectively) 41,382 29,873Prepaidandothercurrentassets 4,021 2,085Currentassetsofdiscontinuedoperations — 110

Total current assets 140,623 245,584Propertyandequipment,net 35,462 9,415Goodwill 56,457 3,632Intangibleassets,net 71,684 10,992Deferredincometaxassets 14,610 20,977Othernon-currentassets 810 1,039Non-currentassetsofdiscontinuedoperations 3,781 4,142Total assets $ 323,427 $ 295,781

LIABILITIES: Accountspayable,trade $ 5,593 $ 5,741Accruedexpensesandothercurrentliabilities 49,403 34,885Currentliabilitiesofdiscontinuedoperations(Note18) 11,711 13,401

Total current liabilities 66,707 54,027Contingentconsiderations 23,600 —Othernon-currentliabilities 1,685 586Non-currentliabilitiesofdiscontinuedoperations — 26Total liabilities 91,992 54,639Commitmentsandcontingencies(Notes12and13)SHAREHOLDERS' EQUITY: Preferredstock$.01parvalue;5,000,000sharesauthorized;noneissuedoroutstanding — —Commonstock$.01parvalue;50,000,000sharesauthorized;13,955,378and13,865,620sharesissued,respectively,and11,791,633and12,392,093sharesoutstanding,respectively 140 139Additionalpaid-incapital 1,018,010 1,006,688Accumulateddeficit (722,630) (750,124)Treasurystock2,163,745and1,473,527shares,respectively (64,085) (15,561)

Total shareholders' equity 231,435 241,142Total liabilities and shareholders' equity $ 323,427 $ 295,781

Theaccompanyingnotestoconsolidatedfinancialstatementsareanintegralpartofthesestatements.

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LENDINGTREE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

    Common Stock     Treasury Stock

  Total Numberof Shares Amount

AdditionalPaid-inCapital

AccumulatedDeficit

Numberof Shares Amount

  (inthousands)Balance as of December 31, 2013 $ 87,008 12,620 $ 126 $ 907,148 $ (807,533) 1,369 $ (12,733)Netincomeandcomprehensiveincome 9,362 — — — 9,362 — —Non-cashcompensation 7,446 — — 7,446 — — —Purchaseoftreasurystock (2,610) — — — — 99 (2,610)Dividends (28) — — (28) — — —Issuanceofcommonstockforstockoptions,restrictedstockawardsandrestrictedstockunits,netofwithholdingtaxes (4,812) 235 3 (4,815) — — —

Balance as of December 31, 2014 $ 96,366 12,855 $ 129 $ 909,751 $ (798,171) 1,468 $ (15,343)Netincomeandcomprehensiveincome 48,047 — — — 48,047 — —Non-cashcompensation 8,508 — — 8,508 — — —Purchaseoftreasurystock (218) — — — — 6 (218)Dividends (11) — — (11) — — —Issuanceofcommonstockforstockoptions,restrictedstockawardsandrestrictedstockunits,netofwithholdingtaxes (7,613) 158 1 (7,614) — — —Taxbenefitfromstock-basedawardactivity 4,601 — — 4,601 — — —Proceedsfromequityoffering,netofofferingcosts 91,462 853 9 91,453 — — —

Balance as of December 31, 2015 $ 241,142 13,866 $ 139 $ 1,006,688 $ (750,124) 1,474 $ (15,561)Netincomeandcomprehensiveincome 27,494 — — — 27,494 — —Non-cashcompensation 9,647 — — 9,647 — — —Purchaseoftreasurystock (48,524) — — — — 690 (48,524)Issuanceofcommonstockforstockoptions,restrictedstockawardsandrestrictedstockunits,netofwithholdingtaxes (4,084) 89 1 (4,085) — — —Taxbenefitfromstock-basedawardactivity 5,760 — — 5,760 — — —

Balance as of December 31, 2016 $ 231,435 13,955 $ 140 $ 1,018,010 $ (722,630) 2,164 $ (64,085)

Theaccompanyingnotestoconsolidatedfinancialstatementsareanintegralpartofthesestatements.

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LENDINGTREE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31, 2016 2015 2014 (inthousands)Cashflowsfromoperatingactivitiesattributabletocontinuingoperations: Net income and comprehensive income $ 27,494 $ 48,047 $ 9,362Less:Loss(income)fromdiscontinuedoperations,netoftax 3,714 3,269 (9,849)Income(loss)fromcontinuingoperations 31,208 51,316 (487)Adjustmentstoreconcileincome(loss)fromcontinuingoperationstonetcashprovidedbyoperatingactivitiesattributabletocontinuingoperations: Lossondisposaloffixedassets 640 748 282Impairmentoflong-livedassets — — 805Amortizationofintangibles 1,243 149 136Depreciation 4,944 3,008 3,245Non-cashcompensationexpense 9,647 8,508 7,446Deferredincometaxes 6,367 (29,969) 106Excesstaxbenefitfromstock-basedawardactivity (5,760) (4,601) —Baddebtexpense 515 337 206Amortizationofdebtissuancecosts 245 47 —

Changesincurrentassetsandliabilities: Accountsreceivable (8,361) (16,598) (1,228)Prepaidandothercurrentassets (1,558) (874) (84)Accountspayable,accruedexpensesandothercurrentliabilities 4,769 13,689 (1,935)Incometaxespayable 13,385 6,247 740

Other,net 1,170 577 (157)Net cash provided by operating activities attributable to continuing operations 58,454 32,584 9,075Cashflowsfrominvestingactivitiesattributabletocontinuingoperations: Capitalexpenditures (31,955) (7,237) (3,856)Acquisitionofintangibleassets (2,030) — —AcquisitionofCompareCards (81,182) — —Acquisitionofotherbusinesses (4,500) (37) (740)Decreaseinrestrictedcash 2,452 12,175 7,300

Net cash (used in) provided by investing activities attributable to continuing operations (117,215) 4,901 2,704Cashflowsfromfinancingactivitiesattributabletocontinuingoperations: Paymentsrelatedtonet-sharesettlementofstock-basedcompensation,netofproceedsfromexerciseofstockoptions (4,085) (7,612) (4,812)Proceedsfromequityoffering,netofofferingcosts (23) 91,484 —Paymentofdebtissuancecosts (8) (1,215) —Excesstaxbenefitfromstock-basedawardactivity 5,760 4,601 —Purchaseoftreasurystock (48,524) (218) (2,610)Dividends — (131) (229)

Net cash (used in) provided by financing activities attributable to continuing operations (46,880) 86,909 (7,651)Total cash (used in) provided by continuing operations (105,641) 124,394 4,128Discontinuedoperations:Netcashusedinoperatingactivitiesattributabletodiscontinuedoperations (10,203) (3,631) (9,583)

Total cash used in discontinued operations (10,203) (3,631) (9,583)Net (decrease) increase in cash and cash equivalents (115,844) 120,763 (5,455)Cashandcashequivalentsatbeginningofperiod 206,975 86,212 91,667Cash and cash equivalents at end of period $ 91,131 $ 206,975 $ 86,212Supplemental cash flow information:Interestpaid $ 320 $ 60 $ 2Incometaxpayments 3,095 703 3Incometaxrefunds (22) (96) (779)

Theaccompanyingnotestoconsolidatedfinancialstatementsareanintegralpartofthesestatements.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION

Company Overview

LendingTree,Inc.("LendingTree"orthe"Company"),istheparentofLendingTree,LLCandseveralcompaniesownedbyLendingTree,LLC.

LendingTreeoperateswhatitbelievestobetheleadingonlineloanmarketplaceforconsumersseekingloansandothercredit-basedofferings.TheCompanyoffersconsumerstoolsandresources, includingfreecredit scores, that facilitate comparison-shoppingformortgageloans, homeequityloans, reversemortgageloans,autoloans,credit cards,personalloans,studentloans,smallbusinessloansandotherrelatedofferings.TheCompanyprimarilyseekstomatchin-marketconsumers withmultiple lenders onits marketplace whocanprovidethemwithcompetingquotes for theloansor credit-basedofferings theyare seeking. TheCompanyalsoservesasavaluedpartnertolendersseekinganefficient,scalableandflexiblesourceofcustomeracquisitionwithdirectlymeasurablebenefits,bymatchingtheconsumerloaninquiriesitgenerateswiththeselenders.

Theconsolidatedfinancial statements includetheaccounts of LendingTreeandall its wholly-ownedentities. Intercompanytransactionsandaccounts havebeeneliminated.

Discontinued Operations

Thebusinesses of RealEstate.com, REALTORS®(whichrepresent theformer Real Estate segment) andLendingTreeLoansare presentedas discontinuedoperationsintheaccompanyingconsolidatedbalancesheets,consolidatedstatementsofoperationsandcomprehensiveincomeandconsolidatedcashflowsforallperiods presented. The notes accompanying these consolidated financial statements reflect the Company's continuing operations and, unless otherwise noted,excludeinformationrelatedtothediscontinuedoperations.See Note18— DiscontinuedOperationsforadditionalinformation.

Basis of Presentation

TheaccompanyingconsolidatedfinancialstatementshavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica("GAAP")andpursuanttotherulesandregulationsoftheU.S.SecuritiesandExchangeCommission("SEC").

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

TheCompanyderives its revenue primarily frommatch fees and closing fees. Revenue within the mortgage product category is primarily generated frommatchfeespaidbynetworklendersthatreceivealoanrequest,andinsomecasesupfrontfeesorclicksorcalltransfers.Inadditiontomatchandotherupfrontfees,revenuewithinthenon-mortgageproductcategoryisalsogeneratedfromclosingfeesandapprovalfees.

MatchfeesareearnedthroughthedeliveryofqualifiedloanrequeststhatoriginatedthroughtheCompany'swebsitesoraffiliates.TheCompanyrecognizesrevenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured.Deliveryisdeemedtohaveoccurredatthetimealoanrequestisdeliveredtothecustomer,providedthatnosignificantobligationsremain.

Closingfeesarederivedfromlendersoncertainauto,business,personalloantypesandstudentloanswhenatransactionisclosedwiththeconsumer.ClosedloanfeesandclosedsalefeesarerecognizedatthetimethelenderreportstheclosedloanorclosedsaletotheCompany,whichcouldbeseveralmonthsaftertheoriginalrequestistransmitted.Forconsumercreditcardloanrequests,theCompanysendstraffictoissuersandrecognizesrevenueatthetimeofcardapproval.

Cash and Cash Equivalents

Cashandcashequivalentsincludecashandshort-term,highlyliquidmoneymarketinvestmentswithoriginalmaturitiesofthreemonthsorless.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Restricted Cash

Cashescrowedorcontractuallyrestrictedforaspecificpurposeisdesignatedasrestrictedcash.

Accounts Receivable

Accountsreceivablearestatedatamountsduefromcustomers,netofanallowancefordoubtfulaccounts.

TheCompanydeterminesitsallowancefordoubtfulaccountsbyconsideringanumberoffactors,includingthelengthoftimeaccountsreceivablearepastdue,previouslosshistoryandthespecificcustomer'scurrentabilitytopayitsobligation.Accountsreceivableareconsideredpastduewhentheyareoutstandinglongerthanthecontractualpaymentterms.Accountsreceivablearewrittenoffwhenmanagementdeemsthemuncollectible.

Areconciliationofthebeginningandendingbalancesoftheallowancefordoubtfulaccountsisasfollows(in thousands) :

  Year Ended December 31,

  2016 2015 2014

Balance, beginning of the period $ 606 $ 349 $ 408Chargestoearnings 515 337 206Write-offofuncollectibleaccountsreceivable (62) (80) (265)

Balance, end of the period $ 1,059 $ 606 $ 349

Loan Loss Obligations (Discontinued Operations)

TheCompany'sHomeLoanCenter,Inc.("HLC")subsidiary,whichduringitsperiodofactiveoperationprimarilyconductedbusinessasLendingTreeLoans,soldloansitoriginatedtoinvestorsonaservicing-releasedbasisandtheriskoflossordefaultbytheborrowerwasgenerallytransferredtotheinvestor.However,LendingTreeLoanswasrequiredbytheseinvestorstomakecertainrepresentationsrelatingtocreditinformation,loandocumentationandcollateral.TotheextentLendingTree Loans did not comply with such representations or there are early payment defaults, LendingTree Loans may be required to repurchase loans orindemnify the investors for any losses fromborrower defaults. LendingTree Loans maintains a liability for the estimated exposure relating to such contingentobligationsandchangestotheestimatearerecordedinincomefromdiscontinuedoperationsintheperiodstheyoccur.

TheCompanyestimatestheliabilityforloanlossesusingasettlementdiscountframework.Thisapproachestimatesthelifetimelossesonthepopulationofremaining loans originated and sold by LendingTree Loans using actual defaults for loans with similar characteristics and projected future defaults. It alsoconsiders thelikelihoodof claimsexpecteddueto allegedbreaches of representations andwarranties madebyLendingTreeLoansandthepercentageof thoseclaimsinvestors estimate LendingTreeLoansmayagreetorepurchase. TheCompanythenapplies asettlement discount factor totheresult of theforegoingtoreflect publiclyannouncedbulksettlements for similar loantypesandvintages, theCompany'sownsettlement experience, aswell asLendingTreeLoans' non-operatingstatus,inordertoestimatearangeofpotentialliability.Changestoanyoneofthesefactorscouldsignificantlyimpacttheestimateoftheliabilityandcouldhaveamaterial impactontheCompany'sresultsofoperationsforanyparticular period.See Note18—DiscontinuedOperations—LendingTreeLoans—LoanLossObligationsforadditionalinformationontheloanlossreserve.

Segment Reporting

TheCompanyhasonereportablesegment.

Property and Equipment

Property and equipment, including internally-developed software and significant improvements, are recorded at cost less accumulated depreciation.Acquisition and construction costs for land and building is capitalized and depreciated over the applicable useful lives. Due to the rapid advancements intechnologyandevolutionofcompanyproducts,allinternally-developedsoftwareiswritten-offattheendofitsusefullife.Repairsandmaintenanceandanygainsorlossesondispositionsarerecognizedasincurredincurrentoperations.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Depreciationisrecordedonastraight-linebasistoallocatethecostofdepreciableassetstooperationsovertheirestimatedservicelives.Thefollowingtablepresentstheestimatedusefullivesforeachassetcategory:

Asset Category Estimated Useful Lives

Land N/ABuilding 34yearsSiteImprovements 1to15yearsComputerequipmentandcapitalizedsoftware 1to5yearsLeaseholdimprovements LesserofassetlifeorlifeofleaseFurnitureandotherequipment 3to7yearsAircraftandautomobile 5to10years

Software Development Costs

Software development costs primarily include internal and external labor expenses incurred to develop the software that powers the Company's websites.Certaincosts incurredduringtheapplicationdevelopment stageare capitalizedbasedonspecific activities tracked, while costs incurredduringthepreliminaryprojectstageandpost-implementation/operationstageareexpensedasincurred.Capitalizedsoftwaredevelopmentcostsareamortizedoveranestimatedusefullifeofonetothreeyears.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill acquiredinbusiness combinations is assignedtothereportingunits that are expectedtobenefit fromthecombinationas of theacquisitiondate.Goodwillandindefinite-livedintangibleassets,primarilytheCompany'stradenamesandtrademarks,arenotamortized.Rather,theseassetsaretestedannuallyforimpairmentasofOctober1,ormorefrequentlyupontheoccurrenceofcertaineventsorsubstantivechangesincircumstances.

As part of its annual impairment testing of goodwill and indefinite-lived intangible assets, in each instance, the Company may elect to assess qualitativefactors as a basis for determining whether it is necessary to perform the traditional quantitative impairment testing. If the Company’s assessment of thesequalitativefactorsindicatesthatit isnotmorelikelythannotthatthefairvalueofthereportingunitorindefinite-livedintangibleassetislessthanitscarryingvalue, thennofurther testingis required. Otherwise, the goodwill reportingunit or long-lived intangible assets, as applicable, must be quantitatively testedforimpairment.

Thequantitativetestforgoodwillimpairmentisdeterminedusingatwo-stepprocess.Thefirststepistocomparethefairvalueofareportingunitwithitscarryingamount,includinggoodwill.Inperformingthefirststep,theCompanydeterminesthefairvalueofitsreportingunitsbyusingamarketapproachandadiscountedcashflow("DCF")analysis. Determiningfair valueusingaDCFanalysis requires theexercise of significant judgments, includingjudgments aboutappropriatediscountrates,perpetualgrowthratesandtheamountandtimingofexpectedfuturecashflows.Ifthefairvalueofareportingunitexceedsitscarryingamount,goodwillofthereportingunitisnotimpairedandthesecondstepoftheimpairmenttestisnotrequired.Ifthecarryingamountofareportingunitexceedsitsfair value,thesecondstepofthegoodwill impairmenttestisrequiredtobeperformedtomeasuretheamountofimpairment, if any.Thesecondstepofthegoodwill impairment test compares the impliedfair value of thereportingunit's goodwill with thecarryingamount of that goodwill. Theimpliedfair valueofgoodwillisdeterminedinthesamemannerastheamountofgoodwillrecognizedinabusinesscombination.Ifthecarryingamountofthereportingunit'sgoodwillexceedstheimpliedfairvalueofthatgoodwill,animpairmentlossisrecognizedinanamountequaltothatexcess.

Thequantitativeimpairmenttestforindefinite-livedintangibleassetsinvolvesacomparisonoftheestimatedfairvalueoftheintangibleassetwithitscarryingvalue. If thecarryingvalueoftheindefinite-livedintangibleasset exceedsits estimatedfair value, animpairmentlossisrecognizedinanamountequaltothatexcess. The estimates of fair value of indefinite-lived intangible assets are determined using a DCF valuation analysis that employs a relief-from-royaltymethodologyinestimatingthefairvalueoftradenamesandtrademarks.Significantjudgmentsinherentinthisanalysisincludethedeterminationofroyaltyrates,discountrates,perpetualgrowthratesandtheamountandtimingoffuturerevenues.

For the October 1, 2016 and 2015 annual impairment tests of goodwill and indefinite-lived intangible assets, the Company elected to perform qualitativeassessmentsasaprecursortothetraditionalquantitativetests.ResultsoftheOctober1,2016and2015annualimpairmenttestsindicatedthatitisnotmorelikelythannotthatthefairvalueofthegoodwillandtheindefinite-livedintangibleassetswereeachlessthantheirrespectivecarryingvalues.Accordingly,nofurthertestingwasrequired.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Long-Lived Assets and Intangible Assets with Definite Lives

Long-livedassetsincludepropertyandequipmentandintangibleassetswithdefinitelives.Amortizationofdefinite-livedintangibleassetsisrecordedonastraight-linebasisovertheirestimatedlives.

Long-livedassetsaretestedforrecoverabilitywhenevereventsorchangesincircumstancesindicatethattheircarryingamountsmaynotberecoverable.Thecarrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventualdispositionoftheasset.Ifthecarryingamountisdeemedtonotberecoverable,animpairmentlossisrecordedastheamountbywhichthecarryingamountofthelong-livedassetexceedsitsfairvalue.

AtDecember 31, 2016 and 2015, the Company performed its annual review of impairment triggering events for long-lived assets and determined that atriggeringeventhadnotoccurred.

Duringthefourthquarterof2014,theCompanylostkeycustomersandexperiencedadeclineinrevenueforacertainproductincludedwithintheEducationbusiness. Accordingly, in early 2015, the Company amended its strategic course for this product, resulting in a reduction in anticipated future cash flows. AtDecember31,2014,theCompanyreviewedthelong-livedassetsassociatedwiththisproductforrecoverability,resultinginanimpairmentchargetocustomerlistsandinternallydevelopedsoftwareofapproximately$0.8million.Thefairvalueofthelong-livedassetswasdeterminedusingadiscountedcashflowmodel.Theimpairmentchargeisincludedingeneralandadministrativeexpenseontheaccompanyingconsolidatedstatementofoperationsandcomprehensiveincome.

Fair Value Measurements

TheCompanycategorizesitsassetsandliabilitiesmeasuredatfairvalueintoafairvaluehierarchythatprioritizestheassumptionsusedinpricingtheassetorliabilityintothefollowingthreelevels:

• Level 1 :Observableinputs,suchasquotedpricesforidenticalassetsandliabilitiesinactivemarketsobtainedfromindependentsources.

• Level 2 :Otherinputsthatareobservabledirectlyorindirectly,suchasquotedpricesforsimilarassetsorliabilitiesinactivemarkets,quotedpricesforidenticalorsimilarassetsorliabilitiesinmarketsthatarenotactiveandinputsthatarederivedprincipallyfromorcorroboratedbyobservablemarketdata.

• Level 3 :UnobservableinputsforwhichthereislittleornomarketdataandwhichrequiretheCompanytodevelopitsownassumptions,basedonthebestinformationavailableunderthecircumstances,abouttheassumptionsmarketparticipantswoulduseinpricingtheassetorliability.

TheCompany'snon-financialassets,suchasgoodwill,intangibleassetsandpropertyandequipmentaremeasuredatfairvaluewhenthereisanindicatorofimpairmentandrecordedatfairvalueonlywhenanimpairmentchargeisrecognized.SuchfairvaluemeasurementsarebasedpredominantlyonLevel3inputs.

ContingentconsiderationpaymentsrelatedtoacquisitionsaremeasuredatfairvalueeachreportingperiodusingLevel3inputs.TheCompany'sestimatesoffairvaluearebaseduponassumptionsbelievedtobereasonablebutwhichareuncertainandinvolvesignificantjudgmentsbymanagement.Anychangesinthefairvalueofthesecontingentconsiderationpaymentsareincludedinoperatingincome(expense)intheconsolidatedstatementsofoperations.

Cost of Revenue

Costofrevenueconsistsprimarilyofexpensesassociatedwithcompensationandotheremployee-relatedcosts(includingstock-basedcompensation)relatedtointernally-operatedcallcenters,third-partycustomercallcenterfees,creditscoringfees,creditcardfees,websitenetworkhostingandserverfees.

Product Development

Product development expense consists primarily of compensation and other employee-related costs (including stock-based compensation) and third-partylaborcoststhatarenotcapitalized,foremployeesandconsultantsengagedinthedesign,development,testingandenhancementoftechnology.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Advertising

Advertisingcosts areexpensedintheperiodincurred(except for productioncosts whichareinitially capitalizedandthenrecognizedasexpensewhentheadvertisementfirstruns)andprincipallyrepresentofflinecosts,includingtelevision,printandradioadvertising,andonlineadvertisingcosts,includingfeespaidtosearchenginesanddistributionpartners. Advertisingexpensewas$243.2million,$159.2millionand$102.2millionfortheyearsendedDecember31,2016,2015and2014,respectively,andisincludedinsellingandmarketingexpenseontheconsolidatedstatementsofoperationsandcomprehensiveincome.

Income Taxes

Incometaxesareaccountedforundertheliabilitymethod,anddeferredtaxassetsandliabilitiesarerecognizedforthefuturetaxconsequencesattributabletodifferencesbetweenthefinancialstatementcarryingamountsofexistingassetsandliabilitiesandtheirrespectivetaxbases.Inestimatingfuturetaxconsequences,allexpectedfutureeventsareconsidered.Deferredtaxassetsandliabilitiesaremeasuredusingenactedtaxratesineffectfortheyearinwhichthosetemporarydifferencesareexpectedtoberecoveredorsettled.Avaluationallowanceisprovidedondeferredtaxassetsifitisdeterminedthatitismorelikelythannotthatthe deferred tax asset will not be realized. Interest is recorded on potential tax contingencies as a component of income tax expense and recorded net of anyapplicablerelatedincometaxbenefit.FortheyearsendedDecember31,2016and2015,theCompanyfollowedtheincrementalor"with"and"without"approachto intraperiod tax allocation for determination of the amount of tax benefit to allocate to continuing operations as prescribed in ASC 740-20-45-7 with theexceptionoftheallocationofthereleaseofthevaluationallowancefordeferredtaxassetswhichisgovernedbyASC740-10-45-20.During2014,theCompanyreportedlossfromcontinuingoperationsandincomefromdiscontinuedoperations.Asaresult,theCompanyfollowedtheaccountingguidanceprescribedinASC740-20-45-7, which provides an exception to the "with" and "without" approach to intraperiod tax allocation for determination of the amount of tax benefit toallocatetocontinuingoperationsinsuchcircumstances.

Inaccordancewiththeaccountingstandardforuncertaintyinincometaxes,liabilitiesforuncertaintaxpositionsarerecognizedbasedonthetwo-stepprocessprescribedbytheaccountingstandards.Thefirststepistoevaluatethetaxpositionforrecognitionbydeterminingiftheweightofavailableevidenceindicatesitismorelikelythannotthatthepositionwillbesustainedonaudit,includingresolutionofrelatedappealsorlitigationprocesses,ifany.Thesecondstepistomeasurethetaxbenefitasthelargestamountthatismorethan50%likelyofbeingrealizeduponultimatesettlement.

TheCompanyusesthetaxlaworderingapproachtodeterminethepotentialutilizationofwindfallbenefits.Thesetaxbenefitsarecreditedtoadditionalpaid-incapitalwhentheyreducecurrenttaxableincomeconsistentwiththetaxlaworderingapproach.

Stock-Based Compensation

The forms of stock-based awards granted to LendingTree employees are principally restricted stock units ("RSUs"), RSUs with performance conditions,restrictedstockandstockoptions.RSUsareawardsintheformofunits,denominatedinahypotheticalequivalentnumberofsharesofLendingTreecommonstockand with the value of each award equal to the fair value of LendingTree common stock at the date of grant. RSUs may be settled in cash, stock or both, asdeterminedbytheCompany'sCompensationCommitteeatthetimeofgrant.TheCompanydoesnothaveahistoryofsettlingtheseawardsincash.Eachstock-basedawardissubjecttoservice-basedvesting,whereaspecificperiodofcontinuedemploymentmustpassbeforeanawardvests.TheCompensationCommitteecan modify the vesting provisions of an award. Certain RSUs and restricted stock awards also include performance-based vesting, where certain performancetargetssetatthetimeofgrantmustbeachievedbeforeanawardvests.

LendingTree recognizes as expense non-cash compensation for all stock-based awards for which vesting is considered probable. The amount of non-cashcompensation is reduced by estimated forfeitures, as the amount recorded to the consolidated statement of operations and comprehensive income is based onawardsultimatelyexpectedtovest.Theforfeiturerateisestimatedatthegrantdate,basedonhistoricalexperienceandrevised,ifnecessary,insubsequentperiodsiftheactualforfeitureratediffersfromtheestimatedrate.

Forservice-basedawards,non-cashcompensationismeasuredatfair valueonthegrantdateandexpensedratablyoverthevestingterm.ThefairvalueofeachstockoptionawardisestimatedusingtheBlack-Scholesoptionpricingmodel,whilethefairvalueofanRSUorrestrictedstockawardismeasuredastheclosing common stock price at the time of grant. For certain performance-based awards, the fair value is measured on the grant date as the fair value of theCompany'scommonstockawardedandrecognizedasnon-cashcompensation,usingagradedvestingattributionmodelthatconsiderstheprobabilityofthetargetsbeingachieved.

Taxbenefitsresultingfromtaxdeductionsinexcessofthenon-cashcompensationrecognizedintheconsolidatedstatementofoperationsandcomprehensiveincomearereportedasacomponentoffinancingcashflows.In2016and2015,$5.8millionand$4.6million,respectively,oftaxbenefitsinexcessofnon-cashcompensationrecognizedintheconsolidatedstatementof

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

shareholders'equityisreportedasacomponentoffinancingcashflows.In2014,whiletherewereexcesstaxbenefitsfromnon-cashcompensation,thetaxbenefitsarenotreflectedintheconsolidatedstatementofshareholders'equitybecausetheCompanydidnotrecognizeacurrenttaxbenefit.

Litigation Settlements and Contingencies

Litigation settlements and contingencies consists of expenses related to actual or anticipated litigation settlements, in addition to legal fees incurred inconnectionwithvariouspatentlitigationclaimstheCompanypursuesagainstothers.

TheCompanyis involvedin legal proceedings onanongoingbasis. If the Companybelieves that a loss arisingfromsuchmatters is probable andcanbereasonablyestimated,theestimatedliabilityisaccruedintheconsolidatedfinancialstatements.Ifonlyarangeofestimatedlossescanbedetermined,anamountwithintherangeisaccruedthat,intheCompany'sjudgment,reflectsthemostlikelyoutcome;ifnoneoftheestimateswithinthatrangeisabetterestimatethananyotheramount,thelowendoftherangeisaccrued.Forthoseproceedingsinwhichanunfavorableoutcomeisreasonablypossiblebutnotprobable,anestimateof the reasonably possible loss or range of losses or a conclusion that an estimate of the reasonably possible loss or range of losses arising directly from theproceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material is disclosed. Legal expenses associated with these matters arerecognizedasincurred.

Accounting Estimates

ManagementisrequiredtomakecertainestimatesandassumptionsduringthepreparationoftheconsolidatedfinancialstatementsinaccordancewithGAAP.These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of theconsolidatedfinancialstatements.Theyalsoimpactthereportedamountofnetearningsduringanyperiod.Actualresultscoulddifferfromthoseestimates.

Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: loan loss obligations; therecoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including relatedvaluation allowances; contingent consideration related to business combinations; litigation accruals; various other allowances, reserves and accruals; andassumptionsrelatedtothedeterminationofstock-basedcompensation.

Certain Risks and Concentrations

LendingTree'sbusinessissubjecttocertainrisksandconcentrationsincludingdependenceonthird-partytechnologyproviders,exposuretorisksassociatedwithonlinecommercesecurityandcreditcardfraud.

Financial instruments, which potentially subject the Company to concentration of credit risk at December 31, 2016 , consist primarily of cash and cashequivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit InsuranceCorporation insurance limits, but are maintained with quality financial institutions of high credit. The Company requires certain network lenders to maintainsecuritydepositswiththeCompany,whichintheeventofnon-payment,wouldbeappliedagainstanyaccountsreceivableoutstanding.

Duetothenatureofthemortgagelendingindustry,interestratefluctuationsmaynegativelyimpactfuturerevenuefromtheCompany'slendermarketplace.

FortheyearsendedDecember31,2016,2015and2014,onemarketplacelenderaccountedforrevenuerepresenting13%,12%and13%oftotalrevenue,respectively,andanothermarketplacelenderaccountedfor15%,11%and11%oftotalrevenue,respectively.

LendersparticipatingontheCompany'smarketplacecanoffertheir productsdirectlytoconsumersthroughbrokers, massmarketingcampaignsorthroughothertraditionalmethodsofcreditdistribution.Theselenderscanalsooffertheirproductsonline,eitherdirectlytoprospectiveborrowers,throughoneormoreonline competitors, or both. If a significant number of potential consumers are able to obtain loans fromparticipating lenders without utilizing the Company'sservice, its ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the lenders whose loan offerings areofferedonitsonlinemarketplace,consumersmayobtainoffersandloansfromtheselenderswithoutusingitsservice.

TheCompanymaintainsoperationssolelyintheUnitedStates.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recent Accounting Pronouncements

In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-06 which eliminates therequirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (Step 2 of the goodwill impairment test). Instead, animpairmentchargewillbebasedontheexcessofthecarryingamountoverthefairvalue.ThisASUiseffectiveforannualandinterimimpairmenttestsperformedinperiodsbeginningafterDecember15,2019.EarlyadoptionispermittedforannualandinterimgoodwillimpairmenttestingdatesafterJanuary1,2017.ThisASUwillhaveanimmaterialimpactontheCompany.

InJanuary2017,theFASBissuedASU2017-01whichprovidesguidancetoassistinevaluatingwhetherasetoftransferredassetsandactivitiesconstitutesabusinessoranasset.ThisASUiseffectiveforannualandinterimreportingperiodsbeginningafterDecember15,2017,withearlyadoptionpermitted.TheASUisto be applied prospectively to any transactions occurring within the period of adoption. The Company early adopted this ASU. See Note 4—Property andEquipmentfortheimpactofthisASUontheacquisitionofofficebuildingsinDecember2016.

InNovember2016,theFASBissuedASU2016-18whichisintendedtoreducethediversityintheclassificationandpresentationofchangesinrestrictedcashinthestatementofcashflows,byrequiringentitiestocombinethechangesincashandcashequivalentsandrestrictedcashinoneline.Asaresult,entitieswillnolongerpresenttransfersbetweencashandcashequivalentsandrestrictedcashinthestatementofcashflows.Inaddition,ifmorethanonelineitemisrecordedonthebalancesheetforcashandcashequivalentsandrestrictedcash,areconciliationbetweenthestatementofcashflowsandbalancesheetisrequired.ThisASUiseffectiveforannualandinterimreportingperiodsbeginningafterDecember15,2017,withearlyadoptionpermitted.Theretrospectivetransitionmethod,requiringadjustmenttoallcomparativeperiodspresented,isrequired.TheCompanyisevaluatingtheimpactthisASUwillhaveonitsconsolidatedfinancialstatementsandwhethertoearlyadopt.

In August 2016, the FASBissued ASU2016-15 which addresses eight cash flow classification issues, eliminating the diversity in practice. This ASUiseffectiveforannualandinterimreportingperiodsbeginningafterDecember15,2017,withearlyadoptionpermitted.Theretrospectivetransitionmethod,requiringadjustment to all comparative periods presented, is required unless it is impracticable for someof the amendments, in whichcase thoseamendments wouldbeprospectivelyappliedasoftheearliest datepracticable. TheCompanyisevaluatingtheimpact thisASUwill haveonits consolidatedfinancial statements andwhethertoearlyadopt.

InMarch2016,theFASBissuedASU2016-09whichsimplifiesvariousaspectsrelatedtohowshare-basedpaymentsareaccountedforandpresentedinthefinancial statements, including the income tax consequences, classification of awards as either equity or liabilities, forfeitures and classification of excess taxbenefitsonthestatementofcashflows.ThisASUiseffectiveforannualandinterimreportingperiodsbeginningafterDecember15,2016,withearlyadoptionpermitted.Uponadoption,anyadjustmentsaretobereflectedasofthebeginningofthefiscalyearofadoption.TheCompanyisevaluatingtheimpactthisASUwillhaveonitsconsolidatedfinancialstatements.

InFebruary2016,theFASBissuedASU2016-02relatedtoleases. ThisASUrequires therecognitionofaright-of-useleaseasset andaleaseliability bylesseesforallleasesgreaterthanoneyearinduration.ThisASUiseffectiveforannualandinterimreportingperiodsbeginningafterDecember15,2018,withearlyadoptionpermitted.Theguidancemustbeadoptedusingamodifiedretrospectivetransition.TheCompanyisevaluatingtheimpactthisASUwillhaveonitsconsolidatedfinancialstatementsandwhethertoearlyadopt.

InAugust2014,theFASBissuedASU2014-15relatedtomanagement'sassessmentofacompany'sabilitytocontinueasagoingconcern.ThisASUrequiresanassessmentforeachannualandinterimreportingperiodandrequiresdisclosurewhenthereissubstantialdoubtaboutacompany'sabilitytocontinueasagoingconcern.ThisASUiseffectiveforannualandinterimreportingperiodbeginningafterDecember15,2016.TheCompanyadoptedthisASUanditdidnothaveasignificantimpact.

InMay2014,theFASBissuedASU2014-09relatedtorevenuerecognition.ThisASUwasinitiatedasajointprojectbetweentheFASBandtheInternationalAccountingStandardsBoard("IASB")toclarifytheprinciplesforrecognizingrevenueandtodevelopacommonrevenuestandardforGAAPandinternationalfinancialreportingstandards("IFRS").ThisguidancewillsupersedetheexistingrevenuerecognitionrequirementsinAccountingStandardsCodification("ASC")Topic605,RevenueRecognitionandwassettobeeffectiveforannualreportingperiodsbeginningafterDecember15,2016.However,inJuly2015,theFASBdeferredtheeffectivedatebyoneyear,suchthatthestandardwillbeeffectiveforannualreportingperiodsbeginningafterDecember15,2017.EarlyadoptionispermittedasoftheoriginaleffectivedateofDecember15,2016.TheASUcanbeapplied(i)retrospectivelytoeachpriorperiodpresentedor(ii)retrospectivelywith the cumulative effect of initially adopting the ASU recognized at the date of initial application. In March 2016, the FASB issued ASU 2016-08, whichclarifiestheprincipal

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

versusagentguidanceunderASU2014-09.InApril2016,theFASBissuedASU2016-10,whichclarifiestheidentificationofdistinctperformanceobligationsina contract. In May 2016, the FASB issued ASU 2016-12, which clarifies the guidance on assessing collectability, presenting sales taxes, measuring noncashconsideration and certain other transition matters. The clarification ASU's must be adopted concurrently with the adoption of ASU2014-09. The Company isevaluatingtheimpacttheseASU'swillhaveonitsconsolidatedfinancialstatementsandwhichimplementationmethodtoapply.

NOTE 3—RESTRICTED CASH

Restrictedcashandcashequivalentsconsistsofthefollowing(in thousands) :

December 31, 2016 December 31, 2015

Cashinescrowforsuretybonds(a) $ — $ 2,453CashinescrowfromsaleofLendingTreeLoans(b) 4,032 4,028Other 57 60Total restricted cash and cash equivalents $ 4,089 $ 6,541

(a) See Note12—Commitmentsforadiscussionofsuretybonds.InFebruary2016,allfundsinescrowwerereleasedtotheCompanyfromrestrictionduetoareductionincollateralrequirements.

(b) HLC, a subsidiary of the Company, continues to be liable for certain indemnification obligations, repurchase obligations and premium repaymentobligationsfollowingthesaleofsubstantiallyalloftheoperatingassetsofitsLendingTreeLoansbusinessinthesecondquarterof2012.

NOTE 4 —PROPERTY AND EQUIPMENT

Thebalanceofpropertyandequipment,netisasfollows(in thousands) :

December 31, 2016 December 31, 2015

Land $ 5,818 $ —Building 14,679 —Siteimprovements 950 —Computerequipmentandcapitalizedsoftware 14,886 10,192Leaseholdimprovements 3,048 2,096Furnitureandotherequipment 826 432Aircraftandautomobile 1,988 23Projectsinprogress 3,006 3,612Total gross property and equipment 45,201 16,355Accumulateddepreciation (9,739) (6,940)Total property and equipment, net $ 35,462 $ 9,415

Unamortizedcapitalizedsoftwaredevelopmentcosts, inserviceorunderdevelopment, are$9.4millionand$8.0millionatDecember31,2016and2015,respectively. Capitalizedsoftwaredevelopmentdepreciationexpensewas$4.3million,$2.6millionand$2.8millionfortheyearsendedDecember31,2016,2015and2014,respectively.

During 2014, the Company recorded an impairment charge in its Education business of approximately $0.4 million to internally developed software.SeeNote2—SignificantAccountingPoliciesforadiscussionoftheimpairment.

53

LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In December 2016, the Company acquired two office buildings in Charlotte, North Carolina for $23.5 million in cash, which included $0.1 million inacquisition-relatedcostswhichwerecapitalized.TheCompanyintendstoutilizeoneorbothbuildingsinthefutureasthecorporateheadquartersandtocontinuetorentanyunusedspace.Theacquisitionhasbeenaccountedforasanassetpurchaseandtheallocationofthepurchasepricetotheassetsacquiredisasfollows(in thousands) :

Fair Value

WeightedAverage

Depreciation Life

Land $ 5,818 N/ABuilding 14,679 34.0yearsSiteimprovements 950 6.6yearsTenantleases 2,029 3.2yearsTotalpurchaseprice $ 23,476

FuturerentalincomefromthebuildingtenantsasofDecember31,2016underoperatingleaseagreementshavinganinitialorremainingnon-cancelableleaseterminexcessofoneyearareasfollows(in thousands) :

Year ending December 31, Amount

2017 $ 1,4352018 1,1972019 9512020 5992021 151

Total $ 4,333

Rentalincomeisincludedinotherincomeontheaccompanyingconsolidatedstatementofoperationsandcomprehensiveincome.

NOTE 5—GOODWILL AND INTANGIBLE ASSETS

Thebalanceofgoodwill,netisasfollows(in thousands) :

Goodwill Accumulated

Impairment Loss Net Goodwill

Balance at December 31, 2015 $ 486,720 $ (483,088) $ 3,632AcquisitionofCompareCards $ 52,450 — $ 52,450AcquisitionofSimpleTuition $ 375 — $ 375

Balance at December 31, 2016 $ 539,545 $ (483,088) $ 56,457

Thebalanceofintangibleassets,netisasfollows(in thousands) :

December 31, 2016 December 31, 2015

Intangibleassetswithindefinitelives $ 10,142 $ 10,142Intangibleassetswithdefinitelives,net 61,542 850Total intangible assets, net $ 71,684 $ 10,992

Goodwill and Indefinite-Lived Intangible Assets

TheCompany'sgoodwillisassociatedwithitsonereportablesegment.ThecarryingamountofgoodwillincreasedduringtheyearendedDecember31,2016dueto the acquisitions of CompareCards andSimpleTuition.See Note6—Business Acquisitions for a discussion of the acquisitions and associated goodwill.TherewasnochangeinthecarryingamountofgoodwillduringtheyearendedDecember31,2015.ResultsoftheannualimpairmenttestasofOctober1,2016indicatedthatnoimpairmenthadoccurred.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Intangible assets with indefinite lives relate to the Company's trademarks. Results of the annual impairment test as of October 1, 2016indicated thatnoimpairmenthadoccurred.

Intangible Assets with Definite Lives

Intangibleassetswithdefinitelivesrelatetothefollowing(dollars in thousands) :

Weighted AverageAmortization Life Cost

AccumulatedAmortization Net

Technology 4.0 years $ 28,300 $ (659) $ 27,641Customerlists 11.7 years 28,100 (639) 27,461Trademarksandtradenames 4.5 years 5,342 (937) 4,405Tenantleases 3.2 years 2,030 — 2,030Other 3.0 years 250 (245) 5Balance at December 31, 2016 $ 64,022 $ (2,480) $ 61,542

Weighted AverageAmortization Life Cost

AccumulatedAmortization Net

Customerlists 10.0 years $ 1,000 $ (150) $ 850Other 2.2 years 1,087 (1,087) —Balance at December 31, 2015 $ 2,087 $ (1,237) $ 850

Amortizationofintangibleassetswithdefinitelivesiscomputedonastraight-linebasisand,basedonbalancesasofDecember31,2016,futureamortizationisestimatedtobeasfollows(in thousands) :

  Amortization Expense

YearendingDecember31,2017 $ 11,175YearendingDecember31,2018 11,037YearendingDecember31,2019 10,783YearendingDecember31,2020 9,935YearendingDecember31,2021 3,270Thereafter 15,342Total intangible assets with definite lives, net $ 61,542

On November 16, 2016, the Company acquired Iron Horse Holdings, LLC, which does business under the name CompareCards.See Note6—BusinessAcquisitionsforadiscussionoftheacquisitionandassociatedintangibles.

InDecember2016,theCompanyacquiredtwoofficebuildingsinCharlotte, NorthCarolina.See Note4—PropertyandEquipmentforadiscussionofthepurchaseandassociatedintangibles.

During2014,theCompanyrecordedanimpairmentchargeinitsEducationbusinessofapproximately$0.4milliontocustomerlists.See Note2—SignificantAccountingPoliciesforadiscussionoftheimpairment.

NOTE 6 —BUSINESS ACQUISITIONS

Iron Horse Holdings, LLC

On November 16, 2016, the Company acquired all of the membership interests of Iron Horse Holdings, LLC, which does business under the nameCompareCards("CompareCards").CompareCardsisanonlinemarketingplatformforcreditcards,whichtheCompanyplanstousetogrowitsexistingcreditcardbusiness.TheCompanypaid$80.7millionininitialcashconsiderationandwillmaketwoearnoutpayments,eachrangingfromzeroto$22.5million,basedontheamountofearningsbeforeinterest,

55

LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

taxes, depreciation and amortization CompareCards generates during the periods of January 1, 2017 through December 31, 2017 and January 1, 2018 throughDecember31,2018,orupto$45.0millioninaggregatepayments(the“EarnoutPayments”).

Thepurchasepricefortheacquisitionis$103.8millioncomprisedofanupfrontcashpaymentof$80.7milliononNovember16,2016and$23.1millionfortheestimatedfairvalueoftheEarnoutPayments,whichisincludedincontingentconsiderationsintheaccompanyingconsolidatedbalancesheet.Theupfrontcashpaymentwasfundedfromcashonhand.

TheestimatedfairvalueoftheEarnoutPaymentsisdeterminedusinganoptionpricingmodel.TheestimatedvalueoftheEarnoutPaymentsisbaseduponavailableinformationandcertainassumptions,knownatthetimeofthisreport,whichmanagementbelievesarereasonable.AnydifferencesintheactualEarnoutPayments from the current estimated fair value of the Earnout Payments will be recorded in operating income (expense) in the consolidated statements ofoperations.

The acquisition has been accounted for as a business combination. The preliminary allocation of purchase price to the assets acquired and the liabilitiesassumedisasfollows(in thousands) :

 

Fair Value

Accountsreceivable $ 3,538Totalintangibleassetswithdefinitelives,net 55,400Goodwill 52,450Accountspayableandaccruedliabilities (7,582)Total purchase price $ 103,806

TheCompanyprimarilyusedtheincomeapproachforthevaluationasappropriate,andusedvaluationinputsinthesemodelsandanalysesthatwerebasedonmarket participant assumptions. Market participants are buyers and sellers unrelated to the Company and fair value is determined as the price that would bereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionatthemeasurementdate.

The acquired intangible assets are definite-lived assets consisting primarily of development technology, customer relationships, and trade name andtrademarks. Theestimated fair values of the developedtechnologywas determined usingexcess earnings analysis, the customer relationships were determinedusingthedistributormethodandthetradenameandtrademarksweredeterminedusingrelieffromroyaltyanalysis. Thefair valueoftheintangibleassetswithdefinitelivesareasfollows(dollars in thousands) :

Fair Value

WeightedAverage

Amortization Life

Technology $ 27,900 4yearsCustomerlists $ 23,200 12yearsTradenameandtrademarks $ 4,300 5years

AsofDecember31,2016,theCompanyhasnotcompleteditsdeterminationofthefinalallocationofthepurchasepricewithrespecttotheacquiredworkingcapital. Thepurchasepriceallocationisexpectedtobefinalizedduringthefirstquarterof2017.Thevaluationofintangibleassetshasbeencompleted,buttheCompanycontinuestoobtaininformationonothercurrentassetsandliabilitiesthatexistedatthetimeoftheacquisition.Anyfutureadjustmentstothecurrentassetsandliabilitiesacquiredaspartoftheacquisitionwillalsoadjustgoodwill.

TheCompanyrecordedgoodwillof$52.5million,whichrepresentstheexcessofthepurchasepriceovertheestimatedfairvalueoftangibleandintangibleassets acquired, net of the liabilities assumed. The goodwill is primarily attributable to CompareCards as a going concern, which represents the ability of theCompanytoearna higherreturnonthecollectionof assets andbusinessof CompareCardsthanif thoseassets andbusinessweretobeacquiredandmanagedseparately. The benefit of access to the work force is an additional relevant element of goodwill. The goodwill is recorded in the Company’s one reportablesegment.Forincometaxpurposes,theCompanytreatedtheacquisitionasanassetpurchaseandthegoodwillwillbetaxdeductible.

Asoftheacquisitiondate,theCompany’sconsolidatedresultsofoperationsincludetheresultsoftheacquiredCompareCardsbusiness.In2016,revenueof$9.2 million and net incomefromcontinuing operations of$0.8 millionhave been included in the Company’s consolidated results of operations. Acquisition-relatedcostswere$0.4millionin2016andareincludedingeneral andadministrative expenseontheconsolidatedstatement of operationsandcomprehensiveincome.

56

LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The unaudited pro forma financial results for the years ended December 31, 2016 and 2015 combine the consolidated results of the Company andCompareCards givingeffect to the acquisitionas if it hadbeencompletedonJanuary1, 2015. This unauditedproformafinancial informationis presentedforinformationalpurposesonlyandisnotindicativeoffutureoperationsorresultshadtheacquisitionbeencompletedasofJanuary1,2015,oranyotherdate.

Theunauditedproformafinancialresultsincludeadjustmentsforadditionalamortizationexpensebasedonthefairvalueoftheintangibleassetswithdefinitelives and their estimated useful lives. The provision for income taxes fromcontinuing operations has also been adjusted to reflect the results of operations ofCompareCardsandtheadjustmenttohistoricalresults.CompareCardsdidnotpaytaxesattheentitylevelasitwasalimitedliabilitycompanywhosememberselectedforittobetaxedasapartnership.

2016 2015

(in thousands)Proformarevenue $ 448,418 $ 308,647Proformanetincomefromcontinuingoperations $ 33,407 $ 41,099

Theunauditedproformanetincomefromcontinuingoperationsfor2015hasbeenadjustedtoincludeacquisition-relatedcostsof$5.5millionincurredbytheCompanyandCompareCardsthataredirectlyattributabletotheacquisition,whichwillnothaveanongoingimpact.Accordingly,thesecostshavebeeneliminatedfromtheunauditedproformanetincomefromcontinuingoperationsfor2016.

SimpleTuition, Inc.

OnMay31,2016,theCompanyacquiredcertainassetsofSimpleTuition,Inc.("SimpleTuition"),aleadingonlinemarketingplatformforstudentloans,for$5.0millionofcashconsideration.Ofthepurchaseprice,$4.5millionwasfundedwithavailablecashonhandand$0.5millionwasheld-backinsatisfactionofanypotentialclaims.

Theacquisitionhasbeenaccountedforasabusinesscombination.DuringthequarterendedSeptember30,2016,theCompanycompleteditsdeterminationofthe final allocation of the purchase price with respect to the acquired assets. The Company has recorded the$5.0 millionpaid to the tangible and identifiableintangible assets based on their fair value, with the residual recorded to goodwill in the Company's one reportable segment. No liabilities were assumed.Acquisition-related costs were$0.1 million for 2016 and are included in general and administrative expense on the consolidated statements of operations andcomprehensiveincome.Theallocationofthepurchasepricetotheassetsacquiredisasfollows(dollars in thousands) :

 

Fair Value

WeightedAverage

Amortization LifeAccountsreceivable $ 125 N/ATotalintangibleassetswithdefinitelives,net $ 4,500 9.2yearsGoodwill $ 375 N/A

TheCompanytreatedthepurchaseasanassetacquisitionforincometaxpurposesandisdeductingtherecognizedgoodwillforincometaxpurposes.

TheacquisitionofSimpleTuitionwasnotconsideredsignificanttotheaccompanyingconsolidatedfinancialstatements.

Other

OnJune30,2014,theCompanyacquiredcertainintangibleassetstobeusedinitshomeservicesbusinessfor$0.6millionpaidontheacquisitiondate,pluscontingentconsiderationof$0to$0.8million.Duringthefourthquarterof2014,theCompanyfinalizedthepurchasepriceof$1.0million,whichincludedanestimatedcontingentconsiderationof$0.4million.Theentirepurchasepricewasallocatedtothecustomerlistsacquired,whichisbeingamortizedonastraight-linebasisoverausefullifeof10years.Additionallyduringtheninemonthsfollowingtheacquisition,performanceagainsttheconditionsoftheearn-outreducedthetotalcontingentconsiderationto$0.2million,whichwasfullypaidasofDecember31,2015.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accruedexpensesandothercurrentliabilitiesconsistofthefollowing(in thousands) :

December 31, 2016 December 31, 2015

Accruedlitigationliabilities $ 736 $ 636Accruedadvertisingexpense 26,976 20,841Accruedcompensationandbenefits 5,626 4,464Accruedprofessionalfees 1,411 711Customerdepositsandescrows 5,041 4,471Other 9,613 3,762Total accrued expenses and other current liabilities $ 49,403 $ 34,885

NOTE 8 —SHAREHOLDERS' EQUITY

Basicanddilutedincome(loss)persharewasdeterminedbasedonthefollowingsharedata(in thousands) :

 

Year Ended December 31,

 

2016 2015 2014Weighted average basic common shares 11,812 11,516 11,188Effectofstockoptions 886 866 —Effectofdilutiveshareawards 75 159 —Weighted average diluted common shares 12,773 12,541 11,188

FortheyearendedDecember31,2014,theCompanyhadlossesfromcontinuingoperationsand,asaresult,nopotentiallydilutivesecuritieswereincludedinthe denominator for computing diluted loss per share, because the impact would have been anti-dilutive. Accordingly, the weighted average basic sharesoutstanding were used to compute loss per share amounts for this period. For the year endedDecember 31,2014, approximately0.7 million shares related topotentiallydilutivesecuritieswereexcludedfromthecalculationofdilutedlosspershare,becausetheirinclusionwouldhavebeenanti-dilutive.

See Note9—Stock-BasedCompensationforafulldescriptionofoutstandingequityawards.

Common Stock Repurchases

IneachofJanuary2010,May2014,January2016andFebruary2016,theboardofdirectorsauthorizedandtheCompanyannouncedtherepurchaseofupto$10.0million,$10.0million,$50.0millionand$40.0million,respectively,ofLendingTree'scommonstock.DuringtheyearsendedDecember31,2016,2015and2014, the Company purchased690,218,5,250and99,345shares, respectively, of its common stock for aggregate consideration of $48.5 million ,$0.2millionand$2.6million,respectively.AtDecember31,2016,approximately$48.7millionremainsauthorizedforsharerepurchase.

Equity Offering

InNovember2015,theCompanycompletedanequityofferingof852,500sharesofitscommonstock.Thecommonstockwasissuedatapriceof$115.00pershare.TheCompanyreceivednetproceedsof$91.5million,afterdeductingapproximately$5.9millioninunderwritingdiscountsand$0.7millioninofferingexpenses.

NOTE 9 —STOCK-BASED COMPENSATION

The Company currently has oneactive plan, the Fourth Amended and Restated LendingTree 2008 Stock and Annual Incentive Plan (the "Equity AwardPlan"),underwhichfutureawardsmaybegranted,whichcurrentlycoversoutstandingstockoptionstoacquiresharesoftheCompany'scommonstock,restrictedstock, RSUs and RSUs with performance conditions, and provides for the future grants of these and other equity awards. Under the Equity Award Plan, theCompanyisauthorizedtograntstockoptions,restrictedstock,RSUsandotherequity-basedawardsforupto4.35millionsharesofLendingTreecommonstocktoemployees,non-employeeconsultants,officersanddirectors.

58

LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TheEquityAwardPlanhasastatedtermoftenyearsandprovidesthattheexercisepriceofstockoptionsgrantedwillnotbelessthanthemarketpriceofthecommonstock on the grant date. The Equity Award Plan itself does not specify grant dates or vesting schedules, as those determinations are delegated to theCompensationCommitteeoftheboardofdirectors.Eachgrantagreementreflectsthevestingscheduleforthatparticulargrant,asdeterminedbytheCompensationCommittee.TheCompensationCommitteehastheauthoritytomodifythevestingprovisionsofanaward.

Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations andcomprehensiveincome(in thousands) :

Year Ended December 31,

2016 2015 2014

Costofrevenue $ 129 $ 95 $ 32Sellingandmarketingexpense 2,722 1,597 901Generalandadministrativeexpense 4,699 5,120 5,148Productdevelopment 2,097 1,558 1,196Restructuringandseverance — 138 169Total non-cash compensation $ 9,647 $ 8,508 $ 7,446

For the years ended December 31, 2016 and 2015, the Company recognized $3.7 million and $3.0 million of income tax benefit related to non-cashcompensation.FortheyearendedDecember31,2014,theCompanyrecognizednoincometaxbenefitrelatedtonon-cashcompensationduetoitsnetoperatingloss andvaluation allowance. AsofDecember 31, 2016 , there wasapproximately$7.8million,$7.5million,$1.7millionand$0.1millionofunrecognizedcompensationcostrelatedtostockoptions,RSUs,RSUswithperformanceconditionsandrestrictedstock,respectively.Thesecostsareexpectedtoberecognizedoveraweighted-averageperiodofapproximately1.5yearsforstockoptions,1.9yearsforRSUs,1.9yearsforRSUswithperformanceconditionsand0.4yearsforrestrictedstock.

Stock Options

Asummaryofthechangesinoutstandingstockoptionsisasfollows:

Number of Options

WeightedAverageExercisePrice

WeightedAverageRemainingContractual

Term

AggregateIntrinsicValue (a)

(peroption) (inyears) (inthousands)

Outstanding at December 31, 2015 1,918,182 $ 18.85  Granted 86,149 79.46 Exercised (6,093) 38.58 Forfeited (6,329) 74.48 Expired (107) 117.95 Outstanding at December 31, 2016 1,991,802 $ 21.23 5.16 $ 159,754

Options exercisable 970,202 $ 9.69 2.63 $ 88,977

(a) Theaggregateintrinsicvaluerepresentsthetotalpre-taxintrinsicvalue(thedifferencebetweentheCompany'sclosingstockpriceof$101.35onthelasttradingdayof2016andtheexerciseprice,multipliedbythenumberofsharescoveredbyin-the-moneyoptions)thatwouldhavebeenreceivedbytheoption holders had all option holders exercised their options onDecember 31, 2016 . The intrinsic value changes based on the market value of theCompany'scommonstock.

Uponexercise, the intrinsic value represents the pre-tax difference betweenthe Company's closingstockprice onthe exercise date andthe exercise price,multipliedbythenumberofstockoptionsexercised.DuringtheyearsendedDecember31,2016,2015and2014,thetotalintrinsicvalueofstockoptionsthatwereexercisedwas$0.3million,$5.9millionand$0.2million,respectively.Cashreceivedfromstockoptionexercisesandtherelatedactualtaxbenefitrealizedwere$0.2millionand$0.1million,respectively,fortheyearendedDecember31,2016.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DuringtheyearsendedDecember31,2016,2015and2014,theCompanygrantedstockoptionswithaweightedaveragegrantdatefairvaluepershareof$40.05,$27.60and$11.22,respectively,ofwhichthevestingperiodsinclude(a)threeyearsfromthegrantdate,(b)25%and75%overaperiodof2.5yearsand3.5years,respectively,(c)25%and75%overaperiodof2.0yearsand3.0years,respectively,(d)25%and75%overaperiodof1.67yearsand2.67years,respectively,(e)sixmonthsfromthegrantdate,(f)oneyearfromthegrantdate,(g)twoyearsfromthegrantdateand(h)fivemonthsfromthegrantdate.

Forpurposesofdeterminingstock-basedcompensationexpense,theweightedaveragegrantdatefairvaluepershareofthestockoptionswasestimatedusingtheBlack-Scholesoptionpricingmodel,whichrequirestheuseofvariouskeyassumptions.Theweightedaverageassumptionsusedareasfollows:

Year Ended December 31,

2016 2015 2014

Expectedterm(1) 5.22-6.38years 5.21-6.23years 5.75-6.63yearsExpecteddividend(2) — — —Expectedvolatility(3) 48%-53% 38%-48% 36%-64%Risk-freeinterestrate(4) 1.10%-2.18% 1.65%-2.01% 1.81%-2.13%

(1) Theexpectedtermofstockoptionsgrantedwascalculatedusingthe'SimplifiedMethod',whichutilizesthemidpointbetweentheweightedaveragetimeofvestingandtheendofthecontractualterm.ThismethodwasutilizedforthestockoptionsduetoalackofhistoricalexercisebehaviorbytheCompany'semployees.

(2) ForallstockoptionsgrantedduringtheyearsendedDecember31,2016,2015and2014,nodividendsareexpectedtobepaidoverthecontractualtermofthestockoptions,resultinginazeroexpecteddividendrate.

(3) The expected volatility rate is based on the historical volatility of the Company's common stock or a blended rate which includes the historicalvolatilityoftheCompany'scommonstockandthatofapeergroup.

(4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparableexpectedtermsastheawards,ineffectatthegrantdate.

AsofDecember31,2016,thenon-vestedoptionsareexpectedtovestoveraweighted-averageperiodofapproximately1.5years.DuringtheyearsendedDecember31,2016,2015and2014,thetotalfairvalueofoptionsvestedwas$0.9million,$0.8millionand$0.4million,respectively.

Restricted Stock Units

AsummaryofthechangesinoutstandingnonvestedRSUsisasfollows:

  RSUs

 Number of

Units

WeightedAverage Grant

Date FairValue

(perunit)

Nonvested at December 31, 2015 237,377 $ 43.13Granted(a) 78,334 76.52Vested (142,289) 34.72Forfeited (21,048) 61.35Nonvested at December 31, 2016 152,374 $ 65.64

(a) ThegrantdatefairvaluepershareoftheRSUsiscalculatedastheclosingmarketpriceofLendingTree'scommonstockatthetimeofthegrant.

ThetotalfairvalueofRSUsthatvestedduringtheyearsendedDecember31,2016,2015and2014was$10.1million,$11.0millionand$11.0million,respectively.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Restricted Stock

Asummaryofthechangesinoutstandingnonvestedrestrictedstockisasfollows:

  Restricted Stock

 Number ofShares

WeightedAverage Grant

Date FairValue

(pershare)

Nonvested at December 31, 2015 68,762 $ 23.60Granted(a) — —Vested (54,298) 23.18Forfeited — —Nonvested at December 31, 2016 14,464 $ 25.14

(a) ThegrantdatefairvaluepershareoftherestrictedstockiscalculatedastheclosingmarketpriceofLendingTree'scommonstockatthetimeofgrant.

ThetotalfairvalueofrestrictedstockthatvestedduringtheyearsendedDecember31,2016,2015and2014was$3.9million,$4.1millionand$1.5million,respectively.

Restricted Stock Units with Performance Conditions

During2016,theCompanygrantedRSUswithperformanceconditionstocertainemployees,ofwhichvestingperiodsrangefrom0.33yearsto2.33years,pendingtheattainmentofcertainperformancetargetssetatthetimeofgrant.

AsummaryofthechangesinoutstandingnonvestedRSUswithperformanceconditionsisasfollows:

 

RSUs with Performance Conditions

 

Number of Units Weighted Average

Grant Date Fair Value

(perunit)

Nonvested at December 31, 2015 — $ —Granted 56,761 87.27Vested (1,953) 83.60Forfeited (10,299) 83.60Nonvested at December 31, 2016 44,509 $ 88.28

(a) ThegrantdatefairvaluepershareoftheRSUswithperformanceconditionsiscalculatedastheclosingmarketpriceofLendingTree'scommonstockatthetimeofgrant.

ThetotalfairvalueofRSUswithperformanceconditionsthatvestedduringtheyearendedDecember31,2016was$0.2million.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 —INCOME TAXES

Income Tax Provision

Thecomponentsoftheincometaxexpense(benefit)areasfollows(in thousands) :

  Year Ended December 31,

  2016 2015 2014

Currentincometaxexpense(benefit): Federal $ 11,519 $ 5,847 $ (371)State 2,480 1,149 (219)

Current income tax expense (benefit) 13,999 6,996 (590)Deferredincometax(benefit)provision: Federal 3,703 (19,676) 63State 2,664 (10,293) 43

Deferred income tax (benefit) provision 6,367 (29,969) 106Income tax expense (benefit) $ 20,366 $ (22,973) $ (484)

A reconciliation of the income tax expense (benefit) to the amounts computed by applying the statutory federal income tax rate to income (loss) fromcontinuingoperationsbeforeincometaxesisshownasfollows(in thousands) :

  Year Ended December 31,

  2016 2015 2014

Incometaxexpense(benefit)atthefederalstatutoryrateof35% $ 18,051 $ 9,920 $ (340)Stateincometaxes,netofeffectoffederaltaxbenefit 4,038 1,480 (143)Changein(releaseof)valuationallowance (416) (34,409) —Researchandexperimentationtaxcredit (2,574) — —Other,net 1,267 36 (1)Income tax expense (benefit) $ 20,366 $ (22,973) $ (484)

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Deferred Income Taxes

Thetaxeffectsofcumulativetemporarydifferencesthatgiverisetosignificantportionsofthedeferredtaxassetsanddeferredtaxliabilitiesareasfollows(inthousands) :

  December 31,

  2016 2015

Deferredtaxassets: Provisionforaccruedexpenses $ 8,056 $ 7,247Netoperatinglosscarryforwards(a) 8,548 15,036Non-cashcompensationexpense 5,699 4,321Goodwill 1,825 1,825Other 139 1,544

Totalgrossdeferredtaxassets 24,267 29,973Less:valuationallowance(b) (2,101) (2,341)Total deferred tax assets, net of the valuation allowance 22,166 27,632Deferredtaxliabilities: Intangibleandotherassets (2,704) (2,060)Other (1,071) (453)

Total gross deferred tax liabilities (3,775) (2,513)Net deferred taxes $ 18,391 $ 25,119

(a) AtDecember31,2016,theCompanyhadpre-taxconsolidatedfederalnetoperatinglosses("NOLs")of$10.9million.ThefederalNOLswillexpirein2030.TheCompany'sNOLswillbeavailabletooffsettaxableincome(untilsuchNOLsareeitherusedorexpire)subjecttotheInternalRevenueCodeSection382annuallimitation.Inaddition,theCompanyhasstateNOLsofapproximately$221.0millionatDecember31,2016thatwillexpireatvarioustimesbetween2017and2037.

(b) Thevaluationallowanceisrelatedtoitemsforwhichitis"more likely than not" thatthetaxbenefitwillnotberealized.

Deferredincometaxesarepresentedintheaccompanyingconsolidatedbalancesheetsasfollows(in thousands) :

  December 31,

  2016 2015

Deferredincometaxassets $ 14,610 $ 20,977Non-currentassetsofdiscontinuedoperations 3,781 4,142Net deferred taxes $ 18,391 $ 25,119

Valuation Allowance

Avaluationallowanceisprovidedondeferredtaxassetsifitisdeterminedthatitis"more likely than not" thatthedeferredtaxassetwillnotberealized.Asofeachreportingdate,managementconsidersbothpositiveandnegativeevidenceregardingthelikelihoodoffuturerealizationofthedeferredtaxassets.

Inthefourthquarterof2015theCompanyconcluded,baseduponallavailableevidence,itwasmorelikelythannotitwouldhavesufficientfuturetaxableincometorealize themajority of its net deferredtaxassets. Asa result, theCompanyreleasedthemajority of thevaluationallowancein 2015. TheCompanysignificantlyimproveditsoperatingperformancein2015,emergedfromcumulativelossesinrecentyearsduetoacumulativeprofitpositionandprojectstaxableincomeinfutureyears.WhiletheCompanybelievestheassumptionsincludedinitsprojectionsoffuturetaxableincomearereasonable,iftheactualresultsvaryfromexpectedresultsduetounforeseenchangesintheeconomyormortgageindustry,orotherfactors,theCompanymayneedtomakefutureadjustmentstothevaluationallowanceforall,oraportion,ofthenetdeferredtaxassets.AtDecember31,2016and2015,theCompanyrecordedapartialvaluationallowanceof$2.1 million and$2.3 million , respectively, primarily related to state net operating losses, which the Company does not expect to be able to utilize prior toexpiration.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Areconciliationofthebeginningandendingbalancesofthedeferredtaxvaluationallowanceisasfollows(in thousands) :

  Year Ended December 31,

  2016 2015 2014

Balance, beginning of the period $ 2,341 $ 40,121 $ 49,674Chargestoearnings(a) (240) (37,780) (3,707)Outofperiodadjustment(b) — — (5,846)Balance, end of the period $ 2,101 $ 2,341 $ 40,121

(a) During 2015, the amount is primarily related to the Company's release of the valuation allowance, current year utilization of net operating losscarryforwards, thewrite-off of certainstate net operatinglossesthat expirein2015andstate net operatinglossesnot expectedtobeutilizedinfutureyearsduetochangesinownershiplimitations.

(b)Outofperiodadjustmentinthevaluationallowanceisoffsetbyanoutofperiodadjustmenttothedeferredtaxassets,thustheadjustmentislimitedtodisclosure.Theerrorrelatedprimarilytothecalculationofthefederalbenefitofthestateoperatinglosscarryforwards.

Unrecognized Tax Benefits

Areconciliationofthebeginningandendingamountsofunrecognizedtaxbenefits,excludinginterestandpenalties,isasfollows(in thousands) :

  Year Ended December 31,

  2016 2015

Balance, beginning of the period $ 19 $ 23Additionsbasedontaxpositionsofthecurrentyear 550 —Lapseofstatuteoflimitations (19) (4)Balance, end of the period $ 550 $ 19

Interestand,ifapplicable,penaltiesarerecognizedrelatedtounrecognizedtaxbenefitsinincometaxexpense.FortheyearendedDecember31,2015,theCompany incurred interest and penalties on unrecognized tax benefits of $0.1 millionwhich was included in income tax expense. Interest and penalties onunrecognizedtaxbenefitsincludedinincometaxexpenseforeachoftheyearsendedDecember31,2016and2014wasimmaterial.AsofDecember31,2015,theaccrualforinterestandpenaltieswas$0.1million.TheaccrualforinterestandpenaltiesasofDecember31,2016wasimmaterial.

AsofDecember 31, 2016 , the accrual for unrecognized tax benefits, including interest, was$0.6million, whichwould benefit the effective tax rate ifrecognized. As of December 31, 2015, the accrual for unrecognized tax benefits, including interest, was$0.2 million , of which an immaterial amount wouldbenefittheeffectivetaxrateifrecognized.

Tax Audits

LendingTreeissubjecttoauditsbyfederal,stateandlocalauthoritiesintheareaofincometax.Theseauditsincludequestioningthetimingandtheamountofdeductionsandtheallocationofincomeamongvarioustaxjurisdictions.Incometaxespayableincludeamountsconsideredsufficienttopayassessmentsthatmayresultfromexaminationofprioryearreturns;however,anyamountspaiduponresolutionofissuesraisedmaydifferfromtheamountprovided.DifferencesbetweenthereservesfortaxcontingenciesandtheamountsowedbytheCompanyarerecordedintheperiodtheybecomeknown.AsofDecember31,2016,theCompany is subject to a federal income tax examination for the tax years 2012 through 2015. In addition, the Company is subject to state and local taxexaminationsforthetaxyears2013through2015.

NOTE 11 —REVOLVING CREDIT FACILITY

Senior Secured Revolving Credit Facility

OnOctober22,2015,theCompany'swholly-ownedsubsidiary,LendingTree,LLC,enteredintoa$125.0millionfive-yearseniorsecuredrevolvingcreditfacilitywhichmaturesonOctober22,2020(the“RevolvingCreditFacility”).TheproceedsoftheRevolvingCreditFacilitycanbeusedtofinanceworkingcapitalneeds,capitalexpendituresandgeneralcorporatepurposes,

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

including to finance permitted acquisitions. As ofDecember 31, 2016 , the Company does not have any borrowings outstanding under the Revolving CreditFacility.

Upto$10.0millionoftheRevolvingCreditFacilitywillbeavailableforshort-termloans,referredtoasswinglineloans.Additionally,upto$10.0millionoftheRevolvingCreditFacilitywillbeavailablefortheissuanceoflettersofcredit.Undercertainconditions,theCompanywillbepermittedtoaddoneormoretermloansand/orincreaserevolvingcommitmentsundertheRevolvingCreditFacilityuptoanaggregateamountof$50.0million.

TheCompany’sborrowingsundertheRevolvingCreditFacilitybearinterestatannualratesthat,attheCompany’soption,willbeeither:

• abaserategenerallydefinedasthesumof(i)thegreaterof(a)theprimerateofSunTrustBank,(b)thefederalfundseffectiverateplus0.5%and(c)theLIBOrate(definedbelow)onadailybasisapplicableforaninterestperiodofonemonthplus1.0%and(ii)anapplicablepercentageof1.0%to2.0%basedonthefundeddebttoconsolidatedEBITDAratio;or

• aLIBOrategenerallydefinedasthesumof(i)therateforEurodollardepositsintheapplicablecurrencyand(ii)anapplicablepercentageof2.0%to3.0%basedonthefundeddebttoconsolidatedEBITDAratio.

Allswinglineloansbearinterestatthebaseratedefinedabove.InterestontheCompany’sborrowingsarepayablequarterlyinarrearsforbaserateloansandonthelastdayofeachinterestrateperiod(butnotlessoftenthanthreemonths)forLIBOrateloans.

TheRevolvingCreditFacilitycontainscertainrestrictivefinancialcovenants,whichincludeafundeddebttoconsolidatedEBITDAratioandaconsolidatedEBITDAtointerestexpenseratio.Inaddition,theRevolvingCreditFacilitycontainscustomaryaffirmativeandnegativecovenantsinadditiontoeventsofdefaultforatransactionofthistypethat,amongotherthings,restrictadditionalindebtedness,liens,mergersorcertainfundamentalchanges,assetdispositions,dividends,stock repurchases and other restricted payments, transactions with affiliates, sale-leaseback transactions, hedging transactions, loans and investments and othermatterscustomarilyrestrictedinsuchagreements.TheCompanywasincompliancewithallcovenantsatDecember31,2016.

TheRevolvingCreditFacilityrequiresLendingTree,LLCtopledgeascollateral,subjecttocertaincustomaryexclusions,100%ofitsassets,including100%of its equity in all of its subsidiaries. The obligations under this facility are unconditionally guaranteed on a senior basis by LendingTree, Inc. and specificsubsidiaries of LendingTree, LLC, which guaranties are secured by a pledge as collateral, subject to certain customary exclusions, of 100%of each of suchguarantor'sassets,including100%ofitsequityinallofitssubsidiaries.

TheCompanyisrequiredtopayanunusedcommitmentfeequarterlyinarrearsonthedifferencebetweencommittedamountsandamountsactuallyborrowedundertheRevolvingCredit Facilityequaltoanapplicablepercentageof0.25%to0.5%perannumbasedonafundeddebttoconsolidatedEBITDAratio. TheCompanyisrequiredtopayaletterofcreditparticipationfeeandaletterofcreditfrontingfeequarterlyinarrears.Theletterofcreditparticipationfeeisbasedupontheaggregatefaceamountofoutstandinglettersofcredit atanapplicablepercentageof2.0%to3.0%basedonthefundeddebttoconsolidatedEBITDAratio.Theletterofcreditfrontingfeeis0.125%perannumonthefaceamountofeachletterofcredit.

TheCompanyincurreddebtissuancecostsof$1.2millionfortheRevolvingCreditFacility,whichisincludedinprepaidandothercurrentassetsandothernon-current assets intheCompany'sconsolidatedbalancesheet andisbeingamortizedtointerest expenseoverthelifeoftheRevolvingCredit Facilityof fiveyears.

NOTE 12 —COMMITMENTS

Operating Leases

TheCompany leases office space used in connection with its operations under various operating leases, which contain escalation clauses. The Company'soperatingleasesrelatetoitsofficespaceinCharlotte,NorthCarolinaandBurlingame,California.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FutureminimumpaymentsasofDecember31,2016underoperatingleaseagreementshavinganinitialorremainingnon-cancelableleaseterminexcessofoneyearareasfollows(in thousands) :

Year ending December 31, Amount

2017 $ 1,3742018 1,2272019 1,0252020 1,0552021 —

Total $ 4,681

Rentalexpenseforalloperatingleases,exceptthosewithtermsofamonthorlessthatwerenotrenewed,chargedtocontinuingoperationswas$1.6million,$1.2millionand$1.1million,foreachoftheyearsendedDecember31,2016,2015and2014,respectively,andamajorityofwhichisincludedingeneralandadministrativeexpenseintheconsolidatedstatementsofoperationsandcomprehensiveincome.

Bonds

TheCompanyhasfundingcommitmentsthatcouldpotentiallyrequireperformanceintheeventofdemandsbythirdpartiesorcontingentevents,asfollows(in thousands) :

  Commitments Due By Period

  Total Less Than1 year 1-3 years 3-5 years

More Than5 years

Suretybonds(a) $ 4,293 $ 4,268 $ 25 $ — $ —Litigationbonds(b) 140 140 — — —Total $ 4,433 $ 4,408 $ 25 $ — $ —

(a) State laws and regulations generally require businesses which engage in mortgage brokering activity to maintain a mortgage broker or similar license.Mortgage brokering activity is generally defined to include, among other things, receiving valuable consideration for offering assistance to a buyer inobtaining a residential mortgage or soliciting financial and mortgage information from the public and providing that information to an originator ofresidentialmortgageloans.AllstatesrequirethattheCompanymaintainsuretybondsforpotentialclaims.

(b)Bondsrequiredforcertainlegalmatters.

NOTE 13 —CONTINGENCIES

Overview

LendingTreeisinvolvedinlegal proceedingsonanongoingbasis. Inassessingthematerialityofalegalproceeding, theCompanyevaluates, amongotherfactors,theamountofmonetarydamagesclaimed,aswellasthepotentialimpactofnon-monetaryremediessoughtbyplaintiffs(e.g.,injunctiverelief)thatmayrequireittochangeitsbusinesspracticesinamannerthatcouldhaveamaterialandadverseimpactonthebusiness.WithrespecttothemattersdisclosedinthisNote13,unlessotherwiseindicated,theCompanyisunabletoestimatethepossiblelossorrangeoflossesthatcouldpotentiallyresultfromtheapplicationofsuchnon-monetaryremedies.

AsofDecember31,2016and2015,theCompanyhasalitigationsettlementaccrualof$0.7millionand$0.6million,respectively,incontinuingoperationsand$4.0millionand$3.6million,respectively,indiscontinuedoperations.Thelitigationsettlementaccrualrelatestolitigationmattersthatwereeithersettledorafirmofferforsettlementwasextended,therebyestablishinganaccrualamountthatisbothprobableandreasonablyestimable.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Specific Matters

Intellectual Property Litigation

Zillow

LendingTree v. Zillow, Inc., et al. Civil Action No. 3:10-cv-439 . OnSeptember 8, 2010, the Company filed an action for patent infringement in the U.S.District Court for the Western District of North Carolina against Zillow, Inc., Nextag, Inc., Quinstreet, Inc., Quinstreet Media, Inc. and Adchemy, Inc. ThecomplaintwasamendedtoincludeLeadpoint,Inc.d/b/aSecurerightsonSeptember24,2010.ThecomplaintallegedthateachofthedefendantsinfringedoneorbothoftheCompany'spatents—U.S.PatentNo.6,385,594,entitled"MethodandComputerNetworkforCo-OrdinatingaLoanovertheInternet,"andU.S.PatentNo.6,611,816,entitled"MethodandComputerNetworkforCo-OrdinatingaLoanovertheInternet."Thedefendantsinthisactionassertedvariousdefensesandcounterclaims against the Company, including the assertion by certain of the defendants of counterclaims alleging illegal monopolization via the Company'smaintenance of the asserted patents. Defendant NexTag asserted defenses of laches and equitable estoppel. In July 2011, the Company reached a settlementagreementwithLeadpoint,Inc.,pursuanttowhichallclaimsagainstLeadpoint,Inc.andallcounterclaimsagainsttheCompanybyLeadpoint,Inc.weredismissed.InNovember2012,theCompanyreachedasettlementagreementwithQuinstreet,Inc.andQuinstreetMedia,Inc.(collectively,the"QuinstreetParties"),pursuantto which all claims against the Quinstreet Parties and all counterclaims against the Company by the Quinstreet Parties were dismissed. After an unsuccessfulattempttoreachsettlementthroughmediationwiththeremainingparties,thismatterwenttotrialbeginninginFebruary2014,andonMarch12,2014,thejuryreturned a verdict. The jury found that the defendants Zillow, Inc., Adchemy, Inc., and NexTag, Inc. did not infringe the two patents referenced above anddeterminedthatthosepatentsareinvalidduetoaninventorshipdefect,andthecourtfoundthatNexTagwasentitledtodefensesoflachesandequitableestoppel.ThejuryfoundintheCompany’sfavoronthedefendants'counterclaimsalleginginequitableconductandantitrustviolations.JudgmentwasenteredonMarch31,2014.Afterthecourtenteredjudgment,onMay27,2014,theCompanyreachedasettlementagreementwithdefendantAdchemy,Inc.,includinganagreementtodismissandwithdrawallclaims,counterclaims,andmotionsbetweentheCompanyandAdchemy,Inc.Asaresult,ajointandvoluntarydismissalwasfiledJune12,2014withrespecttoclaimsbetweentheCompanyandAdchemy.Thepartiesfiledvariouspost-trialmotions;inparticular,defendantscollectivelysoughtupto$9.7millioninfeesandcosts.OnOctober9,2014,thecourtdeniedtheCompany'spost-trialmotionforjudgmentasamatteroflawanddeniedZillow'spost-trialmotions for sanctions and attorneys' fees. The court also denied in part and granted in part NexTag's post-trial motion for attorneys' fees, awarding NexTag aportionofitsattorneys'feesandcoststotaling$2.3million,plusinterest.

In November 2014, the Companyfiled a notice of appeal to the U.S. Court of Appeals for the Federal Circuit with respect to the jury verdict concerningZillow,Inc.andNextag,Inc.andtheawardofattorneys'fees.InMarch2015,theU.S.CourtofAppealsfortheFederalCircuitgrantedtheCompany'smotiontostayappellatebriefingpendinganen banc reviewbysuchcourtofthelachesdefenseinanunrelatedpatentinfringementmatterandruledinfavorofZillow,Inc.onanimmaterialamountofcostsrelatedtothetrialprocess.InJune2015,theCompanyreachedasettlementagreementfor$1.1millionwithdefendantNexTagpursuant to whichthe Companydismissed its appeal of the jury verdict andthe award of attorney's fees concerning NexTag, andNexTagdismissed its cross-appealandclaimsrelatingtothejuryverdictandtheawardofattorneys'fees.InJuly2015,thestaywasliftedontheCompany'sappealwithrespecttothejuryverdictconcerningZillow,Inc.TheappealwasheardbytheU.S.CourtofAppealsfortheFederalCircuitinJune2016,andinJuly2016theCourtdeterminedthatcertainoftheclaimsofthetwopatentsreferencedaboveweredirectedtoineligiblesubjectmatterandthussuchclaimswereinvalidunder35U.S.C.Section101.WithrespecttotheremainingclaimsthattheCourtdidnotholdwereineligible,theCourtgrantedaremandtothefederaldistrictcourttoallowLendingTreetofileamotiontovacatethejudgmentofinvalidityforincorrectinventorship.

Legal Matters

NextAdvisorContinued,Inc.

Next Advisor Continued, Inc. v. LendingTree, Inc. and LendingTree, LLC, No. 15-cvs-20775 (N.C. Super. Ct.). OnNovember6,2015,theplaintifffiledthisaction against LendingTree, Inc. and LendingTree, LLC(together “LendingTree”). The plaintiff generally alleges that LendingTree breached a non-disclosureagreementandmisappropriatedtradesecretsinthecontextofapotentialbusinessacquisitionoftheplaintiffbyLendingTree.Basedupontheseallegations,theplaintiffassertsclaimsforbreachofcontract,misappropriationoftradesecrets,andviolationoftheNorthCarolinaUnfairandDeceptiveTradePracticesAct.Theplaintiffseeksdamages,attorneys’feesandinjunctiverelief.

OnDecember16,2015,LendingTreefileditsanswertotheplaintiff'scomplaint,denyingthematerialallegationsandassertingnumerousdefensesthereto.InJune 2016, the Court granted plaintiff's motion for preliminary injunction and ordered that LendingTree cease any utilization of confidential and trade secretinformationofplaintiffandceasemarketingitscreditcardproductviacertainthirdpartycontentmarketingplatformsuntilthejudgefinallydeterminesthefactsinthismatterandthe

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

appropriaterelief,ifany,tobegrantedwithrespectthereto.LendingTreebelievesthattheplaintiff'sallegationslackmeritandintendstovigorouslydefendthisaction.InJuly2016,LendingTreefiledanoticeofinterlocutoryappealwithrespecttotheordergrantingplaintiff'smotionforpreliminaryinjunctiontotheNorthCarolinaSupremeCourt;theinterlocutoryappealwasdismissedinDecember2016.InFebruary2017,LendingTreefiledamotionforpartialsummaryjudgment.Anestimatedliabilityof$0.1millionforthismatterisincludedintheaccompanyingconsolidatedbalancesheetasofDecember31,2016.

Legal Matters

MassachusettsDivisionofBanks

On February 11, 2011, the Massachusetts Division of Banks (the "Division") delivered a Report of Examination/Inspection to LendingTree, LLC, whichidentifiedvariousallegedviolationsofMassachusettsandfederallaws,includingtheallegedinsufficientdeliverybyLendingTree,LLCofvariousdisclosurestoitscustomers.OnOctober14,2011,theDivisionprovidedaproposedConsentAgreementandOrdertosettletheDivision'sallegations,whichtheDivisionhadsharedwithotherstatemortgagelendingregulators.Thirty-fourofsuchstatemortgagelendingregulators(the"JoiningRegulators")indicatedthatifLendingTree,LLCwouldenterintotheConsentAgreementandOrder,theywouldagreenottopursueanyanalogousallegationsthattheyotherwisemightassert.NoneoftheJoiningRegulatorshaveassertedanysuchallegations.

TheproposedConsent Agreement andOrder calls for a finetobeallocatedamongtheDivisionandtheJoiningRegulators andfor LendingTree, LLCtoadoptvariousnewproceduresandpractices.TheCompanyhascommencednegotiationstowardanacceptableConsentAgreementandOrder.Itdoesnotbelieveitsmortgagemarketplacebusinessviolatedanyfederalorstatemortgagelendinglaws;nordoesitbelievethatanypastoperationsofthemortgagebusinesshaveresulted in a material violation of any such laws. Should the Division or any Joining Regulator bring any actions relating to the matters alleged in theFebruary2011ReportofExamination/Inspection, theCompanyintendstodefendagainstsuchactionsvigorously.Therangeofpossiblelossisestimatedtobebetween$0.5millionand$6.5million,andanestimatedliabilityof$0.5millionhasbeenestablishedforthismatterintheaccompanyingconsolidatedbalancesheetasofDecember31,2016.

Litigation Related to Discontinued Operations

ResidentialFundingCompany

Residential Funding Company, LLC v Home Loan Center, Inc., No. 13-cv-3451 (U.S. Dist. Ct., Minn.). OnoraboutDecember16,2013,HomeLoanCenter,Inc.wasservedintheabovecaptionedmatter.Generally,ResidentialFundingCompany,LLC("RFC")seeksdamagesforbreachofcontractandindemnificationforcertainresidentialmortgageloansaswellasresidentialmortgage-backedsecuritizations("RMBS")containingmortgageloans.RFCassertsthat,beginningin2008, RFCfaced massive repurchase demands and lawsuits frompurchasers or insurers of the loans and RMBSthat RFChad sold. RFCfiled for bankruptcyprotection in May 2012. Plaintiff alleges that, after RFCfiled for Chapter 11 protection, hundreds of proofs of claim were filed, many of which mirrored thelitigationfiledagainstRFCpriortoitsbankruptcy.

In December 2013, the United States Bankruptcy Court for the Southern District of New York entered an Order confirming the Second Amended JointChapter11PlanProposedbyResidentialCapital,LLCetal.andtheOfficialCommitteeofUnsecuredCreditors.Plaintiffthenbeganfilingsubstantiallysimilarcomplaintsagainstapproximately80of theloanoriginators fromwhomRFChadpurchasedloans, includingHomeLoanCenter, in federal andstate courts inMinnesotaandNewYork.Ineachcase,PlaintiffclaimsthatthedefendantisliableforaportionoftheglobalsettlementinRFC’sbankruptcy.

PlaintiffassertstwoclaimsagainstHLC:(1)breachofcontractbasedonHLC’sallegedbreachofrepresentationsandwarrantiesconcerningthequalityandcharacteristicsofthemortgageloansitsoldtoRFC(CountOne);and(2)contractualindemnificationforallegedliabilities,losses,anddamagesincurredbyRFCarising out of purported defects in loans that RFC purchased from HSBC and sold to third parties (Count Two). Plaintiff alleges that the “types of defects”containedintheloansitpurchasedfromHLCincluded“incomemisrepresentation,employmentmisrepresentation,appraisalmisrepresentationsorinaccuracies,undiscloseddebt,andmissingorinaccuratedocuments.”

HLCfiledaMotiontoDismissunderRule12(b)(6)oftheFederalRulesofCivilProcedureor,inthealternative,aMotionforMoreDefiniteStatementunderRule12(e).OnJune25,2015thejudgedeniedHLC'smotion.

On July 9, 2015, HLCfiled its answer to RFC’s complaint, denying the material allegations of the complaint and asserting numerous defenses thereto. Discovery is ongoing in this matter. HLC intends to vigorously defend this action. An estimated liability of $3.0 million for this matter is included in theaccompanyingconsolidatedbalancesheetasofDecember31,2016.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

LehmanBrothersHoldings,Inc.DemandLetter

Lehman Brothers Holdings Inc. v. 1 st Advantage Mortgage, LLC et al., Case No. 08-13555 (SCC) (Bankr. S.D.N.Y.). InFebruary2016,LehmanBrothersHoldings Inc. (“LBHI”) filed an Adversary Complaint against HomeLoanCenter and approximately149other defendants (the “Complaint”). TheComplaintgenerallyseeks(1)adeclaratoryjudgmentthatthesettlementsenteredbyLBHIwithFannieMaeandFreddieMacaspartofLBHI’sbankruptcyproceedingsgaverisetoLBHI’scontractualindemnificationclaimsagainstdefendantsallegedintheComplaint;(2)indemnificationfromHLCandtheotherdefendantsforlossesallegedlyincurredbyLBHIinrespectofdefectivemortgageloanssoldbydefendantstoLBHIoritsaffiliates;and(3)interest,attorneys’feesandcostsincurredbyLBHIinthelitigation.HLCintendstodefendthisactionvigorously.HLChadpreviouslyreceivedademandletter(the“Letter”)fromLBHIinDecember2014withrespectto64loans(the“Loans”)thatLBHIallegedweresoldbyHLCtoLehmanBrothersBankFSB(“LBB”)between2004and2008pursuanttoaloanpurchaseagreement (the“LPA”)betweenHLCandLBB. TheLetter generallysoughtindemnificationfromHLCinaccordancewiththeLPAforcertainclaims that LBHI alleged it allowed in its bankruptcy with respect to the Loans. An estimated liability of $1.0 million for this matter is included in theaccompanyingconsolidatedbalancesheetasofDecember31,2016.

NOTE 14—FAIR VALUE MEASUREMENTS

ThecarryingamountsoftheCompany'sfinancialinstrumentsareequaltofairvalueatDecember31,2016.

ContingentconsiderationpaymentsrelatedtoacquisitionsaremeasuredatfairvalueeachreportingperiodusingLevel3unobservableinputs.ThechangesinthefairvalueoftheCompany'sLevel3liabilitiesduringtheyearendedDecember31,2016areasfollows(in thousands) :

  Contingent Consideration

Balance at January 1, 2016 $ —TransfersintoLevel3 —TransfersoutofLevel3 —Totalnetgains(losses)includedinearnings(realizedandunrealized) —Purchases,salesandsettlements:Additions 23,100Payments —

Balance at December 31, 2016 $ 23,100

The contingent consideration liability at December 31, 2016 is the estimated fair value of the Earnout Payments of the CompareCards acquisition. TheCompanywillmakeEarnoutPaymentsrangingfromzeroto$45.0millionbasedontheachievementofcertaindefinedearningstargets.See Note6—BusinessAcquisitionsforadditionalinformationonthecontingentconsiderationoftheCompareCardsacquisition.Thesignificantunobservableinputsusedtocalculatethefair valueofthecontingent considerationareestimatedfuturecashflowsforCompareCardsandthediscount rate. Actual results will differ fromtheprojectedresultsandcouldhaveasignificantimpactontheestimatedfairvalueofthecontingentconsideration.Additionally,astheliabilityisstatedatpresentvalue,thepassageoftimealonewillincreasetheestimatedfairvalueoftheliabilityeachreportingperiod.Anychangesinfairvaluewillberecordedinoperatingincome(expense)intheconsolidatedstatementsofoperations.

NOTE 15—RELATED PARTY TRANSACTIONS

OneoftheCompany'sboardofdirectorsalsoservesasadirectortoamarketingpartneroftheCompany.During2016and2015,theCompanyrecognized$1.3millionand$0.7million,respectively,ofexpensesforthismarketingpartnerthroughthenormalcourseofbusiness.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16—BENEFIT PLANS

TheCompanyoperatesaretirementsavingsplanforitsemployeesintheUnitedStatesthatisqualifiedunderSection401(k)oftheInternalRevenueCode.Employees are eligible to enroll in the plan upon date of hire. Participating employees may contribute up to50%of their pre-tax earnings, but not more thanstatutorylimits(generally$18,000,$18,000and$17,500for2016,2015and2014,respectively).Thecompanymatchcontributionisfiftycentsforeachdollaraparticipantcontributestotheplan,withamaximumcontributionof6%ofaparticipant'seligibleearnings.Matchingcontributionsareinvestedinthesamemanneras each participant's voluntary contributions in the investment options provided under the plan. LendingTree stock is not included in the available investmentoptionsortheplanassets.Fundscontributedtotheplanvestaccordingtotheparticipant'syearsofservice,withlessthanthreeyearsofservicevestingat0%,andthree years or more of service vesting at100%. Matching contributions were approximately $0.7 million ,$0.5 million and$0.5 million for the years endedDecember31,2016,2015and2014,respectively.

NOTE 17—RESTRUCTURING EXPENSE

Accruedrestructuringcostsprimarilyrelatetoleaseobligationsforcallcenterleasesexitedin2010,whichwerecompletedin2015.Restructuringexpenseandpaymentsagainstliabilitiesareasfollows(in thousands) :

 

ContinuingLease

Obligations

Balance at December 31, 2013 $ 462Restructuringexpense 13Payments (297)

Balance at December 31, 2014 $ 178Restructuringincome (29)Payments (149)

Balance at December 31, 2015 $ —

NOTE 18 —DISCONTINUED OPERATIONS

Therevenueandnet(loss)incomereportedasdiscontinuedoperationsintheaccompanyingconsolidatedstatementsofoperationsandcomprehensiveincomeareasfollows(in thousands) :

  Year Ended December 31,

  2016 2015 2014

Revenue $ 1,325 $ 6 $ 14,256

(Loss)incomebeforeincometaxes(a) $ (5,728) $ (5,047) $ 10,392Incometaxbenefit(expense) 2,014 1,778 (543)Net (loss) income $ (3,714) $ (3,269) $ 9,849

(a) Income before income taxes for the year ended December 31, 2014 includes income froma reduction in the loan loss reserve of$14.1 million .Seeadditionalinformationin"LoanLossObligations"below.

LendingTree Loans

OnJune6,2012,theCompanysoldsubstantiallyalloftheoperatingassetsofitsLendingTreeLoansbusinessfor$55.9millionincashtoawholly-ownedsubsidiaryofDiscoverFinancialServices("Discover").

DiscovergenerallydidnotassumeliabilitiesoftheLendingTreeLoansbusinessthatarosebeforetheclosingdate,exceptforcertainliabilitiesdirectlyrelatedtoassets Discoveracquired. Ofthepurchasepricepaid, asofDecember31, 2016,$4.0millionis beingheldinescrowinaccordancewiththeagreement withDiscoverforcertainloanlossobligationsthatremainwiththeCompanyfollowingthesale.Asaresultofasettlementagreementin2014withasecondarymarketpurchaserofloans,$12.1millionwasreleasedfromescrowinDecember2015.TheescrowedamountisrecordedasrestrictedcashatDecember31,2016.

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DiscoverparticipatedasamarketplacelenderfromclosingofthetransactionthroughJuly2015.

Significant Assets and Liabilities of LendingTree Loans

UponclosingofthesaleofsubstantiallyalloftheoperatingassetsoftheLendingTreeLoansbusinessonJune6,2012,LendingTreeLoansceasedtooriginateconsumerloans.LiabilityforlossesonpreviouslysoldloanswillremainwithLendingTreeLoansandarediscussedbelow.

LoanLossObligations

LendingTreeLoanssoldloansitoriginatedtoinvestorsonaservicing-releasedbasis,sotheriskoflossordefaultbytheborrowerwasgenerallytransferredtothe investor. However, LendingTree Loans was required by these investors to make certain representations and warranties relating to credit information, loandocumentationandcollateral.Theserepresentationsandwarrantiesmayextendthroughthecontractuallifeoftheloan.Subsequenttotheloansale,ifunderwritingdeficiencies,borrowerfraudordocumentationdefectsarediscoveredinindividualloans,LendingTreeLoansmaybeobligatedtorepurchasetherespectiveloanorindemnifytheinvestorsforanylossesfromborrowerdefaultsifsuchdeficiencyordefectcannotbecuredwithinthespecifiedperiodfollowingdiscovery.Inthecaseofearlyloanpayoffsandearlydefaultsoncertainloans,LendingTreeLoansmayberequiredtorepayalloraportionofthepremiuminitiallypaidbytheinvestor.

HLC,asubsidiaryoftheCompany,continuestobeliablefortheseindemnificationobligations,repurchaseobligationsandpremiumrepaymentobligationsfollowingthesaleofsubstantiallyalloftheoperatingassetsofitsLendingTreeLoansbusinessinthesecondquarterof2012.

Thefollowingtablerepresentstheaggregateloanssold,subsequentsettlementsandremainingunsettledloansasofDecember31,2016:

  Number of Loans Original Issue Balance

  (in thousands) (in billions)LoanssoldbyHLC 234 $ 38.9Subsequentsettlements (172) (28.8)Remaining unsettled loans 62 $ 10.1

Duringthefourthquarterof2015,LendingTreeLoanscompletedasettlementagreementfor$0.6millionwithoneoftheinvestorstowhichithadsoldloans.Thisinvestoraccountedforapproximately10%ofthetotalnumberofloanssoldand12%oftheoriginalissuebalance.Thissettlementrelatedtoallexistingandfuturelossesonloanssoldtothisinvestor.

Duringthefourthquarterof2014,LendingTreeLoanscompletedasettlementagreementfor$5.4millionwiththelargestinvestortowhichithadsoldloans.Thisinvestoraccountedforapproximately40%ofboththetotalnumberofloanssoldandtheoriginalissuebalance.Thissettlementrelatedtoallexistingandfuturelossesonloanssoldtothisinvestor. Thesettlementwaspaidinthefourthquarterof2014withrestrictedcashof$3.1millionandcashonhandof$2.3million.Thesettlementwiththisinvestorinthefourthquarterof2014andtheimpactthissettlementhadontheestimateoftheremainingloanlossobligationsresultedinincomeof$14.1million,whichwasincludedinincomefromdiscontinuedoperationsintheaccompanyingconsolidatedstatementsofoperationsandcomprehensive income during 2014. The adjustment to the loan loss reserve did not result in tax expense recognition due to the Company's full valuationallowanceagainstitsdeferredtaxassets.

Inthesecondquarterof2014,LendingTreeLoanscompletedsettlementswithtwobuyersofpreviouslypurchasedloans.

TheCompanyhasbeennegotiatingwithcertainoftheremainingsecondarymarketpurchaserstosettleanyexistingandfuturecontingentliabilities, butitmaynotbeabletocompletesuchnegotiationsonacceptableterms,oratall.BecauseLendingTreeLoansdoesnotservicetheloansitsold,itdoesnotmaintainnorgenerallyhaveaccesstothecurrentbalancesandloanperformancedatawithrespecttotheindividualloanspreviouslysoldtoinvestors.Accordingly,LendingTreeLoansisunabletodetermine,withprecision,itsmaximumexposureforbreachesoftherepresentationsandwarrantiesitmadetotheinvestorsthatpurchasedsuchloans.

TheCompanyusesasettlementdiscountframeworkforevaluatingtheadequacyofthereserveforloanlosses.ThismodelestimateslifetimelossesonthepopulationofremainingloansoriginatedandsoldbyLendingTreeLoansusingactualdefaultsforloanswithsimilarcharacteristicsandprojectedfuturedefaults.ItalsoconsidersthelikelihoodofclaimsexpectedduetoallegedbreachesofrepresentationsandwarrantiesmadebyLendingTreeLoansandthepercentageofthoseclaimsinvestorsestimateLendingTreeLoansmayagreetorepurchase.Asettlementdiscountfactoristhenappliedtotheresultoftheforegoingtoreflect

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

publicly-announced bulk settlements for similar loan types and vintages, as well as LendingTree Loans' non-operating status, in order to estimate a range ofpotentialobligation.

Theestimatedrangeofremainingloanlossesusingthissettlementdiscountframeworkwasdeterminedtobe$4.4millionto$8.0millionatDecember31,2016 . The reserve balance recorded as of December 31, 2016was $6.8 million . Management has considered both objective and subjective factors in theestimation process, but given current general industry trends in mortgage loans as well as housing prices and market expectations, actual losses related toLendingTreeLoans'obligationscouldvarysignificantlyfromtheobligationrecordedasofthebalancesheetdateortherangeestimatedabove.

Additionally, LendingTree has guaranteed certain loans sold to twoinvestors in the event that LendingTree Loans is unable to satisfy its repurchase andwarrantyobligationsrelatedtosuchloans.

Basedonhistoricalexperience,itisanticipatedthatLendingTreeLoanswillcontinuetoreceiverepurchaserequestsandincurlossesonloanssoldinprioryears.

Theactivityrelatedtolossreservesonpreviouslysoldloansisasfollows(in thousands) :

  Year Ended December 31,

  2016 2015 2014

Loan loss reserve, beginning of period $ 8,127 $ 8,750 $ 28,543Provisionadjustments(a) (1,323) — (14,144)Charge-offstoreserves — (623) (5,649)Loan loss reserve, end of period $ 6,804 $ 8,127 $ 8,750

(a) Asdiscussedabove,during2014,LendingTreeLoanscompletedasettlementagreementwiththelargestinvestortowhichithadsoldloans,resultinginanadjustmenttotheprovision.During2016,theCompanyadjustedtheloanlossreserveby$1.8milliontoremovetheestimatedliabilityforloanssoldtoRFC.TheCompanyis in litigation with RFCandreservedthe loss for this litigation in the legal reserve.See Note13—ContingenciesforadditionalinformationabouttheRFClitigation.

TheliabilityforlossesonpreviouslysoldloansispresentedascurrentliabilitiesofdiscontinuedoperationsintheaccompanyingconsolidatedbalancesheetsasofDecember31,2016and2015.

NOTE 19 —SEGMENT INFORMATION

TheCompanyhasonereportablesegment.

Mortgageandnon-mortgageproductrevenueisasfollows(in thousands) :

  Year Ended December 31,

  2016 2015 2014

Mortgageproducts $ 219,991 $ 165,272 134,137Non-mortgageproducts 164,411 88,944 33,213Total revenue $ 384,402 $ 254,216 $ 167,350

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LENDINGTREE, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 20—QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

ThefollowingtablessetforthsummaryfinancialinformationfortheyearsendedDecember31,2016and2015:

  Q1 Q2 Q3 Q4

(in thousands, except per share amounts)2016 Revenue $ 94,713 $ 94,290 $ 94,558 $ 100,841Operatingincome 11,845 12,715 14,150 13,402Incomefromcontinuingoperations 6,905 9,002 7,280 8,021Lossfromdiscontinuedoperations (1,203) (1,150) (664) (697)Netincomeandcomprehensiveincome $ 5,702 $ 7,852 $ 6,616 $ 7,324Incomepersharefromcontinuingoperations: Basic $ 0.58 $ 0.76 $ 0.62 $ 0.68Diluted $ 0.54 $ 0.71 $ 0.57 $ 0.63

Losspersharefromdiscontinuedoperations:

Basic $ (0.10) $ (0.10) $ (0.06) $ (0.06)Diluted $ (0.09) $ (0.09) $ (0.05) $ (0.05)

Netincomepershare:

Basic $ 0.48 $ 0.67 $ 0.56 $ 0.62Diluted $ 0.44 $ 0.62 $ 0.52 $ 0.57

  Q1 Q2 Q3 Q4

(in thousands, except per share amounts)2015 Revenue $ 50,935 $ 55,136 $ 69,804 $ 78,341Operatingincome 5,718 6,775 7,773 8,248Incomefromcontinuingoperations 5,413 6,439 7,383 32,081Lossfromdiscontinuedoperations (226) (1,717) (1,295) (31)Netincomeandcomprehensiveincome $ 5,187 $ 4,722 $ 6,088 $ 32,050Incomepersharefromcontinuingoperations: Basic $ 0.48 $ 0.57 $ 0.65 $ 2.69Diluted $ 0.44 $ 0.52 $ 0.59 $ 2.47

Losspersharefromdiscontinuedoperations:

Basic $ (0.02) $ (0.15) $ (0.11) $ —Diluted $ (0.02) $ (0.14) $ (0.10) $ —

Netincomepershare:

Basic $ 0.46 $ 0.41 $ 0.53 $ 2.69Diluted $ 0.43 $ 0.38 $ 0.49 $ 2.47

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ITEM 9.   ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure

Notapplicable.

ITEM 9A.   ControlsandProcedures

Evaluation of Disclosure Controls and Procedures

AsrequiredbyRule13a-15(b)oftheSecuritiesExchangeActof1934(the"ExchangeAct"),management,withtheparticipationofourprincipalexecutiveofficer (Chief ExecutiveOfficer) andourprincipal financial officer (Chief Financial Officer), evaluated, as of theendof theperiodcoveredbythis report, theeffectivenessofourdisclosurecontrolsandproceduresasdefinedinExchangeActRule13a-15(e).Managementnecessarilyapplieditsjudgmentinassessingthecosts and benefits of such controls and procedures, which by their nature can provide only reasonable assurance regarding management's control objectives.Managementdoesnotexpectthatourdisclosurecontrolsandprocedureswillpreventordetectallerrorsandfraud.Acontrolsystem,irrespectiveofhowwellitisdesignedandoperated,canonlyprovidereasonableassuranceandcannotguaranteethatitwillsucceedinitsstatedobjectives.

Baseduponthatevaluation,ourChiefExecutiveOfficerandChiefFinancialOfficerconcludedthat,asofDecember31,2016,ourdisclosurecontrolsandprocedureswereeffectivetoprovidereasonableassurancethattheinformationrequiredtobedisclosedbyusinthereportswefileorsubmitundertheExchangeActisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintheSEC'srulesandforms,andthatsuchinformationisaccumulatedandcommunicatedtoourmanagement,includingourChiefExecutiveOfficerandChiefFinancialOfficer,asappropriatetoallowtimelydecisionsregardingrequireddisclosure.

Management's Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) under theExchangeAct.OurinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithGAAP.Ourinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat:(1)pertaintothemaintenanceofrecordsthatinreasonabledetailaccuratelyandfairlyreflectourtransactionsanddispositionsofourassets;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithGAAPandthatourreceipts and expenditures are being made only in accordance with authorizations of our management and our directors; and (3) provide reasonable assuranceregardingpreventionortimelydetectionofunauthorizedacquisition,useordispositionofourassetsthatcouldhaveamaterialeffectonthefinancialstatements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Management, with the participation of our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control overfinancialreportingasofDecember31,2016.Inmakingthisassessment,ourmanagementusedthecriteriaforeffectiveinternalcontroloverfinancialreportingdescribed in "Internal Control-Integrated Framework" (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO").BasedonourevaluationundertheframeworkintheInternal Control-IntegratedFramework, issuedbytheCOSO,management hasconcludedthat ourinternalcontroloverfinancialreportingwaseffectiveasofDecember31,2016.TheeffectivenessofourinternalcontroloverfinancialreportingasofDecember31,2016hasbeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreportappearingunder"Item8.FinancialStatementsandSupplementaryData"includedelsewhereinthisannualreport.

Changes in Internal Control over Financial Reporting

Therewasnochangeinourinternalcontroloverfinancialreporting(asdefinedintheExchangeAct,Rules13a-15(f))thatoccurredduringthequarterendedDecember31,2016thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

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ITEM 9B.   OtherInformation

IncreaseinAuthorizedNumberofDirectors

OnFebruary22,2017,inaccordancewithourbylawsandupontherecommendationoftheNominatingandCorporateGovernanceCommittee,ourboardofdirectorsdulyadoptedaresolutionincreasingtheauthorizednumberofdirectorsfromseventonine.

AppointmentofNewDirectors

OnFebruary22,2017,ourboardofdirectors,upontherecommendationoftheNominatingandCorporateGovernanceCommittee,appointedMr.ThomasM.Davidson,Jr.andMr.G.KennedyThompsontofilltwonewly-createdvacanciesonourboardofdirectors,effectiveMarch15,2017.OurboardofdirectorshasdeterminedthatMessrs.DavidsonandThompsonbothqualifyasindependentundertheindependencestandardsundertheListingRulesoftheNASDAQStockMarket.

Mr. Davidson,age45, is theco-founderandhasservedas Chief ExecutiveOfficer of EverFi, Inc., a software-as-a-serviceeducationtechnologycompanyheadquarteredinWashington,D.C.,since2008.PriortofoundingEverFi,Inc.,Mr.DavidsonwasaventurecapitalistatVillageVenturesfrom2007-2009withafocusonearly-stagetechnologycompaniesintheeducationandsocialmediaspaces.From1994to2000,Mr.DavidsonservedthreetermsintheMaineHouseofRepresentatives where he served as Chairman of the Utilities and Energy Committee and was a senior member of the Taxation Committee and the BankingInsuranceandBusinessandEconomicDevelopmentCommittees.

Mr.Thompson,age66,hasbeenapartnerofAquilineCapitalPartners,aNewYorkbasedprivateequityfirm,since2009.From1999to2008,Mr.ThompsonwasPresidentandChiefExecutiveOfficerofWachoviaCorporation.Mr.ThompsonservedinnumerousindustryleadershippositionsincludingChairmanoftheClearingHouse,ChairmanoftheFinancialServicesRoundtable,ChairmanoftheFinancialServicesForumandPresidentoftheFederalAdvisoryCounciloftheFederalReserveBoard.Inthepastfiveyears,hehasservedasamemberoftheboardofdirectorsofHPInc.(NYSE:HPQ)andBNCBank,andiscurrentlyatrusteeoftheMorehead-CainFoundation.

In consideration for their services, Messrs. Davidson and Thompson will be compensated in accordance with the compensation plan for non-employeedirectorspreviouslyapprovedbyourboardofdirectors.

There are no arrangements or understandings between Messrs. Davidson or Thompson and any other persons pursuant to which either was selected as adirector,andnotransactionsbetweenourcompanyandMessrs.DavidsonorThompsonwhichrequiredisclosureunderItem404(a)ofRegulationS-K.

NewBoardCommitteeCompositions

OnFebruary22,2017,ourboardofdirectors, upontherecommendationoftheNominatingandCorporateGovernanceCommittee,approvedthefollowingnewcommitteeassignments,effectiveMarch1,2017(exceptasprovidedbelow):

• OurAuditCommitteewillbecomposedofMs.Henderson,PeterHoranandStevenOzonian(Chair),eachofwhomisindependentandeachofwhomisqualifiedunder theListingRulesof theNASDAQStockMarket to serveonouraudit committee. Ourboardhasdesignatedeachof Peter HoranandSteveOzonianasanauditcommitteefinancialexpert.

• OurCompensationCommitteewillbecomposedofCraigTroyer,StevenOzonian(Chair)andSarasSarasvathy.

• OurNominatingandCorporateGovernanceCommitteewillbecomposedofRobinHendersonandPeterHoran(Chair).ThomasDavidsonwillbecomeamemberoftheNominatingandCorporateGovernanceCommitteeeffectiveMarch15,2017.

• OurTransactionsCommitteewillbecomposedofDouglasLebda(Chair),PeterHoranandNealDermer.G.KennedyThompsonwillbecomeamemberofourTransactionsCommitteeeffectiveMarch15,2017.

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PART III

Assetforthbelow,theinformationrequiredbyPartIII(Items10,11,12,13and14)isincorporatedhereinbyreferencetotheCompany'sdefinitiveproxystatementtobeusedinconnectionwithits2017AnnualMeetingofStockholdersandwhichwillbefiledwiththeSecuritiesandExchangeCommissionnotlaterthan120daysaftertheendoftheCompany'sfiscalyearendedDecember31,2016(the"2017ProxyStatement"),inaccordancewithGeneralInstructionG(3)ofForm10-K.

ITEM 10.   Directors,ExecutiveOfficersandCorporateGovernance

TheinformationrequiredbyItem10willbecontainedin,andisherebyincorporatedbyreferenceto,the2017ProxyStatement.

ITEM 11.   ExecutiveCompensation

TheinformationrequiredbyItem11willbecontainedin,andisherebyincorporatedbyreferenceto,the2017ProxyStatement.

ITEM 12.   SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters

TheinformationrequiredbyItem12willbecontainedin,andisherebyincorporatedbyreferenceto,the2017ProxyStatement.

ITEM 13.   CertainRelationshipsandRelatedTransactions,andDirectorIndependence

TheinformationrequiredbyItem13willbecontainedin,andisherebyincorporatedbyreferenceto,the2017ProxyStatement.

ITEM 14.   PrincipalAccountingFeesandServices

TheinformationrequiredbyItem14willbecontainedin,andisherebyincorporatedbyreferenceto,the2017ProxyStatement.

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PART IV

ITEM 15.   Exhibits,FinancialStatementSchedules

( a)Listofdocumentsfiledaspartofthisreport:

(1)   Consolidated Financial Statements of LendingTree, Inc.

ReportofIndependentRegisteredPublicAccountingFirm:PricewaterhouseCoopersLLP.

ConsolidatedStatementsofOperationsandComprehensiveIncomefortheYearsEndedDecember31,2016,2015and2014.

ConsolidatedBalanceSheetsasofDecember31,2016and2015.

ConsolidatedStatementsofShareholders'EquityfortheYearsEndedDecember31,2016,2015and2014.

ConsolidatedStatementsofCashFlowsfortheYearsEndedDecember31,2016,2015and2014.

NotestoConsolidatedFinancialStatements.

(2)   Consolidated Financial Statement Schedules of LendingTree, Inc.

Allfinancialstatementsandscheduleshavebeenomittedsincetherequiredinformationisincludedintheconsolidatedfinancialstatementsorthenotesthereto,orisnotapplicableorrequired.

(3)   Exhibits

The documents set forth below, numbered in accordance with Item 601 of Regulation S-K, are filed herewith or incorporated herein by reference to thelocationindicatedbelow.

ExhibitNumber Description Location

2.1 Separation and Distribution Agreement among IAC/InterActiveCorp,HSN,Inc.,IntervalLeisureGroup,Inc.,TicketmasterandTree.com,Inc.,datedAugust20,2008.

Exhibit 10.1 to the Registrant's Registration Statement on Form S-1(No.333-152700),filedAugust1,2008

2.2 TaxSharingAgreementamongIAC/InterActiveCorp,HSN,Inc.,IntervalLeisure Group, Inc., Ticketmaster and Tree.com, Inc., dated August 20,2008.

Exhibit10.2totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedAugust25,2008

2.3 Employee Matters Agreement among IAC/InterActiveCorp, HSN, Inc.,Interval Leisure Group, Inc., Ticketmaster and Tree.com, Inc., datedAugust20,2008.

Exhibit10.3totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedAugust25,2008

2.4 Transition Services Agreement among IAC/InterActiveCorp, HSN, Inc.,Interval Leisure Group, Inc., Ticketmaster and Tree.com, Inc., datedAugust20,2008.

Exhibit10.4totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedAugust25,2008

2.5 Spinco Assignment and Assumption Agreement amongIAC/InterActiveCorp, Tree.com, Inc., Liberty Media Corporation andLibertyUSAHoldings,LLC,datedAugust20,2008.

Exhibit10.6totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedAugust25,2008

2.6 Asset Purchase Agreement among Home Loan Center, Inc., FirstResidential Mortgage Network, Inc. dba SurePoint Lending, and theshareholdersofFirstResidentialMortgageNetworknamedtherein,datedNovember15,2010.

Exhibit 2.1 to Registrant's Current Report on Form 8-K (No. 001-34063)filedNovember16,2010

2.7 First Amendment to Asset Purchase Agreement among HLC, SurePointandtheshareholderspartythereto,datedMarch14,2011.

Exhibit 2.1 to the Registrant's Current Report on Form 8-K filedMarch21,2011

2.8 Second Amendment to Asset Purchase Agreement among HLC,SurePointandtheshareholderspartythereto,datedMarch15,2011.

Exhibit 2.2 to the Registrant's Current Report on Form 8-K filedMarch21,2011

77

ExhibitNumber Description Location

2.9 Asset Purchase Agreement among Tree.com, Inc., Home Loan Center,Inc., LendingTree, LLC, HLC Escrow, Inc. and Discover Bank, datedMay12,2011**

Exhibit2.1totheRegistrant'sCurrentReportonForm8-KfiledMay16,2011

2.10 Asset Purchase Agreement among LendingTree, LLC, RealEstate.com,Inc.andMarketLeader,Inc.,datedSeptember15,2011**

Exhibit 2.1 to the Registrant's Current Report on Form 8-K filedSeptember21,2011

2.11 Amendment to Asset Purchase Agreement among Home Loan Center,Inc., HLC Escrow, Inc., LendingTree, LLC, Tree.com, Inc., DiscoverBankandDiscoverFinancialServices,datedFebruary7,2012**

Exhibit 2.1 to the Registrant's Current Report on Form 8-K filedFebruary8,2012

2.12 Membership Interest Purchase Agreement, dated as of November 16,2016,byandamongLendingTree,LLC,IronHorseHoldings,LLC,allofthemembersofIronHorseHoldings,LLCandChristopherJ.Mettler.**

Exhibit 2.1 to the Registrant's Current Report on Form 8-K filedNovember22,2016

3.1 AmendedandRestatedCertificateofIncorporationofLendingTree,Inc. Exhibit3.1totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedAugust25,2008

3.2 ThirdAmendedandRestatedBy-lawsofLendingTree,Inc. Exhibit 3.2 to the Registrant's Current Report on Form 8-K filedDecember31,2014

4.1 Amended and Restated Restricted Share Grant and Shareholders'Agreement, among Forest Merger Corp., LendingTree, Inc.,InterActiveCorpandtheGranteesnamedtherein,datedJuly7,2003*

Exhibit 10.8 to the Registrant's Registration Statement on Form S-1(No.333-152700),filedAugust1,2008

4.2 Registration Rights Agreement among Tree.com, Inc., Liberty MediaCorporationandLibertyUSAHoldings,LLC,datedAugust20,2008.

Exhibit10.5totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedAugust25,2008

10.1 Letter Agreement between Tree.com, Inc. and Alexander Mandel, datedJuly27,2012*

Exhibit 10.1to theRegistrant's Quarterly Report onForm10-QfiledNovember14,2012

10.2 ChangeinControlLetterbetweenTree.com,Inc.andAlexanderMandel,datedJuly27,2012*

Exhibit 10.2 to Registrant's Quarterly Report on Form 10-Q filedNovember14,2012

10.3 Amended Employment Offer and Change in Control Letter and Releasebyand betweenAlexander Mandel and LendingTree, Inc., dated July 2,2015*

Exhibit 10.1to theRegistrant's Quarterly Report onForm10-QfiledOctober26,2015

10.4 Letter Agreement between Tree.com, Inc. and Carla Shumate, datedDecember11,2012*

Exhibit 10.1 to the Registrant's Annual Report on Form 10-K filedApril1,2013

10.5 Letter Agreement between LendingTree, Inc. and Carla Shumate, datedMarch11,2015*

Exhibit 10.1to theRegistrant's Quarterly Report onForm10-QfiledApril30,2015

10.6 Letter Agreement between LendingTree, Inc. and Carla Shumate, datedDecember31,2015*

Exhibit 10.6 to the Registrant's Annual Report on From 10-K filedMarch1,2016

10.7 Employment Agreement between Tree.com, Inc. and Douglas Lebda,datedJanuary9,2014*

Exhibit 10.1to theRegistrant's Quarterly Report onForm10-QfiledMay7,2014

10.8 Restricted Share Grant and Stockholder's Agreement amongIAC/InterActiveCorp, LendingTree Holdings Corp. and Douglas R.Lebda,datedAugust15,2008,togetherwithExhibitAthereto,AmendedandRestatedCertificateofIncorporationofLendingTreeHoldingsCorp.*

Exhibits99.2and99.3totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedAugust20,2008

10.9 Amendment No. 1 to the Restricted Share Grant and Stockholder'sAgreement between Tree.com, Inc., LendingTree Holdings Corp. andDouglasR.Lebda,datedAugust30,2010*

Exhibit 10.4to theRegistrant's Quarterly Report onForm10-Q(No.001-34063)filedNovember12,2010

10.10 Amendment No. 1 to the Stock Option Award Agreement betweenDouglasR.LebdaandTree.com,Inc.,datedMay10,2010*

Exhibit10.15totheRegistrant'sQuarterlyReportonForm10-Q(No.001-34063)filedMay12,2010

78

ExhibitNumber Description Location

10.11 Employment Agreement between Tree.com, Inc. and Gabriel Dalporto,datedJanuary9,2014*

Exhibit 10.2to theRegistrant's Quarterly Report onForm10-QfiledMay7,2014

10.12 Employment Agreement between LendingTree, Inc. and GabrielDalporto,datedMarch11,2015*

Exhibit 10.6 to the Registrant's Annual Report on Form 10-K filedMarch16,2015

10.13 Letter Agreement between LendingTree, Inc. and Nikul Patel, datedDecember31,2015*

Exhibit 10.13 to the Registrant's Annual Report on From 10-K filedMarch1,2016

10.14 Fourth Amended and Restated Tree.com, Inc. 2008 Stock and AnnualIncentivePlan*

Exhibit 10.1to theRegistrant's Quarterly Report onForm10-QfiledAugust7,2014

10.15 DeferredCompensationPlanforNon-EmployeeDirectors* Exhibit 10.15to the Registrant's Registration Statement onFormS-1(No.333-152700),filedAugust1,2008

10.16 2011DeferredCompensationPlanforNon-EmployeeDirectors* Exhibit 10.2to theRegistrant's Quarterly Report onForm10-QfiledApril30,2015

10.17 FormofNoticeofRestrictedStockUnitAward* Exhibit 10.86(b) to the Registrant's Post-Effective Amendment to itsRegistrationStatement onFormS-1(No.333-152700), filedJuly13,2012

10.18 FormofNoticeofRestrictedStockUnitAward* Exhibit 10.3to theRegistrant's Quarterly Report onFrom10-QfiledMay7,2014

10.19 FormofRestrictedStockAward* Exhibit 10.86(c) to the Registrant's Post-Effective Amendment to itsRegistrationStatement onFormS-1(No.333-152700), filedJuly13,2012

10.20 FormofNoticeofRestrictedStockAward* Exhibit 10.4to theRegistrant's Quarterly Report onForm10-QfiledMay7,2014

10.21 Standard Terms and Conditions to Restricted Stock Award Letters ofTree.comBUHoldingCompany,Inc.*

Exhibit 10.2 to the Registrant's Current Report on Form 8-K filedFebruary3,2011

10.22 FormofAmendmenttoRestrictedStockAwardsforDouglasR.Lebda* Exhibit 10.4to theRegistrant's Quarterly Report onForm10-QfiledMay12,2010

10.23 Form of Notice of Stock Option Award Granted Under the 2008 StockandAnnualIncentivePlan*

Exhibit10.6totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedMarch27,2009

10.24 FormofNoticeofStockOptionAwardGrantedUndertheAmendedandRestated2008StockandAnnualIncentivePlan*

Exhibit 10.86(d) to the Registrant's Post-Effective Amendment to itsRegistrationStatement onFormS-1(No.333-152700), filedJuly13,2012

10.25 Form of Notice of Stock Option Award Granted Under the SecondAmendedandRestated2008StockandAnnualIncentivePlan*

Exhibit10.13totheRegistrant'sQuarterlyReportonForm10-Q(No.001-34063)filedMay12,2010

10.26 Form of Notice of Stock Option Award Granted Under the 2008 StockandAnnualIncentivePlan*

Exhibit 10.5to theRegistrant's Quarterly Report onForm10-QfiledMay7,2014

10.27 Stock Purchase Agreement between Tree.com, Inc. and Douglas R.Lebda,datedFebruary8,2009*

Exhibit10.1totheRegistrant'sCurrentReportonForm8-K(No.001-34063)filedFebruary11,2009

10.28 AmendmentNo.1toStockPurchaseAgreementbetweenTree.com,Inc.andDouglasR.Lebda,datedMay10,2010*

Exhibit 10.2to theRegistrant's Quarterly Report onForm10-Q(No.001-34063)filedMay12,2010

10.29 Credit Agreement by and among LendingTree, LLC, LendingTree, Inc.andSunTrustBank,datedOctober22,2015

Exhibit 99.1to theRegistrant's Quarterly Report onForm10-QfiledOctober26,2015

10.30 FirstAmendmenttoCreditAgreementbyandamongLendingTree,LLC,LendingTree,Inc.andSunTrustBank,datedFebruary25,2016

†

10.31 Agreement of Purchase and Sale, by and amongLendingTree, LLCandan affiliate of Greenstreet Real Estate Partners, L.P., dated October 17,2016

†+

10.32 FirstAmendmenttoPurchaseandSale,byandamongLendingTree,LLCandanaffiliateofGreenstreetRealEstatePartners,L.P.,datedNovember28,2016

†

79

ExhibitNumber Description Location

10.33 Employment Agreement between LendingTree, Inc. and Neil Salvage,datedAugust2,2013*

Exhibit 10.1to theRegistrant's Quarterly Report onForm10-QfiledMay10,2016

10.34 Letter Agreement between LendingTree, Inc. and Neil Salvage, datedJanuary15,2015*

Exhibit 10.2to theRegistrant's Quarterly Report onForm10-QfiledMay10,2016

10.35 Employment Agreement between LendingTree, Inc. and Neil SalvagedatedNovember28,2016*

†

10.36 Letter Agreement between LendingTree, Inc. and Neil Salvage datedNovember28,2016*

†

21.1 SubsidiariesofLendingTree,Inc. †23.1 Consentofindependentregisteredpublicaccountingfirm. †24.1 PowerofAttorney(includedonsignaturepageofthisAnnualReporton

Form10-K)†

31.1 CertificationoftheChiefExecutiveOfficerpursuanttoRule13a-14(a)orRule 15d-14(a) of the Securities Exchange Act of 1934 as adoptedpursuanttoSection302oftheSarbanes-OxleyActof2002

†

31.2 CertificationoftheChiefFinancialOfficerpursuanttoRule13a-14(a)orRule 15d-14(a) of the Securities Exchange Act of 1934 as adoptedpursuanttoSection302oftheSarbanes-OxleyActof2002

†

32.1 Certification of the Chief Executive Officer pursuant to 18 U.S.C.Section 1350 as adopted pursuant to Section 906 of the Sarbanes-OxleyActof2002

††

32.2 Certification of the Chief Financial Officer pursuant to 18 U.S.C.Section 1350 as adopted pursuant to Section 906 of the Sarbanes-OxleyActof2002

††

101.CAL XBRLTaxonomyExtensionCalculationLinkbaseDocument †††101.DEF XBRLTaxonomyExtensionDefinitionLinkbaseDocument †††101.INS XBRLInstanceDocument †††101.LAB XBRLTaxonomyExtensionLabelLinkbaseDocument †††101.PRE XBRLTaxonomyExtensionPresentationLinkbaseDocument †††101.SCH XBRLTaxonomyExtensionSchemaDocument †††

___________________________________________________________________________

†Filedherewith

†† This certification is being furnished solely to accompany this report pursuant to 18 U.S.C. 1350, and is not being filed for purposes of Section 18 of theExchangeActandisnottobeincorporatedbyreferenceintoanyfilingoftheregistrant,whethermadebeforeorafterthedatehereof,regardlessofanygeneralincorporationlanguageinsuchfiling.

†††Furnishedherewith.PursuanttoRule406TofRegulationS-T,theInteractiveDataFilesonExhibit101heretoaredeemednotfiledorpartofaregistrationstatementorprospectusforpurposesofSections11or12oftheSecuritiesActaredeemednotfiledforpurposesofSection18oftheExchangeActandotherwisearenotsubjecttoliabilityunderthosesections.

*Managementcontractorcompensationplanorarrangement.

80

**CertainschedulestothisExhibithavebeenomittedinaccordancewithRegulationS-KItem601(b)(2).TheCompanyagreestofurnishsupplementallyacopyofallomittedschedulestotheSECuponitsrequest.

+PortionsofthisexhibithavebeenomittedpursuanttoarequestforconfidentialtreatmentandthisexhibithasbeensubmittedseparatelytotheSEC.

ITEM 16.  Form 10-K Summary

Notapplicable.

81

Table of Contents

SIGNATURES

Pursuant to therequirements of Section13or 15(d) of theSecurities ExchangeAct of 1934, theRegistrant has dulycausedthis report to besignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

Date:February28,2017

LendingTree,Inc.

By: /s/ DOUGLAS R. LEBDA

DouglasR.Lebda

Chairman and Chief Executive Officer________________________________________________________________________________________________________________________

KNOWALLPERSONSBYTHESEPRESENTS,thateachindividualwhosesignatureappearsbelowconstitutesandappointsKatharinePierceashisorhertrue and lawful attorney and agent, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and allcapacities,tosignanyandallamendmentstotheRegistrant'sAnnualReportonForm10-KforthefiscalyearendedDecember31,2016,andtofilethesamewithall exhibits thereto, andall other documents in connectiontherewith, withtheSecurities andExchangeCommission, grantinguntosaidattorneyandagent fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteandnecessarytobedone,asfullytoallintentsandpurposesasheorshemightorcoulddoinperson,herebyratifyingandconfirmingallthatsaidattorneyandagentmaylawfullydoorcausetobedonebyvirtuehereof.

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheRegistrantandinthecapacitiesindicatedandonthedatesindicated.

Signature Title Date

/s/ DOUGLAS R. LEBDA Chairman,ChiefExecutiveOfficerandDirector

(Principal Executive Officer) February28,2017

DouglasR.Lebda

/s/ GABRIEL DALPORTO ChiefFinancialOfficer(Principal Financial Officer)

February28,2017GabrielDalporto

/s/ CARLA SHUMATE SeniorVicePresidentandChiefAccountingOfficer

(Principal Accounting Officer) February28,2017

CarlaShumate

/s/ NEAL DERMER Director February28,2017NealDermer

/s/ ROBIN HENDERSON Director February28,2017RobinHenderson

/s/ PETER HORAN Director February28,2017PeterHoran

/s/ STEVEN OZONIAN Director February28,2017StevenOzonian

/s/ SARAS SARASVATHY Director February28,2017SarasSarasvathy

/s/ CRAIG TROYER Director February28,2017CraigTroyer

82

EXHIBIT 10.30

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “ Agreement ”) is made and entered into as of February 25, 2016, by and amongLENDINGTREE,LLC,a Delaware limited liability company(the “Borrower”), LENDINGTREE,INC., a Delawarecorporation(“Parent”), the other LoanParties(asdefinedintheCreditAgreementreferredtobelow),theLenders(asdefinedbelow)partyhereto,andSUNTRUSTBANK,astheadministrativeagentforitselfandonbehalfoftheLenders(insuchcapacity,the“AdministrativeAgent”).

WITNESSETH:

WHEREAS,theBorrower,Parent,thefinancialinstitutionsfromtimetotimepartythereto(the“Lenders”),andtheAdministrativeAgenthaveexecutedanddeliveredthatcertainCreditAgreementdatedasofOctober22,2015(asthesamemaybeamended,restated,supplemented,orotherwisemodifiedfromtimetotime,the“CreditAgreement”);and

WHEREAS, the Borrower has requested that the Lenders agree to amend certain provisions of the Credit Agreement as set forth herein, and theAdministrativeAgentandtheLenderspartyheretohaveagreedtosuchamendments,ineachcasesubjecttothetermsandconditionshereof.

NOW,THEREFORE,forandinconsiderationoftheabovepremisesandothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledgedbythepartieshereto,eachofthepartiesheretoherebycovenantsandagreesasfollows:

SECTION1. Definitions. Unless otherwise specifically defined herein, each term used herein (and in the recitals above) which isdefinedintheCredit Agreementshall havethemeaningassignedtosuchtermintheCredit Agreement. Eachreferenceto“hereof,”“hereunder,”“herein,”and“hereby”andeachothersimilarreferenceandeachreferenceto“thisAgreement”andeachothersimilarreferencecontainedintheCreditAgreementshallfromandafterthedatehereofrefertotheCreditAgreementasamendedhereby.

SECTION2. AmendmentstoCreditAgreement.

(a) Amendments to Section 1.1 . The following new definitions are hereby added to Section 1.1 of the Credit Agreement in appropriatealphabeticalorder:

“SpecifiedCashContribution”shall meancapital contributionstoParent madeincashor thenet cashproceedsfromPermittedCapital StockIssuancesactuallyreceivedbyParent.

“SpecifiedCashContributionAmount”shallmeantheaggregateamountofSpecifiedCashContributionsmadeaftertheClosingDate.

“PermittedCapitalStockIssuance”shallmeananysaleorissuanceofanyQualifiedCapitalStockofParenttotheextentpermittedhereunder.

“QualifiedCapitalStock”shallmeananyCapitalStockthatisnotDisqualifiedCapitalStock.

(b) AmendmentstoSection7.5(f).Section7.5(f)oftheCreditAgreementisamendedandrestatedinitsentiretysothatitreadsasfollows:

(f) other Restricted Payments made by Parent or any Subsidiary of Parent so long as (i) the aggregate amount of Restricted Payments madepursuanttothisclause(f)sincetheClosingDatedoesnotexceedthesumof(A)$50,000,000,plus(B)50%ofcumulativeExcessCashFlowfortheperiodcommencingonJanuary1,2016,andendingonthefirstdayofthemostrecentFiscalYearbeginningbeforesuchRestrictedPaymentismade,plus(C)theSpecifiedCashContributionAmount,(ii)noDefaultorEventofDefaultshallhaveoccurredandbecontinuingatthetimesuchRestrictedPaymentismade,(iii)theConsolidatedLeverageRatioislessthanorequalto2.75to1.00,calculatedonaProFormaBasisasofthelastdayofthemostrecentlyendedFiscalQuarterforwhichfinancialstatementsarerequiredtohavebeendeliveredpursuanttoSection5.1(a)or(b),and(iv)aftergivingeffecttosuchRestrictedPayment,theLoanPartiesshallhaveLiquidityofatleast$20,000,000.

1

SECTION 3. Conditions Precedent . This Agreement shall become effective only upon satisfaction or waiver of the followingconditionsprecedentexceptasotherwiseagreedbetweentheBorrower,Parent,andtheAdministrativeAgent:

(a) theAdministrativeAgent’sreceiptofthisAgreementdulyexecutedbyeachof(i)theLoanParties,(ii)theRequiredLenders,and(iii)theAdministrativeAgent;and

(b) theBorrowershallhavepaidallfees,costsandexpensesowedbytheBorrowertotheAdministrativeAgentoranyofitsAffiliates,withoutlimitation,reasonablefees,chargesanddisbursementsofcounselfortheAdministrativeAgent.

SECTION4. MiscellaneousTerms.

(a) LoanDocument . Foravoidanceofdoubt, theLoanParties, theLenderspartyhereto, andtheAdministrative AgenteachherebyacknowledgesandagreesthatthisAgreementisaLoanDocument.

(b) EffectofAgreement.Exceptassetforthexpresslyhereinabove,alltermsoftheCreditAgreementandtheotherLoanDocumentsshallbeandremaininfullforceandeffect,andshallconstitutethelegal,valid,binding,andenforceableobligationsoftheLoanParties.

(c) No Novation or Mutual Departure . The Loan Parties expressly acknowledge and agree that (i) there has not been, and thisAgreementdoesnotconstituteorestablish,anovationwithrespecttotheCreditAgreementoranyoftheotherLoanDocuments,oramutualdeparturefromthestrictterms,provisions,andconditionsthereof,otherthanwithrespecttotheamendmentscontainedinSection2aboveand(ii)nothinginthisAgreementshallaffectorlimittheAdministrativeAgent’soranyLender’srighttodemandpaymentofliabilitiesowingfromanyLoanPartytotheAdministrativeAgentortheLenderunder,ortodemandstrictperformanceoftheterms,provisions,andconditionsof,theCreditAgreementandtheotherLoanDocuments,toexerciseanyand all rights, powers, and remedies under the Credit Agreement or the other Loan Documents or at law or in equity, or to do any and all of the foregoing,immediatelyatanytimeaftertheoccurrenceofaDefaultoranEventofDefaultundertheCreditAgreementortheotherLoanDocuments.

(d) Ratification.EachLoanPartyhereby(i)restates,ratifies,andreaffirmsallofitsobligationsandcovenantssetforthintheCreditAgreement and the other LoanDocuments to which it is a party effective as of the date hereof and (ii) restates and renewseach and every representation andwarrantyheretoforemadebyitintheCreditAgreementandtheotherLoanDocumentsasfullyasifmadeonthedatehereofandwithspecificreferencetothisAgreement and any other Loan Documents executed or delivered in connection herewith (except with respect to representations and warranties made as of anexpresseddate,inwhichcasesuchrepresentationsandwarrantiesshallbetrueandcorrectasofsuchdate).

(e) NoDefault.ToinduceLenderstoenterintothisAgreement,Borrowerherebyacknowledgesandagreesthat,asofthedatehereof,andaftergivingeffecttothetermshereof,thereexists(i)noDefaultorEventofDefaultand(ii)norightofoffset,defense,counterclaim,claim,orobjectioninfavorofBorrowerorarisingoutoforwithrespecttoanyoftheLoansorotherobligationsofBorrowerowedtoLendersundertheCreditAgreementoranyotherLoanDocument.

(f) Counterparts . This Agreement may be executed in any number of counterparts and by different parties hereto in separatecounterparts,eachofwhichwhensoexecutedanddeliveredshallbedeemedtobeanoriginalandallofwhichcounterparts,takentogether,shallconstitutebutoneandthesameinstrument.

(g) Faxor Other Transmission . Deliverybyoneor moreparties heretoof anexecutedcounterpart of this Agreement via facsimile,telecopy,orotherelectronicmethodoftransmissionpursuanttowhichthesignatureofsuchpartycanbeseen(including,withoutlimitation,AdobeCorporation’sPortableDocumentFormat)shallhavethesameforceandeffectasthedeliveryofanoriginalexecutedcounterpartofthisAgreement.AnypartydeliveringanexecutedcounterpartofthisAgreementbyfacsimileorotherelectronicmethodoftransmissionshallalsodeliveranoriginalexecutedcounterpart,butthefailuretodososhallnotaffectthevalidity,enforceability,orbindingeffectofthisAgreement.

(h) RecitalsIncorporatedHerein.ThepreambleandtherecitalstothisAgreementareherebyincorporatedhereinbythisreference.

(i) SectionReferences. Sectiontitles andreferences usedinthis Agreement shall bewithout substantivemeaningor content of anykindwhatsoeverandarenotapartoftheagreementsamongthepartiesheretoevidencedhereby.

2

(j) FurtherAssurances.TheLoanPartiesagreetotake,attheLoanParties’expense,suchfurtheractionsastheAdministrativeAgentshallreasonablyrequestfromtimetotimetoevidencetheamendmentssetforthhereinandthetransactionscontemplatedhereby.

(k) GoverningLaw.ThisAgreementshallbegovernedbyandconstruedandinterpretedinaccordancewiththeinternallawsoftheStateofNewYorkbutexcludinganyprinciplesofconflictsoflaworotherruleoflawthatwouldcausetheapplicationofthelawofanyjurisdictionotherthanthelawsoftheStateofNewYork.

(l) Severability . Any provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent of suchprohibitionorunenforceabilitywithoutinvalidatingtheremainingprovisionshereofinthatjurisdictionoraffectingthevalidityorenforceabilityofsuchprovisioninanyotherjurisdiction.

(m) Reaffirmation.EachGuarantor(i)consentstotheexecutionanddeliveryofthisAgreement,(ii)reaffirmsallofitsobligationsandcovenantsundertheLoanDocumentstowhichitisaparty,and(iii)agreesthatnoneofitsrespectiveobligationsandcovenantsshallbereducedorlimitedbytheexecutionanddeliveryofthisAgreement.

[SIGNATURESONFOLLOWINGPAGES]

3

INWITNESSWHEREOF,eachofthepartiesheretohascausedthisAgreementtobedulyexecutedbyitsdulyauthorizedofficerasofthedayandyearfirstabovewritten.

BORROWER :

LENDINGTREE, LLC

By:/s/GabrielDalportoName:GabrielDalportoTitle:CFO

PARENT AND GUARANTOR :

LENDINGTREE, INC.

By:/s/GabrielDalportoName:GabrielDalportoTitle:CFO

GUARANTORS :

HOME LOAN CENTER, INC.

By:/s/GabrielDalportoName:GabrielDalportoTitle:Treasurer

TREE.COM BU HOLDING COMPANY, INC.

By:/s/GabrielDalportoName:GabrielDalportoTitle:Treasurer

DEGREETREE, INC. (foritselfandassuccessortoTreeHomeServices,Inc.)

By:/s/GabrielDalportoName:GabrielDalportoTitle:Treasurer

ADMINISTRATIVEAGENTANDLENDERS:

SUNTRUST BANK ,astheAdministrativeAgentandaLender

By:/s/BrianGuffinName:BrianGuffinTitle:Director

BANK OF AMERICA, N.A. ,asaLender

By:/s/CharlesR.DickersonName:CharlesR.DickersonTitle:SVP

JPMORGAN CHASE BANK, N.A. ,asaLender

By:/s/JustinKelleyName:JustinKelleyTitle:ExecutiveDirector

FIFTH THIRD BANK,asaLender

By:/s/JimBarberName:JimBarberTitle:VicePresident

ROYAL BANK OF CANADA,asaLender

By:/s/ChristianGutierrezName:ChristianGutierrezTitle:AuthorizedSignatory

EXHIBIT 10.31

[***] - Confidential portions of this document have been redacted and filed separately with the Commission.

PURCHASE AND SALE CONTRACT

1. PARTIES.

This Purchase and Sale Contract (this "Contract") is made between REXFORD PARK INVESTORS, LLC, a Delaware limited liability company("Seller"),andLENDINGTREE,LLC,aDelawarelimitedliabilitycompany("Purchaser").

2. PROPERTY.

Forandinconsiderationofthemutualcovenantsandagreementscontainedhereinandothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,SellerherebyagreestosellandconveytoPurchaser,andPurchaserherebyagreestopurchaseandtakefromSeller,subjecttoandin accordance with all of termsandconditions of this Contract, all of the Seller's right, title, andinterest in andto all of the followingdescribed propertyincluding any and all rights to oil, gas and other minerals, the royalties, bonuses, rentals and all other rights in connection with the same (collectively, the"Property"):

2.1     Land. ThelandmoreparticularlydescribedinExhibit"A"attachedheretoandincorporatedhereinbyreference(the"Land")commonlyknownasRexfordParkI&IIlocatedat2100and2115RexfordRoad,Charlotte,NorthCarolina,togetherwithallofSeller'sright,titleandinterestinandtoalleasementsandotherappurtenances(ifany)totheLand.

2.2          Improvements. All buildings, structures and other improvements located on the Land and equipment serving the same (collectively, the"Improvements").TheLandandImprovementsarecollectivelyreferredtohereinasthe"RealProperty".

2.3     Leases. TheSeller’sinterestaslandlordin,toandunderallleasesrelatingtotheProperty,oranyportionthereof,asamendedfromtimetotime,andineffectonthedateofClosing,ashereinafterdefined(collectively,the"Leases")andallguaranties(ifany)relatingtotheLeases.

2.4     Contracts . TheSeller’sinterestastheownerofthePropertyin,toandunderthecontractsandagreementsrelatingtothePropertywiththepartiesidentifiedinExhibit"B"orarehereafterexecutedbySellerinaccordancewithSection7.1.3ofthisContract,whichineithercaseremainineffectonthedateofClosing(collectively,the"PropertyAgreements"),excludingtheexistingmanagementandleasingagreementswhichwillbeterminatedatorpriortotheClosing.

2.5     Tangible Property. AlltangiblepersonalpropertyusedbySellerinconnectionwiththeownershiporoperationoftheImprovements,providedthesamearenowownedorareacquiredbySellerpriortotheClosing(collectively,the"TangibleProperty").

2.6          Intangible  Property. To the extent assignable or transferable, all plans and specifications for the Improvements and any permits, approvals,licenses,warrantiesandintangiblepersonalproperty,ifany,relatingtotheProperty(collectively,the"IntangibleProperty").

3.  CONSIDERATION.

3.1     Purchase Price; Earnest Money. ThepurchasepriceforthePropertyshallbeTwenty-FourMillionNineHundredThousandandNo/100Dollars($24,900,000.00)(the"PurchasePrice"),whichshallbepaidasfollows:

(a) Five HundredThousandDollars ($500,000.00) (the "First Deposit") shall be deposited byPurchaser into escrowwith ChicagoTitleInsurance Company, 200 S. Tryon Street, Suite 800, Charlotte, NC 28202, Attention: Scott Mansfield ("Escrow Agent") inimmediatelyavailablefundsnolaterthanthree(3)BusinessDays(asdefinedbelow)aftertheexecutionofthisContractbyPurchaserandSeller(thedateonwhichthelaterofSellerorPurchaserexecutesthisContractanddeliversacopytothecounterpartyiscalledthe"EffectiveDate");

(b) AnadditionalFiveHundredThousandDollars($500,000.00)(the"SecondDeposit")inimmediatelyavailablefundsshallbedepositedbyPurchaserintoescrowwithEscrowAgentnolaterthanthree(3)BusinessDaysaftertheexpirationoftheDueDiligencePeriod(asdefinedbelow);and

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(c) ThebalanceofthePurchasePrice,subjecttotheadjustments, creditsandprorationsprovidedinthisContract, shall bedepositedbyPurchaserintoescrowwiththeEscrowAgentinimmediatelyavailablefundsonorpriortotheClosingDateasrequiredbySection9.3toallowfortheconsummationoftheClosingpursuanttothisContractontheClosingDate.

TheFirstDepositandSecondDepositshall,uponreceipt,bedepositedbytheEscrowAgentintoanon-interestbearingaccountor,ifelectedbyPurchaser,inaninterest-bearing account, with such interest reportable as interest earned by Purchaser. If the Purchaser fails to make the First Deposit as required underSection3.1(a)above,thenthisContractshallautomaticallyterminateandbecomenullandvoid,andneitherpartyshallhaveanyfurtherrightsorobligationsunderthisContract.TheFirstDepositandtheSecondDeposit,whenmade,andallaccruedinterest,ifany,onsuchdepositsarecollectivelycalledthe"EarnestMoney."AllfeesorcostschargedbyEscrowAgentfordepositingtheEarnestMoneyinaninterestbearingaccountshallbepaidbyPurchaser.SellerandPurchasershallexecutealldocumentsreasonablyrequiredbyEscrowAgentinconnectionwiththeEarnestMoney.

3.2     Further Application of Earnest Money. IntheeventthattheClosingisconsummated,allEarnestMoneywillbeappliedinpartialsatisfactionofthePurchasePrice.If,however,theClosingisnotconsummated,theEarnestMoneywillbedeliveredtoSellerasliquidateddamagesasprovidedinSection12.2orreturnedtoPurchaserbytheEscrowAgentaselsewhereexpresslyprovidedinthisContract.

3.3     Dispute as to Earnest Money. TheEscrowAgentshallholdinanddisbursefromescrowanymoniesanddocumentsheldbyitunderthisContractinaccordancewiththetermsandprovisionsofthisContract.TheEscrowAgentshallnotbeliableforanyactionstakenbyitingoodfaith,butonlyforitsbreachofitsobligationsunderthisContract,negligenceorwillfulmisconduct.EachpartyagreestoindemnifyandholdtheEscrowAgentharmlessfromandagainstanyandallclaims,demands,losses,liabilities,damages,fees,costsandexpenses(includingreasonableattorneys’feesandcoststhroughalltrial,appellateandpost-judgmentlevelsandproceedings)whichtheEscrowAgentmayincurinitscapacityasescrowagentunderthisContract,exceptforanysuchclaim,demand,loss,liability, damage, fee, cost and/or expense incurred as a result of the Escrow Agent’s breach of its obligations under this Contract, negligence or willfulmisconduct.IntheeventofadisputewithrespecttotherighttoreceivetheEarnestMoney,theEscrowAgentmayinterpleadtheEarnestMoneyintoacourtofcompetent jurisdiction. All reasonable attorneys' fees and costs and Escrow Agent's costs and expenses incurred in connection with such interpleader will beassessedagainstthepartythatisnotawardedtheEarnestMoneyor,iftheEarnestMoneyisdistributedinparttobothparties,thenintheinverseproportionofsuchdistribution.

3.4          Independent  Consideration. Notwithstanding anything to the contrary contained herein, One Hundred and No/100 Dollars ($100.00) of theEarnestMoneyshallbepaidtoSellerasindependentconsiderationforenteringintothisContract(the“IndependentConsideration”),andshallbenon-refundableto Purchaser in all events, and Seller acknowledges that said amount is adequate consideration therefor. In the event that the Earnest Money is returned toPurchaserforanyreason,theIndependentConsiderationshallbepaidtoSeller.

4. TITLE AND SURVEY.

4.1     Title Commitment and Documents . PurchaseracknowledgesthatSellerhasmadeavailabletoPurchasercopiesofthefollowing:(a)theOwner'sPolicy of Title Insurance issued in connection with Seller's acquisition of the Land, and (b) Seller’s survey of the Land (such survey and any updated surveyobtained by Purchaser at Purchaser expense are collectively called the "Survey"). Promptly after the Effective Date, Purchaser shall order fromChicago TitleInsurance Company(the "Title Company") for delivery to Purchaser with a copyto Seller, a current commitment for title insurance for the Real Property (the"TitleCommitment")tobeissuedbytheTitleCompanytoPurchaserintheamountofthePurchasePrice,settingforththematters(the"TitleExceptions")thattheTitleCompanydeterminesaffecttitletotheRealProperty.PurchasershallbeentitledtoobtainanupdatedSurveyoftheLandandImprovementsandcertifiedtoSeller,PurchaserandPurchaser’slender(ifany).TheupdatedSurveyshallbeobtainedbyPurchaseratPurchaser'sexpense,butSellershallprovidea$600credittoPurchaseratClosingtodefrayaportionofthesurveyingcosts.

4.2     Review of Title Commitment, Survey and Exception Documents . PurchaserwillhavefromtheEffectiveDateuntilfive(5)BusinessDayspriortotheexpirationoftheDueDiligencePeriod("TitleReviewPeriod")withinwhichtodelivertoSellerwrittennoticespecifyingPurchaser'sobjections,ifany,totheTitleCommitment,TitleExceptionsand/ormattersreflectedontheSurvey,provided,however,thatinnoeventshallPurchaserhavetherighttoobjecttoanyofthemattersdescribedonExhibit"C"attachedhereto(the"ExistingExceptions").ThePurchaser'sobjectionstotheTitleCommitment,TitleExceptionsand/orSurveythataretimelyraisedbyPurchaserincompliancewiththisSection4.2arecollectivelycalledthe"TitleObjections."

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4.3          Purchaser's  Right to Terminate.  If Purchaser timely notifies Seller in writing of Title Objections prior to the expiration of the Title ReviewPeriod, Seller will, within five (5) Business Days after Seller's receipt of Purchaser's notice (such 5-Business Dayperiod is called the "Seller Notice Period"),notify Purchaser in writing ("Seller's Title Notice") of the Title Objections that Seller will attempt to cure at Seller's sole cost and expense and/or of the TitleObjectionsthatSellercannotorwillnotcureatSeller'sexpense;provided,however,thatnotwithstandinganythingtothecontraryprovidedherein,SellershallberequiredtotakethefollowingactionsregardinganyTitleObjectionsthataretimelyraisedbyPurchaser:

(a)satisfyallmortgages,deedsoftrust,liensandsimilarmonetaryencumbrancesontheRealProperty(providedthesameareinaliquidatedamount) that have been executed by Seller, and satisfy or transfer to bondall liens that arise in connection with any work or services performed or materials,suppliesorotherpropertydeliveredtotheRealPropertyattherequestofSellerandalljudgmentsinaliquidatedamountagainstSeller,otherthannon-delinquenttaxesandassessments(collectively,"Seller'sLiens");

(b)payanydelinquenttaxesorotheramountsthendueandpayablebySellertoanygovernmentalentityandrelatingtoanyperiodpriortotheClosing(butSellershallnotberequiredtopayanysuchamountsthatarepayablebyanytenantoftheProperty);and

(c)cureanytitlemattersadverselyaffectingthemarketabilityofthePropertythataretimelyobjectedtobyPurchaserandmaybecuredatorpriortotheClosingwiththeexpenditureofanaggregateamountof$25,000.00orless.

TheTitleObjectionsthatSellerisrequiredtoaddressinaccordancewithclauses(a),(b)and(c)arecollectivelycalledthe"RequiredCureItems."FailurebySellertotimelyrespondtothePurchaser'sTitleObjectionsshallbedeemedSeller'sdecisionnottocureanyTitleObjectionsotherthantheRequiredCureItems.IfSellerelectswithintheSellerNoticePeriodnottoattempttocureanyoftheTitleObjectionsthathavebeentimelyraisedbyPurchaserotherthantheRequiredCureItems, Purchaser has the option, exercisable bythe deliveryof writtennotice to Seller withinfive (5) Business Daysafter theearlier to occur of the receipt ofSeller'sTitleNoticeortheexpirationoftheSellerNoticePeriod(the"PurchaserNoticePeriod")toeither(i)waivetheuncuredTitleObjections,inwhicheventtheunsatisfiedTitle Objections(other thantheRequiredCureItems)will becomePermittedExceptions(hereinafter defined), or (ii) terminate this Contract, inwhich event the Earnest Money will be returned to Purchaser and upon such return neither Seller nor Purchaser will have any further obligations under thisContractexceptunderanyprovisionsthatsurvivetheterminationofthisContractbytheirexpressterms.IfPurchaserfailstonotifySellerinwritingbeforetheexpirationofthePurchaserNoticePeriodthatPurchaserhaselectedtoterminatethisContractpursuanttoclause(ii)above,thenPurchasershallbedeemedtohavewaivedandacceptedtheuncuredTitleObjections(otherthantheRequiredCureItems)asprovidedinclause(i)above.IfafterPurchaserhasgivenitsnoticeofTitleObjectionstoSeller,theTitleCompanyissuescontinuationreportsorotherwrittenevidenceindicatinganynewTitleExceptionswhicharenotPermittedExceptions and Purchaser delivers written notice thereof to Seller prior to the earlier to occur of (x) five (5) Business Days after Purchaser's receipt of suchcontinuationreportorotherwrittenevidenceor(y)theClosingDate,thenthisSection4.3shallapplytosuchnewTitleExceptions.

(d) If Seller shall have elected to attempt to cure the Title Objections (other than the Required Cure Items) and does not cure such TitleObjectionsbythedateonwhichtheClosingistooccur,thenPurchasershallhavetheright(exercisablewithinfive(5)BusinessDaysofSeller'snotificationofitsinabilitytocureor,ifnosuchnotificationisdeliveredbySeller,onorpriortotheClosingDate)toterminatethisContract,inwhicheventtheEarnestMoneywillbereturnedtoPurchaseranduponsuchreturnneitherSellernorPurchaserwillhaveanyfurtherobligationsunderthisContractexceptunderanyprovisionsthatsurvive the termination of this Contract by their express terms. If Purchaser does not terminate this Contract in accordance with the immediately precedingsentence,thenPurchasershallbedeemedtohaveelectedtoaccepttheuncuredTitleObjections(otherthantheRequiredCureItems)andtopurchasethePropertysubject thereto, with no adjustment, abatement or offset to the Purchase Price as a result of the existence of such uncured Title Objections. Notwithstandinganythingtothecontraryprovidedherein,SellershallbeentitledtocureanyTitleObjectionsattheClosingthroughtheuseoftheClosingproceedsorotherwise.

4.4          Permitted  Exceptions. For purposes of this Contract the term "Permitted Exceptions" will mean, collectively, the following: (a) all ExistingExceptions,(b)allTitleExceptionstowhichPurchaserhasnottimelyobjected,and(c)allTitleObjectionswhichPurchaserhaswaived,acceptedorisdeemedtohavewaivedoraccepted(otherthantheRequiredCureItems,whichSellershallbeobligatedtoremoveatorpriortotheClosing)underthisSection4.

5.  DUE DILIGENCE PERIOD.

5.1          Items  to  be  Delivered  by  Seller. Within five (5) Business Days after the Effective Date, Seller shall make available to Purchaser (through awebsiteoranyothermethod)copiesoftheitemsdescribedonExhibit"D"relatingtothePropertytotheextentinSeller’spossessionorcontrol(collectively,the"Seller'sDeliverables").

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5.2          Items  Available  to  Purchaser.  Seller shall make available to Purchaser, promptly after Purchaser's request therefor, such other items ofinformation relating to the Property reasonably requested by Purchaser that are in Seller's possession or control and that relate exclusively to the Property;provided,however,innoeventshallSellerberequiredtomakeavailabletoPurchaserbooks,recordsorfiles(whetherinaprintedorelectronicformat)thatconsistoforcontainanyofthefollowingexcepttotheextentthesameareincludedintheSeller'sDeliverables:appraisals;strategicplans,budgets,forecastsandsimilarforward-looking information for the Property; internal analyses; information regarding the Property that is embedded in information concerning the business,affairsand/orpropertyofanyaffiliateofSeller;informationrelatedto,orobtainedbySellerinconnectionwith,Seller'spurchaseofthePropertyoranyfinancingof the Property; communications and information related to the marketing of the Property for sale or any other sales contract relating to the Property;communications and information pertaining to any sale of the Property, including any materials provided to any prospective purchaser by Seller; internalcommunications among employees of Seller and/or any affiliate of Seller; communications or historical information pertaining to the Leases and the PropertyAgreements(orthenegotiationthereof)excluding(a)anycorrespondenceregardinganydefaultorallegeddefaultbySelleroraTenantthat,ineithercase,hasnotbeencuredor(b)informationrelatingtoanyopenPropertyexpensebillings.

5.3     Due Diligence Period. Duringtheperiod(the"DueDiligencePeriod")commencingwiththeEffectiveDateandendingat5:00pm,Easterntime,on the date that is forty (40) days after the Effective Date (the "Termination Date"), Purchaser will have the option and right to conduct such investigations,inspections, analyses, surveys, tests, examinations, studies, and appraisals of the Property and to research and examine all governmental records, zoning,development rights and other public information relating to the Property, as Purchaser deems necessary or desirable, at Purchaser's sole cost and expense, todetermineifthePropertyissuitableforPurchaser'spurposes;provided,however,anyentryonto,orphysicalexamination,inspectionortestingof,theProperty(a)mustbescheduledinadvancewithSellerandcomplywiththeprovisionsofSection5.4, (b)maybeperformedonlyafterthedeliverybyPurchaseroftheinsurance certificate required underSection 5.4 , and (c) shall be subject to, and must be conducted in full compliance with, the terms of the Leases and thisContract. Purchaser shall deliver to Seller copies of all third party inspection reports received by Purchaser or anyother written notices received by PurchaseridentifyinganypotentialviolationsoflawpromptlyafterreceiptbyPurchaserofsuchthirdpartyinspectionreportsorothernotices.UponanyterminationofthisContract,PurchasershalldelivertoSeller,withoutrecoursetoPurchaser,acopyofanythirdpartywrittenreportsreceivedbyPurchaserasaresultoftheactivitiesof or on behalf of Purchaser to the extent a copyhas not previously been delivered to Seller. Purchaser shall cause to be repaired anyphysical damageto thePropertycausedbyanyentryonthePropertyand/oranyactivitiesperformedby,fororonbehalfofPurchaserunderthisSection5andshallrestorethePropertytothe condition existing immediately prior to such entry and/or exercise of such activities. The obligations of Purchaser under thisSection 5.3 shall survive theClosingorearlierterminationofthisContract.

5.4     Access. TofacilitatethePurchaser'sphysicalinspectionsunderSection5.3butsubjecttotherightsofthetenantsundertheLeasesandthefullcompliancewithalltermsandconditionsoftheLeases,fromthelatertooccuroftheEffectiveDateorthedeliveryoftheinsurancecertificaterequiredbelowuntiltheClosingortheearlierterminationofthisContract,SellerwillprovidePurchaserandPurchaser'sagents,consultants,inspectorsandrepresentativesreasonableaccesstotheRealPropertyuponatleastone(1)BusinessDay'spriorwrittenoremailnoticefromPurchasertoSeller(butinnoeventlessthan24hours'advancenotice);provided,however,that(a)SellershallhavetherighttoaccompanyanypersonenteringtheRealPropertyfororonbehalfofPurchaser, (b)Purchasershall have no right to conduct any physical testing, boring, sampling or removal without the specific prior written consent of Seller after the submission byPurchasertoSellerofaworkplan,whichworkplanSellermaymodify,limitordisapproveinitsreasonablediscretionwithinthree(3)BusinessDaysfollowingreceiptofPurchaser’srequest,failingwhichSellershallbedeemedtohaveapprovedtheworkplan,(c)priortoanyentryontotheRealProperty,PurchasermustprovidetoSelleraninsurancecertificateevidencingthatPurchaserhasatleast$1,000,000ofpublicliabilityinsurancethatnamesSellerasanadditionalinsuredwithrespecttotheProperty,(d)duringtheDueDiligencePeriod,Purchasershallhavetherighttoconducttenantinterviewswithanyofthecurrenttenantsleasing3,000squarefeetormoreoftheProperty,subjecttoatleastthree(3)BusinessDays'advancewrittenoremailnoticebyPurchasertoSellerand,atSeller’srequest,Seller’sparticipationinanysuchinterview,(e)notwithstandingtheforegoing,thepartiesacknowledgethatPurchaser’sbrokerhasarelationshipwiththetenantCampusCrest(whichtenantiscurrentlyattemptingtosubleaseitspremisesorassignitslease)andthatPurchaserdesirestorelocateorterminateCampusCrest’sleasefollowingClosing,andthatPurchaser’sbrokershallhavetherighttocommunicateandnegotiatewithCampusCrestwithoutpriornoticetoSeller,providedanyofferoragreementthatPurchasermakesorentersintowithCampusCrestshallbeconditioneduponPurchaseracquiringthePropertyatClosingandshallnotaffect in anywayanyobligationsor liabilities of CampusCrest or theleaseguarantor toSeller (whether suchobligations or liabilities arise beforeor after theClosing),and(f)exceptasprovidedintheforegoingsubparagraphs(d)and(e),PurchasershallnothavetherighttocommunicatewithanyofthetenantsofthePropertywithoutthespecificpriorwrittenoremailconsentofSeller,andSellershallhavetherighttoparticipateinanycommunicationsallowedbySeller.AllrequestsforanyentryontheRealPropertyshallbemadetoMr.BradleySafchik,786-464-8327(office);305-951-1134(mobile),orsuchotherrepresentativeofSellerthatmayhereafterbedesignatedbySeller.PurchaserwilluseallcommerciallyreasonableeffortstominimizeinterferencewiththetenantsundertheLeasesortheiroperationsattheRealProperty.

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5.5     Indemnity. Purchaseragreestoindemnify,defendandholdSelleranditsaffiliatesandtheirrespectiveagents,members,partners,shareholders,directors, officers, employees and representatives, harmless from and against any liens, claims, demands, damages, losses and/or expenses (including, withoutlimitation,reasonableattorneys'fees),sufferedorincurredbySelleroritsaffiliatesortheirrespectiveagents,members,partners,shareholders,directors,officers,employeesandrepresentatives,asaresultof,arisingoutof,orinconnectionwith,PurchaserorPurchaser'sagentsorrepresentativesexercisinganyrightssetforthin this Section 5 or arising from Purchaser or its agents or representatives otherwise entering upon the Real Property, except to the extent arising from thenegligenceorwillfulmisconductofSelleroritsagents,members,partners,directors,officersorrepresentatives;provided,however,thattheforegoingindemnityshallnotbeapplicabletoanyliens,claims,demands,damages,lossesorexpensesresultingsolelyfromthediscoveryofanyexistingconditionon,orinformationrelatingto,theProperty.PurchaserwillrepairorcausetoberepairedanydamagecausedbyPurchaserorPurchaser'sagentsorrepresentativesintheconductofthereviewand/orinspectioncontemplatedhereunder.TheindemnificationandotherobligationsofPurchaserinthisSection5.5willsurvivetheClosingorearlierterminationofthisContract.

5.6     Option to Terminate. IfPurchaserisnotsatisfied,inPurchaser'ssoleandabsolutediscretion,withtheconditionoftheProperty,orifPurchaserdetermines,inPurchaser'ssoleandabsolutediscretion,thatthePropertyisunsuitableforPurchaser'spurposes,orifPurchaser,inPurchaser'ssoleandabsolutediscretion,electsnottoproceedwiththetransactioncontemplatedbythisContract,thenPurchasermayterminatethisContractbygivingwrittennoticetoSellerbefore5pm,Easterntime,ontheTerminationDate.IntheeventthatPurchaserterminatesthisContractinstrictcompliancewiththeprovisionsofthisSection5.6,theEarnestMoneywillbereturnedtoPurchaser(exceptthattheIndependentConsiderationshallbepaidtoSeller)andthepartieswillhavenofurtherobligationsunderthisContractexceptforreturnoftheEarnestMoneyandanyobligationsthatexpresslysurvivetheterminationofthisContract.IfPurchaserfailstonotifySellerinwritingbefore5pm,Easterntime,ontheTerminationDatethatPurchaserhaselectedtoterminatethisContract,thenPurchasershallnolongerhaveanyterminationrightsunderthisSection5.6,theEarnestMoneyshallbenonrefundableexceptasotherwiseexpresslyprovidedinthisContract,andthepartiesshallproceedtoclosethetransactioncontemplatedherebysubjecttoandinaccordancewiththetermsofthisContract.

SelleracknowledgesthatPurchaserisseekingcertainIncentives(definedbelow)inconnectionwithitsacquisitionofthePropertyandoperationofitsbusinesstherein,andthatPurchaserisnotobligatedtoacquirethePropertywithoutsuchIncentives.IfsuchIncentivesarenotfinallyapprovedbyPurchaserduringtheDue Diligence Period, then Purchaser may elect to terminate this Contract in accordance with the foregoing provisions of thisSection 5.6 . For the purposeshereof, “Incentives” shall mean any state, local and other economic incentives or other benefits from various state, local, utility and non-profit agencies thatPurchaseroranyotherperson,agency,orentitymayseektoobtainforPurchaser’sbenefit,includingbutnotlimitedtopropertytaxrebates,credits,abatements,andcashgrants.

5.7 Property Agreements .PurchasershallnotifySellerinwritingpriortotheexpirationoftheDueDiligencePeriodofthosePropertyAgreementsthatPurchaserelectstoassumeattheClosing;providedthatanyPropertyAgreementswhichcannotbeterminatedbytheirtermsorcannotbeterminatedwithoutapenaltyshall berequiredtobeassumedbyPurchaser at Closing. Seller shall terminate all PropertyAgreements(insofar astheyaffect theProperty) other thanPropertyAgreementsthatPurchaserelectstoassumeorisrequiredtoassumeunderthisContract.SellershallnotberequiredtopayanyterminationfeeorpenaltyinconnectionwiththeterminationofanyPropertyAgreement.

6. REPRESENTATIONS AND WARRANTIES.

6.1     Seller's Representations and Warranties. SellermakesthefollowingwarrantiesandrepresentationstoPurchaserasoftheEffectiveDate,andsuchrepresentationsandwarrantieswillbeupdatedatClosingasprovidedinSection6.2below:

6.1.1     Organization. Sellerisdulyformed,validlyexistingandingoodstandingunderthelawsofthestateofitsorganization.

6.1.2     Authority. Sellerhastherequisitepowerandauthority,hastakenallactionsrequiredbyitsorganizationaldocumentsandapplicablelaw,andhasobtainedallnecessaryconsents,toexecuteanddeliverthisContractandtoconsummatethetransactionscontemplatedinthisContract.Thepersonsigningthis Contract onbehalf of Seller is authorizedtodoso. Theperformanceof this Contract bySeller will not result in anybreachof, orconstituteanydefault under, anyagreement, document, instrument, orotherobligationtowhichSeller is apartyorbywhichSeller orthePropertyisbound.

6.1.3          Pending  Actions.  To Seller's Knowledge (as defined below), there are no pending or threatened actions, suits, arbitrations orgovernmentinvestigationsoranyunsatisfiedordersorjudgmentsagainstSeller, which,ifadverselydetermined,couldindividuallyorintheaggregate(a)materiallyinterferewiththeconsummationofthetransactioncontemplatedbythisContract,or(b)haveamaterialadverseimpactontheProperty.ToSeller'sKnowledge,Sellerhas

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notreceivednoticeofanypendingorthreatenedcondemnationorsimilarproceedingaffectingthePropertyoranypartthereof.

6.1.4     Leases .(a)TheonlyLeasesineffectasoftheEffectiveDatearewiththetenantsidentifiedonExhibit"B";(b)exceptassetforthonExhibit"B",(i)alltenantimprovementsrequiredunderallLeasesinexistenceontheEffectiveDateandtheAdditionalLeases(asdefinedbelow)tobeconstructed by Seller have been completed, and (ii) all brokerage commissions payable under the Leases in existence on the Effective Date and theAdditionalLeaseshavebeenpaid,(c)exceptassetforthintheCampusCrestLease,noTenantunderanyoftheLeases(each,a"Tenant")hasanyoptionorright of first offer topurchasetheProperty; (d)except asset forthintheLeases, noTenant hasanyright oroptiontoleaseadditional spaceintheProperty,extendthetermofsuchLease,putbacktothelandlordanyspacecurrentlysubjecttosuchTenant'sLeaseorterminateanyLease,(e)nowrittennoticeofdefaulthasbeengivenorreceivedbySellerwithrespecttoanyLeasethatineithercaseremainsuncured;(f)exceptassetforthonExhibit"B",noTenanthaspaidrentformorethanonemonthinadvance;(g)SellerhasprovidedorwillprovideinaccordancewithSection5.1orSection7.1.3,asapplicable,ofthisContracttrueandcorrectcopiesoftheLeasestoPurchaser;(h)exceptassetforthinExhibit"B",SellerhasnotreleasedordischargedinwritinganyguarantorunderanyleaseguarantypertainingtotheLeasesexceptassetforthintheLeases;(i)attachedtothisContractasExhibit“M”isarentrollfortheLeases(the“RentRoll”),butSelleronlyrepresentsthattheRentRollconsistsoftherentrollusedbySellerinitsmanagementofthePropertysupplementedbyinformationontwo(2)additionalLeases(onewithMedflowHoldings,LLCandtheotherwithBlackaJessup&HendersonLLP) that have been circulated for execution but have not been fully executed on the Effective Date (the "Additional Leases"), and Seller makes nofurtherrepresentationsregardingtheaccuracyoftheRentRoll;and(j)attachedtothisContractasExhibit"N"isalistofsecuritydepositscurrentlyheldbySellerundertheLeases.

6.1.5     Property Agreements .TheonlycontractsandagreementspertainingtotheRealPropertyineffectasoftheEffectiveDatethatwillcontinuetobeineffectaftertheClosingarewiththepartiesidentifiedinExhibit"B".ToSeller'sKnowledge,Sellerhasreceivednowrittennoticeofdefault from any service provider that remains uncured, no written notice of default has been sent by Seller to a service provider and, to Seller’sknowledge,allPropertyAgreementsareinfullforceandeffect.Sellerhasprovided,orwillprovideinaccordancewithSection5.1orSection7.1.3,asapplicable,ofthisContract,trueandcorrectcopiesofthePropertyAgreementstoPurchaser.

6.1.6     Bankruptcy . Therearenoattachments,executions,assignmentsforthebenefitofcreditorsorproceedingsunderanybankruptcyorother debtor relief laws pending, or to Seller's Knowledge threatened, against Seller or its interest in the Property nor are any of the foregoingcontemplatedbySeller.

6.1.7     FIRPTA . Sellerisnota"foreignperson"withinthemeaningofSection1445(f)(3)oftheInternalRevenueCode,asamended.

6.1.8        Terrorist Organizations Lists . Seller is not, andis notacting, directly or indirectly, for or onbehalf of, anypersonnamedbytheUnitedStatesTreasuryDepartmentasaSpecificallyDesignatedNationalandBlockedPerson,orfororonbehalfofanypersondesignatedinExecutiveOrder13224asapersonwhocommits,threatenstocommit,orsupportsterrorism.SellerisnotengagedinthetransactioncontemplatedbythisContractdirectlyorindirectlyonbehalfof,orfacilitatingsuchtransactiondirectlyorindirectlyonbehalfof,anysuchperson.

6.1.9     Violations . ToSeller'sKnowledgeasoftheEffectiveDate,Sellerhasnotreceivedanywrittennoticesfromanygovernmentalauthorityof any uncured zoning, building, environmental protection, clean air, pollution, fire or health code violations with respect to the Property or uncuredviolationsofanyfederal,stateorlocallawpertainingtotheProperty.

6.1.10 Possessory Rights .ExceptasgrantedundertheLeasesorthePermittedExceptions,SellerhasnotgrantedtoanypersonorentityanypossessoryinterestinorrighttouseanyportionoftheProperty.

6.1.11  Third  Party  Commitments  . Except for the Permitted Exceptions, Leases and Property Agreements and as otherwise expresslypermittedhereunder,Sellerhasnotmadeanycommitmenttoanygovernmentalauthority,utilitycompany,Tenant,ortoanyotherentity,organization,grouporindividual,thatinanyinstancewouldbebindinguponthePropertyorthePurchaserafterClosing.

6.1.12  Tangible  Property  . Seller owns the Tangible Property free and clear of mortgages, pledges, liens, security interests or otherencumbrancesother thanthosethat will besatisfiedorreleasedat Closingandall claimsorrights of others other thantherights of Tenants andtheirsuccessorsandassignsundertheLeases.

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AsusedinthisContract,theterm"Seller'sKnowledge"meanstheactualknowledgeofBradleySafchik,withoutimposinganydutyofinvestigationorpersonalliability on such individual, and shall not include any imputed, implied or constructive knowledge of such individual. Seller represents and warrants that theforegoingindividualistherepresentativeofSellerthatismostlikelytohaveknowledgeconcerningthemattersrepresentedbySellerinthisSection6.1.

6.2          Survival  of  Seller's  Representations  and Warranties. Seller shall promptly notify Purchaser in writing if, to Seller's Knowledge, any facts,circumstancesoreventsoccuraftertheEffectiveDatethatwouldmakeanyoftherepresentationsorwarrantiescontainedinSection6.1untrueattheClosing.IfanyoftherepresentationsorwarrantiesofSellercontainedinthisContract,asupdatedaspermittedunderthisContract,arenotmadeaccuratebySelleronorpriortotheClosing,Purchasermayelect,asitssoleremedy(unlessthesameweremadeinaccuratebyawillfulactofSellerinviolationofthisContractbySeller,inwhichcaseSection12.1shallbeapplicable),toterminatethisContractpriortotheClosing,inwhicheventtheEarnestMoneyshallbereturnedtoPurchaserandthepartiesshallhavenofurtherobligationsunderthisContractexceptforthoseobligationsthatsurviveterminationbytheirexpressterms.IfPurchaserdoesnotelect to terminate this Contract, then the representations and warranties of Seller shall be updated at Closing to reflect all matters disclosed by Seller. TherepresentationsandwarrantiesofSellersetforthinSection6.1,astheymaybeupdatedatClosing,(i)shallsurviveClosingandexpiretwohundredseventy(270)daysaftertheClosingDate(the"SurvivalPeriod")excepttotheextent,andonlytotheextent,ifany,thatPurchasershallhavegivenSellerwrittennoticeduringsuchSurvivalPeriodwhichdescribesinreasonabledetailthebreachorallegedbreachofsuchrepresentationsandwarrantiesbySellerand,ifcurable,thecurativeactionsrequestedbyPurchaser,andwhichprovidesSellerwithareasonableperiodoftime,notlessthanthirty(30)days,inwhichtoresolvesuchmatterstothereasonablesatisfactionofPurchaser;and(ii)shallexpireandbeofnofurtherforceandeffecttwo(2)yearsafterthedaythecauseofactionaccrues(whichthepartiesagreewillbetheClosingDate)withrespecttoanymatterstimelydisclosedinawrittennoticedeliveredbyPurchasertoSellerundersubsection(i)hereof.SellershallhavenoliabilitytoPurchaserforabreachofanyrepresentationorwarrantyunlesswrittennoticecontainingadescriptionofthespecificnatureofsuchbreachshallhavebeengivenbyPurchasertoSellerpriortotheexpirationoftheSurvivalPeriod.Furthermore,notwithstandinganythingtothecontrarycontainedin this Contract, if the Closing shall have occurred: (a) Seller shall have no liability (and Purchaser shall make no claim against Seller) for a breach of anyrepresentationorwarrantyoranyotherobligationofSellerunderthisContractoranydocumentexecutedbySellerinconnectionwiththisContract,unlessthevalidclaimsforactualdamagesincurredduetosuchbreachescollectivelyexceed$25,000.00;(b)theliabilityofSellerforabreachofarepresentationorwarrantyunderSection6.1ortheSellerBringdownCertificate(asdefinedinSection9.2.1below)shallinnoeventexceed,intheaggregate,theamountofSevenHundredFiftyThousandandNo/100Dollars($750,000.00);and(c)innoeventshallSellerbeliableforanyconsequentialorpunitivedamages,exceptinthecaseoffraud.SellercovenantsandagreesthatfromandaftertheClosinguntilthelastdayoftheSurvivalPeriod,SellershallmaintainaminimumnetworthasdeterminedinaccordancewithgenerallyacceptedaccountingprinciplesofnotlessthanSevenHundredFiftyThousandandNo/100Dollars($750,000.00);provided,however,thatifanywrittenclaimismadeanddeliveredtoSellerpriortothelastdayoftheSurvivalPeriod,Sellershallcontinuetomaintain,untilsuchclaimhasbeenfinallyadjudicatedorsettledandpaidtotheextentrequiredbysuchjudgmentorsettlement,anetworthofnotlessthanthelesserof(i)$750,000or(ii)125%ofthereasonableamountrequiredtosatisfysuchclaim.Seller’sobligationsunderthisSection6.2shallsurvivetheClosing.

6.3          Purchaser's  Representations and Warranties. Purchaser makes the following warranties and representations to Seller, which warranties andrepresentationsshallbedeemedtohavebeenremadebyPurchaserattheClosingandshallsurvivetheClosingfortheSurvivalPeriod:

6.3.1     Organization. Purchaserisdulyorganized,validlyexistingandingoodstandingunderthelawsofthestateofitsorganization.

6.3.2          Authority. Purchaser has the requisite power and authority, has taken all actions required by its organizational documents andapplicable law, andhas obtainedall necessary consents, to execute anddeliver this Contract andto consummate the transactions contemplated in thisContract.ThepersonsigningthisContractonbehalfofPurchaserisauthorizedtodoso.PerformanceofthisContractbyPurchaserwillnotresultinanybreachof,orconstituteanydefaultunder,anyagreementorotherinstrumenttowhichPurchaserisapartyorbywhichPurchaserisbound.

6.3.3     Bankruptcy . Therearenoattachments,executions,assignmentsforthebenefitofcreditorsorproceedingsunderanybankruptcyorother debtor relief laws pending, or to the actual knowledge of Purchaser threatened, against Purchaser nor are any of the foregoing contemplated byPurchaser.

6.3.4     Terrorist Organizations Lists . Purchaserisnotacting,directlyorindirectly,fororonbehalfofanypersonnamedbytheUnitedStatesTreasuryDepartmentasaSpecificallyDesignatedNationalandBlockedPerson,orfororonbehalfofanypersondesignatedinExecutiveOrder13224asapersonwhocommits,threatenstocommit,or

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supports terrorism. Purchaser is not engaged in the transaction contemplated by this Contract directly or indirectly on behalf of, or facilitating suchtransactiondirectlyorindirectlyonbehalfof,anysuchperson.

6.3.5     No Litigation .Thereisnolitigationpendingor,toPurchaser’sknowledge,threatenedagainstPurchaser,whichifadverselydeterminedwouldmateriallyadverselyaffectPurchaser’sabilitytoenterintoorperformthisContract.

7.  SELLER’S COVENANTS .

7.1     Covenants regarding Property .BetweentheEffectiveDateandtheClosing,Sellershall:

7.1.1     Maintain Property .MaintaintheportionsofthePropertythatSellerisrequiredtomaintainundertheLeasesintheordinarycourseofbusinessconsistent withthepractices andproceduresofSeller ineffect asoftheEffectiveDate, ordinarywearandtear anddamagefromcasualtyorcondemnation excepted; provided, however, that notwithstanding the foregoing, Seller shall have no obligation to cure any violation of any law,ordinanceorothergovernmentalrequirementoranyphysicalconditionthatwouldgiverisetoaviolationofanylaw,ordinanceorothergovernmentalrequirement,whetherthesameexistsasoftheEffectiveDateorpriortoClosing(eacha"Violation")exceptforanyViolationsthat,inthereasonabledeterminationofSeller,canbecuredpriortotheClosingbyanaggregateexpenditureof$100,000orlessandforwhichSellerhasreceived,priortotheClosing,writtennoticefromtherelevantgovernmentalauthoritythattheViolationexists.SellershallpromptlysendtoPurchaseracopyofallwrittennotices of a Violation it receives from relevant governmental authorities. If (a) any written notice of a Violation is received by Purchaser after theexpirationoftheDueDiligencePeriodthat(i)doesnotresultfromanycommunicationsbythePurchaseroritsagentsorrepresentativeswiththerelevantgovernmentalauthorityand(ii)doesnotrelatetoamatterthatPurchaserknewconstitutedaviolationoflawpriortotheexpirationtheDueDiligencePeriodasaresultoftheidentificationofsuchmatterinathirdpartyreportorawrittennoticereceivedbyPurchaser,and(b)  Sellerisnotobligatedtocure such noticed Violation in accordance with the foregoing provisions, then Purchaser shall have the right to terminate this Contract by deliveringwrittennoticethereoftoSeller withinfive(5)BusinessDaysfollowingPurchaser’sreceipt ofthewrittennoticeoftheViolationif Seller doesnot, atSeller'soption,agreeeither(i)tocuretheviolationatSeller'scostand,ifthecurehasnotbeencompletedbyClosing,depositinescrowwiththeTitleCompanythereasonablyestimatedunpaidcostthereforfordisbursementinpaymentofthecostsofSeller'scurativeaction(withanyundisbursedsumsbedisbursedtoSelleruponthecompletionofthecurativeaction),or(ii)toprovideacredittoPurchaseratClosinginanamountequaltothereasonablyunpaidestimatedcosttocuretheviolation.IfSellerelectstoprovideacreditpursuanttoclause(ii)above,thenSellershallhavenofurtherobligationinconnectionwiththeViolationandPurchasershallberesponsibleforthecurethereof.

7.1.2     Insurance  . Maintainallcasualty,liability,andhazardinsurancecurrentlyinforcewithrespecttothePropertyorotherreplacementinsurancethatisreasonablycomparabletotheexistinginsurance;and

7.1.3         Property  Operation  . Between the Effective Date and the date which is five (5) Business Days prior to the expiration of the DueDiligencePeriod(the“SellerDiscretionPeriod”),Sellermaylease,operate,manage,andenterintocontractswithrespecttothePropertyintheordinarycourseofbusinessconsistentwiththepracticesandproceduresofSellerpriortothedatehereof,subjecttothelimitationscontainedbelowinthisSection7.1.3.DuringtheSellerDiscretionPeriod,Sellershall(i)promptlynotifyPurchaserinwritingofthecommencementofanynegotiationspertainingtothemodificationofanyexistingLeasesorPropertyAgreementsortheexecutionofanynewLeasesorPropertyAgreementsthatwillaffectthePropertyafter the Closing, (ii) promptly send to Purchaser a copy of all written offers, letters of intent, leases, lease amendments, contracts and contractamendments,ineachcase,thatpertaintothemodificationofanyexistingLeaseorPropertyAgreementoranynewLeaseorPropertyAgreementthatarereceivedfromorsenttoSeller,otherthananysuchdocumentssentbetweenSellerandanyofitsaffiliatesoranyemployees,counsel,agentsoradvisorsof Seller or any of its affiliates, and (iii) prior to the expiration of the Seller Discretion Period, send Purchaser a true and complete copy of anymodifications of any Lease or Property Agreement or new Leases or Property Agreements that Seller enters into accompanied by a statement of allPurchaser Leasing Costs (as defined in Section 10.3.4 ) that Purchaser would be responsible for under Section 10.3.4hereof. Seller hereby notifiesPurchaser that the Additional Leases have beensent to the tenants thereunder for execution. Followingthe expiration of the Seller Discretion Period,Sellershallnotenterintoanynewlease,Leasemodification,PropertyAgreementmodificationorcontractthatcannotbeterminatedpriortotheClosingwithoutthepriorwrittenapprovalofPurchaser(whichapprovalmaybegivenorwithheldinPurchaser’ssolediscretion).Notwithstandingtheforegoing,innoevent(evenduringtheSellerDiscretionPeriod)shallSeller(a)applyanytenantsecuritydepositsunlesstheapplicableleaseisterminatedandthetenantthereunderhasvacateditspremises,(b)initiateanyzoningreclassificationofthePropertyorseekanyvarianceunderexistingzoningordinancesapplicabletotheProperty,or(c)imposeanyadditionalrestrictivecovenantsor

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encumbrances on the Property (other than exceptions to be removed by Closing) or execute or file any subdivision plat affecting the Property. IfPurchaser fails to give Seller notice of its approval or disapproval, together with the reason for any disapproval, of any proposed action requiring itsapprovalunderthisSection7.1.3withinthree(3)BusinessDaysafterSellernotifiesPurchaserinwritingoftheproposedaction,thenPurchasershallbedeemedtohavegivenitsdisapproval.TherepresentationsandwarrantiesofSellershallbeupdatedatClosingtoreflectanyleasesandcontractsexecutedbySeller as permitted bythe provisions of thisSection7.1.3. Seller shall promptly provide to Purchaser copies of all documents executed bySellerpursuanttothisSection7.1.3.

7.2     Marketing of Property .BetweentheEffectiveDateandtheClosing,SellershallnotmarketthePropertyforsaleandshallnotacceptornegotiateanyletterofintenttosellthePropertyorsalesagreementwithrespecttotheProperty(otherthanthisContract).

7.3     Estoppels and SNDAs .

7.3.1  AftertheexpirationoftheDueDiligencePeriod,SellershallusecommerciallyreasonableeffortstoobtainanddelivertoPurchaser,priortoClosing,anestoppelletterinsubstantiallytheformattachedheretoasExhibit"E"executedbyeachoftheTenants;provided,however,thatifanyTenant is permitted under the terms of its Lease to provide less information or to otherwise make different statements or provide a different formofestoppelcertification,thenifthetenantrefusestoprovideanestoppelletterintheformofExhibit"E",SellershallusecommerciallyreasonableeffortstoobtainanestoppelcertificateinaccordancewiththerelevantLease.AnyestoppelletterinsubstantiallytheformofExhibit"E"orthatcomplieswiththeprovisionsoftherelevantLeaseiscalleda"Tenant Estoppel ".CommerciallyreasonableeffortsshallnotincludethepaymentofanysumsbySellertoanyTenant,theincurrenceofanyotherliabilitytoanyTenant,orthegrantingofanyotherconcessiontoanyTenant.

7.3.2 Withinfive(5)daysafterthedeliverybyPurchasertoSellerofacompletedsubordination,non-disturbanceandsubordinationformforanyLease,SellershallsendtotheTenantsunderanyLeasesidentifiedbyPurchaser,forexecutionbyeachoftherelevantTenants,asubordination,non-disturbance and attornment agreement ("SNDA") in favor of Purchaser's lender on Purchaser's lender's standard form; provided, however, thatnotwithstandingtheforegoing(a)innoeventshallSellerberequiredtosendanSNDAtoanyTenantpriortotheexpirationoftheDueDiligencePeriod,and(b)thefailureofanysuchTenanttoexecuteanddeliveranSNDAshallnotaffectanyoftheobligationsofthePurchaserunderthisContractorbeacondition to Purchaser's obligation to close the purchase of the Property. Purchaser acknowledges and agrees that this Contract and the Purchaser'sobligations hereunder are not contingent upon the receipt by Purchaser of loan or other financing in connection with the Property regardless of theprovisionsofthisSection7.3.2oranyreferenceinthisContracttoanylenderoforloantoPurchaser.

8.  "AS IS" SALE .

8.1     Seller's Deliveries .ExceptasotherwiseexpresslyprovidedinthisContractorintheSellerDocuments(definedinSection8.2below),anyandallmaterials,reports,studiesorotheritemsfurnishedbySelleroronSeller'sbehalf,whetherornotrequiredbythetermsofthisContract(includingbutnotlimitedtotheSeller'sDeliverables)aredeliveredwithoutrepresentationorwarranty,expressorimplied,bySellerastothetruth,accuracyandcompletenessthereof,andanyreliancethereonbythePurchasershallbeatPurchaser'sownrisk,withoutanyrecourseagainstSellerandsubjecttoPurchaser'sindependentexamination.

8.2     AS-IS SALE . PURCHASERHEREBYACKNOWLEDGESANDAGREESTHATTHESALEOFTHEPROPERTYHEREUNDERISANDWILLBEMADEONAN"ASIS, WHEREIS ANDWITHALLFAULTS"BASISSUBJECT, HOWEVER, TOTHEEXPRESSREPRESENTATIONSOFSELLERCONTAINEDINTHIS CONTRACTORTHEDEED(ASDEFINEDBELOW) OROTHERCLOSINGDOCUMENTS. THEOCCURRENCEOFCLOSINGSHALLCONSTITUTEANACKNOWLEDGMENTBYPURCHASERTHATTHEPROPERTYWASACCEPTEDWITHOUTPRESENTATIONORWARRANTY, EXPRESSORIMPLIEDEXCEPTFORTHEREPRESENTATIONSCONTAINEDIN THIS CONTRACTORTHEDEEDOROTHERCLOSINGDOCUMENTS EXECUTEDBYSELLER (THE DEEDANDSUCHOTHERCLOSINGDOCUMENTS ARECOLLECTIVELYCALLEDTHE"SELLERDOCUMENTS"). EXCEPTFORTHEWRITTENREPRESENTATIONSSPECIFICALLYSETFORTHINTHISCONTRACTORTHESELLERDOCUMENTS, SELLER HEREBY SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES OR GUARANTEES OFANY KIND OR CHARACHTER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT, FUTURE OR OTHERWISE, AS TO,CONCERNING OR WITH REPSECT TO THE PROPERTY, ITS CONDITION (PHYSICAL, FINANCIAL OR OTHERWISE), THE OPERAITON OF,ACCESSTO,ORTHEFITNESSFORANYSPECIFICPURPOSEORUSE,MERCHANTABILITY,HABITABILITY,ORTHELIEANDTOPOGRAPHY,OF ALL OR ANY PORTION OF THE PROPERTY, THE EXISTENCE, LOCATION OR AVAILABILITY OF UTILITY LINES FOR WATER, SEWER,DRAINAGE,ELECTRICITYORANYOTHERUTILITY,THEINCOME-PRODUCINGPOTENTIALOFTHEPROPERTY,THELAWS,

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REGULATIONSANDRULESAPPLICABLETOTHEPROPERYORTHECOMPLIANCE(ORNON-COMPLIANCE)OFTHEPROPERTYTHEREWITH,ANYENVIRONMENTALLAWS,REGULATIONSANDRULES(OROTHERLAWSRELATIVETOHAZARDOUSMATERIALS)APPLICABLETOTHEPROPERTY OR THE COMPLIANCE (OR NON-COMPLIANCE) OF THE PROPERTY THEREWITH, THE QUANITY, QUALITY OR CONDITION OFTHE ARTICLES OF PERSONAL PROPERTY INCLUDED IN THE TRANSACTIONS CONTEMPLATED HEREBY, THE PERMITTED USE OF THEPROPERTY OR ANY PART THEREOF OR ANY OTHER AMTTER OR THING AFFECTING OR RELATING TO THE PROPERTY OR THETRANSACTIONS CONTEMPLATED HEREBY. PURCHASER ACKNOWLEDGES THAT PURCHASER HAS NOT RELIED ON SELLER'S SKILL ORJUDGMENTTOSELECTORFURNISHTHEPROPERTYFORANYPARTICULARPURPOSE,ANDTHATSELLERMAKESNOWARRANTYTHATTHE PROPERTY IS FIT FOR ANY PARTICULAR PURPOSE. WITHOUT LIMITING ANY EXPRESS REPRESENTATIONS CONTAINED IN THISCONTRACTORTHESELLERDOCUMENTS,PURCHASEFUTHERACKNOWLEDGESANDAGREESTHAT(1)ALLINFORMATIONPROVIDEDORTOBEPROVIDEDWITHRESPECTTOTHEPROPERTY(INCLUDING,WITHOUTLIMITATION,THESELLER'SDELIVERABLES)WASORWILLBEOBTAINEDFROMAVARIETYOFSOURCESAND(A)SUCHINFORMAITONHASBEENANDWILLBEPROVIDEDWITHOUTANYRECOURSETOORLIABILITYOFSELLERORTHEPREPARESTHEREOF,AND(B)SELLER(I) HASNOTMADEANYINDEPENDENTINVESTIGATIONORVERIFICATIONOFSUCHINFORMATIONAND)II) HASNOTMADEANYEXPRESSORIMPLIED,ORALORWRITTEN,REPRESENTATIONSASTO ANY SUCH INFORMATION OR THE ACCURACY, COMPLETENESS, FORM OR CONTENT OF SUCH INFORMATION, (2) THE PURCHASEPRICEREFLECTSTHE"AS-IS"NATUREOFTHISSALEANDANYFAULTS,LIABILTIES,DEFECTSOROTHERADVERSEMATTERSTHATMAYBE ASSOCIATED WITH THE PROPERTY, (3) PURCHASER'S DECISION TO PURCHASE THE PROPERTY SHALL BE BASED SOLELY ON THETERMSOFTHISCONTRACTANDPURCHASER'SINDEPENDENTEVALUATIONOFTHEPROPERTY,AND(4)ANYINFORMATION(INCLUDING,WITHOUTLIMITAITONS,THESELLER'SDELIVERABLES)HERETOFOREORHEREAFTERPROVIDEDBYSELLERTOPURCHASERSHALLBEFOR INFORMATIONAL PURPOSES ONLY, AND PURCHSER SHALL NOT RELY UPON ANY SUCH INFORMATION. PURCHASER HEREBYRELEASESSELLERANDITSAFFILIATESANDTHEIRRESPECTIVEEMPLOYEES,AGENTSANDATTORNEYSFROMALLOBLIGATIONSANDLIABILITIESWITHRESPECTTOALLSUCHINFORMATION(INCLUDING,WITHOUTLIMITAITON,THESELLER'SDELIVERABLES)EXCEPTASOTHERWISE EXPRESSLY PROVIDED IN THIS CONTRACT, AND THE CLOSING STATEMENT SHALL INCLUDE A RATIFICATION ANDCONFIRMATIONOFSUCHRELEASEASOFTHECLOSINGDATE.PURCHASERACKNOWLEDGESANDAGREESTHAT,EXCEPTASEXPRESSLYPROVIDEDINTHISCONTRACT,SELLERSHALLBEUNDERNODUTYTOMAKEANYAFFIRMATIVEDISCLOSUREREGARDINGANYMATTERWHICHMAYBEKNOWNTOSELLER,ORITSOFFICERS,DIRECTORS,CONTRACTORS,AGENTSOREMPLOYEES.

8.3 NOTWITHSTANDINGTHEFOREGOING,THEPURCHASER’SRELEASEOFSELLERANDWAIVERASSETFORTHINSECTION8.2SHALLNOTCONSTITUTEARELEASEORWAIVERBYPURCHASERNORPERTAINTOANYCLAIMORCAUSEOFACTIONBYPURCHASERAGAINSTSELLER,TOTHEEXTENTTHATSUCHACLAIMORCAUSEOFACTIONBYPURCHASEROTHERWISEEXISTS,FOR(A)FRAUDORWILLFULMISrEPRESENTATION,OR(B)ABREACHBYSELLEROFTHISCONTRACTORANYSELLERDOCUMENTS,INCLUDINGABREACHOFANYREPRESENTATIONORWARRANTYEXPRESSLYSETFORTHINTHISCONTRACT,OR(C)ANYTORTCLAIMSMADEORBROUGHTBYATHIRD PARTYUNRELATEDTO PURCHASERWHICHARISE ONACCOUNTOF EVENTS THAT OCCURREDAT THE PROPERTYPRIOR TOCLOSING,OR(D)ANYCLAIMSMADEORCAUSESOFACTIONBROUGHTBYANYGOVERNMENTALAUTHORITYOROTHERTHIRD-PARTY(UNAFFILIATED WITH THE PURCHASER) WITH RESPECT TO HAZARDOUS MATERIALS DEPOSITED OR PLACED IN, AT, OR UNDER THEPROPERTYBYSELLER,OR(E)ANYCLAIMSMADEORCAUSESOFACTIONBROUGHTBYANYTHIRDPARTYUNRELATEDTOPURCHASERALLEGING A DEFAULT OR BREACH BY SELLER WHICH IS ALLEGED TO HAVE OCCURRED PRIOR TO THE CLOSING DATE UNDER ANYCONTRACT, AGREEMENT OR LEASE TO WHICH SELLER AND ANY SUCH CLAIMANT WERE PARTIES. NOTHING CONTAINED IN THISSECTION 8.3 SHALL IMPLY THAT PURCHASER HAS ANY RIGHT TO ANY CLAIM OR CAUSE OF ACTION FOR ANY OF THE MATTERSDESCRIBEDINTHISSECTION8.3.

8.4          SURVIVAL  . THE PROVISIONS OF THIS SECTION 8 SHALL SURVIVE THE CLOSING OR EARLIER TERMINATION OF THISCONTRACT.

9.  CLOSING.

9.1     Closing Date. Theconsummationofthistransaction(the"Closing")willtakeplacethroughanescrowwiththeTitleCompanyonthatdatethatisthirty (30) days after the expiration of the Due Diligence Period or such earlier date to which the parties may agree in writing; provided, however, that if allconditionstoPurchaser'sobligationstofundandclosethepurchasecontemplatedherebyhavebeensatisfiedorwaivedinwritingbyPurchaser, thenPurchaseruponatleastfive(5)BusinessDays'

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writtennoticetoSellershallbeentitledtoacceleratetheClosingtosuchearlierBusinessDayasmaybemutuallyacceptabletoSellerandPurchaser.Thedateonwhich the Closing is required to occur (or if the Closing occurs, the date on which the Closing occurs) is called the "Closing Date." The Closing shall beaccomplishedthroughthedeliveryoftheclosingdocumentsandfundsinescrowtotheTitleCompany,withouttheneedforeitherSellerorPurchasertobepresentattheClosing.AlldocumentsdeliveredinescrowtotheTitleCompanybySellerandPurchasershallbereleasedfromescrowanddeliveredtotheotherpartyattheClosing.

9.2     Seller's Closing Obligations . AtorpriortotheClosing,Sellerwilldo,orcausetobedone,thefollowing:

9.2.1 Sellerwillexecute,acknowledge(ifnecessary),anddeliverinescrowtotheTitleCompany,fordeliverytoPurchaserattheClosing,thefollowingdocuments:

(a)aSpecialWarrantyDeedconveyingtheLandandtheImprovementsintheformandsubstanceofExhibit"G"(the"Deed");

(b)anAssignmentandAssumptionofLessor'sInterestinLeasesintheformandsubstanceofExhibit"H";

(c)aBillofSaleandGeneralAssignmentintheformandsubstanceofExhibit"I";

(d)aCertificateofNon-ForeignStatusintheformandsubstanceofExhibit"J";

(e)anotificationofchangeofownershipintheformandsubstanceofExhibit"K";

(f)anaffidavitintheformofExhibit"L";

(g)anyformrequiredfromtheSellerbylawinconnectionwiththedeliveryoftheDeedandthepaymentofanytransfertaxes;

(h)adocumentpursuanttowhichSellerconfirmsitsliabilityforallunpaidamountsoftheSellerLeasingCostspursuanttoSection10.3.4andindemnifiesPurchaserwithrespectthereto;

(i) a certificate of Seller confirming that its representations and warranties set forth in this Contract, as updated in accordance with thisContract,arecorrectinallmaterialrespectsasifmadeontheClosingDateornotinganyexceptions,butsuchcertificateshallexpresslyprovidethattherepresentationsandwarrantiesaresubjecttotheprovisionsofSection6.2hereof(the"SellerBringdownCertificate");

(j) a closing statement setting forth the Purchase Price, the costs payable in connection with the transaction contemplated hereby, thedisbursementshereunderandotherwiseconformingtotherequirementsofthisContract;and

(k)allsuchadditionaldocumentsasmaybereasonablyrequiredbytheTitleCompanyandconsistentwiththisContracttoconsummatethesaleofthePropertypursuanttothisContract.

9.2.2  Seller will terminate, as of the ClosingDate, all management andleasing agreements relating to the Real Property andall PropertyAgreementswhichPurchaserdoesnotelecttoassume(exceptforthosewhichPurchaserisrequiredtoassumepursuanttothetermsofthisContract);

9.2.3  Seller shall deliver to the Title Companyall documents that maybe reasonably required bythe Title Companyto evidence the dueorganization and good standing of Seller, the power and authority of Seller to convey the Property, and the authority of each signatory for Seller toexecutethisContract,theDeedandtheotherclosingdocuments.

9.2.4 SellerwilldeliverpossessionofthePropertytoPurchaserupontheconsummationoftheClosingfreeandclearofallpossessoryrightsotherthanthetenantsandotheroccupantsundertheLeases,butsubjecttothePermittedExceptions.

9.2.5  Seller will deliver to Purchaser within two(2) Business Daysafter the Closing, the followingto the extent in Seller's possessionorcontrol:originalLeases,originalPropertyAgreements,Seller'sleasefiles,andanytransferablepermitsheldbySellerpertainingtotheoperationoftheProperty.

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9.2.6 SellerwillpayallcostsrequiredtobepaidbySellerpursuanttoSection10.1ofthisContract.AlldocumentsrequiredtobedeliveredbySellermustbedeliveredinescrowtotheTitleCompanynolaterthan5:00p.m.(localtimeattheclosingofficeoftheTitleCompany)ontheBusinessDayimmediatelyprecedingtheClosingDate.

9.3     Purchaser's Closing Obligations. AtorpriortotheClosing,Purchaserwilldo,orcausetobedone,thefollowing:

9.3.1 PurchaserwillpaytoSellerthePurchasePrice,asadjustedinaccordancewiththeexpressprovisionsofthisContract;

9.3.2 PurchaserwillexecuteanddelivertotheTitleCompanyinescrow,fordeliverytoSelleratClosing,thefollowing:(a)counterpartsofthe documents described in Section 9.2 requiring Purchaser's signature, (b) a closing statement setting forth the Purchase Price, the costs payable inconnectionwiththetransactioncontemplatedhereby,thedisbursementshereunderandotherwiseconformingtotherequirementsofthisContract,(c)acertificate,dulyexecutedbyPurchaser,confirmingthatitsrepresentationsandwarrantiessetforthinthisContractarecorrectasifmadeontheClosingDate,(d)adocumentpursuanttowhichPurchaserassumesliabilityforallunpaidamountsofthePurchaserLeasingCostspursuanttoSection10.3.4andindemnifiesSellerwithrespectthereto, and(e)anyinstrumentsreasonablynecessarytoconsummatethesaleofthePropertypursuanttothisContract(including,bywayofexample,evidenceoftheauthorityofthesignatoryforPurchasertoconsummatetheClosing).

9.3.3 PurchaserwillpayallcostsrequiredtobepaidbyPurchaserpursuanttoSection10.1ofthisContract.

AlldocumentsrequiredtobedeliveredbyPurchasermustbedeliveredinescrowtotheTitleCompanynolaterthan5:00p.m.(localtimeattheclosingofficeoftheTitleCompany)ontheBusinessDayimmediatelyprecedingtheClosingDate.AllfundsrequiredtobepaidbyPurchaserpursuanttothisContractmustbedeliveredinescrow,inimmediatelyavailablefunds,nolaterthan2:00p.m.(localtimeattheTitleCompany)ontheClosingDate.

10. COSTS, PRORATIONS AND ADJUSTMENTS.

10.1     Expenses. Sellerwillpayforone-halfoftheescrowfeeschargedbytheTitleCompanyforthepurchase/saletransaction(butnotanyfeesrelatingtoanyExchange,asdefinedbelow),anycurativetitleactionrequiredofSellerunderthisContract,thecommissionofBrokersduepursuanttoSeller’sseparateagreementwithBrokers,Seller'sattorneys'feestopreparetheDeed,a$600creditinconnectionwiththeupdatedSurveypursuanttoSection4.1,andanytransfertaxes or revenue stamps in connection with the recording of the Deed. Purchaser will pay for the costs charged by the Title Company for the issuance of theowner'stitlepolicycontemplatedthereby(the"Owner’sTitlePolicy"),allofthecostschargedbytheTitleCompanyforextendedcoverage,anytitleinsurancecoverageforanylender,andallendorsementstotheOwner’sTitlePolicyoranyloanpolicy,allfees,costs,expensesandothersumsrelatingtoanyloanappliedforand/orobtainedbyPurchaser,allfeesandcostsrelatingtothePurchaser'sexaminationandinvestigationoftheProperty,allfeesofEscrowAgentrelatingtoplacing the deposit in an interest-bearing account, all recording fees, one-half (1/2) of the escrow fees charged by the Title Company for the purchase/saletransaction, thecost of anyupdatedSurveyobtainedbyPurchaser andall revisionsthereto, andall of thefeeschargedbytheTitle CompanyforhandlinganyExchangeoranyloantransaction.SellerandPurchaserwillberesponsibleforthefeesandexpensesoftheirrespectiveattorneys,consultantsandadvisors.

10.2        Taxes and Assessments. Seller will payall installments of real estate taxes that are dueandpayable prior to theClosing. Purchaser shall beresponsibleforthepaymentofallgeneralrealestatetaxesthatbecomedueaftertheClosing.TaxesshallbeproratedasoftheApportionmentTime(asdefinedbelow)onacalendaryearbasis(i.e.,basedonanytaxbillissuedbythegoverningauthorityissuedduringthecalendaryearinwhichClosingoccursdespitethefactthatsuchtaxbillmaybeforafiscalyearandnotsuchcalendaryear)."ApportionmentTime"shallmeantheClosingDate.Purchasershallnotreceiveacreditforanyspecialassessments,orinstallmentsthereof,thatareleviedorarefirstdueandpayableaftertheClosingandPurchasershallberesponsibleforallsuchspecialassessmentsorinstallmentsthereof.

10.3     Prorations and Adjustments. TheprorationsandadjustmentstothePurchasePricesetforthinthisSection10.3shallbemadebetweenSellerandPurchaserandincludedintheclosingstatement.AllprorationsshallbemadeonaperdiembasisasoftheApportionmentTime(asdefinedabove).

10.3.1  Current rents, advancerentals, operatingexpenses, additional rent andotherchargesactuallypaidbytenants undertheLeases, andchargesunderthePropertyAgreementstobeassumedbyPurchasershallbeproratedasoftheApportionmentTime.

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10.3.2 ThepartiesshallusecommerciallyreasonableeffortstocauseallutilityproviderstoperformameterreadingasclosetotheClosingDateasispracticable.PurchasershallarrangefortheprovisionofallutilityservicesinPurchaser'snamefromandaftertheClosing,sothatsuchutilityservicesarenolongerprovidedinSeller'sname.SellershallbeentitledtoarefundofallutilitydepositsmadebyoronbehalfSeller,andPurchasershallmakeitsowndepositsdirectlywiththeutilityprovider.SellershallreceiveacreditforalldepositsmadebyoronbehalfofSellertotheextentthesameremainondepositforthebenefitofPurchaser.

10.3.3 UnappliedsecuritydepositsexistingundertheLeasesasoftheClosingshallbecreditedtoPurchaseratClosing.

10.3.4 SubjecttothelastsentenceofthisSection10.3.4,anytenantimprovements,allowances,thirdpartyleasingcommissionsandallcostsandreimbursementspayablebythelandlordtooronbehalfofthetenantthatarepaidorincurredbySelleraftertheEffectiveDateofthisContractwithrespecttoleases,leaserenewals,leaseexpansions,leasemodificationsorotherrentalagreementsexecutedaftertheEffectiveDateinaccordancewithSection7.1.3, excludingtheAdditionalLeases, shall bepaidbyPurchaserat orafter Closing.Alloftheforegoingamountsarecalledthe"PurchaserLeasingCosts."ThePurchaserLeasingCostsshallnotincludeanytenantimprovements,allowancesorthirdpartyleasingcommissionsthat,ineachcase,relatetotheprimarytermoftheAdditionalLeasesoroftheLeasewithPeachtreeProvidencePartners,LLC(the"PeachtreeLease"),allofwhichshallbeSellerLeasingCosts(butthePurchaserLeasingCostsshallincludeanyandallcosts,feesorexpensesthatarepayableunderorinconnectionwithanyoftheLeases(including,withoutlimitation,theAdditionalLeasesandthePeachtreeLease)aftertheClosingthatrelatetoanyelectionbythelandlordunderany Lease to move the tenant or that relate to any extension or renewal option under such Leases). Seller shall receive a credit at Closing for suchPurchaserLeasingCostspaidbySelleronorpriortotheClosingDate.AttheClosing,PurchasershallexecuteanddelivertoSelleradocumentpursuantto which Purchaser assumes liability for all unpaid amounts of the Purchaser Leasing Costs and indemnifies Seller with respect thereto. Any tenantimprovements, allowances andthird party leasingcommissions that relate to Leases executedprior to the Effective Date (as the samemayhavebeenmodifiedbyanyleaserenewals,leaseexpansions,leasemodificationsorotherrentalagreementsexecutedpriortotheEffectiveDate)andtheAdditionalLeases, exclusive of the Purchaser Leasing Costs and any costs, fees or expenses relating to extensions or renewal terms not exercised prior to theEffectiveDate,shallbepaidforbySelleratorpriortotheClosing.AlloftheforegoingamountspayablebySellerarecalledthe"SellerLeasingCosts."AttheClosing,SellershallexecuteanddelivertoPurchaseradocumentpursuanttowhichPurchaserconfirmsitliabilityforallunpaidamountsoftheSellerLeasingCostsandindemnifiesPurchaserwithrespectthereto.ThetermsofthisSection10.3.4shallsurviveClosing.

10.3.5 IfontheClosingDate,anyTenantisdelinquentinthepaymentofrent,includinganyadditionalrentbilledbutunpaidatthetimeofClosing, saiddelinquent rent shall remainthepropertyof Seller andnoprorationwithrespect thereto shall bemadeat Closing. Purchaser will useitsreasonableeffortstocollectsuchdelinquentrent;provided,however,thatPurchasershallnotberequiredtocommenceanylegalactiontocollectsuchsums.IfPurchaserdoesnotelecttofilealawsuitonSeller'sbehalf(inwhicheventallmattersinsuchlawsuitrelatingtoanysumsduetoSellerwillbecontrolledsolelybySeller),thenSellerreservestherighttofilealawsuitfordamagesagainsttheapplicabletenantforanydelinquentrent,andPurchasershallreasonablycooperatewithSellerinconnectiontherewithatnoexpensetoPurchaser.Foraperiodofsix(6)monthsfollowingtheClosing(orsuchadditionalperiodoftimeduringwhichSellerispursuingaclaimincourtagainsttheapplicabletenant,ifsuchclaimiscommencedduringthe6monthperiod),PurchasershallnotmodifyanyLeaseinanywaythataffectsanysumsthatmaybeduetoSeller.Sellershallhavetherighttocontacttenantstorequest payment of delinquent rentals after the Closing Date and to institute legal proceedings, at Seller’s sole expense, to collect and retain suchdelinquentrentals.IfPurchasercollectsanysumsfromTenants,followingtheapplicationofanysumscollectedfromanyTenanttothemonthlyrentalobligationsaccruingonoraftertheClosingDate,Purchasershallremitthebalancethereof,ifany,toSeller,lessallreasonabledirectout-of-pocketcostsofcollectionactuallyincurredbyPurchaserinconnectionwiththecollectionofthesumsduetoSeller.AllsumsreceivedbyPurchaserafterClosingfromanytenantsattributabletotheperiodpriortotheClosingDateshallbedeemedtobeheldintrustbyPurchaserforSellerforapplicationasprovidedinthisSection.

10.3.6 PurchaserwillobtainitsowninsurancefromandaftertheClosing.SellershallbeentitledtocancelitsinsuranceatClosingandshallbeentitledtoallunearnedpremiumsthereon.

10.4     Adjustment. Totheextentthaterrorsarediscoveredin,oradditionalinformationbecomesavailablewithrespectto,theprorationsandallocationsmadeatClosing,SellerandPurchaseragreetomakesuchpost-Closingadjustmentsasmaybenecessarytocorrectanyinaccuracy;however,allprorationswillbefinalthirty(30)daysafterClosingexceptasotherwise

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providedinSection10.5below,andexceptthatifthetaxbillissuedintheyearinwhichClosingoccursisnotavailablepriortotheClosing,thenpost-Closingadjustmentsforsuchtaxbillwillbefinalninety(90)daysafterthetaxbillisissued.

10.5     Additional Rent .Reconciliationsoftaxes,insurancechargesandotherexpensesowedbytenantsofthePropertyforthecalendaryear(orfiscalyearifdifferentfromthecalendaryear)inwhichClosingoccursshallbepreparedbyPurchaserwiththecooperationofSellerwithinninety(90)daysfollowingtheendofsuchyearinaccordancewiththerequirementssetforthintheLeasesandasprovidedinthisSection10.5.TheprorationbetweenthepartiesofincomereceivedfromtenantsfromreconciliationsofexpensesundertheLeasesshallbecalculatedbasedontheexpensesforsuchyear,thesumscollectedfromtenants(inclusiveofpaymentsmadebyeachtenantafteranyreconciliationstatementsaredeliveredtothetenants)andtheexpensespaidbyeachpartywithrespecttoeachparty’speriodofownershipofProperty.Purchasershall providetoSelleranaccountingofthereconciliationsandreceiptsfromtenants. Anysumsduetoeither party as a result of any reconciliation shall be promptly paid to the other party, but in no event shall any sumsdue to Seller be paid later than ten (10)BusinessDaysafterreceiptofthereconciliationpaymentfromrelevanttenant.

10.6     Disputes with Respect to Adjustments . IfSellerandPurchaser,eachactingreasonablyandingoodfaith,cannotresolveanyissuewithrespecttotheadjustmentsdescribedinthisSection10,theyshallsubmitsuchissueforbindingresolutionbyanationallyrecognizedaccountingfirmmutuallyacceptabletobothparties(the"AccountingFirm").ThepartiesshallbearequallyallfeesandexpensesoftheAccountingFirminconnectionwiththeresolutionofsuchissue,andeachpartyshallbearitsownlegal,accountingandotherfeesandexpensesincurredinconnectionwiththeresolutionoftheissuebytheAccountingFirm.Suchresolutionshall befinalandbindingonthepartiesandjudgmentmaybeentereduponsuchresolutioninanycourt havingjurisdictionthereof. SellerandPurchaseragreethattheproceedingdescribedinthisSection10.6shallbeconductedinCharlotte,NorthCarolina.

10.7     Survival . TheprovisionsofthisSection10willsurviveClosing.

11.  CONDITIONS TO PURCHASER'S AND SELLER'S CLOSING OBLIGATIONS .

11.1     Conditions to Purchaser's Obligations . InadditiontoanyotherconditionstoClosingsetforthinthisContract,Purchaser'sobligationtofundthePurchasePriceandclosethistransactionissubjecttothesatisfactionorwaiverbyPurchaser,initssoleandabsolutediscretion,ofthefollowingconditions:

11.1.1 AsofClosing,therepresentationsandwarrantiesofSellerinSection6.1,subjecttotheupdatesandexceptionstheretopermittedunderthisContract,shallbetrueandcorrectinallmaterialrespects;and

11.1.2  Seller shall have performed, observed and complied with all covenants, agreements and conditions required by this Contract to beperformed,observedandcompliedwithbySellerpriorto,orasof,theClosing.

11.1.3     SellershallhavedeliveredtoPurchaser,atleastfive(5)BusinessDayspriortotheClosing,AcceptableTenantEstoppels(asdefinedbelow)fromtenantsleasingatleastseventypercent(70%)ofthespaceinthePropertythatissubjecttoaLease,whichmustincludeAcceptableTenantEstoppelsfromthefollowingTenants(the"RequiredTenants"):(a)CampusCrestLease,LLC,(b)MedflowHoldings,LLC,(c)WellsFargoBank,N.A.,(d)DickeyMcCamey,(e)KSQArchitects,PC,and(f)EdwinM.RollinsCompany.An“AcceptableTenantEstoppel”meansaTenantEstoppelexecutedbyaTenantthatis(i)isdatednotmorethanthirty(30)dayspriortotheClosingDate,(ii)statesthattheLeaseisineffect,(iii)doesnotindicatethatadefaultexistsundertherelevantLeaseonthepartofthelandlord,and(iv)doesnotcontainanyinformationthatdeviatesinanymaterialrespectfromtheinformationcontainedintherentrolldeliveredbySellertoPurchaserasapartofSeller'sDeliverables.Notwithstandingtheforegoing,intheeventSellerdeliverstheAcceptableTenantEstoppelsfromtheRequiredTenantsbutcannotforanyreasonobtainasufficientnumberofAcceptableTenantEstoppelsfromotherTenantssoastomeettheforegoingcondition,thenSellermay,atitsoption,electtodelivertoPurchaseratorpriortotheClosingacertificateorcertificatesofSellerintheformofExhibit"F"(the“SellerEstoppel”)withrespecttoTenantsleasinguptofifteenpercent(15%)ofthespaceinthePropertythatissubjecttoaLeaseandthereupontheforegoingprecedentconditioninthisSection11.1.3shallbedeemedsatisfied;provided,however,innoeventmaySellerprovideaSellerEstoppelonbehalfofaRequiredTenant.Seller’sliabilityundereachsuchSeller’scertificatedeliveredinordertomeettheconditionsetforthinthisSection11.1.3shallexpireandbeofnofurtherforceoreffectontheearlierof(A)twohundredseventy(270)daysfollowingtheClosingDateexcepttotheextent, andonlytotheextent, if any,thatPurchasershall havedeliveredtoSellerwrittennoticeduringsuch270‑periodthatdescribesinreasonabledetail abreachorallegedbreachbySellerofsuchSellerEstoppel,and(B)thedatethatPurchaserreceivesanAcceptableTenantEstoppelfromtheapplicableTenant.

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11.1.4 TheTitleCompanyhascommittedtoissuetheOwner’sTitlePolicyuponthedeliveryofalldocumentsrequiredtobedeliveredbyPurchaser,paymentofallcostsrequiredtobepaidbyPurchaser,andthesatisfactionofallconditionsrequiredtobesatisfiedbythePurchaser.

IfanyoftheconditionssetforthinthisSectionarenotsatisfiedasoftheClosingDate,thenPurchasershallhavetheoption,initssoleandabsolutediscretion,to(i)waivetheconditionandproceedtoclosethepurchaseofthePropertycontemplatedhereinandacceptthePropertywithoutthesatisfactionofsuchconditionswithnoreductioninthePurchasePriceor(ii)(A)ifthefailuretosatisfytheconditionresultsfromthedefaultofSeller,exerciseanavailableremedyfordefaultasprovidedinSection12.1below,or(B)ifthefailuretosatisfytheconditiondoesnotresultfromthedefaultofSeller,terminatethisContract,inwhicheventtheEarnestMoneywillbereturnedtoPurchaser,andthepartieswillhavenofurtherobligationsunderthisContractexceptforanyobligationsthatsurviveterminationof this Contract by their express terms. If Purchaser fails to deliver written notice of its election prior to the Closing, then Purchaser shall be deemed to haveelectedtoproceedunderclause(i)above.

11.2         Conditions to Seller's  Obligations  . In addition to anyother conditions to Closingset forth in this Contract, Seller's obligation to close thistransactionissubjecttothesatisfactionorwaiverbySeller,initssoleandabsolutediscretion,ofthefollowingconditions:

11.2.1 AsofClosing,therepresentationsandwarrantiesofPurchasercontainedinSection6.3shallbetrueandcorrect;and

11.2.2 Purchasershallhaveperformed,observedandcompliedwithallcovenants,agreementsandconditionsrequiredbythisContracttobeperformed,observedandcompliedwithbyPurchaserpriorto,orasof,theClosing.

IfanyofsuchconditionsarenotsatisfiedasoftheClosingDate,thenSellershallhavetheoption,initssoleandabsolutediscretion,to(i)exerciseitsremediesunderSection12.2, or (ii) waivetheconditionandproceedtoclosethesaleofthePropertycontemplatedherein. If Seller fails todeliver writtennoticeofitselectionprioratorpriortotheClosing,thenSellershallbedeemedtohaveelectedtoproceedunderclause(ii)above.

12. REMEDIES.

12.1     Default by Seller. IfthetransactioncontemplatedhereinisnotconsummatedbecauseofadefaultonthepartofSellerthatisnotcuredwithinfive(5)BusinessDaysafterwrittennoticefromPurchaser(orifsuchdefaultdoesnotconsistofawillfulactionofSellerandcannotreasonablybecuredwithinsuch5BusinessDayperiod, withinsuchadditional time,nottoexceedanadditional five(5)BusinessDaysasmaybereasonablynecessarytocurethedefault), thenPurchasermayelect,asitssoleremedy,inPurchaser'ssoleandabsolutediscretion,bywrittennoticetoSellertoeither:(a)terminatethisContractandreceivethereturnoftheEarnestMoneyandareimbursementfromSellerofallPurchaser’sreasonableanddocumentedout-of-pocketexpensesactuallyincurredinconnectionwith this Contract (collectively, "Purchaser’s Transaction Expenses") up to a maximum reimbursement of $250,000.00, in which event this Contract shallterminate, the Earnest Money shall be refunded to Purchaser by the Escrow Agent, and upon the receipt by Purchaser of the Earnest Money and Purchaser’sTransactionExpensesneitherpartyshallhaveanyfurtherobligationsunderthisContractexceptunderanyprovisionsthatsurvivetheterminationofthisContractbytheirexpressterms;(b)waivethedefaultandcloseonandtaketitletothePropertyontheClosingDatesubjecttosuchdefaultwithoutanyreductioninthePurchasePrice; or(c) seekspecificperformanceofthisContract providedthat writtennoticeofPurchaser's intent toseekspecificperformanceis deliveredtoSellerwithinthirty(30)daysafterthedatesetforthinthisContractfortheClosingandthespecificperformanceactionisactuallyfiledwithinsixty(60)daysafterthedatesetforthinthisContractfortheClosing.IfwrittennoticeofPurchaser'sintenttoseekspecificperformanceisnotdeliveredtoSellerwithinsuchthirty(30)dayperiod,orifsuchwrittennoticeisgivenbutaspecificperformanceactionisnotfiledpriortotheexpirationofsuchsixty(60)dayperiod,thenPurchasershallbeenconclusivelydeemedtohaveelectedtoobtainareturnoftheEarnestMoney,paymentofthePurchaser’sTransactionExpensesandtoterminatethisContractasprovidedin(a)above.PurchaserwaivesandrelinquishestherighttoanyotherremedyotherthanasspecifiedinthisSection12.1.Notwithstandingtheforegoing,oranyotherprovisioninthisContracttothecontrary,(i)ifthetransactioncontemplatedhereinisnotconsummatedbecauseofadefaultonthepartofSellerthatisnotcuredwithinfive(5)BusinessDaysafterwrittennoticefromPurchaser,(ii)Purchaserseeksspecificperformanceinfullcompliancewiththeforegoing provisions, and (iii) Seller voluntarily transfers and conveys the Property or any portion thereof to another party that makes specific performanceunavailable to Purchaser, Purchaser may bring an action for Purchaser’s damages resulting from such transfer that will be deemed to include the excess ofconsiderationreceivedbySellerinconnectionwithSeller’stransferandconveyanceofPropertytoapartyotherthanPurchaserinexcessofthePurchasePriceandPurchaserwillreceivearefundoftheEarnestMoney.TheexercisebyPurchaserofanyoftheremediessetforthinthisSection12.1shallnotlimitoraffecttheliabilityofSellerunderanyindemnitiescontainedinthisContract,anyobligationsofSellerthatsurvivetheterminationofthisContractbytheirexpressterms,ortherightofeitherpartytorecoverattorneys'fees,costsandexpensesasprovidedinSection12.3below.

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12.2     Default by Purchaser. IfthetransactioncontemplatedhereinisnotconsummatedbecauseofadefaultonthepartofPurchaserthatisnotcuredwithinfive(5)BusinessDaysafterwrittennoticefromSeller,orPurchaserdefaultsinanyofitsobligationshereunder(including,withoutlimitation,abreachinarepresentation,warrantyorcovenant)thatisnotcuredwithinfive(5)BusinessDaysafterwrittennoticefromSeller(orifsuchdefaultdoesnotconsistofawillfulactionofPurchaserandcannotreasonablybecuredwithinsuch5BusinessDayperiod,withinsuchadditionaltime,nottoexceedanadditionalfive(5)BusinessDays as maybe reasonably necessary to cure the default), then Seller shall have the right, as Seller's sole and exclusive remedy except as provided below, toreceivetheEarnestMoneyasliquidateddamagesandinfullandfinalsettlementofanyclaimsordamagesthatSellerhasormayhaveagainstPurchaserexceptasprovidedbelow,anduponthereceiptbySelleroftheEarnestMoneythisContractshallterminateandbeofnofurtherforceoreffect,exceptwithrespecttothoseindemnities and obligations of Purchaser set forth in this Contract which survive termination by their express terms. It is agreed that the damages that will besustainedbySellerintheeventofthePurchaser'sdefaultunderthisContractaredifficultorimpossibletoaccuratelyascertainandtheEarnestMoneyisafairandreasonableestimateofsuchdamagesthereofandisintendednotasapenalty,butasliquidateddamages.ThereceiptbySellerofliquidateddamagesshallnotlimitoraffecttheliabilityofPurchaserunderanyindemnitiescontainedinthisContract,anyobligationsofPurchaserthatsurvivetheterminationofthisContractbytheirexpresstermsortherightofeitherpartytorecoverattorneys'fees,costsandexpensesasprovidedinSection12.3below.

12.3     Attorneys' Fees and Costs. IntheeventeitherpartytothisContractcommenceslegalactionofanykindtoenforceorinterpretthetermsandconditionsofthisContractoranyoftheclosingdocuments,theprevailingpartyinsuchlitigationwillbeentitledtocollectfromtheotherpartyallcosts,expensesandattorneys'feesincurredinconnectionwithsuchaction.ThisSection12.3shallsurviveClosingorterminationofthisContract.

13.     RISK OF LOSS, DESTRUCTION, AND CONDEMNATION.

13.1     Risk of Loss. ExceptasotherwiseprovidedinthisContract,SellershallbeartheriskoflossfordamagetotheProperty,oranypartthereof,fromtheexecutionofthisContractthroughtheClosing.UponClosing,fullriskoflosswithrespecttothePropertywillpasstoPurchaser.IftheRealPropertyoranymaterialportionthereofisdamagedbyanycauseofwhatsoevernaturepriortotheClosing,SellerwillpromptlygivePurchaserwrittennoticeofsuchdamageandSeller'sreasonableestimateofthecosttorepairsuchdamage.

13.2     Casualty.

13.2.1     Major Damage .Ifthecost,inthereasonablejudgmentofacontractorselectedbySellerandreasonablyacceptabletoPurchaser(eachan"AcceptableContractor"),forrepairinganysuchdamageexceeds$500,000,Purchaserwillhavetheoption,inPurchaser'ssoleandabsolutediscretion,exercisablebywrittennoticedeliveredtoSellerwithinfive(5)BusinessDaysofSeller'sdeliverytoPurchaserofnoticeofthedamageandthecosttorepair the same but in all events prior to the Closing, to terminate this Contract. If the scheduled Closing Date is less than five (5) Business DaysfollowingSeller'sdeliveryofnoticetoPurchaserofthedamageandthecosttorepairthesame,atPurchaser'soptiontheClosingshallbedelayedtoallowPurchaser to have five (5) Business Days to deliver a written termination notice in accordance with the foregoing provisions. In the event of theterminationofthisContractbyPurchaserunderthisSection13.2.1, theEarnest Moneywill bepromptlyrefundedtoPurchaserandthereafter neitherpartywillhaveanyfurtherdutiesorobligationshereunderexceptunderprovisionswhichsurvivetheterminationofthisContractbytheirexpressterms.If Purchaser does not exercise such right to terminate prior to the Closing within the period set forth above, then Seller shall convey the Property toPurchaser,initsdamagedcondition,withoutreductionofthePurchasePrice,inwhichevent(a)SelleratClosingshallassigntoPurchaserallofSeller'sright,titleandinterestinandtoanyclaimsSellermayhaveunderthepropertyinsurancepoliciesrelatingtosuchdamagetotheRealPropertyexcludingany claims for Seller's Allocated Proceeds (as defined below), (b) Seller at Closing will pay to Purchaser any property insurance proceeds actuallycollected by Seller prior to the Closing and the applicable amount of Seller's deductible pursuant to the relevant property damage policy that arecollectivelyinexcessofSeller'sAllocatedProceeds,and(c)SellerwillhavenoliabilityorobligationtorepairtheProperty.

13.2.2        Minor Damage. If the cost, in the reasonable judgment of an Acceptable Contractor, for repairing anysuchdamage(exclusive ofrepairs required to be made by tenants under the Leases) does not exceed $500,000.00, then (a) Seller shall convey the Property to Purchaser on theClosingDateinitsdamagedconditionwithoutreductionofthePurchasePriceexceptthatPurchaserat Closingshall receiveacredit foranypropertyinsurance proceeds actually collected by Seller prior to the Closing and the applicable amount of Seller's deductible pursuant to the relevant propertydamagepolicythatarecollectivelyinexcessofSeller'sAllocatedProceeds,(b)SelleratClosingshallassigntoPurchaserallofSeller'sright,titleandinterestinandtoanyclaimsSellermayhaveunderthepropertyinsurancepoliciesrelatingtosuch

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damagetotheRealPropertyexcludinganyclaimsforSeller'sAllocatedProceeds,and(c)SellerwillhavenoliabilityorobligationtorepairorreplacetheProperty.

13.2.3     Seller's Allocated Proceeds . NotwithstandinganythingtothecontraryprovidedinthisContract,Sellershallhavetherighttoreceiveandretainfromtheinsuranceproceeds(whethersuchproceedsarepaidpriortooraftertheClosing)allportionsofthe"Seller'sAllocatedProceeds”(ashereinafter defined) that are in excess of the applicable insurance policy deductibles. If prior to the Closing Seller shall not have received insuranceproceeds equal to the amount bywhichSeller's Allocated Proceeds exceeds the applicable insurance policy deductibles, thenwithin five (5) BusinessDays after Purchaser's receipt of anyinsurance proceeds andwritten documentation evidencing the Seller's Allocated Proceeds Purchaser shall paytoSeller an amount equal to the unpaid Seller Allocated Proceeds in excess of the applicable insurance policy deductibles. The provisions of thisSection13.2.3shallsurvivetheClosing."Seller'sAllocatedProceeds"meanswithrespecttoanycasualty,collectively:(a)thereasonable,out-of-pocketcosts(includingreasonableattorneys'fees)incurredbySellerinconnectionwiththesettlementofanyinsuranceclaimwithrespecttosuchcasualty;(b)theproceedsofanyrentalloss,businessinterruptionorsimilarinsurancethatareallocabletotheperiodpriortotheApportionmentTime;and(c)thereasonable,out-of-pocketcostsincurredbySellerinstabilizing,securingand/orrestoringthePropertyfollowingsuchcasualtyasrequiredbyanyLease.

13.3     Condemnation. IfanycondemnationoreminentproceedingsarecommencedwithrespecttoalloranymaterialportionoftheRealPropertypriortotheClosing,PurchasermayatPurchaser'selectionterminatethisContractpriortotheClosingbywrittennoticetoSellerwithinfive(5)BusinessDaysafterPurchaserhasbeennotifiedofthecommencementofthecondemnationoreminentdomainproceedings.Intheeventofsuchtermination,theEarnestMoneyshallbereturnedtoPurchaseranduponsuchreturnneitherSellernorPurchaserwillhaveanyfurtherobligationsunderthisContractexceptunderanyprovisionsthatsurvive the termination of this Contract by their express terms. If Purchaser does not exercise such right to terminate prior to the Closing within the periodprescribed,thenSellershallatClosingassigntoPurchaserallright,titleandinterestofSellerinandtoanyawardmadeinconnectionwithsuchcondemnationoreminentdomainproceedingsandpaytoPurchaseranyproceedsthereofreceivedpriortotheClosingexcludinganyportionthereofthatisallocabletolossofuseofthePropertypriortotheApportionmentTime;provided,however,theClosingshallnotbedelayedbyreasonofanysuchproceedingsandthePurchasePriceshall not be reduced as a result thereof. A portion of the Property shall be deemed to be material under this Section 13.3only if an Acceptable Contractor’sreasonableestimateofthediminutioninvalueofthePropertyresultingfromtheeminentdomainproceedingsexceeds$225,000.00.

13.4          Closing  . Purchaser shall have no further rights against Seller after the Closing in connection with any damage to the Property or anycondemnationoreminentdomainproceeding.

14.     REAL ESTATE COMMISSIONS AND FEES.SellerrepresentsandwarrantstoPurchaserthatSellerhasnotdealtwith,orenteredintoanyagreementwith,anyrealestatebroker,agent,finder,orany

party in connection with the transaction contemplated hereby other than Trinity ("Seller’s Broker") and Jones LaSalle Brokerage, Inc. ("Purchaser's Broker,"togetherwithSeller'sBroker,the"Brokers").PurchaserherebyrepresentsandwarrantstoSellerthatPurchaserhasnotdealtwith,orenteredintoanyagreementwith,anyrealestatebroker,agent,finder,oranypartyinconnectionwiththetransactioncontemplatedherebyotherthanthe"Brokers".SellershallpaytoBrokersanycommissionpayableinconnectionwiththeclosingofthesaleunderthisContractpursuanttoaseparateagreementbetweenoramongSellerandBrokers.Eachpartyherebyindemnifiesandagreestoholdtheotherpartyharmlessfor,fromandagainstanyloss,liability,damage,cost,orexpense(including,withoutlimitation,reasonableattorneys'fees)paidorincurredbytheotherpartybyreasonofabreachoftherepresentationandwarrantyoranyagreementmadebysuchindemnifyingpartyunderthisSection14.TheprovisionsofthisSection14willsurvivetheClosingorterminationofthisContract.

15.     NOTICES.

15.1     Written Notice. Allnotices,demandsandrequestswhichmaybegivenorwhicharerequiredtobegivenbyeitherpartytotheotherpartyunderthisContractmustbeinwritingandmustbesentbyUnitedStatescertifiedorregisteredmail,postagefullyprepaid,returnreceiptrequested,orbyelectronicmail(email), or by Federal Express or a similar nationally recognized overnight courier service, or by facsimile with a confirmation copydelivered bya nationallyrecognizedovernightcourierservice.Noticewillbeconsideredeffectiveonactualreceipt(or,ifdeliveryofanyproperlyaddressednoticeisrefusedorisunabletobedelivered,uponthedateofsuchrefusalortheattempteddelivery).Noticesentbyfacsimilewillbeeffectiveontheactualreceiptofthefacsimile(notthedateofthereceiptoftheconfirmationcopy).TherespectiveattorneysforSellerandPurchaserareauthorizedtogiveandreceiveanynoticesrequiredorpermittedtobesenthereunder.

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15.2     Addresses. TheaddressesforpropernoticeunderthisContractareasfollows:

Seller: Purchaser:

RexfordParkInvestors,LLCc/oGreenstreetRealEstatePartners,L.P.Attn:JeffreyA.Safchik2601S.BayshoreDrive,Suite900Miami,FL33133Office:(305)858-4225Facsimile:(305)858-2334Email:jsafchik@greenstreetpartners.com

LendingTree,LLC11115RushmoreDriveCharlotte,NC28277Attn:CFOCopyto:GeneralCounselEmail:Gabriel.Dalporto@lendingtree.comandKatharine.Pierce@lendingtree.com

withacopyto: withacopyto:SherryA.Stanley,P.A.6821CamarinSt.CoralGables,FL33146Attn:SherryA.Stanley,Esq.Facsimile:305-514-0606Email:sstanley@sastanleylaw.com

Moore&VanAllen,PLLC100N.TryonStreet,Suite4700Charlotte,NC28202Attn:EvanBassEmail:evanbass@mvalaw.com

ESCROWAGENT: ChicagoTitleInsuranceCompany200S.TryonStreet,Suite800Charlotte,NC28202Attention:ScottMansfieldEmail:scott.mansfield@ctt.com

EitherpartymayfromtimetotimebywrittennoticedeliveredinaccordancewithSection15.1designateadifferentaddresstotheotherparty.

16. NO ASSIGNMENT.

NeitherpartyshallbeentitledtoassignthisContractwithoutthepriorwrittenconsentoftheotherparty;provided,however,thatPurchasermayassignthis Contract, without Seller's consent, to an entity controlled by or under common control with Purchaser so long as such assignee assumes in writing allobligationsofPurchaserhereunderandPurchaserdeliverstoSelleracopyofsuchfullyexecutedassignmentandassumption(whichshallsetforththerelationshipoftheassigneetoPurchaser)atleastfive(5)BusinessDayspriortoClosing.PurchasershallremainliableunderthisContractfollowinganyassignment.

17. MISCELLANEOUS.

17.1     Entire Agreement. ThisContractcontainstheentireagreementbetweenthepartiesrelatingtothetransactioncontemplatedherebyandallpriororcontemporaneousagreements,understandings,representationsorstatements,oralorwritten,aresupersededhereby.

17.2     Gender and Number. WordsofanygenderusedinthisContractwillbeconstruedtoincludeanyothergenderandwordsinthesingularnumberwillbeconstruedtoincludetheplural,andviceversa,unlessthecontextrequiresotherwise.

17.3     Captions. ThecaptionsusedinconnectionwiththesectionsandsubsectionsofthisContractareforconvenienceofreferenceonlyandwillnotbedeemeddefine,describe,expandorlimitthemeaningofthelanguageofthisContract.

17.4          Successors  and  Assigns.  This Contract will be binding upon and inure to the benefit of the parties hereto and their respective legalrepresentatives,successorsandpermittedassigns.Nothirdparty,otherthanEscrowAgent,shallbeathirdpartybeneficiaryofthisContract.

17.5     Counterparts. ThisContractmaybeexecutedbySellerandPurchaserinseparateidenticalcounterpartsorcounterpartsignaturepagesattachedtothe same Contract, and such counterparts, when taken together, or this Contract with all counterpart signature pages will constitute but one and the sameinstrument.Thepartiesauthorizeeachothertodetachandcombineoriginalsignaturepagesandconsolidatethemintoasingleoriginalagreement.AcopyofthisContractorcounterparthereof

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executedbyanypersonorentitythatistransmittedbyfacsimile,emailorotherelectronicmeansshallhavethesamebindinglegaleffectasanoriginallysignedcopyofthisContract.

17.6     Controlling Law; Venue. ThisContractwillbeconstruedunder,governedbyandenforcedinaccordancewiththelawsoftheStateofNorthCarolina,withoutreferencetothelawsofanyotherstate.VenueforanylitigationrelatingtothisContractshallbeinMecklenburgCounty,NorthCarolina.

17.7         Exhibits. Allexhibits, schedules, attachments, annexed instruments and addenda referred to herein will be considered a part hereof for allpurposeswiththesameforceandeffectasifsetforthinfullherein.

17.8     No Rule of Construction. SellerandPurchaserhaveeachbeenrepresentedbycounselandbothSellerandPurchaserhaveparticipatedinthenegotiationsandpreparationofthisContract.Therefore,thisContractwillbedeemedtobedraftedbybothSellerandPurchaser,andnoruleofconstructionwillbeinvokedrespectingtheauthorshipofthisContract.Accordingly,shouldanyprovisionofthisContractrequirejudicialinterpretation,thecourtinterpretingorconstruingsuchprovisionshallnotapplytheruleofconstructionthatadocumentoranyprovisionthereofistobeconstruedmorestrictlyagainstonepartyasaresultoftheauthorshipofsuchprovision.

17.9     Severability. AllagreementsandcovenantscontainedinthisContractareseverable. Intheeventanyprovisioncontainedhereinisheldtobeinvalidbyanycourt, this Contract will beinterpretedasif suchinvalidprovisionwerenotcontainedhereinandall remainingprovisionsofthis Contract shallremaininfullforceandeffect.

17.10     Construction of Words. Theword"any"willbeconstruedas"anyandall."Theword"including"willbeconstruedas"includingbutnotlimitedto." The words "herein", "hereof", "hereunder" and other words of similar import shall refer to this entire Contract and not to any particular article, section orparagraphofthisContractunlessotherwisespecificallyprovided.

17.11     Time of Essence. TimeisimportanttobothSellerandPurchaserintheperformanceofthisContract,andbothpartieshaveagreedthattimeisoftheessenceunderallprovisionsofthisContract.

17.12     Time Periods. Alltimeperiodsshallbemeasuredincalendardaysunlessotherwisespecifiedtothecontrary,exceptthatifthefinaldateofanyperiodspecifiedinthisContractfallsuponadaywhichisnotaBusinessDay,then,andinsuchevent,thetimeofsuchperiodwillbeextendedtothenextBusinessDay.WheneverusedinthisContract,"BusinessDay"meansanyday,otherthanaSaturdayorSunday,onwhichbanksareopenforthetransactionofbankingbusinessinCharlotte,NorthCarolina,andMiami,Florida.

17.13     Waivers; Modifications . Nowaiver,modification,amendment,discharge,orchangeofthisContractshallbevalidunlessthesameisinwritingandsignedbythepartyagainstwhichtheenforcementofsuchmodification,waiver,amendment,discharge,orchangeissought.

17.14     No Recordation . NeitherthisContractnoranymemorandum,affidavitorotherdocumentreferencingthisContractshallberecordedbyorattherequestofPurchaserinanypublicrecords. ShouldPurchasereverrecordorattempttorecordthisContract, oramemorandum,affidavit orotherdocumentreferencingthisContract,then,notwithstandinganythinghereintothecontrary,saidrecordationorattemptatrecordationshallconstituteadefaultbyPurchaserand,inadditiontotheotherremediesprovidedforherein,Sellershallbeentitledtoallrightsavailableatlaworinequity.

17.15     No Survival Except as Specified . ExceptasotherwiseexpresslyprovidedinthisContract,noagreementsandotherobligationsofSellerandPurchaserinthisContractshallsurvivetheClosingandnoactionbasedonanyprovisionthatdoesnotsurvivetheClosingshallbecommencedaftertheClosing.

17.16     Survival . TheprovisionsofSections17shallsurviveanyterminationofthisContractandshallsurvivetheClosing.

18.     CONFIDENTIALITY.

PurchaserandSellereachherebyagreetoholdallinformationrelatedtothistransactioninstrictconfidence,andwillnotdisclosesametoanypersonotherthanaffiliates,partners,members,directors,officers,employeesandagentsofeach,ortoconsultants,attorneys,accountants,lenders,banksorotherthirdparties working with the respective party in connection with the transaction who need to knowsuch information for the purpose of performing the respectiveparty’sobligationsunderthisContractandconsummatingthetransactionscontemplatedhereby(thepersonsorentitiestowhicharespectivepartyispermittedtodisclose

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arecollectivelycalledsuchparty’s"Representatives")providedthatallsuchRepresentativesagreetoholdsuchinformationinstrictconfidenceinaccordancewiththisSection18(withPurchaserandSellereachbeingliableforanydisclosureinviolationofthisSection18byanyoftheirrespectiveRepresentatives),exceptthatnotwithstanding the foregoing, (a) Seller, Purchaser and their Representatives shall be allowed to disclose information pertaining to the transaction as may beappropriatetocomplywithitsobligationsunderthisContract,tosatisfyanyconditionsprecedenttotheClosing,andasmayotherwisebereasonablyappropriatein connection with the transaction, and (b) Purchaser shall be allowed to identify itself as a potential acquirer of the Property in connection with obtaininginformationandreportsfromthirdpartiesotherthantenants.PriortoClosing,anyreleasetothepublicofinformationwithrespecttothematterssetforthinthisContract will be made only in the form approved by Purchaser and Seller and their respective counsel. This Section 18 shall survive any termination of theContract andshall supersede andreplace the obligations of either party under anyseparate confidentiality or non-disclosure agreement executed bysuchparty(which are hereby terminated and of no further force or effect); provided, however, that the terms and conditions of this Section 18 shall terminate upon theconveyanceofthePropertytoPurchaserpursuanttothisContract.Notwithstandinganythingtothecontrary,PurchaserandSellermayeachdiscloseinformationandthetermsofthistransactioninresponsetolawfulprocessorsubpoenaorothervalidorenforceableorderofacourtofcompetentjurisdictionorasotherwiserequiredbylaw(includingasrequiredbyPurchaserunderanyapplicableSecuritiesandExchangeCommissionrulesorregulations)providedthat,totheextentnotprohibitedbylaw,thedisclosingpartyshalldeliverwrittennoticetotheotherpartypromptlyuponreceiptofanylegalprocess,subpoena,ororderandinadvanceof any disclosure in order to enable such other party to attempt to limit or eliminate the required disclosure or require confidential treatment of any disclosedinformation.

19.     IRS REPORTING REQUIREMENTS.

ForthepurposeofcomplyingwithanyinformationreportingrequirementsorotherrulesandregulationsoftheInternalRevenueService("IRS")thatareormaybecomeapplicableasaresultoforinconnectionwiththetransactioncontemplatedbythisContract, including,butnotlimitedto,anyrequirementssetforthinproposedIncomeTaxRegulationSection1.6045-4andanyfinalorsuccessorversionthereof(collectivelythe"IRSReportingRequirements"),SellerandPurchaser herebydesignate andappoint the Title Companyto act as the "ReportingPerson"(as that termis definedin the IRSReporting Requirements) to beresponsible forcomplyingwithanyIRSReportingRequirements. TheTitle Companyherebyacknowledgesandaccepts suchdesignationandappointment andagreestofullycomplywithanyIRSReportingRequirementsthatareormaybecomeapplicableasaresultoforinconnectionwiththetransactioncontemplatedbythisContract.WithoutlimitingtheresponsibilityandobligationsoftheTitleCompanyastheReportingPerson,SellerandPurchaserherebyagreetocomplywith any provisions of the IRS Reporting Requirements that are not identified therein as the responsibility of the Reporting Person. The provisions of thisSection19willsurvivetheClosing.

20.     Tax Deferred Exchange .

20.1     Cooperation . SelleragreestoreasonablycooperatewithPurchaser,atnoexpenseorliabilitytoSeller,toallowPurchasertoeffectuatea1031taxdeferredexchange("Exchange")inconnectionwiththeRealProperty;provided,however,thatsuchcooperationshallbesubjecttotheprovisionsofSection20.2belowandinnoeventshall SellerbeobligatedtotakeanyactionthatwoulddelaytheClosingorresult inanyincreasedobligationsorliabilitiestotheSeller.SellerconsentstotheassignmentofthisContractbythePurchasertoanexchangeaccommodatorforthesolepurposeofcompletingsuchExchange.ItisexpresslyagreedbythepartiesheretothatPurchaser'sinabilitytoobtainthedesiredtaxtreatmentforanyExchangeshallnotaffecttheenforceabilityofthisContractandthatnothinghereinshallbeconstruedasarepresentationorwarrantybyapartythattheotherpartywill,infact,beeligibleforanyofthebenefitsofanExchange.

20.2         Additional  Agreements  . Purchaser shall bear all costs of the Exchange. Purchaser hereby agrees to indemnify, defend and hold the Sellerharmlessfromandagainstall liabilities(including,withoutlimitation,Seller'sattorneys' feesandcosts)arisingasaresultoftheExchangethatwouldnothavearisenhadthePurchasernotclosedthetransactioncontemplatedherebyaspartofalike-kindExchange.AnythinginthisSectiontothecontrarynotwithstanding:(i)SellermakesnorepresentationorwarrantytoPurchaserastotheeffectivenessortaximpactofanyproposedExchange;(ii)innoeventshallSellerberequiredtotaketitletoanyexchangeorreplacementproperty;(iii)PurchasershallprovidetoSellercopiesofalldocumentsthataretobeexecutedbySellernolessthanseven(7)BusinessDayspriortotheClosingDate;(iv)innoeventshallcompletionofanysuchExchangebeacauseorexcuseforanydelayintheClosing;(v)SellershallberequiredtoincuranycostsorexpensesorincuranyadditionalliabilitiesorobligationsinordertoaccommodateanyExchangerequestedbythePurchaseroranyexchangefacilitator;and(vi)PurchaseragreestouseaqualifiedintermediarytoconducttheExchange.

[SignaturePageFollows]

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INWITNESSWHEREOF,thisPurchaseandSaleContractwasexecutedasoftherespectivedatessetforthbelow:

SELLER :

REXFORDPARKINVESTORS,LLC,aDelawarelimitedliabilitycompany

Date:October17,2016 By:/s/JeffreyA.SafchikName:JeffreyA.SafchikTitle:President

PURCHASER :

LENDINGTREE,LLC,aDelawarelimitedliabilitycompanyDate:October17,2016 By:/s/GabrielDalporto

Name:GabrielDalportoTitle:ChiefFinancialOfficer

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JOINDERBYESCROWAGENT

The undersigned, Chicago Title Insurance Company (referred to in this Contract as the "Escrow Agent"), hereby acknowledges that it received thisContract executedbySeller andPurchaser onthe_____dayof October, 2016, andaccepts theobligations of EscrowAgent as set forth herein. EscrowAgentagreesthatitwillholdtheEarnestMoneyinaccordancewiththisContract.

CHICAGO TITLE INSURANCE COMPANY

By:_______________________________________________________Name:Title:

ScheduleofExhibits:

Exhibit"A"Exhibit"B"Exhibit"C"Exhibit"D"Exhibit"E"Exhibit"F"Exhibit"G"Exhibit"H"Exhibit"I"Exhibit"J"Exhibit"K"Exhibit"L"Exhibit"M"Exhibit"N"

--------------

LegalDescriptionTenantsandThirdPartiesunderPropertyAgreementsandInformationPertainingtotheLeasesExistingExceptionsSeller'sDeliverablesEstoppelLetterSellerEstoppelLetterSpecialWarrantyDeedAssignmentandAssumptionofLessor'sInterestinLeasesBillofSaleandGeneralAssignmentCertificateofNon-ForeignStatusNotificationLetterSeller'sAffidavitRentRollSecurityDeposits

EXHIBIT "A"

LEGAL DESCRIPTION OF THE LAND

ParcelOne:

TOGETHERWITHTHEREALPROPERTYDESCRIBEDONTHEFOLLOWINGPAGE:

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ParcelTwo:

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[***] - Confidential portions of this document have been redacted and filed separately with the Commission.

EXHIBIT "B"

TENANTS AND THIRD PARTIES UNDER PROPERTY AGREEMENTS

AND INFORMATION PERTAINING TO THE LEASES

Tenants and Information Pertaining to the Leases :

Tenants as of Effective Date:[***][***][***][***][***][***][***][***][***][***][***][***][***][***][***][***][***]

Tenant improvements not yet completed:[***][***][***]

Unpaid brokerage commissions:[***][***][***][***][***][***]

Tenants that have paid rent for more than one month in advance:[***][***]

Third Parties under Property Agreements :[***][***][***][***][***][***][***][***][***][***][***]

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EXHIBIT "C"

EXISTING EXCEPTIONS

1.Taxesandassessments,orinstallmentsthereof,thatarenotyetdueandpayable;

2. TheLeasesandanymemoranda(orshortforms)thereofandtherightsandclaimsofalltenantsthereunderandtheirsuccessors,assignsandsubtenants;

3.Thefollowingexceptions:

(a) ThelienofalltaxesfortheyearofClosing,whicharedueandpayablebutnotyetdelinquent,andsubsequentyears;

(b) Buildingrestrictionlines,easements,andanyothermattersshownonmaporplatrecordedinMapBook24,Page679;

(c) TitletothatportionoftheLandwithintheboundsofRexfordRoad;

(d) intentionallyomitted;

(e) Riparianrightsofothersincidenttoanybranches,creeks,streamsorotherwaterscoursingtheLand;

(f) Easement(s)orright(s)-of-wayinfavoroftheCityofCharlotterecordedinBook4321,Page312;

(g) RightsorclaimsofAT&TWireless PCS,LLCinpossessionastenant underanunrecordedlease, aMemorandumorShort FormevidencingsamebeingrecordedinBook16430,Page297;

(h) Easement(s)orright(s)-of-wayinfavoroftheCityofCharlotterecordedinBook3161,Page256;

(i) Easement(s)orright(s)-of-wayinfavoroftheCityofCharlotterecordedinBook4321,Page306;

(j) Easement(s)orright(s)-of-wayinfavorofDukePowerCompanyrecordedinBook3941,Page540;

(k) Easement(s)orright(s)-of-wayinfavorofDukePowerCompanyrecordedinBook3947,Page805;

(l) Easement(s)orright(s)-of-wayinfavorofSouthernBellTelephoneandTelegraphCompanyrecordedinBook878,Page306;and

(m) Easement(s)orright(s)-of-wayinfavorofICGAccessServices,Inc.recordedinBook7773,Page523;

(n) DrivewayEasementNumberOneandDrivewayEasementNumberTwoasreservedindeedrecordedinBook4400,Page73;asassignedinBook4703,Page325,astoDrivewayEasementNo.One;andfurtherassignedinrecordedinBook4453,Page521,astoDrivewayEasementNo.Two;and

(o) The following maters (s) as shown on survey by Jimmy F. Cain, PLS, dated November 12, 2015, and any easement(s) or right(s)-of-wayassociatedtherewith:

a. Variousutilitylineswithmanholes; drainageinlets; firehydrants; securitylights; powerpoles; watermeters; water valves; power

boxes;andtelephonepedestalslocatedontheLand;and

b.DrainagepondlocatedinthenorthernportionofParcelTwo.

4. AllmattersthatarerevealedbythefollowingsurveyoftheProperty:SurveypreparedbyJimmyF.Cain,PLS,datedNovember12,2015

5. Allzoningandgovernmentalrestrictionsand/orregulationspertainingtotheProperty;

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6. Anyfeesandcharges(suchaslicensefees)requiredtobepaidbyanyTenantofthePropertypursuanttoitsLease;and

7.AnymattersresultingfromPurchaser'sactionsorentryontotheProperty.

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EXHIBIT "D"

SELLER'S DELIVERABLES

1. TheOwner'sPolicyofTitleInsuranceissuedinconnectionwithSeller'sacquisitionoftheLand;2. PlansandspecificationsoftheImprovements;3. Operatingstatementsfrom2014,2015andYTD2016;4. PropertyconditionreportsormaintenancereportspreparedbythirdpartyinspectionsorengineersonbehalfofSellerregardingtheImprovementsand/or

HVACservicingsaidImprovements;5. SurveyofthePropertypreparedforSeller;6. Any written correspondence with Seller and any governmental entity regarding any streetscape plans or drainage improvement plans relative to the

Property;7. AcopyofallLeases;8. AcopyofallPropertyAgreements;and9. EnvironmentalreportspreparedforSellerrelativetotheProperty.

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EXHIBIT "E"

ESTOPPEL LETTER

Attn:________________________________________________________________________

Theundersigned,_____________ ,a_____________(the“Tenant”),herebycertifiesto________________________anditsaffiliates(collectively,“Purchaser”)andPurchaser'slenders(“Lenders”)(collectively,the“InterestedParties”)thefollowing:

(1) The Tenant is the tenant under that certain ______________, whereby the Tenant is leasing certain premises containing approximately______squarefeetandlocatedat____________________(the“Premises”)inthebuilding(“Building”)commonlyknownas____________,from_______________,aslandlord(the“Landlord”),successor-in-interestto______________.Atrue,correctandcompletecopyofthelease,includingallamendments,supplements,modificationsandassignments(collectively,the“Lease”)isattachedheretoasExhibitA.

(2)TheLeaseisinfullforceandeffectandhasnotbeenmodified,amended,supplementedorassigned,exceptassetforthintheattachedExhibitA.TheLeaseistheentireagreementbetweentheLandlordandtheTenantwithrespecttothePremisesandtherearenootheragreements(writtenororal)betweentheLandlordandtheTenantotherthantheLease.

(3)TenanthasperformedallofitscurrentobligationsundertheLeaseandTenantisnotindefaultundertheLease.TenanthasnotreceivedanynoticefromLandlordofadefaultbyTenantundertheLease,and,toTenant'sknowledge,therearenoeventswhichhaveoccurredthatwiththegivingofnoticeorthepassageoftimeorboth,wouldresultinadefaultbyTenantundertheLease.

(4)TherearenouncureddefaultsonthepartoftheLandlordundertheLease,TenanthasnotsentanynoticeofdefaultundertheLeasetotheLandlord,andtherearenoeventswhichhaveoccurredthat,withthegivingofnoticeorthepassageoftimeorboth,wouldresultinadefaultbyLandlordthereunder,andatthepresenttimeTenanthasnoclaimagainstLandlordundertheLease.

(5) Thecurrent termof theLeaseis scheduledtoexpire on_____________. TheTenant hasthefollowingoptionstorenewthetermof theLease:_____________.

(6) The current monthly base rent under the Lease is $____________________. The Tenant has paid rent under the Lease through____________________.Tenanthasnocharge,lien,claimofset-offordefenseagainstrentsorotherchargesdueortobecomedueundertheLeaseorotherwiseunderanyoftheterms,conditions,orcovenantscontainedtherein.

(7)Exceptfor___________________________,Tenanthasnotpaid,andfromandafterthedatehereof,Tenantwillnotpay,anyrentundertheLeaseformorethanthirty(30)daysinadvanceofitsduedate.

(8)Tenanthasnotreceivedanyconcession(rentalorotherwise)exceptassetforthintheLease,norisTenantawareorhaveknowledgeofanyfutureconcession(rentalorotherwise),inconnectionwithrentingthePremisesexceptassetforthintheLease.

(9)NocommissionorotherpaymentiscurrentlyduetoanyrealestatebrokerbyTenantinconnectionwiththeleasingofthePremisestoTenantandtherearenoagreements,oralorwritten,underwhichrealestatebrokerisentitledtoanyfuturepaymentorcommissionbyTenantinconnectionwiththeleasingofthePremisestoTenantexceptasfollows:_________________.

(10) [Tenant is required under the Lease to pay its pro rata share of operating expenses over the operating expenses for the base year of______________,andiscurrentlypayinganestimatedamountof$_________permonth.TOBEINCLUDEDONLYIFAPPLICABLE]

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(11)TheLandlordisholdingasecuritydepositundertheLeaseintheamountof_____________.TenanthasnotreceivedanynoticefromLandlordthatalloranyportionofthesecuritydeposithasbeenappliedagainstanyofTenant'sobligationsundertheLease.

(12)ThereisnotpendingnorthreatenedagainstorcontemplatedbyTenant,anypetitionofbankruptcy,whethervoluntaryorotherwise,anyassignmentforthebenefitofcreditors,oranypetitionseekingreorganizationorarrangementsunderthefederalbankruptcylawsorthoseofanystate.

(13) Tenant has not subleased any part of the Premises and Tenant occupies, and is in sole possession of the Premises, except asfollows:____________________________.

(14)TenanthasacceptedthePremisesandLandlordhascompletedallconstruction,alterationsandimprovementsrequiredunderthetermsoftheLeasetobecompletedbyLandlordexceptassetforthbelowandhaspaidanyandallallowancesorinducementswhicharepayablebyLandlordundertheLeaseexceptasfollows:___________________________________.

(15)TenanthasnooptionsorrightsoffirstofferorrefusalwithrespecttopurchasingalloranyportionoftheBuildingortherentingofadditionalspaceintheBuildingexcept as follows: ____________________. Tenant hasnoright or optiontoterminate its Leasewithrespect to all or anyportionof thePremisesexceptassetforthintheLease.

ThisEstoppelCertificateisbeingprovidedbytheundersigned,asTenant,totheInterestedParties.Tenantagreesthattheinformationandrepresentationscontained herein may be, and is being, relied upon by the Interested Parties; and all such persons shall be entitled to rely on and to have the benefit of theassurancestomatterssetforthinthiscertification.Wherenoinformationhasbeeninsertedonanyblankhereof,theblankshallbedeemedtoread“NONE”.

ThepersonexecutingthiscertificationonbehalfofTenantisdulyauthorizedtoandhasthelegalcapacityexecutethiscertification,andthiscertificationisandshallbebindingontheTenant,itssuccessors,assignsandrepresentativesandanypartyclaimingthroughorunderTenantandshallinuretothebenefitofPurchaserandLenders.

WITNESSthefollowingsignature:

____________________,a___________________

By:_____________________________Name:__________________________Its:_____________________________

Date:________________________

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EXHIBIT "F"

SELLER ESTOPPEL LETTER

_______________

To:_________________________________________________________

The undersigned, Rexford Park Investors, LLC, a Delaware limited liability company (the “ Landlord ”), hereby certifies to___________________________andits affiliates (collectively, “Purchaser”) andPurchaser's lenders (“Lenders”)(collectively,the“InterestedParties”)thefollowing:

1. ____________________________ (the "Tenant") is the tenant under that certain ______________, whereby the Tenant is leasing certain premisescontainingapproximately______ squarefeetandlocatedat____________________(the“Premises”)inthebuilding(“Building”)commonlyknownas____________,fromLandlord,aslandlord[successor-in-interestto______________].Atrue,correctandcompletecopyofthelease, includingallamendments,supplements,modificationsandassignments(collectively,the“Lease”)isattachedheretoasExhibitA.

2. TheLeaseisinfullforceandeffectandhasnotbeenmodified,amended,supplementedorassigned,exceptassetforthintheattachedExhibitA.TheLease is the entire agreement between the Landlord and the Tenant with respect to the Premises and there are no other agreements (written or oral)betweentheLandlordandtheTenantotherthantheLease.

3. NeithertheLandlordnor,totheLandlord’sKnowledge(asdefinedbelow),theTenantisindefaultundertheLease.

4. The current term of the Lease is scheduled to expire on _____________. The Tenant has the following options to renew the term of the Lease:_____________.

5. The current monthly base rent under the Lease is $_______________. The Tenant has paid rent under the Lease through ______________________.Tenanthasnocharge,lien,claimofset-offordefenseagainstrentsorotherchargesdueortobecomedueundertheLeaseorotherwiseunderanyoftheterms,conditions,orcovenantscontainedtherein.

6. LandlordhasnotreceivedfromTenantanyrentundertheLeaseformorethanthirty(30)daysinadvanceofitsduedate.

7. Landlordhasnotprovidedanyconcession(rentalorotherwise)exceptassetforthintheLease,nortoLandlord'sKnowledgedoesanyfutureconcession(rentalorotherwise)existinfavorofTenantinconnectionwithrentingthePremisesexceptassetforthintheLease.

8. NocommissionorotherpaymentiscurrentlyduetoanyrealestatebrokerbyLandlordinconnectionwiththeprimarytermoftheLeaseandtherearenoagreements,oralorwritten,underwhichrealestatebrokerisentitledtoanyfuturepaymentorcommissionbyLandlordinconnectionwiththeleasingofthePremisestoTenantexceptasfollows:_____________________.

9. [TenantisrequiredundertheLeasetopayitsproratashareofoperatingexpensesovertheoperatingexpensesforthebaseyearof______________,andiscurrentlypayinganestimatedamountof$_________permonth.TOBEINCLUDEDONLYIFAPPLICABLE]

10. TheLandlordisholdingasecuritydepositundertheLeaseintheamountof_____________.LandlordhasnotprovidedanynoticetoTenantthatalloranyportionofthesecuritydeposithasbeenappliedagainstanyofTenant'sobligationsundertheLeaseexceptasfollows:___________________.

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11. ToLandlord'sKnowledge,thereisnotpendingnorthreatenedagainstTenantanypetitionofbankruptcy,whethervoluntaryorotherwise,anyassignmentforthebenefitofcreditors,oranypetitionseekingreorganizationorarrangementsunderthefederalbankruptcylawsorthoseofanystate.

12. ToLandlord'sKnowledge,TenanthasnotsubleasedanypartofthePremisesandTenantoccupies,andisinsolepossessionofthePremises,exceptasfollows:____________________________.

13. TenanthasacceptedthePremisesandLandlordhascompletedallconstruction,alterationsandimprovementsrequiredunderthetermsoftheLeasetobecompletedbyLandlordexceptassetforthbelowandhaspaidanyandall allowancesorinducementswhicharepayablebyLandlordundertheLeaseexceptasfollows:___________________________________.

14. TenanthasnooptionsorrightsoffirstofferorrefusalwithrespecttopurchasingalloranyportionoftheBuildingortherentingofadditionalspaceintheBuilding except as follows: ____________________. Tenant has no right or option to terminate its Lease with respect to all or any portion of thePremisesexceptassetforthintheLease.

This Estoppel Certificate is being provided by the undersigned, as Landlord, to the Interested Parties. Landlord agrees that the information andrepresentationscontainedhereinmaybe,andisbeing,relieduponbytheInterestedParties;andallsuchpersonsshallbeentitledtorelyonandtohavethebenefitoftheassurancestomatterssetforthinthiscertificationsubjecttothetermsandconditionscontainedherein.Wherenoinformationhasbeeninsertedonanyblankhereof,theblankshallbedeemedtoread“NONE”.

“Landlord’s Knowledge” means the actual knowledge of Bradley Safchik, without imposing any duty of investigation or personal liability on suchindividual,andshallnotincludeanyimputed,impliedorconstructiveknowledgeofsuchindividual.

Notwithstanding anything to the contrary provided herein, the liability of Landlord hereunder shall terminate on the first to occur of (i) two hundredseventydays(270)after theacquisitionof theproperty byPurchaser except totheextent, andonlytotheextent, if any, that Purchaser shall havegivenSellerwrittennoticeduringsuch270-dayperiodwhichdescribesinreasonabledetailthebreachorallegedbreachofsuchrepresentationsandwarrantiesbySelleror(ii)deliveryofatenantestoppelexecutedbytheTenantthatisconsistentwiththematterssetforthherein.

Verytrulyyours,

REXFORDPARKINVESTORS,LLC

By:_____________________________Name:Title:

2

EXHIBIT "G"

SPECIAL WARRANTY DEED

ExciseTax:__________________________________________________________________________________________

TaxParcelIDNo.________________________________Verifiedby_____________________________________County

onthe____dayof___________________,20____By:______________________________________________________

Mail/Boxto:_________________________________________________________________________________________

Thisinstrumentwaspreparedby:_________________________________________________________________________

BriefdescriptionfortheIndex:___________________________________________________________________________

THISDEED,madethisthe_____dayof_________________________,20_____,byandbetween

GRANTOR: _________________________________________________________________________________________whosemailingaddressis________________________________________________________________and_________________________________________________________________________________________whosemailingaddressis_____________________________________________________________________(hereinreferredtocollectivelyas“Grantor ”)and

GRANTEE: _________________________________________________________________________________________whosemailingaddressis_________________________________________________________________and_________________________________________________________________________________________whosemailingaddressis_____________________________________________________________________(hereinreferredtocollectivelyas“Grantee ”)and

[Include mailing address for each Grantor and Grantee; marital status of each individual Grantor and Grantee; and type of entity, e.g., corporation, limitedliability company, for each non-individual Grantor and Grantee.]

WITNESSETH:

ForvaluableconsiderationfromGranteetoGrantor,thereceiptandsufficiencyofwhichisherebyacknowledged,Grantorherebygives,grants,bargains,sellsandconveys unto Grantee in fee simple, subject to the Permitted Exceptions hereinafter provided, if any, the following described property located in the City ofCharlotte,CountyofMecklenburg,StateofNorthCarolina,moreparticularlydescribedasfollows:

SeeExhibit A attachedheretoandmadeaparthereof

Said property having been previously conveyed to Grantor by instrument(s) recorded in Book _____, Page _____, and being reflected on plat(s) recorded inMap/PlatBook_____,page/slide_____.

Alloraportionofthepropertyhereinconveyed___includesor___doesnotincludetheprimaryresidenceofaGrantor.

TOHAVEANDTOHOLDuntoGrantee,togetherwithallprivilegesandappurtenancesthereuntobelonging,infeesimple,subjecttothePermittedExceptionshereinafterandhereinaboveprovided,ifany.

AndGrantorherebywarrantsthat,exceptforthePermittedExceptions,(a)GrantorhasdonenothingtoimpairthetitleasreceivedbyGrantorand(b)Grantorwillforeverwarrantanddefendthetitleagainstthelawfulclaimsofallpersonsclaimingby,throughorunderGrantor.

1

ThisconveyanceismadesubjecttothefollowingPermittedExceptions:

SeeExhibit B attachedheretoandmadeaparthereof

AllreferencestoGrantorandGranteeasusedhereinshallincludethepartiesaswellastheirheirs,successorsandassigns,andshallincludethesingular,plural,masculine,feminineorneuterasrequiredbycontext.

INWITNESSWHEREOF,theGrantorhasdulyexecutedtheforegoingasofthedayandyearfirstabovewritten.

GRANTOR:

REXFORDPARKINVESTORS,LLC,aDelawarelimitedliabilitycompany

By:________________________________________________________Name:JeffreyA.SafchikTitle:President

Stateof____________________Countyof__________________

Icertifythatthefollowingperson(s)personallyappearedbeforemethisday,eachacknowledgingtomethatheorshesignedtheforegoingdocumentasthe________________ofRexfordParkInvestors,LLC,aDelawarelimitedliabilitycompany,onbehalfofthatcompany:__________________________________________________________________

Suchindividual(s)arepersonallyknowntomeorproduced____________asidentification.

Date:________________________________________________________________________________________NotaryPublicNotary’sPrintedorTypedNameMyCommissionExpires:____________________

(Official/NotarialSeal)

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EXHIBITATOSPECIALWARRANTYDEED

TOGETHERWITHTHEREALPROPERTYDESCRIBEDONTHEFOLLOWINGPAGE:

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4

EXHIBITBTOSPECIALWARRANTYDEED

5

EXHIBIT "H"

ASSIGNMENTANDASSUMPTIONOF

LEASES,GUARANTIESANDLEASECOMMISSIONAGREEMENTS

THIS ASSIGNMENT is made and entered into as of this ____ day of ____________________, 2016, by and between REXFORD PARKINVESTORS,LLC,aDelawarelimitedliabilitycompany(hereinafterreferredtoas"Assignor")andLENDINGTREE,LLC,aDelawarelimitedliabilitycompany(hereinafterreferredtoas"Assignee").

WITNESSETH:

WHEREAS,contemporaneouslywiththeexecutionanddeliveryofthisAssignment,AssignorhassoldandconveyedtoAssigneeallthosetractsorparcelsoflandmoreparticularlydescribedinExhibitAattachedheretoandincorporatedhereinbyreference,togetherwithallimprovementsthereonandallrights,easementsandappurtenancesthereto(hereinaftercollectivelyreferredtoasthe"Property");

WHEREAS,inconnectionwithsuchconveyanceoftheProperty,AssignorandAssigneehaveagreedthatAssignorshalltransferandassigntoAssigneeallright,titleandinterestofAssignorinandtoallleases,subleasesandotheroccupancyagreements(hereinaftercollectivelyreferredtoasthe"Leases")inforceandeffectatthedatehereof,whetherornotofrecord,fortheuseoroccupancyofanyportionoftheProperty,asdescribedinExhibitBattachedheretoandincorporatedhereinbyreference,allguaranties(hereinaftercollectivelyreferredtoasthe"Guaranties")oftheobligationsofthetenantsundertheLeasesasdescribedinExhibitCattachedhereto,allsecuritydeposits(hereinaftercollectivelyreferredtoasthe"SecurityDeposits")andprepaidrentsandothersums(the"Prepaid Sums") as described in Exhibit Dattached hereto, the receipt of which is hereby acknowledged by Assignee, and all lease commission agreements(hereinaftercollectivelyreferredtoasthe"LeaseCommissionAgreements")asdescribedinExhibitEattachedhereto;

WHEREAS,AssignorandAssigneehavefurtheragreedthatAssigneeshall expresslyassumeall oftheobligationsofAssignorarisingundereachoftheLeasesandLeaseCommissionAgreementsfromandafter(butnotbefore)thedateofthisAssignment,including,withoutlimitation,allobligationsundertheLeaseswithrespecttoSecurityDeposits;

NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00), the mutual covenants contained herein and other good and valuableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledgedbyeachpartyhereto,AssignorandAssigneeherebyagreeasfollows:

1.TransferandAssignment.Assignorherebysells,transfers,assigns,deliversandconveystoAssignee,itssuccessorsandassigns,subjecttothepermittedtitleexceptionssetforthinExhibitFattachedheretoandmadeaparthereof,allright,titleandinterestofAssignorin,toandundertheLeases,theGuaranties,theSecurityDepositsandtheLeaseCommissionAgreements.

2.AssumptionofObligations.AssigneeherebyassumesandagreestoobserveandperformalloftheobligationsanddutiesofAssignorundereachoftheLeasesandtheLeaseCommissionAgreements(excludinganyobligationsundertheLeaseCommissionAgreementsforcommissionsinconnectionwiththeprimarytermsoftheLeases)forthatperiodoftimefromandafter,butnotbefore,thedateofthisAssignment,includingwithoutlimitation,allcovenantsandobligationsofAssignorwithrespecttotheSecurityDepositsandPrepaidSums.

3.GoverningLaw.ThisinstrumentshallbegovernedbyandconstruedinaccordancewiththeinternallawsoftheStateofNorthCarolina,withoutreferencetotheconflictsoflawsorchoiceoflawprovisionsthereof.

4. Binding Effect . This instrument shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs,executors,administrators,legalrepresentatives,successorsandassigns.

(Signaturesonfollowingpage)

1

INWITNESSWHEREOF,eachofAssignorandAssigneehascausedthisAssignmenttobeexecutedundersealbyitsdulyauthorizedsignatoryasofthedayandyearfirstabovewritten.

ASSIGNOR:

REXFORDPARKINVESTORS,LLC,aDelawarelimitedliabilitycompany

By:__________________________________________________________Name:JeffreyA.SafchikTitle:President

ASSIGNEE:

LENDINGTREE,LLC,aDelawarelimitedliabilitycompany

By:__________________________________________________________Name:____________________________________________________Title:_____________________________________________________

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EXHIBITATOASSIGNMENTANDASSUMPTIONOFLEASESANDGUARANTIES

TOGETHERWITHTHEREALPROPERTYDESCRIBEDONTHEFOLLOWINGPAGE:

3

4

EXHIBITBTOASSIGNMENTANDASSUMPTIONOFLEASESANDGUARANTIES

[LEASES]

5

EXHIBITCTOASSIGNMENTANDASSUMPTIONOFLEASESANDGUARANTIES

[GUARANTIES]

6

EXHIBITDTOASSIGNMENTANDASSUMPTIONOFLEASESANDGUARANTIES

[SECURITYDEPOSITS]

7

EXHIBITETOASSIGNMENTANDASSUMPTIONOFLEASESANDGUARANTIES

[LEASECOMMISSIONAGREEMENTS]

8

EXHIBIT "I"

BILLOFSALEANDGENERALASSIGNMENT

THISBILLOFSALEANDGENERALASSIGNMENT(this"Assignment")ismadeasofthe___dayof____________________,2016,byREXFORDPARKINVESTORS, LLC, a Delaware limited liability company (hereinafter referred to as "Assignor"), to LENDINGTREE, llc, a Delaware limited liabilitycompany(hereinafterreferredtoas"Assignee").

WITNESSETH:

WHEREAS, contemporaneously with the execution and delivery of this Assignment, Assignor has sold, conveyed and assigned to Assignee all of itsright,titleandinterestinandtotherealpropertydescribedinExhibitAattachedheretoandbythisreferencemadeaparthereof,togetherwithallimprovementsthereon(the"Improvements")andallrights,easementsandappurtenancesthereto(hereinaftercollectivelyreferredtoasthe"Property");and

WHEREAS,AssignorhasagreedtoconveytoAssigneeassigntoAssigneeallofAssignor'sright,titleandinterestinandtoallassignableguarantiesandwarranties in connection with the Improvements andto certain property, contract rights andother matters more fully described belowsubject to the termsandconditionshereinaftersetforth.

NOW,THEREFORE,forandinconsiderationofthesumofTenandNo/100Dollars($10.00)andothergoodandvaluableconsideration,inhandpaid,the receipt andsufficiencyof whichare herebyacknowledged, Assignor, subject to the termshereof, herebyconveys, assigns, transfers, andsells to Assignee,withoutrecourse,thefollowing:

(1)AlltangiblepersonalpropertyownedandusedbySellerinconnectionwiththeownershiporoperationoftheImprovements;

(2)Allright,titleandinterestofAssignorin,toandunderthecontractsidentifiedonExhibitBattachedhereto(collectively,the"Contracts");

(3)AllAssignor'sright,title,andinterestinandtoalltransferablearchitectural,mechanical,engineering,andotherplansandspecifications,includingsiteplans,floorplans,drawings,schematics,andsurveys,relatingtotheProperty;

(4) All Assignor's right, title and interest in and to all transferable certificates, permissions, consents, authorizations, variances, waivers,licenses,approvals,andotherpermitsfromanygovernmentalauthorityinrespectofthePropertyandheldbySeller;and

(5)Alltheright,title,interest,claimanddemandwhichAssignorhasintheguarantiesandwarrantiesdescribedonExhibitBattachedheretoandincorporatedhereinbythisreference(collectively,the"Warranties")inconnectionwiththeImprovementstotheextentassignable.Notwithstandinganythingtothecontrarycontainedherein, if anyWarrantycannotbeassignedbyAssignor, AssignoragreestofullycooperatewithAssignee(at nocost toAssignor)toenforcethetermsoftheWarrantyonbehalfofAssigneeifAssignorissoallowedtoenforcesuchWarranty.

Notwithstanding anything to the contrary contained herein, this Assignment (a) shall not apply to any portion of the Warranties or other rights orinstrumentsdescribedhereinwhichapplytoImprovementsnotlocatedonthePropertyand(b)shallbesubjectandsubordinatetoAssignor'sassignment,ifany,ofanyWarrantiesorotherrightsorinstrumentsdescribedhereintoanytenantsofthePropertyunderleaseswithAssignorasofthedatehereof.

Alltangiblepersonalpropertyisconveyed,assigned,transferredandsoldinits"ASIS","WHEREIS"condition.Assignorherebydisclaimsanyandallwarrantiesinconnectionwiththetangiblepersonalpropertytransferredhereby,includingwithoutlimitation,anywarrantyoffitnessforaparticularpurpose.

AssigneeherebyassumesandagreestoobserveandperformalloftheobligationsanddutiesofAssignorundereachoftheContractsforthatperiodoftimefromandafter,butnotbefore,thedateofthisAssignment.

(Signatureonfollowingpage)

1

INWITNESSWHEREOF,AssignorhasdulyexecutedthisAssignmentthedayandyearfirstabovewritten.

ASSIGNOR:

REXFORDPARKINVESTORS,LLC,aDelawarelimitedliabilitycompany

By:__________________________________________________________Name:JeffreyA.SafchikTitle:President

2

EXHIBITATOASSIGNMENTOFGUARANTIESANDWARRANTIES

TOGETHERWITHTHEREALPROPERTYDESCRIBEDONTHEFOLLOWINGPAGE:

3

4

EXHIBITBTOGENERALASSIGNMENT

GUARANTIESANDWARRANTIES

5

EXHIBIT "J"

CERTIFICATE OF NON-FOREIGN STATUS

Section1445oftheInternalRevenueCodeprovidesthatatransfereeofaU.S.realpropertyinterestmustwithholdtaxifthetransferorisaforeignperson.ForU.S.taxpurposes(includingsection1445),theownerofadisregardedentity(whichhaslegaltitletoaU.S.realpropertyinterestunderlocallaw)willbethetransferorofthepropertyandnotthedisregardedentity.ToinformthetransfereethatwithholdingoftaxisnotrequireduponthedispositionofaU.S.realpropertyinterestbythetransferor,theundersignedherebycertifiesthefollowingonbehalfofthetransferor:

1.Theundersigned,MGRealEstatePartnersL.P.("MG")isacompanyformedandexistingunderthelawsoftheStateofDelaware,isnotaforeigncorporation,foreignpartnership,foreigntrust,orforeignestate(asthosetermsaredefinedintheInternalRevenueCodeandIncomeTaxRegulations);

2.MGisnotadisregardedentityasdefinedin§1.1445-2(b)(2)(iii);

3.MG'sU.S.employeridentificationnumberis_________________;and

4.MG'sofficeaddressis2601S.BayshoreDrive,Suite900,Miami,FL33133.

TheundersignedunderstandsthatthiscertificationmaybedisclosedtotheInternalRevenueServicebytransfereeandthatanyfalsestatementcontainedhereincouldbepunishedbyfine,imprisonment,orboth.

UnderpenaltiesofperjuryIdeclarethatIhaveexaminedthiscertificationandtothebestofmyknowledgeandbeliefitistrue,correct,andcomplete,andIfurtherdeclarethatIhaveauthoritytosignthisdocumentonbehalfofMG.

MG REAL ESTATE PARTNERS L.P. ,aDelawarelimitedpartnership

By:GREENSTREETMANAGEMENT,INC.,aDelawarecorporation,itsGeneralPartner

By:________________________________Name:Title:

* ThegrantorinthedeedisRexfordParkInvestors,LLC,whichisadisregardedentity.TheultimateownerofthebeneficialinterestsofRexfordParkInvestors,LLCisMGRealEstatePartnersL.P.

1

EXHIBIT "K"

NOTIFICATION LETTER

[dateofclosing]

Re:LeaserelatingtospacelocatedintheRexfordParkI&II,Charlotte,NorthCarolina

LadiesandGentlemen:

Please be advised that effective _____________________, Rexford Park Investors, LLC ("Transferor") has transferred the above-referenced property toLendingTree,LLC("Transferee").

Allfuturerentalpaymentsshouldbesenttothefollowingaddress:

ThecontactinformationforthePurchaserissetforthbelow:

Transferor:

REXFORD PARK INVESTORS, LLC, a Delaware limited liabilitycompany

By:________________________________Name:JeffreyA.SafchikTitle:President

Transferee:

LENDINGTREE,LLC,aDelawarelimitedliabilitycompany

By:__________________________________Name:Title:

1

EXHIBIT "L"

SELLER'S AFFIDAVIT

BEFOREME,theundersignedauthoritypersonallyappearedJeffreyA.Safchik("Affiant"),asthePresidentofRexfordParkInvestors,LLC("Seller"),who,afterbeingfirstdulysworn,onoath,deposesandsaysthattothebestofhisknowledge:

1.AffiantisthePresidentofSellerandisfullyauthorizedtoexecutealldocumentsonbehalfofSellerinconnectionwiththesaleoftherealpropertydescribedonExhibitAattachedhereto(the"Property")toLendingTree,LLC("Purchaser").

2.Therehavebeennoconstruction,repairs,alterationsorimprovementsmade,orderedorcontractedtobemadeonortotheProperty,normaterialsorderedtherefor,bySellerwithinthelastonehundredtwenty(120)dayswhichhavenotbeenpaidfor,andtherearenooutstandingordisputedclaimsforanysuchworkoritem,exceptasfollows:___________________________________________.

3. Seller has not and will not, for the period commencing on _______________ [insert latest commitment date] through the recording of the deedexecutedbySellertoPurchaser(suchperiodiscalledthe"GapPeriod"),encumber,causeanydefecttoappearinthetitletotheProperty,orconveyalloranypartof the Property except for the documents executed in connection with the sale to Purchaser. Seller agrees to hold harmless and indemnify________________________("TitleCompany")againstallreasonablecosts,expensesandattorneys'feessufferedorincurredbyTitleCompanyasaresultofthefailureofSeller,uponreceiptofwrittennoticefromanyoftheTitleCompany,topromptlyremove,bondorotherwisedisposeofanysuchencumbrance,defectorconveyancethatmayariseorbefiledagainstthePropertyduringtheGapPeriodasaresultofanybreachbytheSelleroftheforegoingagreement.

4.SellerisinpossessionofthePropertyonthedatehereofsubjectonlytotherightsofthetenantsidentifiedonExhibitBattachedheretoandtheirrespectivesublessees,successorsandassigns.

5.Nomortgages,easements,orrestrictionshavebeenexecutedbytheSellerthatremainunrecordedexceptasfollows,andcopiesofsuchunrecordeddocumentsareattachedhereto:_________________________________________________.

6.NobankruptcyproceedingshavebeenfiledbyoragainsttheSeller.

7.TherearenopendingactionsorproceedingsrelatingtotheGrantorinanystateorfederalcourtintheUnitedStates.TherearenooutstandingstateorfederaljudgmentsagainsttheGrantorortheProperty.

ThisAffidavitforthepurposeofinducingtheTitleCompanytoissueownerandloantitleinsurancepoliciesand/orendorsementsinconnectionwiththeconveyance of the Property by Seller to Purchaser in connection with the Property. Seller agrees to indemnify and hold harmless the Title Company againstliabilityresultingfromitsrelianceuponthestatementsmadehereinifanyoftheforegoingstatementsisuntrueandtheSellerdoesnotcurethesamewithinten(10)daysafterwrittennotice.TheindividualexecutingthisAffidavitmaybesubjecttocriminalliabilityforperjuryifanystatementcontainedhereinisknowinglyfalse,butsuchindividualshallnotbesubjecttoanymonetaryorothercivilliabilitytoTitleCompanyunderorinconnectionwiththisSeller'sAffidavit.

1

INWITNESSWHEREOF,theforegoingAffidavitwasexecutedbytheundersignedasofthe____dayof________________,2016.

REXFORDPARKINVESTORS,LLC,aDelawarelimitedliabilitycompany

By:_______________________________________________Name:JeffreyA.SafchikTitle:President

STATEOFFLORIDA))SS:

COUNTYOFMIAMI-DADE)

Theforegoinginstrument wasswornto, subscribedandacknowledgedbeforemethis _____dayof_____________, 2016, byJeffreyA.Safchik, thePresidentofRexfordParkInvestors,LLC,onbehalfofthatlimitedliabilitycompany.Heispersonallyknowntomeorhasproduced_______________________asidentification.

________________________________________PrintorStampName:______________________NotaryPublic,StateofFloridaCommissionNo.:

MyCommissionExpires:

2

EXHIBIT A

PROPERTY DESCRIPTION

TOGETHERWITHTHEREALPROPERTYDESCRIBEDONTHEFOLLOWINGPAGE:

EXHIBIT B

TENANTS

EXHIBIT "M"

RENT ROLL

[seeattached]

1

2

3

4

5

6

7

EXHIBIT "N"

SECURITY DEPOSITS

[seeattached]

1

2

3

4

5

EXHIBIT 10.32

FIRST AMENDMENT

TO

PURCHASE AND SALE CONTRACT

THIS AMENDMENT TO PURCHASE AND SALE CONTRACT (this“Amendment”)ismadeandenteredintoasofthis28 thdayofNovember,2016, byandbetweenREXFORD PARK INVESTORS, LLC  , a Delawarelimited liability company(“Seller”),andLENDINGTREE, LLC  ,aDelawarelimitedliabilitycompany(“Purchaser”).

BACKGROUND :

A.SellerandPurchaserarepartiestothatcertainPurchaseandSaleContractdatedOctober17,2016(the“Contract”),wherebySellerhasagreedtoselltoPurchaser,andPurchaserhasagreedtopurchasefromSeller,subjecttothetermstherein,certainrealpropertylocatedat2100and2115RexfordRoadinCharlotte,MecklenburgCounty,NorthCarolina,asmoreparticularlydescribedintheContract.

B.PursuanttoSection5.3oftheContract,theDueDiligencePeriod(asdefinedintheContract)currentlyexpirestoday,November28,2016.

C.Purchaserhasrequested,andSellerhasagreed,toextendtheDueDiligencePerioduntil5:00p.m.(EST)onNovember30,2016.

D.ThepartiesdesiretoenterintothisAmendmentinordertomemorializetheforegoing.

AGREEMENT :

NOW THEREFORE ,forgoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,thepartiesheretodoherebyagreeasfollows:

1.Defined Terms .Alldefinedtermsusedherein,asindicatedbytheinitialcapitalizationthereof,shall,unlessotherwiseexpresslydefinedherein,havethesamemeaninghereinasisascribedtheretointheContract.

2.Due Diligence Period .SellerandPurchaserherebyamendtheContracttoprovidethattheTerminationDateshallbeNovember30,2016,andthattheDueDiligencePeriodshallexpireat5:00p.m.(EST)onNovember30,2016.

3. Final  Agreement;  Ratification  . This Amendment and the Contract represent the final agreement between Seller and Purchaser regarding thesubject matter hereof and may not be contradicted by evidence of prior, subsequent or contemporaneous oral agreements of the parties. No amendment ormodificationheretoshallbevalidandbindingunlessexpressedinwritingandexecutedbybothpartieshereto.IntheeventofaconflictbetweenthetermsoftheContractandthisAmendment,thisAmendmentshallcontrolandprevail.

4.Counterparts .ThisAmendmentmaybeexecutedinanynumberofcounterparts,eachofwhichshallbedeemedtobeanoriginalandallofwhichtogether shall comprise one and the sameinstrument. Purchaser and Seller agree to accept a digital image of this Amendment as true andcorrect original andadmissibleasbestevidenceforthepurposesofStatelaw,FederalRuleofEvidence1002,andthelikestatutesandregulations.

[signature page follows]

IN WITNESS WHEREOF ,thepartiesheretohavecausedthisAmendmenttobedulyexecutedasofthedayandyearfirstabovewritten.

SELLER:

REXFORD PARK INVESTORS, LLC ,aDelawarelimitedliabilitycompany

By:/s/JeffreyA.SafchikName:JeffreyA.SafchikTitle:President

PURCHASER:

LENDINGTREE, LLC ,aDelawarelimitedliabilitycompany

By:/s/GabrielDalporto

Name:GabrielDalporto

Title:ChiefFinancialOfficer

Exhibit 10.35

November28,2016

NeilSalvage11115RushmoreDr.Charlotte,NC28277

DearNeil,

ItiswithgreatpleasurethatIofferyouapromotiontothepositionofPresident,LendingTree,Inc.(“LTI”).Iamveryexcitedabouthavingyouinthisrole.YouremployerwillcontinuetobeLendingTree,LLC(“LTL”whichisawholly-ownedsubsidiaryofLTI).Referencesto“Company”inthisletteragreementshallbeinterpretedtorefertoLTIand/orLTLasapplicable.

AsPresident,youwillcontinuetoreportdirectlytome,andyouwillcontinuetobebasedintheCompany’sheadquarterslocationinCharlotte,NorthCarolina.AsyouareaSection16OfficeroftheCompany,thispositionchange,relatedcompensationandallrelatedtermsofemploymentrequireapprovalbytheBoardofDirectorsoftheCompany(the“Board”andsuchapproval(whichwouldincludeanyrequiredapprovalsbytheBoard’sCompensationCommittee)isthe“BoardApproval”).ItisourplantoseekthatapprovalwithinaweekorsoandtomakeyournewpositioneffectiveatthetimeofsuchBoardApproval.

UponBoardApproval,thisletteragreementwillprovidethetermsandconditionsforyouremploymentwiththeCompanythroughJanuary1,2019(oryourearlierterminationofemployment).

Highlightsofyourtermsofemploymentareoutlinedbelow,eachofwhichwouldbecomeoperativeuponBoardApproval:

Base  Pay: You will receive an annual base salary of $410,000.00 ($15,769.23 bi-weekly), which can be modified solely in the discretion of the Board’sCompensationCommittee.Youwillbepaidonabi-weeklybasis.

Bonus: Youareeligibletoreceiveatargetincentivebonusinanamountupto100%ofyourbasesalarybasedonperformancecriteriaapprovedbytheBoard’sCompensation Committee, beginning with the fiscal year that begins on January 1, 2017. Payouts can be greater than or less than target and are a function ofindividualandCompanyperformanceaswellasmanagementdiscretionandmaynotbeawardedineachpaymentperiod.YoumustbeactivelyemployedbytheCompanyonthedatebonusesarepaidinordertoreceiveanypaymentforwhichyouareeligible.Allapplicablewithholdingsanddeductionswillbemadefromsalaryandbonuses(andothercompensation),suchas401(k)contributions(ifany),FederalandStatetaxes,etc.

Equity:  Youroutstandingequitycompensationawardsshall continuetobegovernedbytheir applicabletermsandconditionsexcept asmodifiedinthis letteragreement.InconnectionwithrequestingtheBoardApproval,wewillalsorequestapprovalforapromotionalequitycompensationgrant,theamountofwhichwewilldeterminewithinthenextseveraldays.Inaddition,youwillbeconsideredforanequitycompensationgrantinFebruary2018.Benefits: YouwillbeeligibletoparticipateinemployeebenefitsthatareavailabletosimilarlysituatedemployeesoftheCompany.TheCompanyreservestherighttomodifyitscompensationandbenefitsprogramsatanytime(includingpaidtimeoffandretirementbenefits),butyouwillinanycaseremaineligibletoparticipateinthosebenefitsthatareavailabletosimilarlysituatedemployeesoftheCompany.IntheeventofaconflictbetweenastatementmadeinthisletteragreementandthetermsandconditionsoftheCompany’sapplicablepoliciesand/orbenefitsplans,theactualtextofthepolicyorplanwillgovern.

Paid Time Off: YouwillcontinuetobeeligibletotakereasonableamountsoftimeoffwithpayinaccordancewithCompanypoliciesandprocedures.Retirement:  YouwillremaineligibletoparticipateintheCompany'sRetirementSavingsPlan(a401(k)plan).

Severance: YouremploymentmaybeterminatedbyyouorbytheCompanyatanytime.IfyouremploymentisterminatedbytheCompanywithoutCause(asdefinedbelow)orifyouresignyouremploymentforGoodReason(asdefinedbelow),youwillbeeligibletoreceivethefollowingseverancebenefits:

(a)anaggregatecashamountequaltoyourthen-annualbasesalary(the“CashSeverance”);and(b)theabilitytoexerciseyourthen-vestedCompanystockoptionsuntiltheearlierof(1)thesecondanniversaryofyourterminationofemploymentor(2)theapplicabletimeofexpirationofeachstockoptionasspecifiedinthestockoptionagreementorunderlyingequitycompensationplan(theextensionofexercisabilityofyourstockoptionstogetherwiththeCashSeverancearethe“SeveranceBenefits”).

AsaconditiontoreceivinganySeveranceBenefits,youmustexecute(andnotrevoke)awaiverandgeneralreleaseofclaimsagreementinfavoroftheCompanywithin forty-five (45) days following the effective date of termination of your employment or else your eligibility to receive the Severance Benefits shallimmediatelybecomenullandvoid.Ifsuchagreementbecomeseffectivebyitsowntermswithinnotmorethan55daysafteryourterminationofemployment,thenthefirstCashSeveranceinstallment(inanamountequaltotwomonthsofyourannualbasesalary)willbepaidtoyouonthe60thdayafterterminationofyouremploymentand,forthetenmonthsthereafter,youwillreceivepro-ratainstallmentsoftheCashSeveranceinaccordancewiththeCompany’sregularlyscheduledpaydatesforitsemployees.ItisintendedthatanyamountspayablehereundershallcomplywithorbeexemptfromSection409AoftheInternalRevenueCodeof1986 (“Section 409A”) (including under Treasury Regulation §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including theexceptionsundersubparagraph(iii)andsubparagraph(v)(D))andotherapplicableprovisionsofTreasuryRegulation§§1.409A-1throughA-6).

Should you obtain other employment or are otherwise compensated for services during the one year period following your termination of employment, theCompany’sobligationtomakeCashSeverancepaymentstoyouwillbereduceddollarfordollarbyanysuchothercompensationyoureceive.YouagreetoinformtheCompanyinwritingpromptlyofyouremploymentstatusandanycompensationpaidtoorbepaidtoyouoronyourbehalf.

“Cause”willincludefraud,dishonesty,theft,embezzlement,misconductbyyouthatisinjurioustotheCompanyoranyofitsaffiliates,convictionof,orentryofaplea of guilty ornolo contendere to, a crime that constitutes a felony or other crime involving moral turpitude, competition with the Company or any of itsaffiliates, unauthorizeduseofanytradesecrets oftheCompanyoranyofits affiliates orCompanyconfidential information, aviolationofanypolicy, codeorstandard of ethics generally applicable to employees of the Company, your material breach of fiduciary duties owed to the Company, your excessive andunexcusedabsenteeismunrelatedtoadisability,or,followingwrittennoticeandareasonableopportunitytocure,grossneglectbyyouofthedutiesassignedtoyou.UponterminationofyouremploymentforCause:(i)nofurtherbasesalarywillbepaidtoyouafterthedateofterminationandnoannualbonuswillbepaidtoyouafterthedateoftermination,(ii)youwillforfeitanyearnedbutunpaidannualbonusrelatingtoapreviouslycompletedperformanceyear,and(iii)youwillnotbeeligibletoreceiveanyannualbonusrelatingtotheperformanceyearinwhichyouremploymentterminates.

“GoodReason”isdefinedastheoccurrenceofanyofthefollowingactionstakenbytheCompanywithoutyourwrittenconsent:(i)amaterialadversechangeintheofficetowhichyoureportasyouassumethisrole,excludinganychangethatisanisolatedandinadvertentactionnottakeninbadfaithandthatisremediedbytheCompanyafteryounotifyusorthatoccursduetointernalrestructuring,realignmentortheresignation,promotion,demotionorareorganizationofmanagerswithintheCompany;(ii)materialreductioninyourannualbasesalary;or(iii)relocationofyourprincipalplaceofbusinessmorethan50milesfromtheCharlotte,NorthCarolinametropolitanarea.InordertoresignyouremploymentforGoodReason,youmustnotifytheCompanyinwritingwithinfifteen(15)daysoftheinitialexistenceofanyeventfallingundertheforegoingclauses(i)through(iii)andsuchnoticeshalldescribeindetailthefactsandcircumstancesexplainingwhyyoubelieveaGoodReasoneventhasoccurred.TheCompanyshallthenhavesixty(60)daysfollowingitsreceiptofsuchnoticetocureorremedysuchallegedGoodReasoneventsuchthatGoodReasonwillnotbedeemedtoexistforsuchevent.IftheeventremainsuncuredorisnotremediedbytheCompanywithinsuchsixty(60) dayperiodandif youremployment hasnot otherwise beenterminated, thenatermination of youremployment for GoodReasonshall automaticallyoccuronthefirstbusinessdayfollowingtheendofsuchsixty(60)daycure/remedyperiod.

Change in Control :YouwillreceivebenefitsdescribedinachangeincontrolletterissuedbytheCompanytocertainexecutivesoftheCompany,asthesamemayberevisedfromtimetotime(the“CICLetter”).IntheeventtheconditionsforyoutoreceiveseverancebenefitsundertheCICLetteroccur(disregardingthecontingenciesrelatingtoageneralreleaseofclaimsinfavoroftheCompanyandrestrictivecovenantstobeincludedtherein),youwillbeentitledtoreceivetheseverancebenefitsdescribedintheCICLetter(subjecttothecontingenciesstatedtherein),andtheprecedingsectionofthisletteragreementdescribingseverancebenefitswillnotapply.TheprohibitionsonCompetingActivity(asdefinedbelow)andsolicitationsofcustomersandemployeesdiscussedbelowwillcontinuetoapplynotwithstandinganylesserrestrictionssetforthintheCICLetter.

Section 409A :ForpurposesofSection409A,eachofthepaymentsthatmaybemadeunderthisletteragreementshallbedeemedtobeaseparatepayment.YouandtheCompanyagreetonegotiateingoodfaithtomakeamendmentstothisletter,asthepartiesmutuallyagreearenecessaryordesirabletoavoidtheimpositionoftaxes,penaltiesorinterestunderSection409A.NeitheryounortheCompanyshallhavetherighttoaccelerateordeferthedeliveryofanysuchpaymentsorbenefits except (i) where payment maybemadewithina certain periodof time, thetimingof payment withinsuchperiodwill bein the sole discretionof theCompany,and(ii)totheextentspecificallypermittedorrequiredbySection409A.Totheextentanynonqualifieddeferredcompensationpaymenttoyoucouldbepaidinoneormoreofyourtaxableyearsdependinguponyoucompletingcertainemployment-relatedactions,thenanysuchpaymentswillcommenceoroccurinthe later taxable year to the extent required by Section 409A. With respect to the time of payments of any amounts under the letter that are “deferredcompensation”subjecttoSection409A,referencesinthisletterto“terminationofemployment”(andsubstantiallysimilarphrases)shallmean“separationfromservice”withinthemeaningofSection409A.Notwithstandinganythinginthislettertothecontrary,ifyouareconsidereda“specifiedemployee”underSection409AuponyourseparationfromserviceandifpaymentofanyamountsonaccountofyourseparationfromserviceunderthisletterisrequiredtobedelayedforaperiodofsixmonthsafterseparationfromserviceinordertoavoidtaxationunderSection409A,paymentofsuchamountsshallbedelayedasrequiredbySection409A,andtheaccumulatedamountsshallbepaidinalumpsumpayment,withoutinterest,withinfivebusinessdaysaftertheendofthesix-monthdelayperiod.Ifyou die during the six month delay period prior to the payment of benefits, the amounts withheld on account of Section 409A shall be paid to the personalrepresentativeofyourestatewithin60daysafterthedateofyourdeath.Whileit isintendedthatall paymentsandbenefitsprovidedtoyouunderthisletterorotherwisewillbeexemptfromorcomplywithSection409A,theCompanymakesnorepresentationorcovenanttoensurethatsuchpaymentsandbenefitsareexemptfromorcompliantwithSection409A.TheCompanywillhavenoliabilitytoyouoranyotherpartyifapaymentorbenefitunderthisletterorotherwiseischallenged by any taxing authority or is ultimately determined not to be so exempt or compliant. You further understand and agree that you will be entirelyresponsibleforanyandalltaxesimposedonyouasaresultofthisletter.

TheCompanyis anat-will employer, andsubject tothetermsofthis letter agreement, it reservestheright tochangethetermsandconditionsofemployment,includingbutnotlimitedtotermination,demotion,promotion,transfer,compensation,benefits,dutiesandlocationofwork.AllemploymentwiththeCompanyisat-will and either you or the Company may conclude the employment relationship at any time, with or without cause or advance notice (except as otherwiseprovidedinthisletteragreement).

This“at-will”paragraphcontainstheentireagreementbetweenyouandtheCompanyregardingtherightandabilityofeitheryouortheCompanytoterminateyour employment. This “at-will” employment relationship can only be modified in a written agreement which has been executed by the Company’s ChiefExecutiveOfficer.

Bysigningthisletteragreement,youagreeandacknowledgethatyouwillnot,whileemployedbytheCompanyandfortwoyearsthereafter:a. Engage in any Competitive Activity (as defined below) within the Prohibited Territory (as defined below); or assist anyone else in engaging in

CompetitiveActivitywithintheProhibitedTerritory.i. “CompetitiveActivity”meanscompetingagainsttheCompanybyperformingthesameorsubstantiallysimilarworkasyouperformedonbehalfoftheCompanyatanytimeduringthelasttwelve(12)monthsofemploymentwiththeCompanyinaProhibitedTerritoryforanentityengagedintheBusiness(asdefinedbelow).Notwithstandingthepreceding,owningthestockoroptionstoacquirestocktotalinglessthan5%oftheoutstandingsharesinapubliccompanyshallnotconstitute,byitself,CompetitiveActivity.

ii. “Business” means: (a) a business of marketing, selling, and/or providing services related to internet-based loan brokerage or online leadgenerationforfinancialservicesproductsand/orhomeservicesproducts;and(b)thebusinessengagedinbytheCompanyasofyourlastdayofemploymentwiththeCompany.

iii. “Prohibited Territory” means: a) each city and county (or equivalent local unit of government) where you assisted the Company toengageintheBusinessatanytimeduringthelast(12)monthsofyouremploymentwiththeCompany;andb)anyterritoryassignedtoyoubytheCompanyatanytimeduringthelasttwelve(12)monthsofyouremploymentwiththeCompany.

b. Solicit customers with whom you have business dealings as part of your work for the Company to be customers of products or services that arecompetitivewiththeproductsorservicesoftheCompany.

c. SolicitorattempttopersuadeotherCompanyemployeestoleavetheCompany.TheaboverestrictionsareintendedtoprotectimportantlegitimatebusinessinterestsoftheCompanyandarenotmeanttopreventyoufromobtainingfutureworkorearningaliving.Youunderstandthatifyoudonotadheretotheserestrictions,theCompanywillhavetherighttoseekenforcementandremedy.

If you choose to accept the terms of this offer, please sign belowand return to Claudette Parham, the Company’s Chief People Officer. This letter agreementconstitutes the entire agreement of the parties with respect to the subject matter and, upon Board Approval, supersedes any and all prior agreements whetherwrittenororalincludingwithoutlimitationyourpreviousemploymentletteragreementswiththeCompany,datedAugust2,2013andJanuary15,2015.Again,Iamexcitedtocontinueourworkingrelationshipwithyouinthiskeyrole.

Sincerely,

/s/DouglasLebdaDouglasLebdaChairman&ChiefExecutiveOfficer

AgreedandAccepted:

/s/NeilSalvageNovember29,2016NeilSalvageDate

Exhibit 10.36

November28,2016

NeilSalvagePresident,LendingTree,Inc.

DearNeil:

This letter is to notify you of a valuable additional benefit for certain employees of LendingTree, LLC (“LTL  ” which is a wholly-owned subsidiary ofLendingTree,Inc.(“Company”))thatwasadoptedbytheCompensationCommitteeoftheCompanyBoardofDirectorsintheeventthereisaChangeofControlattheCompany.

ShouldaChangeofControloccur,allCompanyequityissuedtoyouwouldimmediatelyfullyvest.Thereisnoactionyouneedtotake-theacceleratedvestingwouldautomaticallyoccuruponaChangeofControl.

Inaddition,ifthereisaChangeofControlandyou(a)resignforGoodReasonor(b)youremploymentisterminatedwithoutCauseandforreasonsunrelatedtoperformance (and other than as a result of your death or disability), during the twelve (12) month period following the Change of Control, you will receive aseverance payment of two (2) years of base salary. For the purposes of a Change of Control, this severance payment would replace any payment under theCompany’sgeneralseveranceplanorotherarrangementtowhichyouwouldotherwisebeentitled.Thereisnorequirementtomitigatethisseverancepayment.

TheseverancepaymentdescribedaboveiscontingentuponyoursigningageneralreleaseofclaimsinfavoroftheCompanyandsuchreleaseofclaimsbecomingirrevocablepriortothedateofpayment.Suchreleasewillcontainrestrictivecovenants(substantiallyintheformattached)ineffectforoneyearfollowingyourterminationdateincludinganon-competeprovisionandrestrictionsonsolicitationofemployeesandcustomers.

You must execute (and not revoke) such general release of claims within forty-five (45) days following the effective date of a qualifying termination of youremployment or else your eligibility to receive the benefits described in this letter shall immediately become null and void. If such general release of claimsbecomeseffectiveonatimelybasisbyitsownterms,thentheseverancepaymentwillbepaidtoyouonthe60thdayafterterminationofyouremployment.Itisintended that any amounts payable hereunder shall comply with or be exempt from Section 409A of the Internal Revenue Code of 1986 (“Section 409A”)(includingunderTreasuryRegulation§§1.409A-1(b)(4)(“short-termdeferrals”)and(b)(9)(“separationpayplans,”includingtheexceptionsundersubparagraph(iii) and subparagraph (v)(D)) and other applicable provisions of Treasury Regulation §§ 1.409A-1 through A-6). For purposes of Section 409A, each of thepaymentsthatmaybemadeunderthislettershallbedeemedtobeaseparatepayment.YouandtheCompanyagreetonegotiateingoodfaithtomakeamendmentstothisletter,asthepartiesmutuallyagreearenecessaryordesirabletoavoidtheimpositionoftaxes,penaltiesorinterestunderSection409A.NeitheryounortheCompanyshallhavetherighttoaccelerateordeferthedeliveryofanysuchpaymentsorbenefitsexcept(i)wherepaymentmaybemadewithinacertainperiodoftime,thetimingofpaymentwithinsuchperiodwillbeinthesolediscretionoftheCompany,and(ii)totheextentspecificallypermittedorrequiredbySection409A.Totheextentanynonqualifieddeferredcompensationpaymenttoyoucouldbepaidinoneormoreofyourtaxableyearsdependinguponyoucompletingcertainemployment-relatedactions,thenanysuchpaymentswillcommenceoroccurinthelatertaxableyeartotheextentrequiredbySection409A.Withrespectto the time of payments of any amounts under the letter that are “deferred compensation” subject to Section 409A, references in this letter to “termination ofemployment”(andsubstantiallysimilarphrases)shallmean“separationfromservice”withinthemeaningofSection409A.Notwithstandinganythinginthislettertothecontrary,ifyouareconsidereda“specifiedemployee”underSection409AuponyourseparationfromserviceandifpaymentofanyamountsonaccountofyourseparationfromserviceunderthisletterisrequiredtobedelayedforaperiodofsixmonthsafterseparationfromserviceinordertoavoidtaxationunderSection409A,paymentofsuchamountsshallbedelayedasrequiredbySection409A,andtheaccumulatedamountsshallbepaidinalumpsumpayment,withoutinterest,withinfivebusinessdaysaftertheendofthesix-monthdelayperiod.Ifyoudieduringthesix-monthdelayperiodpriortothepaymentofbenefits,theamountswithheldonaccountofSection409Ashallbepaidtothepersonalrepresentativeofyourestatewithin60daysafterthedateofyourdeath.WhileitisintendedthatallpaymentsandbenefitsprovidedtoyouunderthisletterorotherwisewillbeexemptfromorcomplywithSection409A,theCompanymakesnorepresentationorcovenanttoensurethatsuchpaymentsandbenefitsareexemptfromorcompliantwithSection409A.The

Companywillhavenoliabilitytoyouoranyotherpartyifapaymentorbenefitunderthisletterorotherwiseischallengedbyanytaxingauthorityorisultimatelydeterminednottobesoexemptorcompliant. Youfurtherunderstandandagreethatyouwill beentirelyresponsibleforanyandall taxesimposedonyouasaresultofthisletter.

ThisletterdoesnotcreateanemploymentcontractoraffecttherightoftheCompanyorLTLtoterminateyouremployment,orchangethetermsandconditionsofsuchemployment,atanytimeandwithoutnotice.

Sincerely,

/s/ClaudetteParhamClaudetteParhamChiefPeopleOfficer

Definitions

Forthepurposesofthisletter,thefollowingdefinitionsapply:"Cause"meansgrossnegligenceincarryingoutyourdutiesfortheCompanyoranybreachoffiduciarydutiestotheCompany,convictionof,orpleaofguiltyorno contest to any felony, any act of fraud or embezzlement, material violation of a Company policy or any unauthorized use or disclosure of confidentialinformationortradesecretsoftheCompanyoritsaffiliates,orfailuretocooperateinanyCompanyinvestigation.Neitherbadjudgmentnormerenegligencenoranact ofomissionreasonablybelievedbyyoutohavebeenin, ornotopposedto, theinterests oftheCompany,shall constitute examplesofgrossnegligence.Referencesto“Company”inthisdefinitionincludetheCompanyandanyaffiliateoftheCompany.

"ChangeofControl"resultswhen:(i)anypersonorentitywhoisnotacontrollingshareholderasofthedateofthisletterbecomesabeneficialowner,directlyorindirectly,ofsecuritiesoftheCompanyrepresentingfiftypercentormoreofthetotalvotingpowerofalloftheCompany'sthenoutstandingvotingsecurities,(ii)amergerorconsolidationoftheCompanyinwhichtheCompany'svotingsecuritiesimmediatelypriortothemergerorconsolidationdonotrepresent,orarenotconvertedintosecuritiesthatrepresent,amajorityofthevotingpowerofallvotingsecuritiesofthesurvivingentityimmediatelyafterthemergerorconsolidation,or(iii)asaleofallorsubstantiallyalloftheassetsoftheCompanyoraliquidationordissolutionoftheCompany.ForpurposesofdefiningChangeofControl,“Company”referstoLendingTree,Inc.asawholeanddoesnotapplytoeventsonlyaffectingspecificbusinessesorsubsidiariesofLendingTree,Inc.

“Good Reason” means the occurrence of any of the following without your written consent: (i) a material adverse change in your title, duties, operationalauthorities or reporting responsibilities fromthose in effect immediately prior to the Change in Control, excluding for this purpose any such change that is anisolatedandinadvertentactionnottakeninbadfaithandthatisremediedbytheCompanypromptlyafterreceiptofnoticethereofandfurtherexcludingachangeinyourreportingofficerduetointernalrestructuring,realignment,ortheresignation,promotion,demotion,orareorganizationofmanagerswithintheCompany(or affiliate), (ii) a material reductioninyourannual basesalary, or (iii) a relocationof yourprincipal placeof business morethan50miles fromyourcurrentoffice.

InordertoresignyouremploymentforGoodReason,youmustnotifytheCompanyinwritingwithinfifteen(15)daysoftheinitialexistenceofanyeventfallingunderclauses(i)through(iii)andsuchnoticeshalldescribeindetailthefactsandcircumstancesexplainingwhyyoubelieveaGoodReasoneventhasoccurred.TheCompanyshallthenhavesixty(60)daysfollowingitsreceiptofsuchnoticetocureorremedysuchallegedGoodReasoneventsuchthatGoodReasonwillnotbedeemedtoexistforsuchevent.IftheeventremainsuncuredorisnotremediedbytheCompanywithinsuchsixty(60)dayperiodandifyouremploymenthasnototherwisebeenterminated,thenaterminationofyouremploymentforGoodReasonshallautomaticallyoccuronthefirstbusinessdayfollowingtheendofsuchsixty(60)daycure/remedyperiod.

Restrictive Covenants

Inconsiderationofthecompensationandotherconsiderationgiventoyoupursuanttotheprovisionsofthisletter,youunderstandandagreethatthepurposeofthesecovenantsistoprotectlegitimatebusinessinterestsoftheCompany(anditsaffiliates),andisnotintendedtoeliminateyourpost-employmentcompetitionwiththeCompanyperse,norisitintendedtoimpairorinfringeuponyourrighttowork,earnaliving,oracquireandpossesspropertyfromthefruitsofyourlabor.Youherebyacknowledgethatthepost-employmentrestrictionssetforthhereinarereasonableandthattheydonot,andwillnot,undulyimpairyourabilitytoearnalivingaftertheterminationofyouremploymentwithCompany(oranyaffiliate).YoushallbesubjecttoandagreetoabidebytherestrictionssetforthinthisSection.

1. Definitions.Thefollowingcapitalizedtermsshallhavethemeaningsassignedtothembelow:

i. "CompetitiveServices"meansInternet-basedloanorigination,Internet-basedloanbrokerage,Internet-basedrealestatebrokerageservices,oranyotherservicesthatCompany(oranyaffiliate)isengagedinasoftheDeterminationDate.

ii. "Determination Date" means the date of termination of your employment with the Company (or any affiliate) for any reasonwhatsoeveroranyearlierdate(duringyouremployment)ofanallegedbreachoftheRestrictiveCovenantsbyyou.

iii."Person" meansanyindividualoranycorporation,partnership,jointventure,limitedliabilitycompany,associationorotherentityorenterprise.

iv. "Principal OrRepresentative" means a principal, owner, partner, shareholder, joint venturer, investor, member, trustee, director,officer,manager,employee,agent,representativeorconsultant.

v."ProtectedCustomers"meansanyPersontowhomtheCompany(oranyaffiliate)hassolditsservicesorsolicitedtosellitsservicesduringthetwelve(12)monthspriortotheDeterminationDate;provided,however,thatProtectedCustomershallnotincludeanyPersonwithwhichyoucanreasonablydemonstratethatyouhadapre-existingprofessionalrelationshippriortothecommencementofyouremploymentwiththeCompany(oranyaffiliate).

vi."ProtectedEmployees"meansemployeesoftheCompany(oranyaffiliate)whowereemployedbytheCompany(oranyaffiliate)atanytimewithinsixmonthspriortotheDeterminationDateandwithwhomyouhaddirect,personalandcontinuingdealingsonbehalfoftheCompany(oranyaffiliate)orwhomyoudirectlysupervised.

vii."RestrictedPeriod"meanstheperiodofyouremploymentwithCompany(oranyaffiliate)andaperiodextendingoneyearfromtheterminationofyouremploymentwithCompany(oranyaffiliate).

2. Non-solicitationof ProtectedEmployees . Youunderstand andagree that the relationship betweenthe Companyandeach of its Protected EmployeesconstitutesavaluableassetoftheCompanyandmaynotbeconvertedtoyourownuse.Accordingly,youherebyagreethatduringtheRestrictedPeriodyoushall not directly or indirectly on your ownbehalf or as a Principal or Representative of any Person or otherwise solicit or induce any ProtectedEmployee to terminate his or her employment relationship with the Company or to enter into employment with any other Person. References to“Company”inthisdefinitionincludetheCompanyandanyaffiliateoftheCompany.

3. RestrictiononRelationshipswithProtectedCustomers.YouunderstandandagreethattherelationshipbetweentheCompanyandeachofitsProtectedCustomers constitutes a valuable asset of the Company and may not be converted to your own use. Accordingly, you hereby agree that, during theRestrictedPeriod, youshall not, without theprior writtenconsent of LendingTree, Inc., directly or indirectly, onyourownbehalf or as a Principal orRepresentativeofanyPerson,solicit, divert, takeawayorattempttosolicit, divert ortakeawayaProtectedCustomerforthepurposeofprovidingorselling Competitive Services; provided, however, that the prohibition of this covenant shall apply only to Protected Customers with whom you hadMaterialContactontheCompany'sbehalfduringthetwelve(12)monthsimmediatelyprecedingtheDeterminationDate.ForpurposesofthisSection,youhad"MaterialContact"withaProtectedCustomerif(a)youhaddirectbusinessdealingswiththeProtectedCustomerontheCompany'sbehalfor(b)youwereresponsibleforsupervisingorcoordinatingthedealingsbetweentheCompanyandtheProtectedCustomer.Referencesto“Company”inthisdefinitionincludetheCompanyandanyaffiliateoftheCompany.

4. CovenantnottoCompete. Youagreeandcovenant that duringtheRestrictivePeriodyouwill not, withoutLendingTree, Inc.’sprior writtenconsent,which may be granted or withheld in the sole discretion of LendingTree, Inc,, directly or indirectly, (i) for yourself; (ii) as a consultant, manager,supervisor,employeeorowner;or(iii)asanindependentcontractor,engageinactivitiesrelatedtoCompetitiveServicesforanyPersonwhichmarkets,sellsorotherwiseprovidesCompetitiveServicesinthegeographicalareasinwhichtheCompany(oranyaffiliate)doesbusiness;provided, however ,thattheownershipbyyouofnotmorethanfivepercent(5%)ofthesharesofanypubliclytradedclassofstockofanycorporationshallnotbedeemed,inandofitself,toviolatetheforegoingprohibitions.

5. ENFORCEMENTOFRESTRICTEDCOVENANTS.i. RightsandRemediesuponBreach.Intheeventyoubreach,orthreatentocommitabreachof,anyoftheprovisionsoftheRestrictiveCovenants,theCompanyshallhavetherightandremedytoenjoin,preliminarilyandpermanently,youfromviolatingorthreateningtoviolatetheRestrictiveCovenants and to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction, it being agreed that any breach orthreatened breach of the Restrictive Covenants would cause irreparable injury to the Company and that money damages would not provide anadequateremedytotheCompany.Suchrightandremedyshallbeinadditionto,andnotinlieuof,anyotherrightsandremediesavailabletotheCompanyatlaworinequity.Inaddition,theRestrictedPeriodshallbeextendedfortheperiodofanysuchbreachorthreatenedbreach.

ii.SeverabilityofCovenants.YouacknowledgeandagreethattheRestrictiveCovenantsarereasonableandvalidintimeandscopeandinallotherrespects. The covenants set forth in this Section shall be considered and construed as separate and independent covenants. Should any part orprovisionofanycovenantbeheldinvalid,voidorunenforceableinanycourtofcompetentjurisdiction,suchinvalidity,voidnessorunenforceabilityshallnotrenderinvalid,voidorunenforceableanyotherpartorprovisioncontainedherein.Ifanyportionoftheforegoingprovisionsisfoundtobeinvalid or unenforceable by a court of competent jurisdiction because its duration, the territory, the definition of activities or the definition ofinformationcoveredisconsideredtobeinvalidorunreasonableinscope,theinvalidorunreasonabletermshallberedefined,oranewenforceabletermprovided,suchthattheintentoftheCompanyandyouinagreeingtotheprovisionsofthisAgreementwillnotbeimpairedandtheprovisioninquestionshallbeenforceabletothefullestextentoftheapplicablelaws.

6. Confidentiality.Youagreetokeepsecretandretaininstrictestconfidence,andshallnotuseforthebenefitofyourselforothersordisclosetoothers,anyconfidentialandproprietaryinformationoftheCompany,includingbutnotlimitedtoinformationandmaterialsrelatingtotheinternaloperationsoftheCompany,its processesandprocedures, trade“know-how”,sales, marketinganddistributionmethodsandstrategies, suppliers, customers, prospectivecustomers,services,termsofcontracts,pricingpolicies,businessplans,researchanddevelopmentprojectsandanyandallotherbusinessaffairsoftheCompany(collectively,“ ConfidentialInformation” ).ConfidentialInformationdoesnotincludeanyinformationormaterialgenerallyavailabletothepublic.YouagreethattheexistenceofandthetermsandprovisionsofthisAgreementshallremainandbekeptstrictlyconfidential.Thisconfidentialityprovisionapplies toandexpresslyprohibits all communications to anypersonor entity, including, without limitation, communications to anypresent,formerorfutureCompanyemployee.Referencesto“Company”inthisdefinitionincludetheCompanyandanyaffiliateoftheCompany.

Exhibit 21.1

SUBSIDIARIES OF LENDINGTREE, INC.

NameJurisdiction ofFormation

LendingTree,LLC DETreeBUHoldingCompany,Inc. DEDegreeTree,Inc. DEIronHorseHoldings,LLC DERexfordOfficeHoldings,LLC DEHomeLoanCenter,Inc. CAHLCEscrow,Inc. CALTRealEstate,Inc. DE

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

WeherebyconsenttotheincorporationbyreferenceintheRegistrationStatementonFormS-3(No.333-207718)andonFormS-8(No.333-197952andNo.333-182670) of LendingTree, Inc. of our report datedFebruary 28, 2017 relating to the financial statements andthe effectiveness of internal control over financialreporting,whichappearsinthisForm10-K.

/s/PricewaterhouseCoopersLLP

Charlotte,NorthCarolinaFebruary28,2017

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICERPURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934,AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,DouglasR.Lebda,certifythat:

1.IhavereviewedthisannualreportonForm10-KfortheperiodendedDecember31,2016ofLendingTree,Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethat material informationrelatingtotheregistrant, includingits consolidatedsubsidiaries, is madeknowntousbyothers withinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about theeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely tomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and

5. Theregistrant's othercertifyingofficer(s) andI havedisclosed, basedonourmost recentevaluationofinternal control overfinancial reporting, totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.

Dated:February28,2017

    /s/ DOUGLAS R. LEBDA DouglasR.Lebda

Chairman and Chief Executive Officer(principal executive officer)

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICERPURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934,AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,GabrielDalporto,certifythat:

1. IhavereviewedthisannualreportonForm10-KfortheperiodendedDecember31,2016ofLendingTree,Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethat material informationrelatingtotheregistrant, includingits consolidatedsubsidiaries, is madeknowntousbyothers withinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about theeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely tomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and

5. Theregistrant's othercertifyingofficer(s) andI havedisclosed, basedonourmost recentevaluationofinternal control overfinancial reporting, totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.

Dated:February28,2017

    /s/ GABRIEL DALPORTO GabrielDalporto

Chief Financial Officer(principal financial officer)

Exhibit 32.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICERPURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas R. Lebda, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to myknowledge:

(1) theAnnualReportonForm10-KforthefiscalyearendedDecember31,2016ofLendingTree,Inc.(the"Report")whichthisstatementaccompaniesfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and

(2) theinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsofLendingTree,Inc.

Dated: February28,2017 /s/ DOUGLAS R. LEBDA  

DouglasR.LebdaChairman and Chief Executive Officer

(principal executive officer)

Exhibit 32.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICERPURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I,GabrielDalporto,certify,pursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2002,thattomyknowledge:

(1) theAnnualReportonForm10-KforthefiscalyearendedDecember31,2016ofLendingTree,Inc.(the"Report")whichthisstatementaccompaniesfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and

(2) theinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsofLendingTree,Inc.

Dated: February28,2017 /s/ GABRIEL DALPORTO 

GabrielDalportoChief Financial Officer

(principal financial officer)